Tuesday, October 17, 2006

ThyssenKrupp Sells Budd Car-Parts Unit to Martinrea [Update-2]

Thom Rose | Oct. 16 (Bloomberg) -- ThyssenKrupp AG, Germany's largest steelmaker, sold its Budd car-parts unit to Martinrea International Inc. for $95 million as it reorganizes its North American automobile business.

ThyssenKrupp's automobile supply business, its third-largest unit, was the least profitable division in the last reported fiscal year. The company has sold assets worth more than 4.7 billion euros ($5.9 billion), including an aluminum castings unit in the U.S., and is closing a plant in Detroit to cut losses.

``This sale is positive news; Budd has been a big problem,'' said Alan Coats, a London-based analyst at HSBC Holdings Plc who has an ``underweight'' rating on ThyssenKrupp shares. ``ThyssenKrupp has been trying to sell this business for a long time.''

Martinrea, based in Ontario, will assume the unit's debt, giving a total transaction value of $275 million, Dusseldorf, Germany-based ThyssenKrupp said today in an e-mailed statement.

Martinrea gains ``additional technological strengths and locations that otherwise we would have had to build to be able to support the needs of the automotive industry,'' said Fred Jaekel, chief executive officer of Martinrea, in a separate statement. The acquisition will make Martinrea one of the four largest North American metal forming companies, he said.

The reason for the sale ``is the known need for restructuring in the body and chassis business, which is structurally and economically burdened, especially in North America,'' ThysennKrupp said in the statement. ThyssenKrupp will combine the automotive operations it still owns with its Technologies unit.

Viper Frame


The sale of the Troy, Michigan-based Budd unit, which makes the frame for DaimlerChrysler AG's Dodge Viper, is scheduled to be completed by the end of this year. The unit has about 1 billion euros in annual sales and employs about 3,500 people, ThyssenKrupp said.

After the sale, ThyssenKrupp's North American automobile business will have annual sales of about 2 billion euros and about 7,000 employees. The largest remaining operation will be the Waupaca foundry group, based in Wisconsin, with about 1 billion euros in annual sales.

For Martinrea, buying Budd is cheaper than building factories, the company said in its statement.

``I have always viewed ThyssenKrupp's North American body and chassis operation as a phenomenally well-equipped competitor,'' said Jaekel, Martinrea's leader.

ThyssenKrupp said it expects 2007 results to be similar to its previous year figures. The company reiterated that 2006 earnings before tax were about 2.5 billion euros for the fiscal year through Sept. 30.

This Day In Auto History: 17 October

Publish

10.17.1893 - Evangeline Cote Dahlinger of the Ford Motor Company is born in Detroit, MI

10.17.1910 - Powel Crosley Jr. marries Gwendolyn Bakewell, Aiken

10.17.1922 - The 1923 Nashes are introduced

10.17.1926 - George Henry Turnbull, a longtime British automobile executive with Standard, Triumph, British Leyland Ltd., and “father” of the Korean-built Hyundai, is born

10.17.1946 - Racer Enzo Coloni is born in Italy

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

2006-10-17 04:02 (Mb 5.7) POTOSI, BOLIVIA -21.0 -68.3

== PRELIMINARY EARTHQUAKE REPORT ==

Region: POTOSI, BOLIVIA
Geographic coordinates: 20.967S, 68.283W
Magnitude: 5.7 Mb
Depth: 139 km
Universal Time (UTC): 17 Oct 2006 04:02:37
Time near the Epicenter: 17 Oct 2006 00:02:37
Local time in your area: 17 Oct 2006 04:02:37

Location with respect to nearby cities:
183 km (114 miles) NNE (21 degrees) of Calama, Chile
208 km (129 miles) ESE (113 degrees) of Iquique, Chile
306 km (190 miles) WSW (239 degrees) of Potosi, Bolivia
1185 km (736 miles) WNW (292 degrees) of ASUNCION, Paraguay

ADDITIONAL EARTHQUAKE PARAMETERS
________________________________
event ID : US tyak

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/ustyak.php

OPEC: Crude Demand Falling


MONEY NEWS | NEW YORK - - Despite falling oil prices, the Organization of Petroleum Exporting Countries says that demand for its crude will be lower than previously expected, citing economic uncertainties and high inventories.

OPEC now says that fourth-quarter demand for OPEC crude, which is known as the call on OPEC, will average 28.69 million barrels per day, down from its previous forecast of 28.86 million bpd, according to its October report.

"Uncertainties about global economic prospects particularly in the USA, slowing demand growth, rebounding non-OPEC supply and high stock levels have triggered a strong bearish sentiment in the market," said the report.

"This has led to some concern that the downward momentum might persist, causing prices to overshoot and fall below levels justified by fundamentals," it added.

Oil prices this morning dipped back down to $58.35 a barrel, down 25.6 percent from a high of $78.40 per barrel in mid-July. OPEC President Edmund Daukoru labeled the price drop as "catastrophic," according to Reuters. A sustained 20 percent drop is considered a bear market.

The announcement comes as OPEC prepares to meet on Thursday to discuss a cut in production. The group has already agreed on a cut of 1 million bpd, but needs to discuss which countries will lose the revenue that comes with a price cut.

OPEC also cut its 2007 forecast for crude demand. The group says it expects demand to fall to 28.08 million bpd from its previous forecast of 28.72 million bpd. OPEC says non-OPEC crude supply will rise by 1.8 million bpd to average 53 million bpd.

OPEC maintained its 2007 outlook for demand growth, expecting the world to add 1.3 million more bpd to consumption. It cut the 2006 forecast by 100,000 bpd to 1 million bpd.

OPEC says the drop in demand will mainly come from Organization for Economic Cooperation and Development (OECD) countries or the developed world because of slowing economies whereas the developing countries, such as China and India, will continue to increase consumption, reports CNN Money.

"China and the Middle East will lead the world oil demand growth with 0.42 mb/d and 0.30 mb/d respectively," OPEC's report said.

Monday, October 16, 2006

Chrysler's 'Full Throttle Test Drive Event' Puts Consumers Behind the Wheel at Milwaukee's Miller Park on Oct. 28 and 29

Chrysler's 'Full Throttle Test Drive Event' Puts Consumers Behind the Wheel at Milwaukee's Miller Park on Oct. 28 and 29

* Free, two-day driving event lets consumers see how 2007 Chrysler, Jeep(R) and Dodge vehicles handle real world challenges on three specially designed test tracks

* Thrill rides available in high performance SRT models, including Dodge Viper SRT10

* One lucky event attendee could win a new Chrysler Crossfire Coupe

WHAT: Milwaukee-area residents who have always wanted to be a professional test driver or take a 4x4 on an off-road adventure will have a once-in-a-lifetime chance to do just that when the Chrysler Group's "Full Throttle Test Drive Event" comes to Miller Park on Saturday, Oct. 28 and Sunday, Oct. 29.

Consumers are being invited to test drive the full line of 2007 Chrysler, Jeep(R) and Dodge products, including some of the hottest vehicles on the road today like the all-new Chrysler Sebring, Jeep Wrangler Unlimited and Dodge Nitro, on two specially designed test tracks that will showcase the vehicles' performance and handling attributes.

A third track will be dedicated to demonstrating the power and performance of the Chrysler Group's SRT product line in adrenalin-pumping thrill rides. Featured vehicles will include the Chrysler Crossfire SRT6, Chrysler 300C SRT8, Jeep Grand Cherokee SRT8 and Dodge Viper SRT10.

Consumers interested in attending the "Full Throttle Test Drive Event" are encouraged to pre-register for a general arrival time on Saturday or Sunday by calling 888-809-7088 or visiting www.RideDriveWin.com/pr, however pre-registration is not required to attend. Drivers must be 18 years or older with a valid driver's license to participate in the ride-and-drive activities.

WHO: Open to the public

WHEN: Saturday, Oct. 28, 2006, from 9 a.m. to 5 p.m. Sunday, Oct. 29, 2006, from 9 a.m. to 5 p.m. SRT Thrill Rides are available each day at 10 a.m., 12 p.m., 2 p.m. and 4 p.m.

WHERE: Miller Park One Brewers Way Milwaukee, Wis. 53214-3652

DETAILS: Photo Opportunities: Area residents driving the full line of Chrysler, Jeep and Dodge vehicles on three exhilarating driving courses, including off-road and thrill ride tracks.

