NEW MODELS and STRATEGIC ALLIANCES...
The BMW Group announced plans in order to achieve annual sales of more than 2 million by 2020—an increase of 600,000 vehicles on its record 2006 sales figure of 1.4 million. The changes will consist of a broadening of the BMW Group’s lineup through its BMW, Mini and Rolls-Royce brands. The company would seek greater economies of scales though strategic alliances, hinting heavily that BMW would increase its supply of engines to other carmakers while seeking cooperation in a number of fields in a bid to cut its cost base and improve overall efficiency.
The new BMW models will fuel the growth plan, including:
• X1, a new entry-level sport/utility vehicle, by 2012.
• A revived range-topping 8 Series production model based on the dramatically styled CS four-door coupe concept shown at the Shanghai Motor Show last spring, also due by 2012.
• V7, a heavily overhauled version of the Space Functional Concept, now referred to as the Progressive Activity Sedan. The vehicle would compete with the Mercedes-Benz R-Class.
• A Mini compact SUV.
• A Rolls-Royce coupe version of the Phantom, as previewed by the 101EX concept at the 2006 Geneva motor show (see related story).
• A smaller Roll-Royce model to compete against rival Bentley’s Continental Flying Spur.
BMW also will develop new concepts, suggesting additional models may cater to environmentally conscious car buyers. That has fueled speculation that the BMW could be eying the acquisition of a fourth brand (possibly Volvo), or follow the example of Mercedes-Benz with its Smart off-shoot in creating an additional brand to market a new range of low-emission vehicles for city use.
To help achieve the substantial increase in sales set out in BMW’s strategic realignment, BMW announced an increase in production capacity at the company’s manufacturing plant in South Carolin, China, and England.
As well as outlining bullish plans for BMW’s automobile operations, BMW also announced that a strategy had been formulated to increase its worldwide motorcycle sales by 50 percent to more than 150,000 by 2012. This will be partly achieved through its recent acquisition of Husqvarna.
Sunday, September 30, 2007
Thursday, September 27, 2007
2007 Frankfurt Auto Show - Favorite Cars
The 2007 Frankfurt International Motor Show will feature numerous vehicles with a green theme as the concerns for global warming continue to grow. Let take a look at some of my favorite vehicles hitting the scene at the Frankfurt Auto Show…..
Mercedes-Benz: Mercedes-Benz F 700 Research Car
The high-tech F 700 previews a full range of new technology from Mercedes-Benz, including a green-friendly powertrain, a laser-equipped suspension that looks ahead at road conditions, and even an interactive voice-recognition system that incorporates the best features of a video game.
The big four-door sedan is said to provide solid clues to the sort of features that are likely to appear on the next-generation Mercedes Benz S Class that is due to be introduced in 2012
Mercedes-Benz says this small-displacement engine's output of 238 horsepower compares favorably with its existing 3.5-liter V6 gasoline and 3.0-liter V6 diesel engines. It is in fuel economy and air emissions where the DiesOtto engine really excels. Mercedes-Benz rates the car's fuel economy on the European cycle at an astonishing 53 mpg, an 18-mpg improvement over the current Mercedes S350 sedan. 
The F 700 also showcases what Mercedes calls Pre-Scan suspension. Two lasers integrated into the headlights scan the road ahead and then the Pre-Scan control unit determines an appropriate strategy for the hydraulically operated suspension based on speed and road conditions. The headlights feature two linear arrays of LEDs to provide supplemental driving lights, while a third row functions as daytime running lights. Mercedes also has worked hard to simplify its notoriously complex arrangement of interior controls. A key contribution is a new voice-activation strategy, in which the voice of a young woman enters into a dialogue with the driver, posing questions that the driver answers.
