Wednesday, November 22, 2006

Germany, Holders Agree on EADS Stake

Associated Press 11.22.06, 7:30 AM ET

The German government has reached an agreement in principle with investors on the country's strategy toward a stake in Airbus parent EADS, and expects the deal's terms to be made public soon, an official said Wednesday.

For weeks, the government has been in talks centering on the fate of a stake in European Aeronautic Defense & Space Co. currently held by DaimlerChrysler AG. The automaker wants to reduce its holding to 15 percent from 22.5 percent - raising concern over how to preserve a delicate French-German balance at EADS.

"The main features of a deal were reached some days ago," Ulrich Wilhelm, a spokesman for German Chancellor Angela Merkel told reporters. "However, there's still the need for further discussion regarding some modalities."

Wilhelm declined to provide any details, or give a specific time frame, but said he is optimistic that the government and investors would jointly make the deal public "soon."

Last week, the government has said that a deal can't be expected before the end of November.

"We are making good progress," Wilhelm said.

The German government had indicated that it was considering buying part of the stake held by DaimlerChrysler through a state-owned bank. However, it has stressed recently that it prefers a solution involving private investors - who have not been identified.

The discussion over the stake comes after Toulouse, France-based Airbus said wiring problems with the flagship A380 superjumbo would delay its delivery by two years and announced a radical restructuring program.

DaimlerChrysler to buy 24 pct stake in China's Beiqi Foton - report

BEIJING (XFN-ASIA) - DaimlerChrysler AG is expected to buy a 24 pct stake in Beiqi Foton Motor Co Ltd (SHA 600166), the 21st Century Business Herald reported.

The newspaper quoted an unidentified source as saying that the Chinese listed company will issue an unspecified number of new shares to DaimlerChrysler.

The deal is expected to give Beiqi access to DaimlerChrysler expertise in heavy-duty truck manufacturing.

The report did not provide further details of the transaction.

Beijing Automotive Industry Holding Co is currently Beiqi Foton's largest shareholder, with a 32 pct stake.

The two sides have been in discussions for some time, the report said. But China's current policy, which allows foreign auto makers to set up at most two passenger-car joint ventures and two commercial-vehicle joint ventures, had prevented the deal from going through, the report said.

DaimlerChrysler has a commercial-vehicle venture, DaimlerChrysler Vans (China) Ltd, with Fujian Motor Industry Group and Taiwan-based China Motor Corp and another China venture, Yaxing Benz Ltd, with Jiangsu Yaxing Motor & Coach Group.

The report said that Jiangsu Yaxing agreed to take over management of Yaxing Benz venture last month, paving the way for the establishment of another DaimlerChrysler commercial-vehicle joint venture.

The deal is subject to approval by regulators, the report said.

Trading in Beiqi Foton shares was suspended from today, pending an announcement.

BMW won't join German carmakers' U.S. diesel push

FRANKFURT, Nov 22 (Reuters) - BMW (BMWG.DE: Quote, Profile, Research) will not join forces with German carmakers Mercedes-Benz (DCXGn.DE: Quote, Profile, Research), Volkswagen (VOWG.DE: Quote, Profile, Research) and Audi (NSUG.DE: Quote, Profile, Research) to market clean diesels in the United States under the BLUETEC name.

While Volkswagen and Mercedes already sell diesels in the U.S. market, BMW has no plans to do so any time soon and declines to use the BLUETEC name, currently being used to help sell Mercedes-Benz E 320s that run on ultra low sulphur diesel in the U.S.

The world's biggest premium carmaker, a fierce rival of DaimlerChrysler's luxury Mercedes brand, first wants to develop a urea-based technology to reduce nitrogen oxides before considering a sustained entry into the U.S. diesel market.

"We are in the process of thinking of a name that is different from BLUETEC," a spokesman for BMW said on Wednesday.

Helped by diesel fuel subsidies, diesels make up around half of the western European car market but traditionally they have been a tough sell for passenger cars in the U.S.

Widespread misperceptions of diesels as dirty and loud, regulatory hurdles and diesels' extra expense -- they cost around $2,000 more than petrol engines -- have limited their appeal in the past.

But last month's advent of diesel fuel in the U.S. with a low sulphur content of just 15 parts per million has opened a window for carmakers to highlight diesel's far better fuel economy and robust towing power. Diesels typically get around 30 percent better mileage than petrol engines.

Volkswagen, Audi and Mercedes consequently want to push diesels under the BLUETEC name as an alternative technology to counter the success of Toyota's hybrids.

"Three brands have more power," a Volkswagen spokesman said on Wednesday, adding Mercedes' sister brand Chrysler would also join the alliance at a later date.

A formal announcement was due on Nov. 28 ahead of the Los Angeles car show.

Developed by Mercedes-Benz and diesel injection system specialist Bosch [ROBG.UL], BLUETEC with AdBlue lets cars meet the stringent U.S. emissions norm, Bin 5, which goes into effect in 2009.

Due in 2008, the AdBlue system uses urea-based additives to cut nitrogen oxide emissions and thus meet clean air rules in all 50 U.S. states.

DaimlerChrysler Unit Tax Appeal Denied

Associated Press

Associated Press 11.22.06, 3:20 PM ET Wisconsin state appeals court ruled Wednesday that a DaimlerChrysler AG unit can't count sales tax from bad financing contracts as a tax deduction, .

The court said DaimlerChrysler (nyse: DCX - news - people ) Services North America was not entitled to the deduction because car dealers paid the sales tax to the Department of Revenue, not the company, according to court documents.

DaimlerChrysler Services North America, the financial division of Auburn Hills-Mich.-based DaimlerChrysler AG, claimed it paid the sales taxes.

Court records said dealers sold the purchasers' installment contracts to the company, but dealers in fact paid the state sales tax. The company paid the dealers the full amount of the contracts, including sales tax.

Purchasers then pay a portion of the sales tax each time they make a loan payment.

Previously, DaimlerChrysler asked the Department of Revenue for permission to deduct proportional shares of sales tax when customers defaulted on loans, but the department denied the claim. The company appealed to the Tax Appeals Commission, which agreed with the department.

A DaimlerChrysler spokesman didn't immediately return a call for comment.

DaimlerChrysler shares rose 46 cents to $60.57 in afternoon trading on the New York Stock Exchange.

