Chrysler to Roll Out Compressed Natural Gas Vehicles in 2017 – Why?

May 16th, 2011 No comments »

Chrysler declared last week that it will commence marketing compressed natural gas (CNG) vehicles by 2017. But why is the car manufacturer committing in yet another substitute technology when electric fomites have car companies, charge-station producers, and also the government on their side? The answer is invariably and usually money.

One of the simplest and general reasons is that compressed natural gas fomites are more inexpensive than electric cars. The fomites comprise of compressed gas storage tanks as an alternative to costly lithium-ion batteries. Honda’s Civic GX CNG fomite is priced at $25,490. This price is by far less when it is compared to most reasonably charged new batch of electric cars like Chevy Volt costing $41,000 before tax credits, or the Nissan Leaf, which has its starting price from $32,000 before credits.

The CNG fomites also are on the threshold of receiving government backing, making them even less costly. A recently-put in Natural Gas Bill in Congress has 154 patronizes, and if authorized, it will permit the government to put forward credits to encourage and develop compressed natural gas fomites, same as it does with electric fomites.

Chrysler is also perhaps attempting to circumvent its stakes lest this whole electric-vehicle thing comes down flat on its face in another10 years. And it is not only Chrysler resisting to just stay with electric cars. Other companies are furthermore gradually beginning to get into the market. Honda has programs to trade with its CNG-powered Civic in 50 states following year, and GM began selling natural-gas fomites to fleet purchasers last year. And for Chrysler, this is a reasonably gentle movement because its parent company Fiat is already selling natural gas-powered vehicles in Europe and South America.

Thus we can say that not all car manufacturers have hugged electric cars as the ultimate eventual future, yet. They just assume they are part of a branched out portfolio. But each crumb of R&D capital that goes to make a compressed natural gas car is just an exhausted dollar that is not altering your electric car’s series or battery life.

Possible clients should be cautious of yet another petroleum option. The quantity of compressed natural gas refueling stations will have to level up radically if the technology is to get off the ground. And with a lot of companies cooperating on enlarging the EV substructure, that may take a moment, or just not at all occur. In California, for instance, there are 448 EV charging stations and only 217 CNG stations according to the DOE.

Yet another disadvantage of compressed natural gas is that it is not a renewable source. Electric vehicles can often charge up with electricity got from coal or even natural gas, but they at any rate have the alternative of refueling with renewable.

Bob Lee, who is Chrysler’s vice president for engine and electrified propulsion systems, said in an interview in Detroit that “The technology is very actively being worked on.”

Fiat, which possesses 30% of Chrysler and contrives to step-up the holding to 51%, has engines utilizing compressed natural gas in Europe. Chrysler administrators have researched getting that Fiat technology to the U.S.

Lee at the SAE 2011 World Congress, an automotive engineering convention in Detroit further added that “It’s a good way for some diversity in the market in terms of fuel use.”

Fred Diaz, head of the truck unit, said in February that “Chrysler is looking at the possibility of adding compressed natural gas-powered engines to its Ram brand. I’m eager and very interested to see what we can do with CNG in our truck applications.”

Auto industry looks to be on the road to revival

March 29th, 2011 No comments »

Not even the deep chilly January could dumb the swelling auto industry.
In what is naturally a frosty, inhospitable month for car manufacturers, retail sales of new cars and trucks in the U.S. developed a remarkable 25% — including a 33% leap for General Motors Co. and a 58 % growth by Chrysler Group LLC.
Ray Huffines who is the CEO of Plano-based Huffines Auto Dealerships, said “If we can have this kind of business in January, I can hardly wait for March.” Plano-based Huffines, Auto Dealerships deal in Chevrolet, Dodge, Chrysler, Jeep, Hyundai, Kia and Subaru stores branded cars.
The rise last month comes after 11% increase in December, which forecasters say predicts well for sales the rest of the year.
George Hoffer, a business professor at the University of Richmond who follows the industry stated thus “Housing is down and showing no signs of coming back. In reality, the auto industry in recent years has moved to its own drumbeat.”
Lee Chapman, president of the Dallas-Fort Worth Metropolitan New Car Dealers Association said “Dealers, like most businesses, are looking for consistency in the economy. Each month seems to pick up a little more steam. Six months ago, we could be up one month, down the next.”