BMW: AC Schnitzer GP3.10
At a cost of $274,600 AC Schnitzer's GP3.10 adds a heavy dollop of efficiency, economy and ecology with its LPG-fueled driveline. Schnitzer has reprogrammed the engine control unit on 
the 5.0-liter V10 and modified the exhaust system, fitting sport mufflers and catalysts creating 552 horsepower and 398 lb-feet of torque. With this 552 horsepower 4.5 seconds is all it takes to reach 60 mph…(and I thought my 5.3 second 40 yard dash time was fast)!!! Ac Schnitzer added a few other features to keep up with its very powerful engine… a racing suspension, enhanced 
brakes and its Type VI racing wheels.Since you can’t have all go with no show…AC Schnitzer added an aero body kit that includes a front skirt with coarse-mesh grille insert, air intakes with chrome ribs in the front fenders, rear wheel-arch extensions, a rear skirt with integral diffuser and a rear roof wing.
I think this was one of my favorite cars…but at a cost of $275K….I would rather get a Ferrari!!
Speaking of Ferrari….Novitec Ferrari 599 GTB
The exterior modifications that Ferrari made with this 599 GTB made this Ferrari very attractive. However, some of these mods were provided other benefits, such as … additional cooling and more downforce. These exterior mods are comprised of amodest aero body kit that bundles a front lip spoiler, side skirts with larger air intakes, side flaps, rear wing and rear fascia with integrated diffuser.
Thanks to a reprogrammed ECU and upgraded exhaust system..this Ferrari puses 645 horsepower. The suspension and brake mods used to stop this beast are a KW Automotive aluminum suspension kit with adjustable ride height and brakes are specially fabricated Brembos with six-piston calipers.
Now lets look at a car that I like which a normal individual could afford….
Lexus: 2008 GS Sedan
This Lexus GS sedan is nothing new. There weren’t much advancement to the 2007 model; 
however, it’s still a good looking car that we don’t just have to dream about. Shaving off 0.3 seconds from the GS 430’s zero to 60 time, The GS 460's V8 produces 339 pound-feet of torque and accelerates from zero to 60 mph in 5.4 seconds, yet both models achieve similar fuel economy. The GS 460 earned an EPA-estimated fuel-mileage rating of 17/24 city/highway mpg, compared to the GS 430's 18/25 mpg numbers.The minor exterior changes that were made consist of a revised front fascia, a new front bumper and lower intake design and a new chrome grille 
surround, plus side-view-mirror turn signals and an all new wheel design.The interior mods for the 2008 GS include a new brushed-aluminum shift plate for the instrument panel and interior trim choices which include dark gray bird's eye maple wood and light gray leather.
Wednesday, September 26, 2007
Lease or Buying Cars? Which is better??
Would you rather rent or own? Below are listed benefits of either renting a car (leasing) or buying it (financing). Both options have their benefits. Depending on the APR you get on a Lease or on a Finance it could be better to do one over the other. There are different financial calculations you can use to see which financially makes more sense in the short run and long run. I will break down some calculation to see which option will make more sense. First read the benefits of each then look at the examples that I show at the bottom.
Leasing:
Car leasing is a lot like renting an apartment; you pay a monthly fee to use it but don't own it -- and aren't making payments toward ownership. The leased vehicle remains the property of the lessor -- the company that issued the lease.
As with an apartment rental contract, car leasing will have a fixed period -- typically two or three years. You're obliged to make monthly payments for the length of the contract. While you can get out of the lease before then if you want to, there will typically be extra costs -- for example, an "early termination charge" -- typically spelled out in the car leasing contract you sign. And as is often the case with renting an apartment, you'll likely have to put down some cash as "security deposit" at the lease inception. This money will be used to pay for any damages to the vehicle -- such as door dings, stains on the seats, any needed service work, etc. -- when you return it at the end of the car leasing term.
A big advantage of car leasing is flexibility. You aren't making a long-term commitment. Typically, car leasing is for a relatively short period, 2-3 years being the norm. The average new car loan, on the other hand, is five years. When the lease period is up, you can simply bring the car back and walk away. Or you can buy it if you like by paying off the remaining balance -- called the "residual value" -- which you'll negotiate in advance at the time of lease inception.
Also, since you are only renting the car, your total cash outlay should be less. You won't have to make as large a down payment (a security deposit and the first month's payment are the typical initial out-of-pocket fees associate with car leasing) as you would if you were buying. And monthly lease payments are almost always less than payments would be if you bought the car. That means you'll have more money left over to spend on other things.