Next gen 300 is coming based on this design cue

Get Your Checkbooks Handy: CL-Class Added To Mercedes-Benz USA Website

Posted November 22nd, 2006 At 7:55 AM CST


Exterior view of the 2007 Mercedes-Benz CL550 Coupe, side shot

To those of you in the market for Mercedes' newest flagship luxury coupe, two gracious readers by the name of Cameron and Marvin were kind of enough to point out the fact that finally, after months of patiently waiting, the CL-Class has finally been added to Mercedes-Benz USA's website.

Although the "Build Your Own" function is currently MIA, pricing for the CL550 has been released ($100,675), along with photos, features, specs... the usual.

To learn more, head over to MBUSA.com's main page or jump straight to the CL550 or CL600 sections.

And to Cameron and Marvin: thanks for the tip gentlemen; we truly appreciate it.

Visionary plan to import Chinese cars derailed

As you may know, legendary automotive entrepreneur Malcolm Bricklin recently set up Visionary Vehicles in order to bring low-priced Chery cars from China to the U.S.

Autoweek now reports that this project seems to have gone south, as Chery has announced plans to work with several automakers, notably:

Autoweek says that Chery may have broken off talks with Visionary because DaimlerChrysler will be importing several Chery models, branded as Dodges, to the U.S.
Visionary's revised plan is to design its own models, manufacture them in China, and sell them in the U.S. Possible candidates: Chery, First Automobile Works, Shanghai Automotive, and Geely.

Jeep takes a giant leap forward

After years of serious 4x4s, the marque is driving into the fickle lifestyle market, says Danny Cobbs
22 November 2006

Specifications

Model: Jeep Compass Rallye 5-door SUV
Price: £18,995
Engine: 1,968cc, 4 cylinder, 16 valves/in-line DOHC, turbo
Maximum power: 140 bhp @ 4,000 rpm.
Maximum torque: 229 lb ft @ 1,750-2,500 rpm
Performance: 117mph; 0 to 60mph in 11 secs; 43.5 mpg
CO2: 177g/km

BELFAST IRELAND | TIMES - - Just when you thought reality TV had exhausted itself, along comes another series of The X Factor. Hundreds of thousands of hopefuls vying for their 15 minutes of fame, only to have their dreams shot down by a SAM missile otherwise known as Cowell, Osbourne and Walsh.

I can see why these shows draw millions of viewers. We like to have a belly laugh at someone else's expense. It makes us feel better about ourselves and less inadequate when we see talentless wannabes believing they'll "go platinum" before the end of the year.

Heaven forbid I'd consider myself as acid-tongued as the high-waisted Mr Cowell, but to a lesser extent my job is to judge and give constructive criticism on new cars. Car manufacturers are nothing more than enthusiastic parents with the immovable faith that their child can go straight in at No 1.

Recently, I was the only UK journo invited to go behind the wheel of the all-new Jeep Compass months before its official British launch date. This is similar to someone phoning up Pete Waterman, excitingly explaining they've found the new Kylie and does he want to produce her.

Hype is well and good if it can match the promised talent. I've heard countless times such-and-such a car will revolutionise the industry, but invariably it's one-hit wonder and ends up languishing in the bargain bin with the likes of Gareth Gates and Steve Brookstein. The press blurb was full of the customary PR flowery claptrap, yet after driving the Focus-sized Compass, the reality soon became clear: it was just as good, if not better, than described.

Based on the Dodge Caliber platform, the Compass is a huge, nay, gigantic leap forward for Jeep. It has always been at the serious end of the 4x4 market - the U2s if you like, but now the gloves are off. By entering the fickle SUV arena, Jeep is courageously going head-to-head with cheaper and smaller imitations of its own 65 years of handiwork - expect some blood on the carpet. It's not going to have mass appeal, but for those looking for a fuel-efficient (more than 40 mpg) compact SUV, the Compass offers a credible alternative with a formidable pedigree.

Before you start thinking I've gone soft and shown my hand too early, wait a minute. There's one minor point that can't be overlooked. The styling. From every angle other than side profile it looks the part - chunky and purposeful with the Jeep signature seven-slot grille. However, side-on the basic version has the look of a Vietnamese potbellied pig. Perhaps I'm being over picky because the blinged-up, beefier, one-trim Rallye version we'll be getting over here seems less pot-bellyish in comparison.

When it's launched in spring, there will be a 2.4-litre petrol engine. However, my test vehicle had the same VW-sourced, 2.0-litre diesel found in the Caliber, mated to a six-speed manual transmission. Despite the extra weight from the part-time, four-wheel system, it still felt amply capable for the job in hand.

No, it will never set your hair on fire with its speed, but its driving characteristics err more towards those of a car than an SUV, and this is the crux. It would have been easy for Jeep to make this model a Mini-Me of the Cherokee, but it hasn't. The Compass is for a lifestyle market.

The rufty-tufty image is there and it has a four-wheel-drive system to match, but I'll bet the majority of its owners will never get the tyres dirty. So does Jeep. That's why it has put as much effort into cabin adornments as into the powertrain. Straight out of the Caliber are the speakers, which swing down from the tailgate, a dual-purpose rechargeable torch above the cavernous cargo area and a flip pocket in the armrest for an iPod or mobile. These touches add to what is already a very pleasing and spacious interior.

So far the Compass has passed its first audition based on looks, sub-£20,000 price, on and off road manners and accommodation. The next step is boot camp, where it will be put against other hopefuls such as the soon-to-be launched new Land Rover Freelander and revamped Kia Sorrento.

The Compass has as much chance, if not more, of making it to the finals. Whether it can become the winner only time will tell. But given the achievement of previous runners-up, second isn't such a terrible place to finish. Ask Lemar.

Tuesday, November 21, 2006

2007 Chrysler Debue at Detroit North America Auto Show

Chrysler Group has provided a few hints – sketches be released later – on two concept vehicles that will
make their worldwide debut in Detroit.

The Jeep Trailhawk concept, according to Chrysler, “merges the spectrum of the Jeep brand by combining
the core features of the Jeep Wrangler with the refined sophistication of the Jeep Grand Cherokee.”
Derived from the new Wrangler architecture, the Trailhawk concept features a new approach to open-
freedom. The four-door open-air experience is designed around a rigid sport-bar system that features a central spine with removable glass panels. The rear skylight and hingedbacklight are also removable.

The Trailhawk is powered by a 3.0-liter V6 diesel engine and outfitted with upgraded four-wheel-drive hardware. Its name and headlamps are inspired by the bird of prey of the same name.