OTHER: All event attendees will receive a $400 consumer rebate certificate to be used toward the purchase of an eligible Chrysler, Jeep or Dodge vehicle. As an added bonus, one lucky person also has the chance to win a brand new Chrysler Crossfire Coupe.

Mercedes seeks partner for A, B class

Sources say PSA may help German carmaker with future development of models

Jason Stein | Harald Hamprecht | Automotive News Europe / October 16, 2006 - 1:00 am


Beginner classes
European unit sales of Mercedes’ entry-premium models (8 months)


20062005
A class100,327120,210
B class77,43320,712
Source: JATO Dynamics




PARIS - Mercedes-Benz is looking for a partner to share costs for its next-generation A- and B-class cars.

Mercedes is expected to replace the next-generation A class in 2011 and the B class a year later. Getting a partner for the two models could help Mercedes achieve economies of scale and decrease expensive engineering costs for the vehicles.

“We have to accept that Mercedes alone will not achieve the volumes some of our global competitors have,” said Thomas Weber, DaimlerChrysler board member for research and development, in an interview at the Paris auto show. “We are thinking about our strategy for the next generation of these cars.”

D/C is the parent company of the Mercedes and Chrysler car groups.

Weber would not say which auto-maker might become D/C’s partner.

But PSA/Peugeot-Citroen is considered a potential candidate, two company sources say. PSA already has a joint venture with Mercedes rival BMW to build gasoline engines for BMW’s entry-premium Mini and for PSA’s small cars.

“We talk with everybody about everything. We do not have a final project with Mercedes, though,” said Gilles Michel, PSA’s board member responsible for platforms, technology development and purchasing.

The second-generation A class went on sale in late 2004. The first-generation B class followed in the summer of 2005.

Mercedes typically replaces vehicles after seven years.

Both cars share a costly and complicated “sandwich” platform that consists of a top and bottom cover with expensive reinforcements in the middle. A basic vehicle usually is cheaper because it consists of one sheet of metal.

The platform will not be used for the next generation of the products because it means that the A and B class cannot share engines or components with other Mercedes and Chrysler group cars.

More parts sharing

“It’s all about cost in this extremely competitive segment. The result will be a true Mercedes,” said one high-level Mercedes source, who requested anonymity. “Customers won’t spot any difference and will not care whether components are shared with Chrysler or a French company.”

Weber said sharing is an important part of the Mercedes profit model in the years to come.

“One of many questions we need to answer for our future product portfolio in the [A- and B-class segment] is the question about competitiveness and production volumes,” Weber said. “The same is true for Chrysler where we are also striving to increase volume. A possible answer may be found in shared components and in an intensive discussion about the right engines and transmissions for cars of both brands.”

DaimlerChrysler also is looking for a partner for a Dodge small car in the US. Chery Automobile is considered the favorite.

This Day in Auto History: 16 OCTOBER

10.16.1930 - The Bentley 8 Litre is introduced at the Olympia Motor Show in London

10.16.1949 - Pioneer tire designer and manufacturer Charles B. Whittelsey dies in Hartford, CT at age 80

10.16.1957 - Peter J. Shuttleworth, a mechanical engineer at the General Motors Proving Grounds, dies at age 23

2006-10-15 17:07 REVISED: (Mcd 6.6) ISLAND OF HAWAII, HAWAII 19.9 -155.9

== PRELIMINARY EARTHQUAKE REPORT ==

Region: ISLAND OF HAWAII, HAWAII
Geographic coordinates: 19.880N, 155.937W
Magnitude: 6.6 Mcd
Depth: 39 km
Universal Time (UTC): 15 Oct 2006 17:07:49
Time near the Epicenter: 15 Oct 2006 07:07:49
Local time in your area: 15 Oct 2006 17:07:49

Location with respect to nearby cities:
10 km (6 miles) SW (232 degrees) of Puako, HI
17 km (10 miles) WSW (246 degrees) of Waikoloa Village, HI
19 km (12 miles) NNE (22 degrees) of Kalaoa, HI
91 km (57 miles) WNW (282 degrees) of Hilo, HI
253 km (157 miles) SE (129 degrees) of Honolulu, HI


ADDITIONAL EARTHQUAKE PARAMETERS
________________________________
event ID : HV 00020953

This event has been reviewed by a seismologist For subsequent updates, maps, and technical information, see:
http://earthquake.usgs.gov/eqcenter/recenteqsus/Quakes/hv00020953.php

Spy Pic update: 2008 Chrysler Town & Country uncovered

2008 Chrysler Minivan Rear


AUTOMOBILE MAGZINE | KGP PHOTO - - Besides a more aggressive, squared-off look, thanks in part to 300C designer Ralph Gilles, Chrysler's next minivans also will feature--at last--roll-down windows for the sliding doors. The new models are coming in mid-2007.

2nd Dundee engine plant opens

DUNDEE - Global Engine Manufacturing Alliance yesterday marked the recent opening of its second Dundee engine factory. The plant is helping build 1,700 four-cylinder engines a day for the Dodge Caliber, Jeep Compass, Chrysler Sebring, and upcoming Jeep Patriot.

The first of the two factories, which together have 563 employees including on-site suppliers, started production a year ago for the Dundee-based joint venture owned by DaimlerChrysler AG, Hyundai Motor Co., and Mitsubishi Motors Corp. The venture also has three plants in Asia building fuel-sipping aluminum 1.8-liter, 2.0-liter, and 2.4-liter engines.

After a year of testing and other preparations, the launch of the second Dundee factory has been even smoother than the first, said Bruce Coventry, president of Global Alliance.

"It's gone very well," he said yesterday, after Frank Ewasyshyn, Chrysler's vice president of manufacturing, and Michigan Gov. Jennifer Granholm helped employees celebrate.

The $800 million factories will produce 3,400 engines a day at full capacity after equipment for half of the second factory is installed.

Global Engine hasn't announced when that will happen, but interest in fuel economy is high and keeping the Dundee operation busy, Mr. Coventry said.

The largest of the Dundee engines gets 23 miles in the city and 26 on the highway when powering the Caliber.
In the redesigned Sebring, the 2.4-liter engine will get 24 miles in the city and 32 on the highway.
Dundee will also supply engines for an undisclosed Mitsubishi vehicle in 2008.

DCX execs to test old vehicles

Managers told to drive like buyers

October 14, 2006

KATIE MERX | FREE PRESS BUSINESS WRITER

photo

zoom

Chrysler CEO Tom LaSorda

Hoping they won't become too spoiled and out of touch with the average consumer, Chrysler Group CEO Tom LaSorda has the automaker's top 250 executives test-driving three-year-old vehicles to check reliability and the consumer experience.

Chrysler's top executives will have to turn in their 2006 and 2007 vehicles for two 10-day periods to test-drive a used fleet of Jeep Grand Cherokees, Chrysler Town & Country minivans, Dodge Caravan minivans, Chrysler Pacifica crossovers and Dodge Ram pickups.

Driving the used vehicles was LaSorda's idea. He was seen driving an old Grand Cherokee recently.

"Our CEO, Tom LaSorda, has always been pushing us to become more customer focused: to eat, sleep, walk and talk like an average customer," said Steve Walukas, vice president of corporate quality. "In our positions we're pretty fortunate that we typically get to drive new cars. I know in my own situation, my friends, neighbors and relatives say, 'You wouldn't know what it's like to drive a car with a lot of miles on it.' This is a true way to understand."

The executives will evaluate each test-drive with a report on first impressions and another report on how things went during the 10-day trial. They won't get their new vehicles back after the evaluations.

The program began in August and will run for two more months, Walukas said.

"We have roughly 30 million vehicles in the U.S., and they're not all new. The average product is six, seven, eight years old. This gives our people a good idea of the experience our customers are having."

New Indiana plant eyed

DETROIT FREE PRESS | AUBURN HILLS MI - - DaimlerChrysler AG's Chrysler unit applied for state environmental permits at three Indiana sites as the automaker considers building a transmission plant.

The sites are in Howard, Tippecanoe and Clinton counties, Dave Elshoff, a Chrysler spokesman, said Friday.

To build a plant, the company needs air-quality permits from the Indiana Department of Environmental Management.

The automaker already has three transmission factories and a casting plant in Kokomo, which is in Howard County. Chrysler and the UAW reached an agreement last month on a new plant. The Indianapolis Star reported Sept. 28 that the plant would make 700,000 transmissions annually by 2009 and be a joint venture with Getrag GmbH, citing the union accord.

