On the Move

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Monday, March 12, 2012

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Car dealers poised for ‘really good year’ By Alisa Priddle Detroit Free Press

As the nation’s auto dealers gathered for their annual convention, the mood was driven by growing profits, the anticipation of new vehicles and the potential of social networks to boost sales as the bad memories of 2009 fade. From 2008 through last year, the domestic automakers trimmed their dealer networks in the wake of the industry’s financial meltdown. Four General Motors brands and Ford’s Mercury brand no longer exist. But in a National Automobile Dealers Association survey last year, 57.4 percent of dealers said they expected to be more profitable in 2012, the highest percentage expecting better results since the mid-1990s. With the news that the nation’s unemployment is declining, the optimism is more sustainable. “The energy coming out of the Detroit auto show and heading into the dealer convention is a reflection of a stronger industry,” said Rod Alberts, executive director of the Detroit Automobile Dealers Association. More than 20,000 dealers, auto executives and exhibitors attended the NADA convention. They came in search of information on future products and marketing plans, as well as tools to improve their businesses, especially online car-shopping services and how to use social networks to lure buyers. Throughput — sales per dealer — rose substantially from 2010 to 2011 and

Kathleen GalliGan/Detroit Free Press/MCt

In this Jan. 21 photo, Golling Fiat in Birmingham, Mich., is seen through the interior of a Fiat 500. In a National Automobile Dealers Association survey last year, 57.4 percent of dealers said they expected to be more profitable in 2012, the highest percentage expecting better results since the mid-1990s. will be up again this year, said John Frith, vice president of retail channel solutions for Urban Science, a Detroit-based dealer consulting firm. Urban Science is finalizing its annual study on dealer trends, and the latest sta-

tistics will show that sales and throughput will be up substantially for a second year, Frith said. Bill Golling, who has two metro Detroit dealerships selling Chrysler, Jeep, Dodge, Ram and Fiat brands, is attending for the

first time in 20 years. “I want to see it firsthand,” Golling said of the convention and its sprawling exhibit hall. “I want to see how we compare and what works elsewhere that might work for us.” The recession in 2008

forced a lot of dealers to embrace new online techniques that can cut marketing costs in half from the average $500 per vehicle spent on traditional advertising, said Jeffrey Coats of Autobytel, an online auto purchase adviser.

John Humphrey, general manager of J.D. Power and Associates’ global automotive division, said 81 percent of people now start their car shopping online, making it critical that dealers See DEALERS, Page 2

Page 2 / Monday, March 12, 2012

Tallahassee Democrat / OnTheMOve

GM, Chrysler, Ford look to cash in on natural gas boom By Chris Woodyard USA TODAY

Detroit automakers are starting to look at the potential for natural-gas vehicles as gasoline prices surge. Both General Motors and Chrysler Group are announcing this week that they will offer pickups that can run on both compressed natural gas and gasoline. Yet only Honda makes a CNG-powered car, a version of its Civic. A U.S. boom in naturalgas production has brought new interest, but the driver right now is the big gap between the price of compressed natural gas and gasoline at the pump. Clean Energy, one of the largest U.S. providers of CNG for vehicles, says its customers Monday paid an average $2.59 for CNG equal to a gallon of gasoline. Motorists paid an average $3.79 for a gallon of regular gasoline, according to the U.S. Energy Information Administration weekly survey out Monday. About 112,000 naturalgas vehicles are on U.S. roads, says NGV America, a trade group for naturalgas vehicles. Honda sold about 2,000 natural-gas Civics last year, out of a total 221,235 Civics sold, but that option was offered in only a few states. This year, Honda is expanding it to 50 states and

DEALERS From Page 1

have an Internet presence and a staff trained in ways to convert those searches to sales. Golling is one of 2,336 Chrysler dealers in the U.S. today who survived

Ap photo/disneylAnd

This artist’s rendering shows a new Cars Land attraction, called Radiator Springs Racers, that is set to open June 15 at Disneyland in Anaheim, Calif. Cars Land is based on the Disney-Pixar “Cars” movies, and is one of four new attractions opening at Disney’s California Adventure Park.