The Chrysler Nassau concept is a four-door, four-passenger luxury coupe powered by a 6.1-liter Hemi V8 and riding on the Chrysler SRT-8 SLA suspension. Its silhouette recalls the classic “shooting break” but with SUV-like interior volume.

The exterior design is fluid, artistic and sophisticated with an athletic stance. The interior has a flowing, seamless sculptured look of leather and fabrics derived from classic architectural interiors. The instrument panel is a showcase of new technologies in data display, personal control interface and home theatre-inspired
entertainment.

This Day in Auto History: 21 NOVEMBER

Automobile Quarterly
This Day in Auto History:

11.21.1903
John Wallace Raisbeck of American Motors is born in Coronel, Chile
11.21.1919
The Fox Motor Company is organized in Philadelphia, PA by Ansley H. Fox, inventor of the Fox shotgun
11.21.1937
Howard E. Coffin, Vice President and Chief Engineer of the Hudson Motor Car Company 1909-1930, is killed at age 64 by an accidental gunshot wound in Sea Island Beach, GA
11.21.1951
Racer Carlos Panini is killed near Oaxaca, Mexico during the Pan-American Road Race
11.21.1962
Irving R. Bacon, an artist who was the “court painter” for Henry Ford, dies in El Cajon, CA at age 86

Source: Automobile History Day By Day, by Douglas A. Wick

Covetable 'Cuda

1121vow_400x280.jpg

FORBES | Dan Lienert, 11.21.06, 12:01 AM ET

One of the world's rarest cars, a 1971 Plymouth Hemi Barracuda convertible, could fetch over $4 million at auction.

Huge, honking, American classic cars have a rabid following. That's in part because of patriotism, America's former dominance of the auto industry and other factors, such as the sheer size of the United States, which has made it easy to drive any size car you like.

The wide variety of big, classic American cars also helps foster enthusiasm. You can choose between flashy Cadillacs; old-school, tank-like Packards; elegant Cords and Auburns of the 1930s; vintage Jeeps; swanky sedans of the late '40s and '50s; Corvettes; Thunderbirds; menacing Lincoln Continentals; '50s cars with fins; '60s cars with suicide doors; '70s you-know-what-mobiles; Vipers; Escalades--you name it. Or, like us, you can appreciate all of these cars.

But of all the classics, the "pony cars" of the late 1960s and '70s--affordable performance vehicles such as Ford Motor's (nyse: F - news - people ) Mustang and General Motors' (nyse: GM - news - people ) Chevrolet Camaro--have perhaps more fans than any others. One of these muscle cars, Plymouth's 1971 Hemi Barracuda convertible, is exceedingly rare and incredibly expensive; it is perhaps the most sought-after muscle car, which would make it a candidate for the most sought-after American car overall.

Plymouth only built 11 Hemi 'Cuda convertibles, and Canada's RM Auctions will offer one in January at its annual "Vintage Motor Cars in Arizona" auction in Phoenix. The car's estimated value is over $4 million--not a bad return, considering it sold for $5,000 in 1971.

The Barracuda of model years 1970 to 1974 and its near twin, Dodge's Challenger, were answers to the Mustang and Camaro. But the Plymouth and Dodge pony cars came late to the party, could not match the sales of their competitors and were off the market after model year 1974.

The Barracuda and Challenger are perhaps the sexiest pony cars, largely because of their stylish front ends with partially hidden headlights. The 1971 Hemi 'Cuda convertible is so desirable because of a combination of looks, rarity and top-of-the-line performance chops. It features a 7.0-liter, 425-horsepower V-8 engine, a distant relative of the early aircraft engines Chrysler built during World War II and a forerunner of today's well-known Hemi power plants.

RM's 'Cuda has only 282 miles on it and comes with a complete history and factory documentation. Of the 11 Hemi 'Cuda convertibles, RM's car is one of only three with the desirable four-speed manual transmission. This is the first time the car has been offered for auction.

Declining sales and concerns about insurance and warranties for such a powerful performer doomed the Hemi 'Cuda convertible. For model year 1972, Plymouth killed both the 'Cuda convertible and the 'Cuda's Hemi option.

Forbes Fact

Other multimillion-dollar automobiles at RM's annual Arizona event will include a 1963 Aston Martin DB4 GT, a 1938 Duesenberg Model SJ limousine, a 1938 Mercedes- Benz 540K Special Tourer, a 1903 Ford Model A--the third car built by Henry Ford himself and the oldest remaining in existence--and a 1942 Lincoln Presidential Limousine built for Franklin Roosevelt and subsequently used by Harry Truman

Daimler accelerates plans for China

Chrysler Group chief executive Tom LaSorda said, 'we need to move into regional markets where the low-cost supply base is.'
Chrysler Group chief executive Tom LaSorda said, 'we need to move into regional markets where the low-cost supply base is.'
Photograph by : Claro Cortes IV, Reuters
Chris Vander Doelen, The Windsor Star |Published: Tuesday, November 21, 2006

BEIJING - DaimlerChrysler AG will start assembling minivans in China next year and intends to start importing "billions" of dollars worth of Chinese parts into North America, says president and CEO Tom LaSorda.

Production of the Chrysler 300C sedan was launched here a few weeks ago in a new plant Chrysler has just built on the outskirts of the national capital with Mercedes and a Chinese government partner.

After testing the waters for several years, DaimlerChrysler is jumping into the Chinese marketplace with both feet, accelerating plans to build a wide range of its products here from locally produced parts.

"We need to move into regional markets where the low-cost supply base is," Mr. LaSorda said.

Chrysler's Chinese minivan "will be the same product we produce today" in three plants in North America and Germany, he said. "But it will be produced in China for China."

The company must expand production and sales outside North America, which accounts for 80 per cent of current operations, he said.

The minivans will be followed by Chinese-built versions of the latest new Jeeps, a "Sebring-sized" sedan that will probably be the Dodge Avenger, and other vehicles, Mr. LaSorda said.

Cars that don't contain about 85 per cent locally sourced parts in China are saddled with a 25-per-cent import duty.

The tax effectively takes those products out of contention in this hyper-competitive marketplace, which soon will be the world's largest and therefore the most influential.

By building cars in China with Chinese parts, Chrysler hopes to triple last year's sales of 25,000 vehicles so it can move out of the fringes of this seven-million-unit-per-year market and into the mainstream.

There is no word yet on which company Chrysler will choose to build the Dodge Hornet, a planned attempt to crack the booming worldwide market for low-cost, entry-level compact cars.