Chrysler Posts Second Straight Quarterly Operating Profit

November 1st, 2010 No comments »

Best results established on amended sales show betterment from the first quarter, but new production in the fourth quarter means the most excellent is yet to arrive.
Chrysler’s sales betterments so far have all come from fleet sales, which has let Chrysler to endure in a lack lustre economy; a new torrent of retooled models is about to come at dealerships, and the community is keen to see how unusual they will be.
Chrysler declared its financial outcomes for the II quarter of 2010 showing a US$183-million operating profit, its 2nd repeated quarterly profit since coming out from insolvency last year. The profit was better than the first-quarter results as well, when Chrysler made US$143-million operating profit.
Chrysler CEO Sergio Marchionne pronounced in a statement “The second-quarter operating profit confirms that Chrysler Group is on track to achieve its goals. Yet an extraordinary amount of work still lies ahead.” He further added that, “2010 is seen as a year of transition and stabilization. With most of our 16 all-new or refreshed products launching later this year, including the all-new Chrysler 300, Dodge Charger, Dodge CUV, the iconic Fiat 500, and the Chrysler Sebring replacement, Chrysler Group must continue to be rigorous, disciplined and focused on the task at hand.”

Jump in Earnings for the Second-Quarter Reported by BMW Group

October 31st, 2010 No comments »

The BMW Group has recorded a considerable boost in sales volume, revenues and earnings in the second quarter of 2010. Group revenues improved by 18.3% to euro 15,348 million, while the earnings (profit) before interest and tax (EBIT) increased to euro 1,717 million. This matches to an EBIT gross profit margin of 11.2%. The profit before tax climbed up to euro 1,299 million, with the profit after tax bettering to euro 834 million. The number of fomites sold during April to June augmented by 12.5% to 380,412 units.

Chairman of the Board of Management of BMW AG Norbert Reithofer, on Tuesday in Munich stated that “Sharp sales volume growth on major markets and a high-value model mix are the main reasons for the strong second-quarter performance. We have also used the economic crisis as a source of opportunity and have improved efficiency significantly in all areas of the company. We have made good progress towards achieving our profitability targets for the year 2012. But we have no intention of resting on our laurels. We are determined to remain on track to make the company sustainable fit for the future.

Highlights from GM’s IPO Registering

September 15th, 2010 No comments »

GM anticipates bringing up between $15 billion and $20 billion in the IPO.
The Treasury and other shareholders will put up for sale common stock and GM, itself, will offer obligatory changeable junior preferred stock that is graded below the preferred shares bore by the U.S. and Canadian governments and the United Auto Workers union’s retired persons’ healthcare trust. The case and marketable securities of GM stands at $31.5 billion and outstanding debt at $8.2 billion.
The Treasury will hang about a major shareholder after the IPO and will be capable to pressure GM executive selections and payments, GM’s business scheme, employee and union determinations and debt and equity issues.
GM stated in its filing that based on the guidance of TARP Special Master Kenneth Feinberg, the corporation’s payment for its top executives will be noncompetitive with other most important corporations.
GM requires major supplementary financial support for its Opel/Vauxhall reconstituting that has been financed internally since the German federal government refused loan assures and insolvency would be an alternative if the reorganization cannot be finished.
Towards the end of 2009, GM’s U.S. pension arrangement had a $17.1 billion deficit and its non-U.S. pension program had a $10.3 billion shortage, based on the filing.

GM posts twofold decrease in August sales

September 2nd, 2010 No comments »

The major auto makers General Motors Co. on Wednesday illustrated just how hard it was to budge metal last month, resulting in a 24.9% drop in August fomite sales.

The SAAR (seasonally adjusted annual rate of sales) for the industry stood at 11.47 million vehicles which went down from 14.17 million a year ago. Jesse Toprak the analyst of TrueCar.com said the results were even bad than he had anticipated.

He further stated that “This was the worst August for the industry in 28 years, and if adjusted for population, we haven’t seen sales this bad since World War II. The domestic car makers had a relatively decent month, but clearly the second-half recovery will be much more sluggish than we had initially predicted.”

Don Johnson head of U.S. sales said “Last year’s cash-for-clunkers program spiked industry sales in 2009, so results this August were not surprisingly a bit mixed.”

In August 2009, the promotion introduced by the government directed at getting older, less fuel-competent cars off the road as a substitute for newer, more environment friendly models which actually set off big sales with skewing results.

GM Prospectus Puts Down Possibilities on the Block

August 12th, 2010 No comments »

General Motors provided potential capitalists much to reflect in its initial public offering (IPO) prospectus on Wednesday, in which it sketched threats to its business.

