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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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News reports over the past several months have featured the coming “invasion” of Chinese cars to the North American market. What has gotten the attention of many car buffs is the very low prices at which each model will be sold. Prices as low as $6600 have been quoted for one model with a handful of other models also expected to retail for well under $10,000. If Chinese cars do arrive as expected, look for a massive change in the way entry level model cars are built and sold in the U.S. and Canada. Consumers stand to gain with the increased competition, although exactly what they will be getting for the price is not yet known.

The Chevrolet Aveo, a compact car built by GM’s Korean unit, Daewoo, is currently the lowest priced car sold in the U.S. retailing for as low as $9300 after all discounts have been applied [MSRP is currently set at $9890 for the “Special Value” models]. A 16 valve 1.6L I4 mated to a 5 speed transmission is standard and Chevy kicks in an AM/FM radio for good measure. Beyond that, the car is truly stripped.

On the other hand, two Chinese automakers are preparing to enter the U.S. market, likely as soon as summer 2007. Selling 2008 model year cars, both the Geely Automobile Company and the Chery Automobile Company are working with U.S. representatives to build nationwide dealer networks. Chery, which will have to change its name after losing to General Motors in a court decision over their name [too close to Chevy], has a model currently called the “QQ” based on the Daewoo Spark which they would like to bring to the U.S. Along with as many as four other models, the cars will range in price from just under $7,000 to as high as $20,000. Geely has similarly priced cars that they plan on marketing too.

So, what does this mean to the market? Plenty. Besides the Aveo, numerous other small cars are marketed in the U.S. including Toyota’s Scion brand, the Honda Fit, Nissan Versa, Saturn ION, and offerings from Kia and Hyundai. Some of these vehicles come better equipped than the base Aveo, but for the most part comparably equipped entry level models with air conditioning are each retailing for about $12,000.

Even after air conditioning and certain safety measures [like air bags and better fenders] are added to entry level Chinese vehicles, it is expected that comparably equipped Geely and Chery models will still retail for between $8-8500. This translates into a price drop of as much as 30% compared to competing models.

Naturally, the quality of Chinese cars may be a big concern. Not noted for building much of anything that is of superb quality China, much like Japan of more than 40 years ago, must bring quality levels up. Still, for even $1000 more per vehicle an extended warranty similar to the 100,000 mile warranty offered by Hyundai and Kia could allay consumer’s concerns. Simply add the cost of the warranty to the price and a $9000 fully warranted Geely could be very attractive.

So, how will competing manufacturers react? By dropping their prices accordingly. Look for specially equipped Scions, Kias, and Hyundais to appear in U.S. showrooms priced below $10,000. Soon, look for Mexican built Scion fighters from Ford and Dodge also to show up and be sold at unthinkably low prices. By 2010, the base price for many entry level models in the U.S. will be below $10,000; if they are not priced accordingly then they many not sell.

Long term, prices across the board for all vehicles may begin to drop, especially as Chinese manufacturers start to market vehicles that are larger and better equipped than base models. Mentioned earlier was a vehicle in the $20,000 range. This particular Chery model strongly resembles the Chrysler Pacifica and could be imported to compete against it and other crossover vehicles.

Naturally, the effect on the U.S. manufacturing industry could be devastating and not just to GM, Ford, and DaimlerChrysler. Toyota, Honda, Nissan, and Hyundai all build cars here. Will they compete in price or will consumers see the sharp differences in quality and stick with the trusted brands?

A revolution is coming to the auto industry — one which is certain to completely redefine the market.

Copyright 2006 - Matt Keegan is The Auto Writer covering a wide variety of topics including industry trends, new models, replacement automobile parts, accessories, and more. You can get OEM quality Discount Auto Parts right online.

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Automakers are clamoring to build and market cars to the Generation “Y” crowd which, loosely defined, and encompasses new drivers and mostly everyone who is under 30. Toyota threw the gauntlet down in 2003 when they introduced a line of cars under the Scion brand. Now, Nissan is responding and the Versa - to be released during the summer of 2006 - is their answer. Will the Versa compete successfully or be lost in a sea of Gen “Y” vehicles soon to flood the market? All of that is too early to determine, so let’s take a look at the Versa and what the car has to offer to motorists.

A visit to Nissan’s website reveals much about the Versa. Unlike a certain Scion vehicle that takes its styling cues from a toaster, the Versa is aerodynamic and reminds me of the Toyota Matrix. Available as a four door sedan or five door hatchback, the Versa is expected to retail for around $12,000, the same price range as Scion vehicles. Like Scion, the Versa will be fairly well equipped to give motorists a value packed experience without having to add on several thousands more to the base sticker price in order to achieve a satisfactory and comfortable driving experience.

Along with a 1.8L I4 engine, here is what you can expect to be included with base models:

AM/FM/CD audio system
Air Conditioning
Power side mirrors and automatic trunk release
6 speed manual transmission [4 speed automatic is optional]
Split folding 60/40 seat with the hatchback

Not a bad standard equipment list for the price. For $2,000 more, SL versions will come with aluminum alloy wheels, cruise control, power windows/doors/locks, remote keyless entry, a souped up sound system, and more.

The car will have a 102 inch wheel base which is long for a vehicle of its type. The result is more interior room, with four adults having ample knee and leg room to weather long trips.

Pictures of the interior reveal a car that is well though out and not cheap looking. I especially like the dashboard with its overlapping circular instrument panel and easy to reach audio and air conditioning controls. A generation ago, entry level cars would have looked and felt cheap. Today’s drivers expect more and the Versa delivers in the form of a decent level of standard equipment and attention to style.

The Versa replaces the Sentra as the entry level Nissan. Nissan has restyled the Sentra and “promoted” it up a notch much like Honda has done with the Civic and Toyota with the Corolla.

Although more expensive than Chevy’s Aveo and Kia’s Rio, the car has more flair and style than either one. Still, one has to wonder how the Versa will compete against Toyota’s soon to be released Yaris and the all new Honda Fit. Throw in new models expected from Dodge and Ford and add Chinese cars to the mix and the whole entry level market becomes saturated.

Ultimately, the Versa is a step in the right direction and a nice alternative to some of its boxy competitors. Gen “Y” drivers have another choice in the Versa and an alternative to Scion, Toyota’s youth-oriented brand.

Copyright 2006 - Matt Keegan is The Auto Writer who blogs and writes on a variety of car related topics. Matt invites Nissan enthusiasts to visit the Discount Nissan Parts site to find the best selection of parts for your Sentra, 350Z, Titan, or other fine Nissan vehicle.

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