Getrag, based in Ludwigsburg, Germany, has experience designing so-called dual-clutch transmissions, which improve fuel economy. General Motors Corp. and Ford Motor Co. jointly developed a new fuel-efficient six-speed transmission.

Mercedes-Benz S 550, A Gentleman's Saloon

S5502

KICKING TIRES AUTO NEWS | STUTTGART - - In Europe they call sedans saloons — just one of those weird cultural differences that make overseas journalists feel superior. Well, I just finished a week testing the all-new S 550, and it could make me change how I talk, dress and even style my hair — it is that extreme a cultural change from other vehicles I’ve tested.

Sliding into the supple heated and cooled leather seats amid all the brushed metal and wood trim feels like stepping into an exclusive country club, not a four-door luxury car. Everything from the finishes to the amber lighting exudes class.

S550comanddial

A few Cars.com folks tested out the S 550 and thought it had too many gizmos. After testing BMW’s iDrive, Audi’s MMI and now Mercedes-Benz’s Comand system, I have to say Mercedes does it right and does it best. Yes, there is a central dial that can control all the features on the small LCD screen in the middle of the dash, just like BMW’s iDrive. However, the genius of the system is that there are plenty of other buttons that are basically shortcuts to commonly used functions, like the radio or navigation system. The metal dial feels weighty and cool to the touch, kind of like a safe tumbler. All the buttons, from the windows to the small phone pad — you can plug your cell phone into a slot then control it through the car’s system — are small metal numbers that are extremely precise. I’ve never rolled down a window with such accuracy before, though I doubt many S-Class buyers will roll down their windows.

S550switches

Another genius move is the long row of toggle switches that breaks up the center stack and controls the air conditioning. It’s simple, elegant and doesn’t involve the Comand system. Plus I kind of felt like Howard Hughes piloting one of his classic planes. You know, before he went completely nuts.

S5501

My wife said I looked like an old man driving the S-Class, but once sequestered in the driver’s seat you really don’t care what the outside world thinks. Blasting the stereo also helps because it's more than impressive. I took it to task with the last Queens of the Stone Age album — not their best, but their best produced — and the sound was so clean I heard nuances in the tracks that I'd never noticed before. Plus you could play it extremely loudly without getting a bit of distortion. Of course, that’s another test most S-Class buyers will probably skip. Too bad, maybe it would keep them young.

As for the ride, it’s pleasant and everything a $90,000 cruiser should be, but to me that’s secondary to the interior treatment. It’s one of the few vehicles in which I pleasantly discovered something new each time I got in it, and there wasn’t one aspect inside that I could imagine being done better.

S550clock

The analog clock is stylish and easy to read unlike others I've seen.

S550doorlighting

Amber lighting seeps out from under wood trim on the doors (above) and dash (below).

S550dashlighting

S550dial_1

An overhead shot of the Comand dial and numerous shortcut buttons.

2006-10-13 13:47 (Mw 6.0) KURIL ISLANDS 46.3 153.2

== PRELIMINARY EARTHQUAKE REPORT ==

Region: KURIL ISLANDS
Geographic coordinates: 46.336N, 153.219E
Magnitude: 6.0 Mw
Depth: 10 km
Universal Time (UTC): 13 Oct 2006 13:47:40
Time near the Epicenter: 14 Oct 2006 01:47:40
Local time in your area: 13 Oct 2006 13:47:40

Location with respect to nearby cities:
431 km (268 miles) ENE (72 degrees) of Kuril'sk, Kuril Islands
791 km (492 miles) ENE (59 degrees) of Kushiro, Hokkaido, Japan
1634 km (1015 miles) NE (39 degrees) of TOKYO, Japan

ADDITIONAL EARTHQUAKE PARAMETERS
________________________________
event ID : US tuaw

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/ustuaw.php

Update - Maybach shrinks

Maybach suggest a baby model after Rolls-Royce announcement

Our image hints at look of new Maybach that would slot in range between current flagship and Mercedes S600

German giant Maybach has revealed it's looking at ways to develop a new 'baby' model - only a week after arch-rival Rolls-Royce announced work has started on a small car of its own.

Auto Express reported last week on how Rolls was planning a 'little' luxury limo "within the next four years", and May­bach has been quick to get in on the act, too.

The luxury brand is keen to show it can expand its portfolio after est­ablishing itself in the top-of-the-range league. And the move would also help bosses find new ways to sell more cars.

The news came from Dieter Zetsche, chairman of the board of management for Maybach's parent company Daimler­Chrysler. And he revealed his biggest headache could be over which badge to put on the baby's bonnet and boot!

Dr Zetsche told Auto Express: "Obvi­ously, there is some space between the price range of the current Maybach and the top Mercedes. We are looking into that, and if there's a chance of filling it we have to decide if we want to.

"We also have to make a decision over whether we want to do it with a bigger Mercedes or a smaller Maybach. However, we feel under no pressure to make that decision soon." Mercedes' most expensive car is the S600 limo, priced at £102,000, while the cheapest Maybach, the 57, rolls out of the showrooms for more than twice that, tipping the scales at £257,000.

Rolls-Royce's plans could include creating a range of smaller cars if its new model is a hit. That's something Maybach would be watching with interest.

Ram butts heads with the best

SCRIPPS NEWS | RICHARD WILLIAMSON - - -Monday, October 16, 2006

Truck drivers are not without vanity.

Those in Texas want to believe that Dodge builds pickups just for them. So, the factory in Fenton, Mo., slapped a "Lone Star Edition" badge on some versions of the Ram 1500 to appeal to egos in the nation's top state for truck sales.

Aside from the badge, Lone Star Edition features are available as options on other versions, including 20-inch aluminum wheels, fog lamps, sliding rear window and Sirius Satellite Radio. But the Lone Star package adds to the panoply of options dealers can offer.

The stakes could hardly be higher this year, as Dodge braces for the onslaught of the San Antonio-built Tundra pickup arriving in 2007. The competition was stiff enough already with Ford's best-selling F-Series pickup and a completely revised Chevrolet Silverado and GMC Sierra arriving in the 2007 model year. Nissan, meanwhile, is gaining traction with its full-size Titan built in Canton, Miss.

Dodge got off to a bad start in September as recalls for seatbelt and air-bag concerns in the 2006 Ram sent sales plunging 32 percent. Full-size trucks were already struggling in the aftermath of record fuel prices.

While Dodge dealers deal with recalls, the marketing folks are addressing the pump perils, pitching the 2007 Ram 1500 as a "flexible-fuel vehicle" with a 4.7-liter V8 engine that can run on E-85 ethanol fuel.

The higher-power Hemi engine uses a multi-displacement system that reduces fuel consumption up to 20 percent by deactivating four of the eight cylinders when less torque is needed in cruising conditions.

Four-wheel-drive also carries a fuel penalty, so Dodge designed the 4x4 to disengage the front-axle driveshaft when operating in two-wheel drive, thus minimizing the front-drive system's energy consumption.

While Dodge has tweaked the Ram for 2007 with new creature comforts and attractive options such as remote starting, the truck retains the brawny looks that arrived on the scene first in 1994.

The chrome, ingot-like grille's position over a huge front bumper should intimidate anyone in oncoming traffic. Large headlamp modules encase sparkling halogen bulbs that offer excellent illumination at night.

The emphasis in trucks this year will be in the interior, with General Motors making significant upgrades in its Silverado and Sierras. The Ram's upscale finishes include Maple Pommele accents on the instrument panel and doors, chromed accents on the control knobs, and French-stitched leather seats.

Parlaying its skill in ergonomics derived from the minivan, Dodge provides a clean layout of the dash and instrument panel, with all switches and controls within easy reach.

The Ram Quad Cab models have four standard doors and 60-40 folding rear seats. For those who may not be satisfied with the somewhat limited legroom in the back seats, Dodge offers its Mega Cab models that will satisfy full-size crews.

Prices range from about $25,000 to $40,000 for the multiple configurations available in the Ram. The Lone Star edition with a Quad Cab was base priced at $27,740, rising to $32,450 with options.

Regular and Quad Cab models come with either a short or long cargo bed. Trim levels include ST, SLT or Laramie trim. The SLT provides alloy wheels, standard cruise control, cloth seating, keyless entry and power windows, locks and mirrors. Laramie comes with features such as dual-zone automatic climate control, leather seating, a power driver seat, a six-CD changer and steering wheel-mounted audio controls. Options include a navigation system, a rear-seat DVD-based entertainment system, upgraded audio, a Sport package and a TRX4 off-road package.