NOVEMBER 21st list DAILY Entry sweepstakes

2006-11-30 WIN A 2005 Chrysler Crossfire Coupe Limited Drive to Inspiration Sweepstakes. $ 2006-12-01 4X EACH DAY WITH THREE CORRECT ANSWERS three (3) vehicles a 2007 Saab 9-3 2.0T Sports Sedan, a 2007 Chevy Aveo LT 4 Door, 2007 Pontiac ...
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Redesigned 2008 Chrysler Town and Country caught

VIDEO: http://www.edmunds.com/insideline/do/GeneralFuture/articleId=117624?tid=edmunds.il.home.photopanel..2.*&imw=Y

Date posted: 11-21-2006

Caught during their final stages of prototype testing, the 2008 Chrysler Town and Country minivan will feature an extensive redesign which favors boxier styling over the current model's more streamlined look. The new Town and Country will be joined by a redesigned 2008 Dodge Grand Caravan, a popular duo that still rules the minivan sales charts.

Although covered in extensive camouflage, there are still plenty of changes visible on this new Chrysler minivan. Most notable are the large second-row side windows which look as though they can be rolled down. This is one of the few highly sought-after features not offered by the current Chrysler vans.

This next-generation Chrysler van doesn't look considerably bigger than the current model, but its tall, square design should open up additional passenger space inside. We expect to see the popular Stow 'n Go seat system remain, and top-of-the-line models may get a system with power seats that fold at the touch of a button.

Current Chrysler vans offer two different V6s, but we expect these new models to switch to a single-engine configuration featuring the company's new 4.0-liter V6 coupled to a six-speed automatic transmission. With 255 horsepower and 265 pound-feet of torque, the V6 should give the Town and Country solid performance on par with the current class leaders.

What little we saw of this prototype's interior showed a typical minivan layout. Functionality is the key as there are lots of storage spaces as well as a new console-mounted shifter next to the steering wheel. Chrysler's new corporate stereo unit sits on top of the center stack so we can expect DVD navigation and a 20G hard drive to be on the options list.

Look for an official unveil of both the 2008 Chrysler Town and Country and the 2008 Dodge Grand Caravan at the 2007 Detroit Auto Show in January with sales beginning next fall.


2008 Chrysler Town and Country - Front

(Enlarge photo)
Forget the streamlined, jellybean look of the current Chrysler Town and Country, as the next-generation model will get a much boxier overall shape. (Photo courtesy of KGP Photography)

2008 Chrysler Town and Country - Rear

(Enlarge photo)
Although some computer enhancement was used to remove some of the camouflage, this is pretty close to what the final production version will look like. Tall rear end should give even the third-row seats a spacious feel. (Photo courtesy of KGP Photography)

2008 Chrysler Town and Country - Interior

(Enlarge photo)
Although clearly unfinished, the interior of this prototype shows a few important details. Most notable is the switch to a console-mounted shifter to the right of the steering wheel. Also note the upright seating position and extensive storage space in the center stack. (Photo courtesy of KGP Photography)

2008 Chrysler Town and Country - Front

(Enlarge photo)
Forget the streamlined, jellybean look of the current Chrysler Town and Country, as the next-generation model will get a much boxier overall shape. (Photo courtesy of KGP Photography)

2008 Chrysler Town and Country - Rear

(Enlarge photo)
Although some computer enhancement was used to remove some of the camouflage, this is pretty close to what the final production version will look like. Tall rear end should give even the third-row seats a spacious feel. (Photo courtesy of KGP Photography)

2008 Chrysler Town and Country - Interior

(Enlarge photo)
Although clearly unfinished, the interior of this prototype shows a few important details. Most notable is the switch to a console-mounted shifter to the right of the steering wheel. Also note the upright seating position and extensive storage space in the center stack. (Photo courtesy of KGP Photography)

Chrysler's futuristic Airflow introduced aerodynamic shapes to a skeptical public



Browse or buy photos...
The chrome ìwaterfallî grille of this 1934 Chrysler Airflow reflects the brandís design heritage.



Controversy can be stimulating, except when it comes to building and selling cars.
Walter P. Chrysler found out the hard way in 1934 when he introduced his radically styled Chrysler and DeSoto Airflow coupes and sedans. In so doing, he broke with established design convention and injured the bottom line of his company.
Today, these quaint museum-quality antiques don't appear particularly exceptional or avant-garde, they just look, well, old. However, compared to other vehicles built during the same era, the Airflow was as ground-breaking as they come.
It was Chrysler's chief designer, Carl Breer, who came up with the idea of reducing wind resistance in automobiles after observing birds and aircraft in flight. The result, he believed, would be a car that would look smarter, go faster and consume less fuel than 'normal' looking vehicles. Chrysler also hoped that the Airflow would be the kind of breakthrough machine needed to vault his company out of the middle of the pack and into a much stronger sales position.
After consulting with no less a luminary as Orville Wright, who, with his brother Wilbur, had been the first to successfully achieve powered flight, Breer and a small group of associates began secretly testing different shapes in a full-scale wind tunnel that Chrysler had constructed at his company's research center.
One of the revelations garnered in the wind tunnel was that automobiles of the late 1920s and early 1930s were far more aerodynamic backing up than moving forward. This ultimately led to a smoother front-end design containing a rounded (instead of upright) grille and headlights slotted into the fenders instead of the traditional method of perching them on top. At the rear, full fender skirts and a tapered back-end helped reduce drag, adding to the car's slippery silhouette.
Engineering advancements that went into the Airflow's development included reversing the weight distribution — traditionally around 45/55 front/rear at the time — by shifting part of the engine over the front wheels and moving the rear seat ahead of the rear axle. This adjustment kept the front of the car more firmly planted at highway speeds, significantly improved ride quality and resulted in more spacious seating.
The methods developed to construct the Airflow were also ahead of their time. Traditional body-on-frame construction was abandoned in favor of a space frame upon which the body panels were welded in place. This system didn't reduce weight, but it made the body significantly more rigid than previous models.
All Airflows were originally destined to carry the DeSoto label, but company founder Walter P. not only insisted the Chrysler brand name be used, but that the Airflow be fitted with a more powerful eight-cylinder engine. As well, Chrysler ordered that the cars be sold in a variety of wheelbases and that a line of opulently dressed Chrysler Custom Imperial limousine versions be built.
Meanwhile, the mid-priced DeSoto Airflow was offered in one standard wheelbase and was powered by a more modest six-cylinder motor.
After a six-year development period and rigorous testing (including speed and durability runs at the Bonneville Salt Flats in Utah), the Airflow was finally unveiled at the 1934 New York Auto Show. Prices ranged from $1,000 for the base DeSoto version, all the way up to $5,000 for the stretched Imperial limousine.
Initially, the public response was extremely favorable, even though reviews in the press were lukewarm at best. But when the anticipated surge in sales failed to materialize, design changes were quickly implemented for the following year. In a major about-face, the Airflow's rounded nose was replaced by a more traditional looking pointed grille in an upright position.
Given its high expectations, the Chrysler/DeSoto Airflow four-year sales total of around 55,000 was considered a failure. Only a few years later, the public would come to embrace many of the engineering and styling advances pioneered by these exceptionally sturdy and surprisingly quick automobiles.
For Chrysler and its Airflow, the future, it seemed, would just have to wait.