AssociAted press files

In this Nov. 17 photo, the 2012 Honda Civic Natural Gas car, named Green Car of the Year for 2012, is displayed after its unveiling at press preview day for the Los Angeles Auto Show. High pump prices are encouraging GM and Chrysler to roll out vehicles that run on natural gas, which is plentiful and cheap in the U.S. expects sales of 4,000. Government is taking some interest, too. President Obama cited a need to promote natural-gas trucks in his State of the Union Address and has proposed tax credits and a modest $30 million Energy Department research effort. Detroit produced CNG vehicles in the 1990s mostly for government fleets, but low gasoline prices made the vehicles’ added cost unattractive.

Even now, price is an issue: Civic Natural Gas, for example, costs $26,925 with shipping vs. $21,275 for a comparable gasolineonly Civic EX. So why new interest? “It’s no one thing,” says NGV President Rich Kolodziej. At $47,500 including shipping, Chrysler’s bi-fuel Ram 2500 heavy-duty pickup will cost about $12,000 more than a gasoline version, but Chrysler says the price difference between CNG and

gasoline will create “significant cost savings over the life of the truck.” GM cites rising interest in U.S. natural gas as a driver for its bi-fuel 2013 Chevrolet Silverado and GMC Sierra 2500HD extendedcab pickups. “ B e c a u s e C NG i s a clean-burning, domestically produced fuel, it has wide appeal,” said Ed Peper, general manager of GM fleet and commercial operations.

Chrysler’s brutal 20 09 downsizing, during which the company terminated 789 dealers. Since early 2010, 43 former Chrysler dealers have regained their franchises, and 14 applications for reinstatement are still pending, said Chrysler spokesman Mike Palese. Today, 85 percent of Chrysler’s dealers are prof-

itable, up from 70 percent in 2009, said spokesman Ralph Kisiel. Ford has more than 3,300 dealers today, after losing hundreds when it phased out the Mercury brand and consolidated Lincoln dealers in the largest 130 metro markets. Half of those dealers have agreed to upgrade their showrooms.

Ford spent about $150 million to shrink its Lincoln network from 500 dealers in mid-2010 to 325 today. Bob Tasca Jr., president of Tasca Automotive Group in Cranston, R.I., and chairman of the Lincoln dealer council, said the luxury brand has a long way to go, but he is glad new products are finally on their way. A

Cars Land headlines Disneyland expansion The Associated Press

ANAHEIM, Calif. — Lightning McQueen and friends are about to get the green light at Disneyland. The park announced Wednesday that Cars Land, based on the Disney-Pixar “Cars” movies, is the headliner of four new attractions opening June 15 at Disney California Adventure Park after a five-year expansion. Cars Land will be 12 acres of rides, shops and

Lincoln dealer meeting in Detroit in January was “a lot more upbeat than a year ago.” General Motors’ retail network has shrunk from 6,375 dealers at the end of 2008 to 4,400 today as four of eight GM brands were terminated. For the first time since the mid-1970s, more than 90 percent of GM

restaurants based on the movie’s town of Radiator Springs. Along with rides based on “A Bug’s Life,” “Monsters, Inc.” and “Toy Story,” it further cements California Adventure as the Pixar park. Also opening will be Buena Vista Street, based on Los Angeles the way it was when Walt Disney first saw it in the 1920s, and the Cathay Circle Theater, a recreation of the place where “Snow White and the Seven Dwarfs” premiered in 1937.

dealers are profitable, said spokesman Tom Henderson. With a smaller network selling more cars per dealership, those dealers are healthier. “Everything should be poised for a really good year in the car business,” said Autobytel’s Coats. “The last time I said that was 2006 or 2007.”

