Car sales plummet (UK)

UK car sales have plummet since March. During March, sales fell down to 0.5% but last month sales of SUV's fell by 18.3% and small family cars like the Ford Focus, KIA Cee'd and Peugeot 308 saw a 8.3% drop compared with May 2007, despite cleaner engines added to the Focus range. Sales of large family cars (Ford Mondeo, VW Passat, Chevrolet Epica) fell by 4.5%, however, its not all bad, sales of city cars (Hyundai i10/KIA Picanto, Suzuki Splash) rose by 120%.

The sports car segment suffered a sales drop of 14.5 per cent. But sales of luxury executive saloons, like the Mercedes E-class and BMW 5-series, are remaining buoyant, suggesting that company fleet schemes have yet to feel the pinch.

These latest SMMT sales results provide the first evidence of the impact of the Government’s proposed changes to Vehicle Excise Duty – commonly known as road tax - since their were put forward in Chancellor Alistair Darling’s budget. The drivers of some cars will see their road tax double.

Yesterday the Treasury revealed that more than a million households with gross incomes of less than £15,000 face above-inflation increases in road tax. Poorer families tend to drive older, less-efficient cars. Indeed, the Budget’s road tax increases have been described as a “poll tax on four wheels” by one rebel Labour MP.

The value of secondhand cars has also taken a blow since it emerged that the road tax changes will be applied retrospectively to vehicles registered since 2001.

“People are now finding themselves in negative equity,” said Edmund King, president of the AA. “We are talking to people who are extremely concerned. They can't afford to run their vehicles but they are trapped as they can't sell their cars.”

In another blow to Gordon Brown, Tony Blair told GMTV that the cost of motoring was contributing to the Prime Minister’s unpopularity and his disastrous poll rating. Blair said, “Voters are thinking, ‘It used to cost 30 quid to fill up the car; now it costs 60 or 70 quid.’”

In developing markets elsewhere in the world, car sales are booming. Ford has just announced a $500 million (£260m) expansion of its Chennai factory, South India, which will be used as a hub to serve the region. Meanwhile, Russia’s third-largest car maker, OAO Sollers, will invest $200 million (£110m) to expand its dealer network to respond to soaring demand.

Via AutoCar > UK car sales fall

Emerging car markets to receive Ford KA sedan

Ford Ikon. This name may not be very known by European or North American readers, but ask a Mexican or an Indian car buyer about it and he/she will surely know this is the sedan version of the fourth generation Fiesta (the most recent is the sixth). Well, Ikon is still for sale in India and, as the Indian magazine Overdrive stated, it is in desperate need for changes. The same magazine was the first one to state the Ikon replacement would be a small sedan based on the Brazilian Ford Ka.

The new sedan will be sold in India by September, according to Overdrive, and will reach other markets. Brazil is a sure destination, once it will probably be made in the South American country, more specifically at the Sao Bernardo do Campo plant, already in charge for Ford Ka production and also in desperate need of more products. Small sedans are very popular in Brazil, what makes the Ka Sedan (the name the car may receive there) a natural choice. Low investment figures for the development of this version are also something Ford has surely taken into consideration. As we have already said, Ford has confirmed the sixth generation of Fiesta will be made in Mexico.

Brazil has a free trade agreement with this country, what allows them to exchange vehicles with no import taxes. The new Fiesta tends to be very popular in Brazil and the Ka Sedan/Ikon could also succeed with the Mexican public. Nothing seems more obvious than the swap of new Fiesta units for Ka Sedan vehicles and vice-versa. Even the date when both are expected to start production, in 2010, proves this would be a perfect cost-cutting combination, or, in other words, the best way to maximize resources and production.

Via WorldCarFans > Ford to sell Ka sedan in emerging markets

'09 Jaguar XK & XKR go on the prowl

Updated: 16/06/08

Following my recent post on Jaguar's future schedule, the revised XK and XKR has now been spied undergoing testing in Northern England. Although changes to the front seem minimal with the exception of restyled front apron and air ducts, at the rear, lights will be slightly tweaked and should feature LED's. The electric aerial has been ditched in favor for a receiver located on the boot-lid. The interior should also receive a nip and tuck to keep it looking fresh and will feature the JaguarDrive rotary gear-change.

What we don't have confirmation on yet is the engine in the 2009 changed XK; it's most likely to receive the new 5.0 V8 in place of today's 4.2, but some insiders suggest that the engine isn't ready for production quite yet. Whichever engine is used, count on more than today's outputs of 298bhp (XK) and 416bhp (XKR).

Engineering changes will be limited to chassis mods garnered from the XKR-S. That means the XK could potentially receive a quicker steering rack, revised suspension, Alcon brakes and up to 20in wheels with specially developed Pirelli rubber. A Paris motorshow debut is likely in October, with UK sales starting in summer '09 with a price-tag of £62,000. The outgoing model has been on the market since 2005.

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Ford KA spied in Poland

The current Ford Ka has been on the market for over 12 years. When first launched, the car wasn't very popular, however, when times went passed, popularity increased. The new model, set to be launched later on this year, will be based off the successful FIAT 500.

Set for a world debut at the Paris motorshow this September, these two pre-production prototypes were caught just outside Ford's Tychy Plant in Poland, the same location where the Fiat 500 is built.