2007 Chrysler 300 CRD

300 Blogsite - - If you are in France you could have a 300 CRD (common-rail diesel) with a Mercedes-Benz a 215-hp, turbocharged and intercooled, 3.0-liter diesel V-6. With 376 lb-ft of torque, just 11 lb-ft less than the 5.7-liter Hemi V-8, this engine propels the 300 to 62 mph in 7.6 seconds, only 1.2 seconds slower than the Hemi. And it returns an average of 29 mpg when cruising at 80 mph. Unfortunately, the 300C CRD isn't offered in America. The diesel's abundant torque, available from idle, means that the car always feels lively. The 300C CRD's top speed is 141 mph-WOW !
via automobilemag

Monday, November 20, 2006

Making luxury cars in China

Beijingautoshow_021

Beijingautoshow_012 The annual auto show in China is one of the major automotive exhibits in the world today, up there with Detroit, Frankfurt and Tokyo. It opened to journalists this morning, and I went to hear what some global auto executives had to say.

You can see Dieter Zetsche, the Daimler Chrysler chairman, in the photo above, posing with an opera singer who descended from a luxury Maybach sedan.

Zetsche, like other global execs, was busy pointing how many of their models are now produced or assembled in China.

The company’s Mercedes Benz E-class sedans are now manufactured here.

“We built a state-of-the-art plant together with our partners in Beijing,” Zetsche said, adding that he sees the premium auto market growing threefold in China in the next three years.

Earlier, Tom LaSorda, Chrysler’s chief executive, told a small group of us that his company began assembling local versions of the Chrysler 300 C luxury sedan last week.

Lasorda also said Chrysler will decide “by the end of the year” whether to go with Chinese manufacturer Chery Automotive or another unnamed non-U.S. manufacturer to produce a lower-cost car, rather than producing itself in the U.S. market.

That’s another sign of the huge pressure on U.S. automotive companies. One reporter asked LaSorda if he’ll feel a lot of pressure to come up with a turn-around plan before a Daimler Chrysler board meeting in late December.

He chuckled. “I don’t need to wait for the fourth quarter to feel pressure. I feel pressure every day,” he said. Other executives around the table laughed nervously.

2006-11-20 14:38 (Mb 5.8) SOUTHERN PERU -17.6 -70.1


== PRELIMINARY EARTHQUAKE REPORT ==

Region: SOUTHERN PERU
Geographic coordinates: 17.583S, 70.059W
Magnitude: 5.8 Mb
Depth: 35 km
Universal Time (UTC): 20 Nov 2006 14:38:27
Time near the Epicenter: 20 Nov 2006 09:38:27
Local time in your area: 20 Nov 2006 14:38:27

Location with respect to nearby cities:
51 km (31 miles) NNE (24 degrees) of Tacna, Peru
102 km (63 miles) ESE (115 degrees) of Moquegua, Peru
106 km (66 miles) NNE (16 degrees) of Arica, Chile
967 km (601 miles) SE (130 degrees) of LIMA, Peru

ADDITIONAL EARTHQUAKE PARAMETERS
________________________________
event ID : US vha3

This event has been reviewed by a seismologist at NEIC For subsequent updates, maps, and technical information, see:
http://earthquake.usgs.gov/eqcenter/recenteqsww/Quakes/usvha3.php

2007 Jeep Wrangler Sahara 4x4 Review

PHOTO (select to view enlarged photo)
2007 Jeep Wrangler (Unlimited Shown)
DRIVING DOWN THE ROAD
WITH CAREY RUSS

2007 Jeep Wrangler Sahara 4x4

The Jeep Wrangler is a true American icon, with an identity that dates back to the Willys MB of the World War II era, and continued through the Jeep CJ. It gets its most significant update ever for 2007, and is larger, more comfortable, and more capable both on or off of pavement. For the first time in its existence, it's almost civilized. Almost. While it is notably quieter and more comfortable, with much-improved ride and handling characteristics and a new, smoother and more powerful and efficient V6 engine, it's also even more capable when the pavement runs out, and has not lost its essential character. As ever, the all-new 2007 Wrangler is a rugged body-on-frame machine with solid axles front and rear and and available dual-range four-wheel drive made for the toughest off-road conditions. It is first and foremost one of the best turnkey off-road vehicles ever made, and is meant to be completely at home far from civilization.

But now it's also comfortable in civilization. And this improved comfort comes with no diminution of its off-road abilities. The wheels and tires are larger, improving ground clearance, and both the axles and the four-wheel drive systems have been upgraded. Brakes are four-wheel discs. The windshield can still be folded flat, and the doors can be removed, but both the standard soft top and optional hard top have been improved for versatility and noise reduction. For the first time, power windows are available. What's next? Wood trim that's not something left over from last summer's trip to the mountains that was wedged too deep into the front fender to remove?

There are three models in the 2007 Wrangler lineup - the X, Sahara, and Rubicon. The bare-bones, just-go-get-dirty market is covered by the X, the Sahara adds considerable creature comforts, and the Rubicon adds the ultimate in off-road equipment, with heavy-duty axles, remote-locking front and rear differentials, an electronic sway bar disconnect system to increase articulation, an ultra low-geared 4WD transfer case, and larger-diameter tires as standard equipment. All are powered by the new 3.8-liter, 205-horsepower V6 engine, matched to a standard six-speed manual or four-speed automatic transmission.