From a base 3.7-liter, 215-horsepower V6, engine options rise to the 4.7-liter, 235 horsepower V8 and the 5.7-liter V8 Hemi rated at 345 horsepower and 375 foot-pounds of torque. The Hemi is standard on the Mega Cab version and optional on the regular and Quad Cabs. Drivers can choose between six-speed manual or five-speed automatic transmissions.

"Keeping in mind that more and more truck buyers use their vehicles for both work and personal use, the 2007 Dodge Ram 1500 strikes a perfect balance of comfort and refinement with exceptional capability," said Mike Donoughe, vice president for the truck team. "The ride is refined while controlled, the steering is taut, and the cab is quiet - all of which add up to a very poised yet very durable and capable truck."

WHAT'S NEW:
Fuel-efficiency upgrades, new options.

PLUSES: Power, comfort, utility, styling.

MINUSES: Rear-seat legroom, fuel economy, maneuverability.

BOTTOM LINE: Still iconic amid relentless competition.

Thursday, October 12, 2006

Nitro shuns Bluetec, but it's not a sin of emission

Edward Lapham is the executive editor of Automotive News. He writes commentaries for Automotive News online every business day. His commentaries also can be found here.
EDWARD LAPHAM COMMENTARY 10/12/2006

Edward Lapham | | Automotive News / October 12, 2006 - 12:47 pmWith all the excitement about Bluetec and other fast-breaking diesel technology, you might think that modern, ultraclean diesels already rule the world.

Not so fast.

When the new Dodge Nitro SUV goes on sale in Europe in the spring, about 80 percent of the volume is expected to be diesels. But they won't use the Bluetec technology developed by DaimlerChrysler and Bosch.

Even though Europeans dig diesels, the entry-level Nitro is expected to come equipped with Chrysler's 3.7-liter V-6 gasoline engine that makes 210 hp and is mated to a front-drive, four-speed manual transmission.

The base price is likely to be the equivalent of about $36,500, according to Automobilwoche, our German-language sister publication. That would be some $4,000 more than a comparable Toyota RAV4, which has a less powerful gasoline engine.

So what diesel will power 80 percent of the Nitros in Europe? A four-cylinder Detroit Diesel engine that is built by VM Motori in Italy; shipped to the assembly plant in Toledo, Ohio; and installed in the Nitros, which will then be shipped to Europe.

The Nitro's diesel may not be Bluetec, but it ought to be a more developed, cleaner diesel than the 2.8-liter engines VM Motori supplied to the Jeep Wrangler for a while.

It's one of the advantages of going global.

Thermadyne Industries Partners with DaimlerChrysler to Provide Welders with the Latest Technology and Training

Preview

ST. LOUIS--(BUSINESS WIRE)--Thermadyne Industries, Inc., a global leader in cutting and welding products, has become the single source provider of state-of-the-art welding equipment and welder training at the United Auto Workers (UAW) National Training Center for DaimlerChrysler, outside of Detroit, in Warren, Mich.

Thermadyne Chairman and CEO Paul Melnuk announced, Thermadyne is pleased to be partnering in this venture with DaimlerChrysler, one of the worlds premier automobile manufacturers. DaimlerChryslers decision to expand its welding training capabilities further demonstrates its commitment to excellence. It is utilizing the highest level of technology available in the welding market today to advance the automotive industry. We are honored that DaimlerChrysler has chosen Thermadyne to be its training equipment provider.

The training facility features 12 welding stations and 2 cutting stations, and equipment from Thermadynes Thermal Arc®, Thermal Dynamics®, Victor® and Tweco® product lines. The equipment is being used by a wide range of DaimlerChrysler employees from line workers and skilled tradesmen to engineering personnel. Approximately 650 individuals annually are trained at the facility, where they receive everything from safety presentations to welder certification.

Thermal Arc inverters have become popular favorites at the DaimlerChrysler facility, said Melnuk. The employees like the versatility, along with the space and power consumption that are saved by inverter welders. We are told that our ArcMaster 300 and ArcMaster 400 MST inverters are especially popular because of their performance and versatility. The addition of our new Ultrafeed 2000 A and Ultrafeed 4000 A wire feeders enables the employees to weld with any process at any time. Instructors also praise Victor torches and Thermal Dynamics plasma cutters for reducing time and cost of operation in the facility."

Thermadyne is also involved with DaimlerChryslers facility in Toledo where Thermal Arcs PowerMaster 500 and 500 P products make helium-tested, leak-free welds in torque-converters. Employees at this facility use the Thermadyne Ultima 150 to weld the counter balance on their torque converters so that they are balanced and ready to put on vehicles.

Melnuk concluded, I commend the instructors at DaimlerChrysler in facilitating the Thermadyne equipment installation and their dedication to improving welding performance in the automotive industry. DaimlerChrysler has a team of knowledgeable and innovative trainers who are enabling welders to improve their skills and performance in ways that will set new standards for all engaged in this field.

2006-10-12 18:05 (Mw 6.1) COQUIMBO, CHILE -31.3 -71.3

== PRELIMINARY EARTHQUAKE REPORT ==

Region: COQUIMBO, CHILE
Geographic coordinates: 31.307S, 71.350W
Magnitude: 6.1 Mw
Depth: 45 km
Universal Time (UTC): 12 Oct 2006 18:05:58
Time near the Epicenter: 12 Oct 2006 14:05:58
Local time in your area: 12 Oct 2006 18:05:58

Location with respect to nearby cities:
151 km (94 miles) S (181 degrees) of Coquimbo, Chile 200 km (124 miles) N (9 degrees) of Valparaiso, Chile
252 km (157 miles) NNW (345 degrees) of SANTIAGO, Chile

ADDITIONAL EARTHQUAKE PARAMETERS
________________________________
event ID : US ttbd

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/usttbd.php

Mercedes-Benz Citaro is 'Bus of the Year 2007'

Best Bus: The Low Entry Citaro combines form with function.
Best Bus: The Low Entry Citaro combines form with function.

An international jury has declared the Mercedes-Benz Citaro LE Ü Low Entry 'Bus of the Year 2007'.

  • United Arab Emirates: Monday, October 09 - 2006 at 09:09
  • PRESS RELEASE

The Citaro LE Ü is directly descended from the sophisticated Citaro low-floor bus of which 49 articulated and 19 single deck versions were ordered earlier this year by Dubai Road and Transport Authority. Dubai will be one of the first cities to receive the luxury buses as part of its integrated transport strategy that includes the Dubai Light Rail and Dubai Road Network with the program expected to be implemented within the next two years.

The jury of bus editorial teams from 15 European countries put the Citaro LE Ü and two other buses from the line-up of other major European manufacturers through their paces for almost a week earlier this year. The buses were tested in service on actual urban and rural regular-service routes in and around Vienna.

'The Citaro LE Ü won over the jury particularly with its coherent overall concept and its designers' ability to combine function and aesthetics,'


said Kerem Tas, General Manager, DaimlerChrysler Buses, Middle East.

The jury also noted its economy-conscious design, which ensures maximum efficiency for the operator, as well as the extremely passenger-friendly design.

The successful drive concept with economical Euro 4 engines based on BlueTec diesel technology, ZF automatic transmission and hypoid drive axle was also singled out as particularly future-oriented.

Additional criteria was its outstanding ride quality, smooth running, low noise level, the innovative styling as well as the high standards of quality and safety thanks to the standard-fit Electronic Braking System (EBS), anti-lock braking system (ABS) and acceleration skid control (ASR). The excellent air conditioning systems on board came in for special praise.

2006-10-12 17:08 (Mb 5.5) TURKMENISTAN 39.8 54.7

== PRELIMINARY EARTHQUAKE REPORT ==

Region: TURKMENISTAN
Geographic coordinates: 39.811N, 54.667E
Magnitude: 5.5 Mb
Depth: 42 km
Universal Time (UTC): 12 Oct 2006 17:08:20
Time near the Epicenter: 12 Oct 2006 22:08:20
Local time in your area: 12 Oct 2006 17:08:20

Location with respect to nearby cities:
42 km (26 miles) NE (38 degrees) of Balkanabat (Nebitdag), Turkmenistan
147 km (91 miles) E (99 degrees) of Turkmenbasy (Krasnovodsk), Turkmenistan
167 km (104 miles) NW (304 degrees) of Gyzylarbat, Turkmenistan
382 km (238 miles) NW (304 degrees) of ASHGABAT, Turkmenistan

ADDITIONAL EARTHQUAKE PARAMETERS
________________________________
event ID : US tta8

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/ustta8.php

Rockin' ride at Targa

Automotive journalist gets baptism of fire as rookie co-driver at Newfoundland event that puts even the most experienced to the test

JOHN LEBLANC, CanWest News Service

Published: Tuesday, October 10, 2006 -
Like an eight-year old counting down the number of sleeps until the arrival of Saint Nick, the anticipation of this year's Targa Newfoundland road rally was starting to, well, get to me.