Monday, March 12, 2012 / Page 3

OnTheMOve / Tallahassee Democrat

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Page 4 / Monday, March 12, 2012

Tallahassee Democrat / OnTheMOve

Ford sending fixes for MyFord Touch systems By Alisa Priddle Detroit Free Press

Help, i n the form of upgraded software, is in the mail for about 300,000 owners of 2011-12 model-year Ford vehicles with MyFord Touch, company officials said Monday. Ford’s objective is to simplify the graphics and refine the way the system responds to touch and voice commands. While some customers like it, others have expressed confusion or frustration over the first generation of the infotainment and control screen. Surveys published by J.D. Power and Associates

and last week by Consumer Reports magazine gave Ford lower marks across the range of its model lineup than a year earlier. Problems with MyFord Touch were cited as a contributing factor. Flash drives will be mailed this week that consumers can plug into a USB port to download the upgrade, giving them the latest software version of the system and the one Ford is installing in 2013-model vehicles. Ford introduced its Sync system in 2007 and continues to augment it to allow consumers to connect their smartphones, iPods, tablets

and other devices to their car and access mobile apps in a safe manner. Voice commands and steering wheel controls, in addition to touch screens, allow drivers to keep their eyes on the road and hands on the wheel. Sync expanded into the more sophisticated MyFord and MyLincoln Touch, which have received mixed reviews from consumers and the automotive media. In hindsight, “We should have spent more time up front working on responsiveness,” said Graydon Reitz, director of electronics and electrical systems engineering. For the 2013

model year, Ford will offer the next-generation MyFord Touch on seven vehicles and MyLincoln Touch on at least four. And the feature has come down in price from $395 to $295. The touch screen and voice recognition are simpler to read and use, faster and more intuitive, said Derrick Kuzak, head of Ford’s global product development. It is easier to change a radio station, turn up the heat or get directions. The heated seat command, for example, is on the home screen now; it took about

three touches to get to the correct screen before. Phone pairing was improved, and customers with navigation systems will receive a memory card that can update maps. Engineers also worked to clean up errors generated when a variety of external devices connect to the car’s software. “It’s more than an update. It’s a substantial upgrade,” Kuzak said. Ford tested the new software over the past three months with employees and dealers, Reitz said. Feedback from the first group of 1,000 testers was incor-

porated, and a second group of 700 further verified the system. Customers can perform the upgrades themselves by inserting the UBS stick into a port in the vehicle and following a few menu prompts. Or they can go to their dealer to have it done. The download takes about 60 minutes, and the car must be running the whole time, said Michelle Moody, cross vehicle marketing manager. Moody said there will be follow-up to encourage people to make the upgrade. “We are targeting a high completion rate.”

Buick’s eAssist adds mileage boost to Regal, LaCrosse By Mark Phelan Detroit Free Press

I Sing the Body Electric. No, make that the Buick electric. Buicks, actually. Plural. The 2012 Buick Regal and 2012 Buick LaCrosse sedans are all charged up and ready to go thanks to a slick system that uses what Buick calls “light electrification” to boost the engine’s power and fuel economy. It’s called eAssist, and it uses key pieces of hybrid technology to give the two premium sedans outstanding fuel economy. Prices for the eAssist Buick models start at $29,055 for the Regal, on which eAssist is a standalone option. You can order it on any model, and with any other options, except the performance-oriented Turbo and GS. The system is standard equipment on the bigger LaCrosse, with prices starting at $30,170. I tested a nicely equipped Regal with eAssist and other options that raised the price to $33,560. The very well-equipped LaCrosse I

drove stickered at $35,825. All prices exclude destination charges. Regal and LaCrosse eAssist models score EPA fuel economy ratings of 25 mpg in the city, 36 on the highway and 29 combined. That easily tops the fuel economy of premium sedans like the Audi A4 and Acura TL. The Buicks’ fuel economy trails models with more elaborate hybrid systems, like the Lincoln MKZ, and the diesel Volkswagen Passat TDI, but the eAssist Buicks also tend to cost less than comparably equipped models of those cars. GM developed eAssist to ratchet up fuel economy without the expense of the powerful hybrid systems that can drive the car in battery-only mode at 30, 40 or 50 mph. EAssist’s electric motor and batteries reduce fuel consumption significantly, but they won’t drive the cars on their own. The system, which weighs 69 pounds, consists of a 15-horsepower electric motor-generator and lithium-ion battery. Other modifications to