After spending a week with a new Wrangler Sahara with all the civilized options - including the modular hardtop and power windows in full-height doors - I was seriously surprised. With no loss of character, the new Wrangler is actually comfortable on the highway, and cruised quietly at normal highway speeds. Only occasionally did I wish for a kidney belt, and that was more the fault of my state's lack of highway maintenance than any deficiency on the Wrangler's part. At lower speeds on broken asphalt and concrete it was fine, so it, and its occupants, should be deliriously happy on slickrock or while stumpjumping. It still won't be mistaken for a car, or a crossover, and that's how it should be. But driving a Wrangler on the highway or in the city is no longer punishing.

APPEARANCE: It's noticeably bigger in every dimension, but the new Wrangler is still undeniably a Jeep Wrangler. Seven-slot grille? Check. Round headlights? Check. Angular, trapezoidal fenders? Check. Fold-flat windscreen? Check, but now it's slightly curved instead of flat. Exposed door hinges? Check, but now the door come in full-height form, with roll-up or even power windows, although half-height doors with side curtains can still be had if the hard top is not specified. There is a full "sport bar" roll cage, padded, under the top. The Sahara has body-colored fenders, while those of the X and Rubicon are black.

COMFORT: Compared to any of its predecessors, the 2007 Wrangler is a luxury vehicle. Ok, compared to a real luxury vehicle, not even... but the new Wrangler is larger, quieter (at least with the hardtop), and smoother-riding than any to come before. The front bucket seats provide a high level of comfort and support, and the rear bench has noticeably more room than in older models - and if even more room is desired, there's always the four-door Unlimited version. In all, the rear seat folds and tumbles for cargo. A six-speaker AM/FM/CD/MP3CD audio system with a jack for an external MP3 player is standard in all models, with upgrades and Sirius satellite radio available. The instrument panel is actually styled and modern-looking. My test vehicle had the optional "Freedom Top" three-piece modular hardtop. It was snug, warm, and dry in the rain, and remarkably quiet. The sections over the front seat can be removed separately, as can the rear. With its flip-up heated backlight and the regular side-hinged tailgate, cargo access is easy.

SAFETY: Go anywhere, do anything - safely. The new Wrangler has all of the safety equipment expected of a car, with touches for off-road use. This includes multi-stage front airbags, and available seat-mounted side airbags, four-wheel antilock disc brakes with brake assist, the ESP electronic stability system, electronic roll mitigation, all-speed traction control, and brake lock differentials.

RIDE AND HANDLING: Although "car-like" is never going to be used to describe a Wrangler's ride quality, the new version is a massive improvement over any that have come before. It's quiet, composed, and, if the road surface is not too choppy, even comfortable at speed on the highway. Credit the new and considerably more rigid ladder frame and attached body structure for that, as they allow softer spring rates and greater suspension travel. But shock damping is dialed in correctly, so it never feels uncontrolled. The longer wheelbase and wider track further improve stability. Only at speed over choppy concrete highway sections just long enough to set up resonance in the Wrangler's suspension did I feel a little uncomfortable, and that was at 70mph, a speed that would have been distinctly uncomfortable on any surface in an earlier Wrangler. With clearance, approach, and departure angles meant for the most serious off-road use, everyday annoyances like bad pavement, potholes, steep driveways, and rolled curbs can be safely ignored - or considered part of the fun.

PERFORMANCE: The extra room is nice, the improved suspension is wonderful, but perhaps the most impressive change to the Wrangler is under its simply-curved hood. Gone is the venerable Jeep 4.0-liter inline-six, replaced by a new 3.8-liter V6 that, with 205 horsepower (at 5200 rpm) and 237 lb-ft of torque (at 4000 rpm), offers increased power and decreased fuel consumption. EPA figures are 16 mpg city, 19 highway, but according to the trip computer, I averaged nearly 19 mpg in mixed driving - and saw over 20 on the highway. A six-speed manual transmission is standard, but my test example had the optional four-speed automatic. It worked well. I didn't have chance to do any off-roading (unless you want to consider the state of some alleged pavement in my part of the world "off road" - I've driven on smoother dirt fire trails), but when extra traction is needed, a Wrangler 4x4 will not disappoint. There are two four-wheel drive systems, both of the traditional part-time variety and controlled by a lever in the console. The "Command Trac" in the X and Sahara has a 2.72:1 4-low ratio, and with the optional "TracLoc" limited-slip rear differential should get a Wrangler though almost anything. If that's not serious enough, the Rubicon can be outfitted with the "Rock-Trac" transfer case with a 4.0:1 low ratio that should be sufficient for anything not requiring a winch or large helicopter.

CONCLUSIONS: Jeep has improved its iconic Wrangler in every way, with no loss of character.

SPECIFICATIONS

2007 Jeep Wrangler Sahara 4x4

Base Price $ 22,870
Price As Tested $ 28,230
Engine Type pushrod overhead valve 12-valve V6
Engine Size 3.8 liters / 231 cu. in.
Horsepower 205 @ 5200 rpm
Torque (lb-ft) 237 @ 4000 rpm
Transmission 4-speed automatic (opt)
Wheelbase / Length 95.4 in. / 152.8 in.
Curb Weight 3976 lbs.
Pounds Per Horsepower 19.4
Fuel Capacity n/a gal.
Fuel Requirement 87 octane unleaded regular gasoline
Tires 255/70 R18 Bridgestone Dueler A/T (opt)
Brakes, front/rear vented disc / solid disc,
ABS and ESP standard
Suspension, front/rear live axle, leading arm location
and coil springs /
live axle, trailing arm location
and coil springs
Ground clearance 10.3 inches as equipped
Drivetrain longitudinal front engine, on-demand
dual-range four-wheel drive

PERFORMANCE
EPA Fuel Economy - miles per gallon
city / highway / observed 16 / 19 / 19
0 to 60 mph est 10 sec

OPTIONS AND CHARGES
Dual Top Group - includes:
Freedom Top(tm) 3-piece modular hard top,
rear window wiper, washer, defroster $ 1,585
Trailer Tow Group - includes:
Class II receiver hitch, delete rear tow hook,
trailer tow with 4-pin connector wiring $ 220
Power Convenience Group - includes:
power windows, power locks, remote keyless entry,
security alarm $ 585
Supplemental side front seat air bags $ 490
4-speed automatic transmission (includes skid plate,
4.10 axle ratio) $ 825
TracLoc(r) limited-slip rear differential and
Dana 44 heavy-duty rear axle $ 285
AM/FM stereo with in-dash 6-disc CD/DVD/MP3 $ 350
Sirius satellite radio $ 195
18-inch aluminum wheels $ 165
Destination charge $ 660

This Day in Auto History: 20 November 2006

Automobile Quarterly
This Day in Auto History:

11.20.1919
The 20,000th Essex, a 2-passenger roadster, is produced
11.20.1935
Harold E. Larsen of the Timken-Detroit Axle Company dies in San Mateo, CA
11.20.1951
The Kaiser-Frzer Corporation and Sears, Roebuck & Company agree to produce and market a variant of the Henry J through Sears as a new marque, the Allstate
11.20.1953
The last 1953 Pontiac is produced - the division officially drops the Sedan Delivery body style
11.20.1959
The British Ford Anglia is introduced to the United States market

Source: Automobile History Day By Day, by Douglas A. Wick

Face it, Joe, you have a problem with dealers

David Sedgwick is the editor of Automotive News.
David Sedgwick | | Automotive News / November 20, 2006 - 1:00 am BEIJING -- OK, let's kill some rumors:

  • The Chrysler group is not for sale.