Much more comfortable in my regular role as a journalist, prepping for Targa was like cramming for a university final exam. Except this exam would last five days and almost 2,200 kilometres, from back-alley Newfoundland town lanes to oceanside cliff switchbacks.

I had naively thought that by talking to other journalists who had received their own Targa baptisms-of-fire as co-drivers that I would suss out their tricks and tips to try to keep my driver, Dan Knott, Chrysler Group's vice-president of Global Services, from throwing me out the window of our 2006 Jeep Grand Cherokee SRT8 no earlier than at least the second leg on the Tuesday.

The anticipation to get going was hand-wringing. Saturday was the worst. It started with an early-morning call to Royal Garage Dodge in St. John's, where our vehicles were being stored. Our big, black Jeep and our team's other entry, an electric-blue Dodge Caliber (that's not the production SRT4) driven by Ralph Gilles, DaimlerChrysler's vice-president of Jeep and Truck Design, and co-driven by California-based Karen Wagner, a real Sports Car Club of America stage rally navigator, both needed to be registered and scrutineered by the end of the day.

What wasn't on Saturday's agenda was Yours Truly getting us lost on our suburban St. John's route to check the accuracy of the rally computer's odometer. Not the recommended way to instill confidence in your driver who you've only met once before, or a method to get a good night's sleep on one's own part.

Targa organizers call Sunday's events a Prologue. It's a fraction of the amount of driving compared with a competitive day. Targa veterans view this as a way to freshen up on their driving or navigating skills and to see how their cars are behaving.

I spent the evenings leading up to Monday's real deal dog-earing route book pages, calculating our Targa stage time targets based on various weather conditions, highlighting transit stages because when I'm stressed, my brain doesn't recognize left from right, adding directions at the bottom of each page so that there are no surprises, combining instructions that are less than 100 metres apart and, finally, inserting Transit stage exit

directions so that after the euphoria of completing a hotly contested Targa stage, I don't get Knott and myself lost in Placentia, Muddy Hole, Conception Bay or Dildo.

With Knott and I quietly chanting, "It's only Leg One, it's only Leg One," we headed out from the St. John's Curling Club, our home for the first two prep days.

The combination of Knott's experience at Targa last year, excellent driving abilities, high level of self-preservation and the gracious acceptance that a rookie co-driver will make mistakes, we survived Leg One, finishing up in Gander. In fact, the first leg claimed three former class winners. One car, the blue 2006 Mini Cooper S JCW of Americans Ron Kiino and Jared Holstein, went off course on the second turn of the very first stage, both taken to hospital for observation and later released.

Our strategy of going like hell on the straight bits to build up time before the tight stuff slowed us down was working until the organizers adjusted the 130-kilometres-per-hour average rule.

As of Leg Two Tuesday, any times faster than a 135-km/h average would receive a 10-second penalty. In a week-long event where the overall winner will incur a couple of minutes of penalties, 10 seconds is a bunch. So, just drive under the average speed, right?

That's all well and good if your rookie co-driver has a handle on the rally computer's ability to dynamically display average. Somehow, that line item got buried in my daily 1,000-item to-do list. This meant Knott was driving blind (time-wise) all of Tuesday morning. We were racking up needless penalties, and I was looking like a goat.

But then, something really cool happened.

Over lunch, we gathered the DaimlerChrysler troops. With the combined efforts of Wagner, Don Jonikowsky of Dodge Motorsports Road Racing and Ethan Bayer, Powertrain Systems engineer - SRT, we managed to get the Jeep's rally computer to display our average speed. We could now drive and navigate knowing how over or under we would be during a Targa stage.

It was the final piece of the puzzle.

Everything inside the Jeep was now working. Computer, driver and co-driver. Instead of just surviving, the big-ass, black Jeep - unofficially dubbed the Black Rhino - could now compete.

Relatively light for a mid-sized sport-utility vehicle, the stock Grand Cherokee SRT8 is the most powerful Jeep ever. It burbled to each start line with its SRT-tuned, 420-horsepower, 6.1-litre V8 (yes, it's a Hemi), sway bars, spring rates, suspension bushings, new front suspension knuckles featuring a revised camber angle and a one-inch lower ride height slammed over 20-inch Pirelli Scorpion rubber. And it's all stock.

"Because the all-wheel-drive system is rear-wheel biased, you can drive it like a rally car," Knott said. "It pivots remarkably well, and the torque and traction means we can fly over the hills where others are struggling."

We took full advantage of the Jeep's foul-weather assets during Leg Three.

Scheduled to run through six communities in the Kittiwake area, the remnants of Hurricane Florence resulted in the running of only four stages. But the Jeep's torque and traction meant that when I finally poked my head up from the tulip diagrams I had been digesting since Saturday, I realized that Knott had driven the wheels off the Black Rhino. We had jumped to 16th overall, gained a spot in our class and some well-deserved credibility for those who thought the idea of running an SUV competitively in Targa was a joke.

Screw just finishing, we were racing.

Except for a moment in a decreasing radii left-hander, where Knott remembered just at the right time that lifting off the throttle would pivot the Jeep enough to save his co-driver from being intimately introduced to a guardrail, Thursday was a just-keep-on-truckin' kind of day.

Despite Gilles' heroic efforts in taming the hand-built Caliber development car and Wagner navigating the entire event without a proper-running rally computer or odometer, going into Friday's final leg, we were tied for 15th overall with our DaimlerChrysler teammates leading their Modern Modified class.

If not for some heated brake fluid on one of Friday's more challenging stages, the Black Rhino was running flawlessly, and driver and co-driver were knocking any piece of wood we could find in hopes of hanging on to third position in the Modern Division, Standard Large Displacement class.

After a week of automotive abuse, some of the cars - and competitors - were feeling a few creaks and groans (in the end, only 48 of the 59 original Targa entrants would be running). For Friday's final leg, Targa organizers turned up the heat.

Friday's week high of nine back-to-back stages pounding over some of the roughest roads yet encountered totally played into the Jeep's robust nature. Where others in low-riding sports cars crept in fear, we blasted the Black Rhino over potholed craters and bombed-out back roads.

By 6 o'clock on Friday, after five legs, 2,197.56 kilometres, 36 stages and three smoky burnouts, the Black Rhino had a third-place podium class finish, a Targa Plate for completing all the stages and finished 14th overall.

National Post

Fuel Sippers Sag as Gas Prices Fall - Daily Auto Insider



The Daily Auto Insider
Wednesday, October 11, 2006

October 2006

As gas prices continue to fall, consumer searches for fuel-efficient vehicles have started to decline. According to the most recent Cars.com Consumer Search Index report, cars like the Toyota Prius, Toyota Yaris and Honda Insight top the list of new and used vehicles with the largest decline in search volume over the past month.

While searches for fuel-efficient vehicles have declined, searches for large luxury SUVs have increased significantly. The Hummer H2 and H3, Infiniti QX56, Cadillac Escalade and BMW X5 all made the list of used cars with the largest increase in searches over the past month.

Models with the largest increases in searches included: Hyundai Santa Fe (up 15 percent), Chevrolet Avalanche (up 14 percent), Jeep Wrangler (up 13.6 percent), Cadillac CTS (up 13 percent), Honda CR-V (up 9 percent), Acura MDX (up 8 percent), Chrysler 300 (up 8 percent), BMW 325 (up 7.4 percent), and Chevrolet Tahoe (up 7.2 percent).