Or, if you prefer, you can "afford" to drive a more expensive car when you lease, since the monthly payments will be comparatively lower. This is one of the biggest single attractions of car leasing for many people. A car (or truck) that might cost you $500-$600 per month to buy might cost $100 per month less with car leasing.
Another nice thing about car leasing is that you're always driving a new or nearly new vehicle. And of course you don't have to worry about the potentially expensive repair and/or maintenance problems that inevitably crop up as a car ages -- and gets out of warranty. The leased car will typically be under factory warranty for the duration of the lease -- and car leasing contracts often have add-on provisos that cover routine maintenance, such as oil changes, etc.
Car leasing may also have tax advantages for you -- but this is something you'll have to ask your accountant about. In the past, most people who did car leasing were those who used their vehicle for business, such as realtors -- and who therefore could claim deductions for car leasing not available to those who purchased them outright.
Car leasing had the additional attraction of freeing up assets for investments and so on that would otherwise be locked into a depreciating asset -- the person's car or truck.
There are downsides to car leasing, of course. Since you're only making what amount to rental payments each month, you won't have anything tangible to show for your money at the end of the lease. If you spend, say, $12,000 on car leasing payments (about $450 per month) over two years, that money is gone forever.
Buying:
A person who buys his vehicle, on the other hand, has the comfort of knowing that one day, it will be "paid for" and -- assuming it is still in good shape at that point -- will provide "free transportation" until it breaks down or the owner decides to get rid of it.
In addition, a person who owns his car has equity (cash value) in the car or truck. Even though it will continue to depreciate with each passing year, so long as it's still serviceable transportation, it will always be worth something. That value can be used as a trade-in; or the vehicle can be sold privately to help raise money to pay for a new one -- or for some other need.
The person who opts for car leasing must start from scratch every time.
There's also the mileage issue. If you decide on car leasing, your contract will typically stipulate the maximum number of miles you're allowed before the end of the lease. If you exceed that figure, it can get expensive. Per-mile charges over the stated maximum listed in the car leasing contract are often exorbitant -- so if you drive more than the allowed miles in the contract annually, leasing could turn out to be more expensive then you thought.
The person who owns his car, meanwhile, can drive it as much as he wants, and do pretty much whatever he feels like with it, too. He can swap out the stereo, add different wheels and tires, change the exhaust system -- whatever. Do this with a leased car and you'll have to pay whatever if takes to put the car back the way it was. If you own your vehicle, the inevitable door dings and dents -- as well as coffee stains on the seat -- can also be shrugged off.
Car leasing is also more complex than buying so always closely read -- and be sure you understand -- every proviso of the lease contract before you sign. If you're unclear about anything, get expert advice -- or walk away.
Example:
Cost of car - $35,000
Lets say financing and lease are both at 6%
Estimated payments:
Lease $500/ month for 60 months (balloon payment of $16,500)
Finance $750/ month for 60 months
When you calculate the payments out you get a total cost of:
Lease = $46,500 (($500 x 60) + $16,500)
Finance = $45,000 ($750 x 60)
Looking at this calculation it appears that Financing would be cheaper (if you plan on buying the car at the end of the lease). However, note that on a lease payment you will save $250 a month. (Remember Present Value of Money > Future Value of Money).
If you take that $250/ month that you save you could invest that in Stocks, Bonds, CD’s, high yield savings accounts. Over 60 months and earning interest on the $250 monthly will more than likely yield you over $1,500 of earned interest (the differnece between the Lease total $46,500 and the Finance total $45,000), which can be applied to pay of the lease, used to lease another car, or fix up your car.
Leasing:
Car leasing is a lot like renting an apartment; you pay a monthly fee to use it but don't own it -- and aren't making payments toward ownership. The leased vehicle remains the property of the lessor -- the company that issued the lease.