  • The company's unsold inventory of cars and trucks is not unduly bloated.

  • Dealers are not in open revolt against the automakers' tactics to pressure them to order more vehicles.

  • Chrysler did not aggressively prop up production to make Dieter Zetsche look good when he campaigned last year to become DaimlerChrysler's CEO.

  • Chrysler isn't propping up its vehicle sales with big shipments to daily rental fleets.


After a testy interview in Beijing last week with Chrysler group CEO Tom LaSorda and sales chief Joe Eberhardt, I'm willing to accept four of the five statements above.

But I know for a stone-cold fact that at least one of those statements isn't true. Dealers really are in revolt against the company's heavy-handed pressure tactics, and it's going to cost Chrysler dearly in months to come.

Dealers have told Automotive News that Chrysler has shipped them unordered vehicles.

Others say they receive poorly equipped vehicles such as "stripper" Grand Cherokees that are inexplicably equipped with V-8 engines or "loaded" Chrysler Aspens with no onboard navigators.



The Chrysler group's Joe Eberhardt, shown in a January photo, says of his unhappy dealers: "I certainly would not call it a revolt."
Photo credit: JOE WILSSENS
For the record, the Chrysler group's U.S. inventories are at about 509,000 units, down from about 648,000 units in June. Eberhardt says Chrysler's sales bank of unordered vehicles -- those notorious "fence" cars -- will be gone by year end.

And LaSorda adds that he'll have a corporate turnaround plan ready by the end of the first quarter.

I wish I could say that I feel reassured, but I don't. Many dealers have told us that such tried-and-true sales tactics as 0 percent financing and big rebates don't seem to work anymore. It's as if they were pushing on a string.

When Eberhardt calls on them to step up and order more cars, they are taking a pass.

"Among 4,000 dealers, you can always find a few that aren't happy," he said during an interview in a meeting room at the St. Regis Hotel here. "You shouldn't be surprised that there is some pushback. … The mood among (most) dealers is that we want to work through this together. … I certainly would not call it a revolt."

It's a revolt, Joe. Trust me.

Chrysler pulls plug on Pacifica re-do


Bradford Wernle | | Automotive News / November 20, 2006 - 1:00 am DETROIT -- The Chrysler group has stopped work on the next-generation Pacifica, but the company is still committed to large crossovers.

Analysts who monitor vehicle programs have pulled the Pacifica replacement, code-named CT, out of their forecasts. It was due in 2008 as a 2009 model.

But a Chrysler official who declined to be identified said the company still plans a large crossover.

"We are looking at what we ought to do with the next-generation vehicle," the official said.

"The Pacifica never was the segment-buster the PT Cruiser is," says Catherine Madden, an analyst for Global Insight in Lexington, Mass.

Jim Sanfilippo, an analyst at Automotive Marketing Consultants Inc. in suburban Detroit, said killing the CT program may mean Chrysler realized it needed something bolder, especially with three General Motors crossovers coming soon: the Buick Enclave, Saturn Outlook and GMC Acadia.

Jeff Schuster, an analyst for the Power Information Network, says Chrysler may be steering toward a two-crossover strategy: The PV Cruiser, a replacement for the PT Cruiser based on the same GS platform as the Dodge Caliber and Jeep Compass; and the JZ49, due in 2008 and built on the Sebring platform.

Chrysler introduced the Pacifica in April 2003. It peaked in 2004, with 92,363 units sold. All told, Chrysler has sold 301,039 through October of this year.

VW wants Bernhard to stay



German news media speculated last week that Wolfgang Bernhard, shown, would leave Volkswagen following the departure this month of former CEO Bernd Pischetsrieder, who lost his job in a power struggle.


Carmaker seeks new post for VW brand boss

Henning Krogh | Guide Reinking | Automobilwoche / November 20, 2006 - 1:00 amWOLFSBURG, Germany -- The buzz last week was that Wolfgang Bernhard was as good as gone from Volkswagen after the ouster of his boss, VW CEO Bernd Pischetsrieder.

Not so fast. VW executives are looking for a way to persuade the former Chrysler boy wonder to stay.

On Friday, Nov. 17, VW group's supervisory board named Audi CEO Martin Winterkorn as group CEO starting Jan. 1. He replaces Pischetsrieder, who lost a power struggle this month with supervisory board Chairman Ferdinand Piech.

Bernhard, who heads the VW brand group -- which includes VW, Skoda, Bentley and Bugatti -- did not quit Friday as expected by German news media.

"We would be happy if Bernhard stays on under the new leadership," a supervisory board member told Automobilwoche, which, like Automotive News, is published by Crain Communications Inc.

Bernhard, former COO of the Chrysler group, left DaimlerChrysler in 2004 when his promotion to the top job at Mercedes-Benz was withdrawn. He joined VW that year.

Pischetsrieder's sudden departure was expected to lead to Bernhard's resignation. Winterkorn reportedly wants to head the VW brand unit in addition to being group CEO. But VW is trying to find a top management post that Bernhard will accept.

After Friday's board meeting, Bernhard and Winterkorn flew together to the Beijing auto show to present new VW and Audi models.

The relationship between the two men is said to be cool. Bernhard had been considered a candidate for the job of VW group CEO. The financial markets believe Bernhard's presence will help assure that VW will continue with its restructuring program.

Why was Chrysler at the table?

Keith Crain is publisher and editor-in-chief of Automotive News, and publisher and editorial director of Automotive News Europe.
KEITH CRAIN

Automotive News / November 20, 2006 - 1:00 am
Last week, while I was in China, President Bush finally met with the heads of General Motors, Ford Motor Co. and the Chrysler group.