At the same time, the Toyota Yaris searches dropped by 37.8 percent; the Toyota Prius by 33.8 percent; Volkswagen Jetta by 32.1 percent; Hyundai Sonata by 26 percent; Toyota Corolla by 25.6 percent; Toyota Camry by 23 percent; Chevy Cobalt by 21.2 percent; Honda Civic by 21.2 percent; Honda Accord by 18.7 percent and Honda Pilot by 18.6 percent

Dodge's First Mid-Size SUV: The All-New 2007 Nitro Provided as Grand Prize of The Dodge 'Battle To The Bowl VI' Trivia Challenge on NTN Buzztime Netwo

  NTN Buzztime Interactive Television Network Welcomes Dodge as Sponsor of
QB1(TM), Predict-The-Play(R) Football and Interactive Advergaming Programs
for Sixth Consecutive Year

CARLSBAD, Calif. and AUBURN HILLS, Mich., Oct. 11 /PRNewswire/ -- NTN
Buzztime, Inc., (Amex: NTN) a leading developer of interactive television
and entertainment and the distributor of Play Along TV(R) entertainment and
technology, and Dodge, a division of DaimlerChrysler AG (NYSE: DCX),
announced today that Dodge will be sponsoring NTN Buzztime's QB1 football
strategy game for the sixth consecutive year, culminating in a vehicle
giveaway of Dodge's first mid-size SUV: The All-New 2007 Dodge Nitro.
NTN Buzztime has produced QB1 for the Buzztime Network -- their
multiplayer iTV network in sports bars and restaurants -- with a license
from the NFL continuously since 1984. The football strategy game is
produced live from Buzztime's iTV Production Center in Carlsbad, California
and is played in conjunction with nationally televised NFL and college
football broadcasts. Players compete nationally to predict each offensive
play before the snap of the ball and can earn points and prizes.
Dodge has been the exclusive automotive sponsor of QB1 for the past
five years. This year, QB1 features Dodge "Battle To The Bowl VI," a trivia
game played during halftimes of select QB1 games all season long. Players
qualify to take part in the "Final Bowl," played 30 minutes prior to the
Super Bowl on February 4, 2007, to determine who will win an All-New 2007
Dodge Nitro.
"Dodge's mission is to connect with consumers through activities they
are passionate about," commented Mark Spencer, Director of Dodge
Communications. "NTN Buzztime has consistently delivered interactive
programs that engage our target consumers in the midst of what they love
doing at the grass-roots level. This long-term commitment will allow us
even more creative avenues to engage the consumer through fun, memorable
product experiences."
The sponsorship also includes the Dodge "Rush of Your Life" animated
custom advergame. In this interactive experience, players use their NTN
Buzztime Playmakers to race a Dodge Nitro through a state-of-the-art 3-D
animated city landscape, guessing the Nitro's next destination (using the
MyGIG(TM) Multimedia Infotainment System which includes GPS navigation) and
specific cargo items the vehicle will carry -- demonstrating the
class-exclusive cargo/interior flexibility of the vehicle. Dodge will also
sponsor "Football Challenge," an all-season-long prediction game where
players will "pick the winner" of all 256 NFL games, with the "best
predictor" winning a Dodge Fun Pack and HDTV grand prize.
"We are very pleased to be working with Dodge again," said Dario
Santana, Chief Executive Officer of NTN Buzztime. "The long affiliation
between Dodge and NTN Buzztime has been beneficial to both companies and
has brought great enjoyment and entertainment value to our shared
customers. We expect this year's Dodge campaign to be the most exciting one
yet."

2006-10-12 14:46 (Mw 5.5) TAIWAN REGION 24.1 122.6

== PRELIMINARY EARTHQUAKE REPORT ==

Region: TAIWAN REGION
Geographic coordinates: 24.074N, 122.563E
Magnitude: 5.5 Mw
Depth: 49 km
Universal Time (UTC): 12 Oct 2006 14:46:31
Time near the Epicenter: 12 Oct 2006 22:46:31
Local time in your area: 12 Oct 2006 14:46:31

Location with respect to nearby cities:
93 km (58 miles) SE (129 degrees) of Su-ao, Taiwan 100 km (62 miles) E (83 degrees) of Hua-lien, Taiwan
153 km (95 miles) SE (137 degrees) of T'AI-PEI, Taiwan
1065 km (662 miles) N (9 degrees) of MANILA, Philippines

ADDITIONAL EARTHQUAKE PARAMETERS
________________________________
event ID : US ttau

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/usttau.php

DaimlerChrysler will only cut EADS stake with government's OK

REUTERS | STUTTGART -- DaimlerChrysler will only reduce its stake in European aerospace and defense group EADS with the consent of the German government, it reaffirmed today.

A spokesman for the company declined to say what the current stance was in ongoing negotiations, but that the company would stick to its already announced plan to reduce its stake by 7.5 percent, bringing its total EADS holding to 15 percent.

DaimlerChrysler has repeatedly said once it reaches that level, it does not plan to sell any more shares in EADS.

Bluetec Bonanza - German automakers will offer advanced diesel engines


The Volkswagen Tiguan, above, reportedly will have the Bluetec system.

Harald Hamprecht | Guido Reinking | Automobilwoche | | Automotive News / October 11, 2006 - 6:00 am MUNICH, Germany -- Audi, BMW, Mercedes-Benz and Volkswagen are forming an alliance to make their new diesel engines more popular in the United States.

The alliance, the first for the four brands, will use the Bluetec emissions treatment system developed by Bosch and Mercedes-Benz. They plan to offer it under the Bluetec trade name and show several Bluetec-equipped vehicles at the Los Angeles auto show in December.

While about half of the new cars in western Europe have diesel engines, the figure is only 2 percent in the United States. Diesels have a poor image in America because of their history as being loud, sluggish and environmentally unfriendly. Bluetec is supposed to change that - and to help German automakers battle the popularity of hybrid powertrains.

The Bluetec system is a suite of technologies that includes traps and filters and urea injection. Urea systems shoot an ammonialike acid into the exhaust pipes, radically reducing oxides of nitrogen.

BMW CEO Norbert Reithofer and DaimlerChrysler CEO Dieter Zetsche are expected to work out the final details of the alliance this week. Audi chief Martin Winterkorn and VW brand chief Wolfgang Bernhard reportedly have agreed to the project already.

The alliance partners are expected to announce the plan within two weeks.

Bluetec diesels meet the highest emissions standards in the United States. The diesel alliance sees an advantage in marketing the system under a common brand name, Bluetec, as well as economies of scale in purchasing. Bosch provides major modules for the Bluetec system.

During the Los Angeles auto show, Dec. 1-10, the alliance plans to present its first Bluetec models to the public. Industry sources say VW will present its new compact SUV, the Tiguan, with Bluetec.

Reportedly, Audi will show the Q7 and BMW the new X5 with Bluetec. Mercedes wants to exhibit the R, M and GL classes. DaimlerChrysler's Jeep brand is expected to show the Grand Cherokee with a Bluetec engine.

These models will be brought to market in 2008, one year after Bin 5 emission rules go into effect in the United States.

Diesel Podcast
John Shipley will be coming to speak with AutoWeek about the future of diesels at Mercedes-Benz on Thursday, October 12. We will also be doing a podcast with him. If you have any questions you would like him to answer, send them to awwebmaster@crain.com and we will be sure to ask him.

John Shipley has worked at Mercedes-Benz USA for five years. He began in the eBusiness/Internet Marketing department and was in charge of all product-specific content on the U.S. consumer website, www.MBUSA.com. After that, he spent one year working on Regional Advertising before joining Product Management, where he's worked for the past three years representing the Mercedes-Benz E- and CLS-Class.

Zetsche wants to boost Mercedes profits, quality

Dieter Zetsche is standing by Maybach, saying reaction to the cars is positive. A Model 57 S is shown.

No Brainer
Zetsche wants to boost Mercedes profits, quality

By DIANA T. KURYLKO | AUTOMOTIVE NEWS

AutoWeek | Published 10/11/06, 1:49 pm et
PARIS - Mercedes-Benz is on the road to high profits and expects a 7 percent return on sales by the end of next year, says Dieter Zetsche, CEO of DaimlerChrysler AG.

In the past 12 months, Mercedes' productivity has improved 10 percent, and costs have decreased. Structural changes are boosting profits, Zetsche said in an interview at the Paris auto show.

Mercedes is trying to reverse the quality slide that tainted its reputation. The problems were caused by Mercedes' emphasis on fixing problems rather than preventing them, Zetsche said.

"We had to change the basic approach. We are challenging the quality strategy more," Zetsche said. "I am very confident that we have a much more resilient base for profitability."

But he stopped short of predicting when all of DaimlerChrysler's units would become profitable. Zetsche cited the recent announcement that the Chrysler group will lose $1.5 billion in the third quarter. Chrysler is expected to rack up $1.2 billion in losses this year, ending the turnaround that Zetsche spearheaded as CEO.