Petrol and diesel engines will be taken from the 500, entry level 69bhp 1.2 litre along with a 100 bhp 1.4 litre and the 1.3 litre MultiJet diesel option will be available too. Ford Europe also states we can expect to see a ST version of the KA powered by the same 135bhp 1.4 litre turbocharged petrol engine found in the Fiat 500 Abarth, although power is said to be slightly boosted up to 150bhp for the Ford version. This should do 0-60mph in less than 8 seconds and have a top speed of 125mph making one of the most powerful cars in its class. As with the Fiat 500, Ford is promising that the Ka will be among the most luxurious small cars on the market so there should be a generous optional equipment list.

In the pipeline, we can expect to see a 2+2 convertible version and even a tax-busting hybrid version. This promises to mate diesel-beating economy with petrol refinement and low emissions. This model will have CO2 emissions that fall below the 100g/km, therefore skipping any form of road taxation. Pricing should start at around £7500(€9500,$14775) raising to £12,000 (€1500,$23640) for the flagship ST model.

Via WorldCarFans and AutoExpress > Ford KA spied in Poland, Ford KA undisguised

Nissan announces new crossover for Sunderland plant (UK)

Nissan has announced that a new vehicle will be produced at their Sunderland plant in 2010 after the Micra moves to India. The new vehicle, described as a crossover will sit below the Qashqai in the Nissan line-up and is expected to take hints of the 2006 URGE concept. Company officials have said that the overall styling of the vehicles has not been finalised yet.

Press Release:

Nissan Motor Co., Ltd., announced that it will source an innovative all-new compact car from its Sunderland plant in the United Kingdom (UK), starting in 2010. Building on the success of the Qashqai, the all-new product will reinforce Sunderland’s role as manufacturer and exporter of high-value products.

The decision was announced following a visit today by the British Prime Minister, the Right Honorable Gordon Brown, to Nissan’s European Design Centre in central London where he met Carlos Ghosn, President and CEO, Nissan Motor Co.

The Prime Minister said, "Nissan is a global manufacturer with strong roots in Britain and I'm pleased to welcome Nissan's new investment in the UK. Today's announcement that a brand new car is to be designed and built in the UK is another important boost to our manufacturing industry, and builds upon Nissan's recent commitments to increase investment and jobs at its record breaking Sunderland plant.

"Sunderland's success shows what an innovative, talented and highly committed workforce can achieve, and reaffirms the UK's position as a strong player in the global car industry," he added.

Carlos Ghosn said, “By delivering on tough commitments, our employees at Sunderland have demonstrated our plant can be a globally competitive centre for the production of high-value products. We are encouraged by the proactive support shown by the British government to decide new products for the Sunderland plant.”

The all-new vehicle will be an addition to the current Nissan range and for the Sunderland plant, and it will take up the manufacturing capacity created when production of the current version of the Micra ends in 2010.

Next generation Micra:

Nissan will compete in the entry-car market with a dedicated new A platform that will be used for at least three models, including the next generation of Micra, and will be built in five Leading Competitive Countries (LCCs).

Production sites for this family of compact cars will include the new plant in Chennai, India, being constructed by the Renault-Nissan Alliance. The development of a competitive A platform is one of several business breakthroughs announced as part of Nissan GT 2012, the company’s new five-year business plan.

The Nissan plant in Sunderland produced a record 374,000 vehicles in fiscal year 2007. Nissan is the largest vehicle exporter from the UK, with around 80% of production sold outside of the country, hence why sales have been plummeting over the last few years. Together with the engine assembly plant and other facilities, Sunderland currently employs 4,700 workers.

Lancia Fulvia to make production?

According to sources in Italy, the Fulvia is likely to reach production soon. Lancia first showed its modern update of the classic Fulvia coupe in concept form at the Frankfurt show in 2003, where it received positive feedback.

However, a combination of Fiat’s then-rocky financial situation and the fact that the show car was based on the ageing Mk2 Fiat Punto platform put the concept on ice.

Sources now say that the project has been revived and it could appear as soon as the Paris motor show this September. However, industry opinion differs on the form the car will take. Some sources say the Lancia Fulvia will be engineered with a folding hard-top, others say it will be a regular coupe.

In any case, it’s thought that the Fulvia will get the same platform that underpins Alfa Romeo’s Mito hatch. Although this chassis is based on the current Punto, its A-pillar design has been expensively re-engineered to make cleaner rooflines more feasible.

It’s thought that the final car will differ from the retro-styled concept of 2003. Lancia design chief, Marco Tencone hinted at the fresh design direction of future new models.

“When you start in a new segment, you need a new design,” he said. “In future you need different languages for different cars, sporting and mainstream. We will be evolving the Lancia design language.”

Teaser: 2009 KIA Spectra/Forte

Updated: 24/06/08

Kia has released more teaser photos of its upcoming Spectra replacement. Styling has been adopted from the Koup and Kee concept cars.

The Forte is an important model for the US market, where demand for fuel-efficient vehicles is growing sharply. The outgoing model was sold in Europe as the Cerato until the launch of the Cee'd. Think of the new Forte as a sedan version of the Kia Cee'd.

Kia is expected to bring the Forte to Europe, where it will rival small sedans like the Mitsubishi Lancer, Ford Focus, Volkswagen Jetta and Toyota Corolla, however, it is very unlikely to arrive in the UK where demand for hatchbacks are constantly rising.

According to sources, the Spectra name could be ditched in favour for the new name, Forte.

The Forte will make its public debut at the Paris autoshow this October, after being unveiled in South Korea on 21st August.

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