While I am a great fan of Chrysler CEO Tom LaSorda and DaimlerChrysler CEO Dieter Zetsche, I don't understand who was supposed to be at the meeting.

It may be painful to admit, but the only U.S. automobile companies are GM and Ford.

In case we all forgot, several years ago Daimler-Benz came in and purchased Chrysler. Chrysler is now a subsidiary of DaimlerChrysler, which is headquartered in Stuttgart. The head of the UAW, Ron Gettelfinger, is on the supervisory board of DaimlerChrysler in Germany.

Toyota in North America, for all practical purposes, has just about the same corporate structure as Chrysler. They are both large subsidiaries of foreign automobile companies.

So why would the president include Chrysler and not Toyota or Honda?

Quite a few automobile companies are doing business in the United States and manufacturing millions of cars and trucks here.

But ownership of those automakers is quite another story.

If the president wants to help all manufacturers of cars in the United States, he has a large list of companies to invite. If he is interested in helping only U.S.-owned companies, I don't understand why Chrysler was at the table last week.

Calling Chrysler "American" is not much different from telling people that Opel and Ford of Germany are German companies when we all know they are subsidiaries of GM and Ford.

A much more difficult question that Ford and GM have to figure out is this: What do they want from the U.S. government that would give them any sort of competitive advantage? Or would any help benefit all automobile manufacturers in the United States equally?

Whether we like it or not, the automobile business is a global business today. When so many vehicles are made in so many places, it is difficult or impossible to figure out what's a domestic vehicle.

The same is true of corporations. They are global as well.

I can't imagine an incentive for car companies that would apply only to Ford and GM. Anything short of a straight handout would have to apply to every other manufacturer as well.

So it looks as if everyone will have to continue to compete on the basis of the best products - which is how it should be, after all.

Could Durango, Aspen land in Warren?

Analysts: Out-of-state plants may close

November 20, 2006

BY KATIE MERX

FREE PRESS BUSINESS WRITER

photo

zoom

The Chrysler assembly plant in Newark, Del., celebrates the 2004 Dodge Durango.

It is one of two plants analysts speculate may close. The other is the St. Louis North plant.

(2003 photo by TOM NUTTER/Associated Press)

As the Chrysler Group works to cut more than $2 billion from its expenses and right its truck-heavy ship, analysts speculate that two assembly plants are in jeopardy. But -- believe it or not -- that may lead to some good news for Michigan.

Analysts say they believe Chrysler would shut down elsewhere and retrench around metro Detroit.

"The plan is not to close Michigan plants, it's to come back home," said Sean McAlinden, chief economist at the Center for Automotive Research in Ann Arbor.

The two plants most at risk of closing, analysts say, are the Newark, Del., SUV plant and St. Louis North, which is one of three Chrysler plants that make the Dodge Ram pickup.

"The market is moving to very few products that need more than one plant," said auto analyst Kevin Tynan of Argus Research in New York.

Erich Merkle, director of forecasting at IRN Inc. in Grand Rapids, argues that it makes sense to move production of the low-volume Dodge Durango and the new Chrysler Aspen -- an upscale version of the Durango -- from Newark to Warren Truck.

"I think Newark will close," Merkle said. It doesn't make financial sense to operate a plant with just one shift, he said. "And the Dakota and Durango are already on the same" underbody. "You could put that over in Warren Truck right now."

If the Durango switches from a Dakota to a Ram platform, as expected, the Warren plant can handle that in stride.

Warren Truck added a third shift more than a year ago. But a decline in demand for pickups following an increase in gas prices earlier this year resulted in 19 weeks of temporary layoffs, including four weeks already this fall as Chrysler adjusted production. Workers also expect to be off the last three weeks of December. Sales of the Ram were down 11.8% in the first 10 months of the year, and sales of the Dakota were down 26.9%.

By moving the Durango and Aspen to the truck plant, Merkle said Chrysler also would "have less of a third-shift issue."

Frank Ewasyshyn, Chrysler's executive vice president of manufacturing, has said publicly that moving Durango production would be expensive, time-consuming and challenging because Warren is only able to handle pickup bodies right now. Such a move also would require Chrysler to build a paint shop -- one of the most expensive parts of a manufacturing plant -- to accommodate SUVs, Chrysler reports.

Several hourly workers at Warren Truck said Chrysler executives have been spotted touring the plant recently. Hourly workers there said they've heard the executives are contemplating whether to reconfigure the plant for the Durango.

Workers said they hope they've gone back to building trucks this month in preparation for downtime next year to accommodate the addition of the SUVs. Otherwise, they said, it makes no sense to keep building pickups that appear to be in large supply at dealerships and at storage lots around metro Detroit.

"Given their inventories, they could probably stay home until the first of the year," Merkle said.

A Chrysler spokesman said production levels are determined based on dealer and fleet orders combined with looking ahead at anticipated demand levels.

The company has said it has a lot of dealer and fleet orders and that its efforts to sell vehicles that were built without dealer orders earlier in the year are working.

Catherine Madden, a senior analyst at Global Insight in New York, said Chrysler had 136 days' supply of Ram trucks at the end of September. That was down to 110 days' supply -- just shy of four months' worth -- of Rams by the end of October, thanks in large part to incentives as high as $7,000 on some older models.

"That days' supply number should probably be in the low 70s," Madden said. "Overall for the industry, DaimlerChrysler is still in the most precarious position of the Big Three because of their inventory. They have too much inventory still, particularly on the truck side, and I think they are the most vulnerable for production cuts in the first half of '07."

That's why McAlinden said he also thinks the St. Louis North plant is at risk of closure.

The plant makes the Dodge Ram, just like Warren and a plant in Saltillo, Mexico.

McAlinden said Chrysler would be able to transfer many workers from St. Louis North to the St. Louis South minivan plant, where Chrysler is investing in new tooling and flexible manufacturing.

Chery, Johnson plan China auto interiors venture

SHANGHAI, Nov 20 (Reuters) - China's Chery Automobile will set up a joint venture with Johnson Controls Inc. (JCI.N: Quote, Profile, Research) of the United States to make auto interiors, state media said on Monday.

The 50-50 tie-up with Johnson Controls, a major producer of auto interiors and building temperature control systems, will be located in Chery's home city of Wuhu, the official Xinhua news agency said.

Chery, a mid-sized but fast-growing Chinese automaker, will acquire expertise in running its auto parts supply system from Johnson, Xinhua said without giving further details of the venture. A Chery spokesman was not available to comment.