Looking at DaimlerChrysler's brands, Zetsche evaluated each unit:

The goal for Chrysler is a 5 percent return on sales - net pretax profits as a percentage of net sales. But Zetsche said he can't say when that will be achieved.

The commercial-vehicle division has made "significant progress," but its profits are not at benchmark levels.

Losses at DaimlerChrysler's financial arm also have been stemmed, and with the increase in interest rates, "there is a chance to move to potential profits," said Zetsche.

The Smart brand, "despite all the bashing based on financial failure, is extremely strong," he said. "The new Smart will offer more of everything that Smart offers today with better costs, and the breakeven point is coming down."

The Maybach brand won't be shuttered because it's not a financial drain, Zetsche said.

"I have not been able to detect any impact on my bottom line, so this is a nonissue."

"Maybach has started to prove that DaimlerChrysler can define the pinnacle of automotive engineering, and reaction to the product across the board has been very positive."

Zetsche wouldn't say how many Maybachs have been sold, saying only that the segment is smaller than Mercedes had anticipated.

Chrysler group revives health care talks with UAW

Reuters / October 11, 2006 - 2:00 pm DETROIT -- The Chrysler group has restarted talks with the United Auto Workers union aimed at reducing the $2.3 billion it spends annually on worker health care in the United States, a spokesman for the automaker said today.

A representative of the UAW was not immediately available to comment.

The talks between the Chrysler group and the union stalled a month ago when union leadership ruled out granting the automaker the same kind of concessions given to its larger rivals General Motors and Ford Motor Co. over the past year.

At the time, UAW President Ron Gettelfinger, who sits on DaimlerChrysler's supervisory board, said the union believed the Chrysler group was in a stronger position than either GM or Ford.

But less than two weeks later, the Chrysler group said it was cutting second-half production by 16 percent because of a glut of unsold pickups and SUVs.

The Chrysler group, which had posted four years of profitable results, now expects a loss in the current quarter and a full-year loss of up to $1.2 billion.

Chrysler group spokesman Dave Elshoff confirmed that talks with the UAW had resumed but declined to provide other details. The resumption of the talks was first reported by the Detroit Free Press based on an interview with Gettelfinger.

The Chrysler group's health care burden represents a cost disadvantage of more than $1,000 per vehicle compared with Asian and European automakers operating without a unionized factory payroll in North America, the company has said.

DaimlerChrysler Chairman Dieter Zetsche criticized the union's opposition to negotiating a cost-saving deal on health care with the company as "irrational."

The UAW's initial rejection of concessions for the Chrysler group was seen by some industry watchers as an unusual break with the auto industry's established practice of pattern bargaining.

Under pattern bargaining, similar wage and benefit contracts have traditionally been negotiated for all of the Detroit 3.

The benefit rollbacks negotiated with Ford and GM, under which UAW workers and retirees pay more for their health care, met opposition from the union rank and file.

The cost-cutting deal for Ford was approved by 51 percent of union workers. At GM, the share of the vote in favor of the concessions was 61 percent.

The Chrysler group, Ford and GM are preparing for the next round of major contract talks with the UAW to begin in September 2007.

The automakers are expected to look for wide-ranging concessions, including even lower health care costs, to help them compete against Asian and European automakers.

The car companies also want more flexible work rules and a reduction in the number of workers guaranteed nearly full wages and benefits even after their plants are idled or shuttered.

Chrysler minivan plant in Windsor, Ont., takes a week of downtime

DaimlerChrysler - broadsided by shifting consumer demand toward smaller vehicles - had announced Sept. 19 it would undertake a series of factory layoffs, but details of specific shutdowns are being released no more than about a week in advance.

The Windsor plant, employing 5,800 people and 800 robots, assembles Dodge and Chrysler minivans, perennially among the best-selling vehicles in Canada, as well as the Pacifica crossover, which was an early entry in its segment but has not dominated it.

The production scalebacks outlined last month are aimed at cutting Chrysler's second-half shipments in the United States by 16 per cent to reduce bloated U.S. inventories.

Inventories in Canada are healthy, Reid Bigland, the new president and CEO of DaimlerChrysler Canada, told reporters during a meeting at which the timing of the Windsor downtime was disclosed.

The automaker currently has 56,000 unsold vehicles in Canada, which Bigland characterized as "a reasonable level," down from over 75,000 a couple of years ago.

Bigland, 40, born in Kamloops, B.C., and raised in North Vancouver and suburban Toronto, was given the Canadian CEO job in July. He previously headed DaimlerChrysler's Freightliner custom chassis unit.

Chrysler, which depends on pickup trucks, sport utility vehicles and minivans for over 70 per cent of its sales, is moving rapidly to introduce products that stress fuel efficiency, Bigland said.

The recently released Caliber compact hatchback is "moving faster than chickenpox through a kindergarten," he said, with monthly Canadian sales running between 1,500 and 2,200 units - still well behind roughly 7,000 for the segment-leading Honda Civic.

Bigland also pointed to the redesigned Sebring mid-size sedan now hitting the market, and to other products including a Jeep Grand Cherokee SUV with a high-efficiency Mercedes-Benz diesel engine coming to showrooms early next year.

Paralleling those introductions are the less environmentally conscious Dodge Nitro bulky mid-size SUV and the Chrysler Aspen luxury large SUV.

In announcing last month's production cutback plans, Tom LaSorda, president of the German-American automaker's North American Chrysler group, said many of the cuts "are sitting in the truck market and the large-SUV market."

Chrysler's other Canadian assembly plant, a 3,500-employee operation west of Toronto in Brampton, produces the Chrysler 300 and other large rear-wheel-drive sedans.

Union officials have said Brampton faces two weeks of downtime in the current quarter and further shutdowns in early 2007. But LaSorda has said there are no plans for permanent closures.

BREAKING NEWS: Crude stocks soar this week - expect lower oil pricing

BREAKING
NEWS
U.S. crude stocks soar 2.4 million barrels, beat expectations. Distillates down 1.6 million, gasoline rises below forecasts.

This Day In Auto History: 12 OCTOBER

10.12.1903 - The National Automobile & Motor Company of Oshkosh, WI is liquidated

10.12.1928 - Racer Fred Comer dies

10.12.1936 - The first Vanderbilt Trophy race is staged at the Roosevelt Raceway in Westbury, NY and won by Tazio Nuvolari in an Alfa Romeo - George Vanderbilt, a cousin of William K. Vanderbilt Jr., is the patron of the reborn classic race, and a ceremonial first lap is driven by track manager Colonel George Robertson in the Locomobile “Old 16”, they being the winning driver and car of the 1908 Vanderbilt Cup

10.12.1941 - Racer Morgan Shepherd is born in Ferguson, NC

10.12.1950 - The Society of Motion Picture Art Directors names the 24th Series Packard (1951 model year) as “the most beautiful car of the year”

Tuner Special: Carlsson CK50 for Mercedes-Benz GL500

MERZIG, Germany — Carlsson Autotechnik, the Mercedes-Benz tuning specialist, has adapted its CK50 engine kit for the GL-Class utility vehicle.

EDMUNDS - - In the GL, the CK50 boosts output to 435 horsepower and torque to 443 pound-feet. Carlsson says the modified GL will gallop from zero to 60 mph in less than 6.1 seconds and will achieve a top speed of 154 mph. Performance is further enhanced with the addition of a stainless steel exhaust system with quad pipes.

Carlsson also provides a C-Tronic electronic suspension lowering kit that drops the ride height by 1.4 inches and automatically compensates for changes in the road surface.

To complete the package, a variety of ultralight wheels in sizes up to 22 inches are available. As always, aero body enhancements and a full range of interior appointments help the owner customize the vehicle to his or her taste.

For more information, see the Carlsson Web site.

What this means to you: The CK50 engine kit seems like such a cozy fit in the GL-Class.

Wednesday, October 11, 2006

Cummins to produce new light-duty diesel for DaimlerChrysler

Reuters / October 11, 2006 - 10:00 am CHICAGO -- Diesel engine maker Cummins Inc. said today that it will begin producing a new family of light-duty diesel engines for DaimlerChrysler AG at its plant in Columbus, Ind.

The company, which is enjoying strong demand for its biggest on-highway engines because of looming U.S. clean-air rules, said it plans to spend about $250 million to set up the new line inside its existing manufacturing facilities.

It estimated the new production line would ultimately employ between 600 and 800 workers.