As with an apartment rental contract, car leasing will have a fixed period -- typically two or three years. You're obliged to make monthly payments for the length of the contract. While you can get out of the lease before then if you want to, there will typically be extra costs -- for example, an "early termination charge" -- typically spelled out in the car leasing contract you sign. And as is often the case with renting an apartment, you'll likely have to put down some cash as "security deposit" at the lease inception. This money will be used to pay for any damages to the vehicle -- such as door dings, stains on the seats, any needed service work, etc. -- when you return it at the end of the car leasing term.
A big advantage of car leasing is flexibility. You aren't making a long-term commitment. Typically, car leasing is for a relatively short period, 2-3 years being the norm. The average new car loan, on the other hand, is five years. When the lease period is up, you can simply bring the car back and walk away. Or you can buy it if you like by paying off the remaining balance -- called the "residual value" -- which you'll negotiate in advance at the time of lease inception.
Also, since you are only renting the car, your total cash outlay should be less. You won't have to make as large a down payment (a security deposit and the first month's payment are the typical initial out-of-pocket fees associate with car leasing) as you would if you were buying. And monthly lease payments are almost always less than payments would be if you bought the car. That means you'll have more money left over to spend on other things.
Or, if you prefer, you can "afford" to drive a more expensive car when you lease, since the monthly payments will be comparatively lower. This is one of the biggest single attractions of car leasing for many people. A car (or truck) that might cost you $500-$600 per month to buy might cost $100 per month less with car leasing.
Another nice thing about car leasing is that you're always driving a new or nearly new vehicle. And of course you don't have to worry about the potentially expensive repair and/or maintenance problems that inevitably crop up as a car ages -- and gets out of warranty. The leased car will typically be under factory warranty for the duration of the lease -- and car leasing contracts often have add-on provisos that cover routine maintenance, such as oil changes, etc.
Car leasing may also have tax advantages for you -- but this is something you'll have to ask your accountant about. In the past, most people who did car leasing were those who used their vehicle for business, such as realtors -- and who therefore could claim deductions for car leasing not available to those who purchased them outright.
Car leasing had the additional attraction of freeing up assets for investments and so on that would otherwise be locked into a depreciating asset -- the person's car or truck.
There are downsides to car leasing, of course. Since you're only making what amount to rental payments each month, you won't have anything tangible to show for your money at the end of the lease. If you spend, say, $12,000 on car leasing payments (about $450 per month) over two years, that money is gone forever.
Buying:
A person who buys his vehicle, on the other hand, has the comfort of knowing that one day, it will be "paid for" and -- assuming it is still in good shape at that point -- will provide "free transportation" until it breaks down or the owner decides to get rid of it.
In addition, a person who owns his car has equity (cash value) in the car or truck. Even though it will continue to depreciate with each passing year, so long as it's still serviceable transportation, it will always be worth something. That value can be used as a trade-in; or the vehicle can be sold privately to help raise money to pay for a new one -- or for some other need.
The person who opts for car leasing must start from scratch every time.
There's also the mileage issue. If you decide on car leasing, your contract will typically stipulate the maximum number of miles you're allowed before the end of the lease. If you exceed that figure, it can get expensive. Per-mile charges over the stated maximum listed in the car leasing contract are often exorbitant -- so if you drive more than the allowed miles in the contract annually, leasing could turn out to be more expensive then you thought.
The person who owns his car, meanwhile, can drive it as much as he wants, and do pretty much whatever he feels like with it, too. He can swap out the stereo, add different wheels and tires, change the exhaust system -- whatever. Do this with a leased car and you'll have to pay whatever if takes to put the car back the way it was. If you own your vehicle, the inevitable door dings and dents -- as well as coffee stains on the seat -- can also be shrugged off.
Car leasing is also more complex than buying so always closely read -- and be sure you understand -- every proviso of the lease contract before you sign. If you're unclear about anything, get expert advice -- or walk away.
Example:
Cost of car - $35,000
Lets say financing and lease are both at 6%
Estimated payments:
Lease $500/ month for 60 months (balloon payment of $16,500)
Finance $750/ month for 60 months
When you calculate the payments out you get a total cost of:
Lease = $46,500 (($500 x 60) + $16,500)
Finance = $45,000 ($750 x 60)
Looking at this calculation it appears that Financing would be cheaper (if you plan on buying the car at the end of the lease). However, note that on a lease payment you will save $250 a month. (Remember Present Value of Money > Future Value of Money).