Buick electric Models

2012 Buick reGAl eAssist n Front-wheel drive five-passenger sporty sedan n Base price: $29,055 n Price as tested: $33,560 (excluding destination charge) n Rating: Four out of four stars n Reasons to buy: Fuel economy, styling, features n Shortcomings: Trunk size, no memory for driver’s set-

tings, iPhone compatibility

2012 Buick lAcrosse eAssist n Front-wheel drive five-passenger sporty sedan n Base price: $30,170 n Price as tested: $35,825 (excluding destination charge) n Rating: Three out of four stars n Reasons to buy: Fuel economy, roomy, quiet interior n Shortcomings: Interior storage, trunk size, iPhone com-

patibility

both cars also include low rolling-resistance tires and underbody aerodynamic panels. The EPA’s annual fuel cost estimate suggests the system will pay for itself in about four years, faster if gasoline prices rise. Who am I kidding? When gasoline prices rise. The system functions almost flawlessly in both cars. The only drawback is

reduced luggage capacity. The batteries sit behind the rear seat and reduce trunk space from 13.3 cubic feet in the LaCrosse and 14.2 in the Regal to 10.9 and 11.1, respectively. EAssist’s electric boost helps acceleration and allows for more fuel-efficient gear ratios. Thanks to that revised gearing, the Regal’s engine purrs along at a mere 2,000 rpm at 80 mph.

That combination of low engine rpm and high speed is more often seen with big V-8s than small four-cylinder engines. Fuel economy also benefits substantially from a seamless auto-stop feature. The engine shuts off when the car isn’t moving and restarts imperceptibly when you take your foot off the brake. The system functions more smoothly than in some $80,000-plus luxury cars. EAssist doesn’t change the basic nature of either car. It simply adds very impressive fuel economy to their existing virtues. The Regal remains an enjoyable, sporty sedan. Its electric steering is direct and provides good feedback. The suspension encourages enthusiastic driving. The interior of the car I tested was trimmed in an attractive two-tone color scheme and high-quality materials. The optional Harman/Kardon audio system was oddly bass-heavy, but not too much to fix with adjustments. The Regal accelerat-

ed confidently with eAssist’s help. The larger and heavier LaCrosse did not respond as eagerly, but its power was acceptable. Buick expects performance-minded LaCrosse shoppers to choose the 303-horsepower 3.6-liter V-6 model. The interiors of both cars are quiet at high speeds. The LaCrosse’s main selling points remain excellent passenger space, comfort and a long list of features. The rear seat is particularly accommodating. Attractive, soft-touch materials cover nearly every surface. The front seat needs more storage bins for sunglasses, phones, iPods and the like. Buick’s voice-recognition system still has some kinks, particularly with iPhones. The version of the system in the Verano compact is the best yet, as you’d expect in the newest car. Engineers promise software patches will be available soon. When that’s done the infotainment systems should be as satisfying and easy to use as everything else about the first two electrified Buicks.

Monday, March 12, 2012 / Page 5

OnTheMOve / Tallahassee Democrat

Mercedes-Benz SLK adds some growl By Terry Box The Dallas Morning News

Silver SLKs routinely glide down sun-kissed streets in ritzy cities — sports cars for life’s long straights. Every now and then, the smallish two-seater from Mercedes-Benz might break a sweat to conquer a curve or two. Most of the time, though, the cute cruiser SLK places style above sinew — it’s a prancer, not a kicker. For all I know, SLK may be short for slick. But I guess the stiff-collared Germans who build Slick finally got tired of rambunctious Boxsters and BMW Z4s roughing up their little roadster. When the 2012 version of the SLK arrived recently at The Daily Planet, it wore red — and wore it well, I thought.