These ran from elevated oil prices to hostile rivalry in China and its recognition of new administrators with no prior motor industry experience.

The US carmaker made the revelation in the “risk factors” section of its prospectus, which is indispensable by US law for IPOs.

GM alleged in the text that its revelation patterns and domestic control over financial coverage were “currently not effective” and could damage its financial situation and capability to do business in the future.

GM stated in its registering with the US Securities and Exchange Commission that
“Our US defined benefit pension plans are currently under funded and our pension funding obligations may increase significantly due to weak performance of financial markets and [the] effect on plan assets.”

GM further remarked that “It’s not possible for us to predict what the economic environment will be at our next scheduled re-measurement as of December 31 2010. Accordingly, discount rates and plan assets may be considerably different than those at June 30, 2010.”

BMW Active Hybrid 7 acquires $900 tax credit, however its price tag is still $100K +

June 7th, 2010 No comments »

The BMW Active Hybrid 7-Series is the 4th BMW replica to meet the criteria for a tax credit under U.S. government principles. The U.S. government has declared that the BMW Active Hybrid 7-Series specifies for a $900 (€735) federal tax credit below the Alternative Motor Vehicle provision. The Internal Revenue Service manifested the tax credit for the prototype now.

nevertheless that however holds the cost for the 2011 BMW Active Hybrid 7-Series at over $100,000. Initial price for the model which includes the destination costs but excludes the tax credit, is $103,125 (€84,251). The lengthy wheelbase variant starts at $107,025 (€87,437).

The authentication at present appends the Active Hybrid 7-Series to the Active Hybrid X6, the 335d and the X5 xDrive35d to the set of BMW prototypes which measure up for the tax credit.

The Active Hybrid 7-Series boasts the same 4.4 litre V8 engine with 455 PS (335 kW) and 516 lb-ft (700 Nm) as the 750i, exclusively with a meek-hybrid system (electric motor powers) and stop/start engineering to better fuel saving by approximately 15%. The power train matched to the 8-speed transmission system allows this model of the BMW to go from 0 to 60 mph (96 km/h) in 4.7 seconds.

Premium Prices of Cars in China

June 7th, 2010 No comments »

BMW’s 7-Series has a 1,355,000 Yuan ($198,500) as its base price, will not cost almost three times the price of the U.S. version. Audi’s A4 in China is 39% more costly than the U.S. initial price, while Mercedes C-Class starts at 348,000 Yuan ($51,000), thus making it 51% more costly than in the U.S. These statistics are according to the carmakers’ Web sites.

Audi spokeswoman Esther Bahne said, “In China a rather high pricing level is maintained due to consistently high levels of demand. Incentive levels throughout the premium market are low.” He stated thus while declining to remark in detail on Chinese programs in advance of Volkswagen’s full first-quarter earnings report.

Geely settled to buy Volvo for $1.8 billion from Ford Motor Co. on March 28. The Chinese auto manufacturer has ideas to spend $900 million as part of a turnaround of the un-remunerative Gothenburg, Sweden-based brand. The enlargement includes Volvo’s 1st Chinese factory and a goal to sell 200,000 cars in the country in five years. Volvo now has 6% of Chinese luxury sales.

Mercedes will launch a longer E-Class in Beijing this week. This is the first model formulated only for China, while BMW will have a continued 5-Series, the only car built for this specific market.

Audi Motor Company Share Declining in china Market

June 7th, 2010 No comments »

Audi’s contribution of the Chinese luxury market declined to 42 % last year from 66% in 2004, according to data from Global Insight. BMW, the world’s principal luxury auto maker, earned 7% points to 23 % over the same period, while Mercedes augmented to 16% from 9 %.

The cut down in Audi’s market contribution came after Daimler and Munich-based BMW constituted joint ventures over the previous seven years to construct cars topically. Audi has been operating in China for more than two decades. Mercedes and BMW were appended to the government’s leverage list only last year. Daimler’s Chinese sales reached two-fold in the first quarter thus making it the top- developing luxury auto manufacturer in the country. The Stuttgart, Germany-based producer, presently No. 3 in China, is directing deliverances to over 100,000 vehicles this year which is 70,100 more than in 2009.

As the three German competitors punch it out, Volvo Car Corp.’s programs to develop in China with the aid of new proprietor Zhejiang Geely Holding Co. may show the way to cutting down of prices for luxury cars in China, a market in which the luxury automakers depend to boost profit.