The diesel engine maker currently supplies a diesel engine used in heavy-duty versions of the Dodge Ram pickup.

Cummins ranks No. 37 on the Automotive News list of the top 100 global suppliers with worldwide original-equipment automotive parts sales of $3.75 billion in 2005.

Q&A Session with the SRT Engineers

Just a quick email to let you know that we are hosting a Q&A Session with the SRT Engineers tommorow night (10/11) at 6PM EST on CherokeeSRT8.Com.

Drop by and join in the chat. Questions on anything DCX are welcome as well as limited questions on the upcoming Dodge Challenger.

Here is a direct link to where the chat will be taking place.

http://www.cherokeesrt8.com/forums/forumdisplay.php?f=16

Thanks for your continued support of CherokeeSRT8.Com!

CherokeeSRT8 Administration Team

Chrysler Group September Certified Pre-Owned Vehicle Sales Rise 9% - Update

(RTTNews) - Automobile manufacturer Daimlerchrysler AG (DCX | charts | news | PowerRating) on Tuesday said that Chrysler Group announced the September sales of its Certified Pre-Owned Vehicle units, reporting a nine percent growth.

The Stuttgart, Germany based company revealed that September sales of Certified Pre-Owned Vehicle units increased 9% to a record of 9,451 units from 8,650 units sold during the same period last year. September sales of the Chrysler brand climbed 4% to 2,889 units and sales of the Jeep brand increased 37% to 2,587 units. Sales of the company's Dodge brand remained in line with September 2005 at 3,975 units.

The company reported a 5% year-over-year increase in the third quarter sales to 27,861 units, while sales for the nine-month period increased 10% to 88,514 units.Director of DaimlerChrysler Motors Remarketing, Peter Grady commented, "Shifting consumer preferences are raising the profile of Chrysler, Jeep and Dodge CPO products in the marketplace and our customers are responding positively to our portfolio of products. As the certified-used vehicle segment continues to pick up momentum, our Five Star dealers are prepared to go full- speed ahead."

DCX is currently trading at $49.96, down $0.43 or 0.85%, on a volume of 221,900 shares.

Mercedes-Benz to Sell Diesel-Powered SUVs in U.S. in 2008

STUTTGART, GERMANY – DaimlerChrysler AG’s Mercedes-Benz unit will sell diesel-powered versions of its M- R- and GL-Class SUVs, beginning in 2008. Mercedes-Benz said its Bluetec technology cuts nitrogen oxide emissions by adding a urea-based solution into the exhaust stream. The new models will be the first diesel-powered vehicles to meet the Environmental Protection Agency’s BIN5 emissions standards for all 50 states.

2006-10-10 23:58 (Mw 5.8) OFF EAST COAST OF HONSHU, JAPAN 37.3 142.7

== PRELIMINARY EARTHQUAKE REPORT ==

Region: OFF EAST COAST OF HONSHU, JAPAN
Geographic coordinates: 37.252N, 142.722E
Magnitude: 5.8 Mw
Depth: 30 km
Universal Time (UTC): 10 Oct 2006 23:58:07
Time near the Epicenter: 11 Oct 2006 09:58:07
Local time in your area: 10 Oct 2006 23:58:07

Location with respect to nearby cities:
163 km (101 miles) E (82 degrees) of Iwaki, Honshu, Japan
196 km (122 miles) SE (124 degrees) of Sendai, Honshu, Japan
206 km (128 miles) ESE (104 degrees) of Fukushima, Honshu, Japan
319 km (198 miles) NE (56 degrees) of TOKYO, Japan

ADDITIONAL EARTHQUAKE PARAMETERS
________________________________
event ID : US trb2

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/ustrb2.php

This Day in Auto History: 11 OCTOBER

This Day in Auto History:

10.11.1891 - Arthur G. Phelps of General Motors is born in Chicago, IL
10.11.1911 - Racer Nello Pagani is born in Milan, Italy
10.11.1926 - Richard Hale Leet of the Amoco Corporation is born in Maryville, MO
10.11.1948 - The Kaiser-Frazer Corporation produces its 300,000th car
10.11.1954 - The first Jeep CJ-5 is produced

2006-10-11 06:43 (Mw 5.8) PHILIPPINE ISLANDS REGION 20.7 120.1

== PRELIMINARY EARTHQUAKE REPORT ==

Region: PHILIPPINE ISLANDS REGION
Geographic coordinates: 20.703N, 120.065E
Magnitude: 5.8 Mw
Depth: 30 km
Universal Time (UTC): 11 Oct 2006 06:43:57
Time near the Epicenter: 11 Oct 2006 14:43:57
Local time in your area: 11 Oct 2006 06:43:57

Location with respect to nearby cities:
204 km (127 miles) W (279 degrees) of Basco, Batan Islands, Philippines
212 km (132 miles) S (186 degrees) of Kao-hsiung, Taiwan
251 km (156 miles) SSW (207 degrees) of T'ai-tung, Taiwan
683 km (425 miles) N (352 degrees) of MANILA, Philippines

ADDITIONAL EARTHQUAKE PARAMETERS
________________________________
event ID : US tsai

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/ustsai.php

Tuesday, October 10, 2006

Navistar International Corp. is going to war.



Bob Tita | | Crain's Chicago Business - - Three years after entering the military truck business for the first time since World War II, the company has orders for 12,000 trucks worth about $1.5 billion over the next four years. And the company could add that much in annual revenue if it wins a lucrative contract to build a replacement for the military's ubiquitous Humvee.

On Nov. 9, Navistar will deliver a model truck to the U.S. Army that it hopes will be incorporated into the Army's final design for a new truck. Defense contracting giant Lockheed Martin Corp. will be submitting a model as well. And lots of formidable defense contractors are expected to vie for the job of building the truck once the Pentagon issues a design.

Navistar hopes its truck-making know-how will overcome its lack of Pentagon experience to make it the exclusive supplier for a vehicle whose production would be a guaranteed source of revenue for years to come.

"This is potentially a huge opportunity for Navistar," says Loren Thompson, chief operating officer of Lexington Institute, a defense industry think tank in Arlington, Va. "If Navistar is the (contractor) on a program like this, it would probably go on for decades."

It's not clear exactly how much the Humvee-replacement contract will pay — the Pentagon doesn't disclose figures and doesn't have a specific appropriation for trucks — but whoever wins the contract will make an estimated 10,000 trucks a year, for all military branches, at a price of about $165,000 each.

That works out to $1.65 billion annually, a nice boost for a company with an estimated $11.5 billion in revenues last year.

The military truck effort is a key element of CEO Daniel Ustian's plan to expand beyond commercial trucks and to reach $15 billion in sales by 2009.

And Navistar could make the trucks without adding significant manufacturing capacity, by using existing truck-making platforms and factories.

South Bend, Ind.-based AM General LLC, the maker of Humvees, has built an estimated 200,000 of them over the past 21 years. But the Humvee has fallen out of favor as a combat vehicle with military officials, partly because AM General hasn't been able to produce an engine powerful enough to keep up with the increased armor plating needed to protect U.S. troops in war zones like Iraq and Afghanistan.

COMPETITORS READY FOR FIGHT

Navistar, which primarily makes trucks for freight haulers, won't have any trouble making big enough engines. But defense industry experts say snagging the contract won't be easy. Aerospace contractor Lockheed Martin, which doesn't make trucks itself, says it can pair its expertise in military engineering with a company that can make trucks.

And AM General hasn't given up; it vows to be active in influencing the design and production of the new vehicle. "We intend to make light tactical vehicles for the Army for a long time," a spokesman says.

Pursuing a high-profile defense contract often requires legions of bureaucrats to generate volumes of information for the bid process and teams of lobbyists to marshal congressional support.

"It's a high-cost business," says Dennis Huibregtse, an analyst with Power Systems Research, a Minnesota-based truck manufacturing consultancy. "Your bid costs are a fortune because of the documentation requirements."

Navistar executives hope their work on the new truck's design and intimate knowledge of its costs will help offset the company's lack of experience with procuring large-scale military contracts. In just three years, they say, they've won 20 of 25 military truck contracts they bid on, thanks to their ability to quickly devise military versions of the engines and vehicles already in production for commercial trucks. This makes the vehicles less expensive to manufacture and ensures a readily available supply of replacement parts — both strong selling points for the Pentagon.

"What we basically do is leverage off the product offerings we have today for the commercial world," says Archie Massicotte, president of Navistar's military subsidiary, International Military & Government LLC. "This is what the Army is looking for."