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HYUNDAI SAYS DC PARTNERSHIP IS
IN THE BAG
GOVERNMENT QUESTIONS REFINERS
SATURN RETAILERS HELP EBAY
MICROSOFT
CONQUERS DRIVEOFF
DODGE DUMPS VAN FOR SUV
AUTOMAKERS POST SLIGHT CAFE IMPROVEMENT
GM EXPANDS FLEXIBLE FUEL OFFERINGS
CAR
THIEVES LIKE MERCEDES-BENZ MODELS
GOVERNMENT CUTS
RESEARCH PROGRAM
GM TO GIVE US FIVE
HYUNDAI SAYS
DC PARTNERSHIP IS IN THE BAG According to a Ward's Automotive International
report, Hyundai Motors is in the final stages of an agreement with
DaimlerChrysler to take possession of Daewoo Motor Corporation. Under the
proposal, DaimlerChrysler would take 40 percent of Daewoo, while Hyundai would
take 20 percent and the remainder would be distributed to creditors. The
arrangement would benefit DaimlerChrysler by giving the automaker access to the
Asian market and cheap small-car production facilities. Hyundai, as the minority
holder, would have a firm hold on the majority of the Korean market and yet
avoid being termed a monopoly. DaimlerChrysler has continued to deny the
agreement with Hyundai.
GOVERNMENT QUESTIONS
REFINERS Federal officials met with oil refiners, demanding an explanation
for sharply rising gas prices. According to CNN, the Environmental Protection
Agency and the Energy Department's policy office had jointly sent a letter to
major refiners requesting the meeting, saying that their analysis showed that
supplies of gasoline were adequate in the Midwest, where prices have exceeded $2
per gallon. The agencies also requested an explanation of additional costs in
producing the reformulated gasoline that is now required in some areas. In the
meeting, the EPA said that the agency had estimated the cost of the cleaner fuel
to be temporarily five to eight cents per gallon more expensive, but that
doesn’t come close to accounting for the 50 cents more per gallon that consumers
in some areas are paying. Refiners declined to comment to the agency remarks or
to reporters.
SATURN RETAILERS HELP EBAY
eBay has announced that it will enter a partnership with General Motors'
Saturn division. Saturn will help eBay sell used cars by offering a
comprehensive, nationwide car inspection service. Vehicle inspections for cars
offered online by eBay and partner AutoTrader.com will be given by the service
departments at existing Saturn retailers. eBay says it chose Saturn because of
the brand's retail reputation.
MICROSOFT CONQUERS DRIVEOFF
Microsoft's CarPoint LLC has announced that it is acquiring rival company
DriveOff.com, a similar service that lets customers browse online, choose a
model for purchase, and finalize details online before being referred to an
affiliated dealership. CarPoint says that the acquisition of DriveOff will give
CarPoint a more effective, direct buying service. The acquisition will expand
CarPoint's affiliated retail network from 3700 dealers to 5000
dealers.
DODGE DUMPS VAN FOR SUV DaimlerChrysler plans to cancel production of the Dodge Ram Van effective April 2002 so that the automaker can use the production space to make a new sport-utility vehicle, says Automotive News. The new SUV will be built on the next-generation Ram pickup platform. Some industry experts question the late timing of DC's introduction of a full-size sport-utility vehicle, reasoning that by then the competition will be fierce and gas prices and regulations may strain demand.
Read more about DC"s plans for a new SUV by clicking here.
THE NEW MINI LIVES ON BMW
partner Ricardo says it will employ 75 former Rover employees to help with New Mini development, says
Automotive News Europe.
Despite the recent sale of Rover Cars from BMW to the U.K.'s
Phoenix Consortium, Rover's New Mini remains
under the control of BMW. The partnership between BMW and Ricardo, which is currently developing the
New Mini, is set to last for
another 18 months, but the project's ultimate fate is still unknown. If all goes as planned, the car will be
built in BMW's Cowley,
England, plant starting early next year.
AUTOMAKERS POST SLIGHT CAFE
IMPROVEMENT Preliminary data from the National Highway Traffic Safety
Administration (NHTSA) shows that automakers have slightly improved the average
fuel economy of their vehicles for 2000. The NHTSA reported that the average
fuel economy of cars is 28.4 miles per gallon for 2000, versus 28.3 in 1999.
Light trucks posted an average of 21.1 mpg, versus 20.7 in 1999. The current
federal requirements call for corporate averages of 27.5 mpg for cars and 20.7
mpg for trucks.
GM EXPANDS FLEXIBLE FUEL OFFERINGS
General Motors announced a plan to build flexible-fuel full-size sport-utility
vehicles. The flexible-fuel capability, called E85, which has already been
offered on several other models from U.S. automakers for years, allows the
vehicle to adapt to using a blend of gasoline and as much as 85 percent ethanol
(renewable grain alcohol). GM plans to offer the E85 system as a no-cost option
on Chevrolet Suburbans and Tahoes and GMC Yukons with the 5.3-liter V-8 engine.
The offering of the flex-fuel system will benefit General Motors by helping them
meet Corporate Average Fuel Economy (CAFE) standards. GM has been making
Chevrolet S-10 and GMC Sonoma compact pickups with flex-fuel capability for the
first time this model year.
CAR THIEVES LIKE MERCEDES-BENZ
MODELS An annual insurance industry study, by the Highway Loss Data
Institute, shows the Mercedes-Benz S-Class to have the highest theft frequency
and loss claims for the 1997 to 1999 model years. The study also indicated that
Mercedes-Benz vehicles are ten times more likely than average to be stolen.
Acura's Integra coupe and sedan places second and third, respectively, and
Mitsubishi's Montero placed fourth overall and first among sport utilities for
instances of theft. The Mercedes-Benz SL convertible placed fifth in the study.
Rated sixth through tenth, in order: Nissan Maxima, BMW 3-Series, BMW 7-Series,
and Lincoln Navigator.
GOVERNMENT CUTS RESEARCH
PROGRAM The House of Representatives Wednesday voted to cut funding for the
Partnership for a New Generation of Vehicles (PNGV) program, a joint program
between government and industry that works to develop fuel-efficient advanced
technologies. The Republican-sponsored amendment will cut $127 million from the
program. The partnership was started in 1993 by automakers and the Clinton
administration, and it is suspected that the sponsors of the amendment are in a
power struggle with the administration. The program is viewed by many industry
backers as a progressive way of using technology, rather than regulations, to
yield advancements.
GM TO GIVE US FIVE General
Motors will introduce a new five-cylinder engine for compact trucks in 2002,
says USA Today. The in-line five-cylinder engine built in Flint,
Michigan, will share parts with an inline four and an in-line six-cylinder
engine to be introduced sometime next year on GM's midsize SUVs. The move is
said to be an effort to increase the company's corporate fuel
economy.
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