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The hardening of the plan of reorganization of Ford did not convince anybody, and especially not the financial markets. How else could it have been if the manufacturer has adopted a traditional strategy of reduction of the costs? Admittedly, this purging will inevitably have a positive impact on the accounts. But it is not likely to start it again if Ford is on the way of the development whereas its marketshares decrease unrelentingly on the other side of the Atlantic. A report which is also worth for its large American competitor General Motors. The fact that GM removed, during ten last years, 60 % of its manpower did not draw it from the rut.

For the American manufacturers, the report is clear: their offer does not answer the expectations of the market. Their enormous 4

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Toyota’s Scion brand has been a runaway hit for the Japanese automaker ever since being launched in 2003. Designed to appeal to Generation “Y” buyers, the vehicles are popular, edgy - some would say ugly - and have given Toyota an important toehold with young buyers. GM, Ford, and Chrysler are preparing to respond to Scion, but in different ways. GM is planning to import more vehicles from its Daewoo subsidiary while Ford and Chrysler are expected to build all new Scion fighting vehicles in Mexico, good news for motorists looking for affordable and quality vehicles. Let’s take a look at what’s coming down the pike.

For the record, Scion isn’t the only vehicle made for the Generation Y crowd. Honda’s Element and soon to be released Fit subcompact are Scion competitors while the Chevy Cobalt, Dodge Caliper, and Saturn ION are also aimed toward youthful drivers. With that being said, Dodge [Chrysler] and Ford must respond and it appears that both automakers will be fielding Scion fighters within the next two years.

The Dodge Hornet

Lo and behold, Dodge is nearing the finalization of its plans to build the Dodge Hornet. According to industry sources including Edmunds, the Hornet will be based on the VW Polo, a subcompact car built by Volkswagen and popular in the European market. This deal is amazing as Volkswagen and Mercedes [a DaimlerChrysler division, as is Dodge] compete fiercely, especially in Europe. VW has a plant in Mexico that likely will produce the Hornet as the company has excess capacity and the cost advantage that no American manufacturing plant can offer. For its part, VW gets to sell rebadged versions of the Dodge Caravan minivan.

If based on the Polo, the Hornet is expected to use the Polo’s 1.6L engine and be paired with a VW transmission. Beyond that, look for the vehicle to be closer in appearance to the Scion xA design, sport a five door hatchback design, and seat five passengers. Currently, the xA sells for just over $13,000, so expect the Dodge to compete at or below the Scion price.

The Ford Bronco

Don’t expect Ford to sit back and watch from the sidelines as the market trends toward more Scion-like vehicles. In 2004 a concept Ford Bronco, taking styling cues from the 1966 Bronco truck, made its appearance at auto shows. Now, Ford appears ready to go ahead with the Bronco which will also be built in Mexico.

Featuring a boxy design, the Bronco will be similar in design to the xB and to the Hornet and will likely be built on the existing Fiesta platform to hold costs down. Indeed, Ford is hoping that a budget Bronco will sell for less than $10,000 as it battles cheap imports expected from China as well as other Generation “Y” vehicles on the market.

Yes, the car wars never end and more battles are certain to ensue. Both Nissan with its Versa and a tiny Toyota by the name of Yaris will soon be released and competing on the market before the Hornet and Bronco arrive in 2008 as 2009 models.

Copyright 2006 - Matt Keegan is The Auto Writer covering new car topics and trends, auto parts and accessories, and more. You can outfit your car for less via
Maximum Auto Parts, a quality wholesaler of discount automobile parts and accessories for your car, truck, van, or SUV.

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Nissan to Market Infiniti Cars in China

The Chinese luxury automobile market is booming and Nissan plans to enter the market in 2007 with its Infiniti brand of automobiles.

Nissan is planning on setting up dealerships across China, particularly in major cities. China’s auto market is exploding with year to year sales growth of 20% being recorded. Luxury cars are also in demand as sales of this all important and lucrative category is increasing at a 10% annual rate according to Xinhua.

GM Pulls Plug on GTO

General Motors has announced that the automaker will no longer be producing and importing the Australian built Pontiac GTO to the US market opting to discontinue production altogether.

Derived from the discontinued Holden Morano, the GTO hearkened back to GM’s muscle car era with its 400 h.p. V8. Still, the car was a disappointment to some as they complained about its bland styling. GM cited the Morano’s earlier termination and the GTO’s lackluster sales as reasons for killing the model. Instead, the automaker is expected to soon announce the return of the popular Chevrolet Camaro as well as its Pontiac sibling, the Firebird.

Toyota and Simple Slim

Toyota is incorporating an important engineering method in its quest to cut costs. The Camry, Toyota’s most popular vehicle and the number one selling car model in America, uses “simple slim” to reduce engine costs.

According to company news reports, Simple Slim is

“a new technology for pouring molten aluminum into moulds to create engine parts. The new equipment, part of a larger Toyota cost-cutting program called Simple Slim, allows Toyota to use smaller and cheaper moulds.”

So, what does this all translate to? Big cost savings up to 50% on Toyota Camry engines. Instead of an engine costing $2000 to build, it now costs the company $1000. This same engine is also available in various other Toyota and Lexus models.

A Scion Fighter For Dodge?

Dodge’s newest and smallest model is the Caliper, its replacement for the compact Neon. As the current entry level car in the Dodge line up, the Caliper is actually too big and too expensive for many new car owners. With that in mind, Dodge is toying with building a Scion-like vehicle, the Hornet to compete effectively against Toyota’s Generation “Y” vehicle as well as against the Honda Fit.

Dodge will be showing the Hornet at the upcoming Geneva Car Show in March. The car to be displayed is a full two feet shorter than the Caliper. According to a published report in Newsday, Dodge is looking for an offshore partner to build the vehicle for them.

Copyright 2006 - Matt Keegan is The Auto Writer, who writes on a variety of automotive topics including new models, classics, auto parts and accessories, insurance, and news.

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