If you take that $250/ month that you save you could invest that in Stocks, Bonds, CD’s, high yield savings accounts. Over 60 months and earning interest on the $250 monthly will more than likely yield you over $1,500 of earned interest (the differnece between the Lease total $46,500 and the Finance total $45,000), which can be applied to pay of the lease, used to lease another car, or fix up your car.
GM Strike - Summary
It’s been 37 years since the last nationwide walkout against General Motors (GM). The United Auto Workers and General Motors Corp. tentatively agreed Wednesday to a contract that ends a two-day strike and puts responsibility for retirees' health care into the union's hands. Union members were told to begin reporting to work Wednesday. UAW officials said they hoped to begin talks with Ford and Chrysler even before GM workers vote on ratifying the pact.
GM and the UAW confirmed that the deal creates a GM-funded, UAW-run trust to administer retiree health care. The two sides gave no other details, but two people briefed on the contract told The Associated Press that it also would give workers bonuses and lump-sum payments and would pay some newly hired workers at lower rates. The union would then invest the money and take over the health care responsibility for about 340,000 GM hourly retirees and spouses.
Wages would stay the same for the length of the four-year deal, but workers would be given a bonus of $3,000 once the contract is ratified and then bonuses of 3 percent, 4 percent and 3 percent of their annual pay each year for the last three years of the contract, said one person briefed on the contract details.
The people requested anonymity because the details of the contract haven't been released publicly, including whatever concessions GM may have made over job security, which was the reason the UAW gave for walking off the job.
The deal means UAW workers will head back to their jobs at around 80 GM facilities across the nation. Some were to return as early as Wednesday afternoon; shift times varied by plant and time zone. The union went on strike at 11 a.m. Monday when talks broke down, ending GM's production and causing layoffs and shutdowns at parts factories. GM said in a statement that the deal will make it significantly more competitive and provides "the basis for maintaining and strengthening its core manufacturing base in the United States."
Under the tentative agreement, GM would hire most of the temporary autoworkers now at the company at full company wages and benefits, one person said. That person said the company has approximately 6,000 temporary workers. Temporary workers who have worked for the company for less than 90 days would be hired at a lower wage, the person said. The pact also includes a lower wage structure for newly hired workers in certain non-manufacturing jobs such as sanitation workers, one person said, adding that in order to make way for the new hires, GM would offer early retirement and buyout packages of $35,000 to workers now in the positions.
GM made no specific commitments to build cars and trucks at U.S. factories, but generally agreed that with the reduced costs from the new contract, investment in the plants would make good business sense, the person said. Gettelfinger wouldn't release any details of job security agreements, including promises for future production at certain factories.
The deal also includes language that mitigates the impact of the jobs bank, in which the company pays laid-off workers most of their salary and benefits, said the person, who did not know the specifics.
Negotiations between GM and the UAW officially began in July. The UAW's original deadline to reach an agreement with GM was Sept. 14, but the union decided to extend that contract on an hour-by-hour basis and keep talking. Talks broke down Sunday night and the union set a strike deadline for Monday. When a deal wasn't reached by then, workers walked off their jobs.
IN SUMMARY:
UAW got:
- An independent retiree health care trust that will be funded with enough money from GM to remain solvent for 80 years
- Undisclosed job guarantees that we expect includes a promise of investment in particular U.S. plants in preparation for production of new models
- GM will hire up to 5,000 temporary workers as full-time employees
- Signing bonuses of an undisclosed amount for all UAW members who sign the contract
- Wage increases of 3% in first year, 4% in second and 3% in third
GM got:
- $50 billion in health care liability off its back after a large one-time payout into independent retiree health care trust
- Two-tier wage structure, as those 5,000 new hires who were previously temp will be brought in at their current wage of $18/hour, rather than the $28/hour current full-timers earn
- Undisclosed revisions in the Jobs Bank program that continues to pay laid-off employees
- Reduction in labor cost to produce vehicles, though might not be realized right away
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