This year, Mercedes dropped in a juicier 3.5-liter V-6 with 302 horsepower, up substantially from last year’s 268. Moreover, while it can’t quite dance with stars like the Boxster and Z4, the SLK has the moves now to twirl them around a bit. As a result, for those of you thinking about downsizing, the SLK, at a pricey $65,245 for the test vehicle, is almost as entertaining as Mercedes’ larger SL roadster, which costs twice as much. I’ve never quite figured out Mercedes-Benz’s exaggerated styling, by the way, which seems at odds with the conservative nature of the company. But the SLK has nice proportions and lines for the most part. The heavy-handed front end may trip you up some. Blunt and busy, with a large

Benz star in the center of the grille, it’s kind of the equivalent of a tight black shirt emblazoned with “No Fear.” It’s a bit much, if you know what I mean. But it flowed into a classic-looking long hood with functional vents at its base. Muscular fenders housed good-looking 18-inch AMG alloy wheels, fitted with 225/40 tires in front and 245-35s in the rear. A relatively short trunk contributed to the Old World proportions, which were helped further by a taut metal retractable top. In the rear, you find familiar wrap-around Benz taillamps and large oval exhausts that finally have something to talk about. Pushed hard by segmentleading Audi, MercedesBenz is also getting pretty good with interiors — and the SLK reflected it.

A black old-school dashboard that’s as flat as your mother’s kitchen table rolled down onto a compact 4-by-6-inch navigation screen and elegant silverfaced gauges. A light-tan lower dash matched two beautiful leather seats fitted with respectably sporty bolsters. Likewise, the door tops were formed of padded black plastic with tan panels and contrasting black armrests. I especially liked the car’s flat-bottom, threespoke steering wheel and its fine leather-wrapped shifter. Both make good things happen. First, though, push the “sport” button on the console, which is the equivalent of a 12-ounce can of Red Bull. The SLK’s newly fortified V-6 fires off with a decent bassy growl — not

quite as good as an Infiniti G37 coupe, but a definite improvement nonetheless. Equipped with a moderately sporting seven-speed automatic, the SLK jumped away from stops with a lusty surge. But — surprise, surprise — it continued to pull strongly after the initial burst of low-end torque, sprinting hard to 6,500 rpm. In sport mode, the SLK’s computers snap off quicker shifts and hold the transmission in gears longer. The combination of new motor and seven-speed tranny is capable of a highly credible blast to 60 in 5.1 seconds, according to Motor Trend. It can also achieve reasonable economy of 20 miles per gallon in the city and 29 on the highway, according to the feds. The SLK’s improved handling might be an even bigger achievement — though

you also get a really firm, almost flinty ride over inner-city surfaces. Before you look for smoother pavement, find some curves. The car’s brakes are so strong that you almost can’t overcook a corner. But you may be tempted. The 3,400-pound SLK turns into corners with newfound aggression, unhindered by body lean or squirm. That prowess is complemented by quick, nicely weighted steering that allows you to confidently hold a line in a curve. Most of the right parts and pieces are here. But let me ask you this: If you were stroking a check for 65 large, would the SLK be your first choice? Maybe not. If, however, you want style and spice, you should look fast and fashionable wrapped in Slick.

Motoring Q&A: Short trips are trouble no matter car’s age By Paul Brand Star Tribune (Minneapolis)

QUESTION: My wife’s co-worker lives about two blocks from the office. Her older Jeep Cherokee has starting problems that may be battery-related. I suspect it cranks slowly, even though the battery is newer. Batteries can wear out after just a few years, so I think the charging system should be tested. Her son thinks new spark plugs would help. I also suggested that those really short trips can shorten the life of the exhaust system and require more frequent oil changes. I know there are all sorts of opinions on short trips, warming the car and oil change intervals, so is there really a good rule of

thumb these days? ANSWER: It’s sort of a good-news-bad-news scenario. The good news is that modern engine technology, materials, manufacturing and electronic fuel and spark management have made engines more efficient during warm-up. There’s much less rich fuelair mixture and unburned fuel going through the cylinders as the engine warms up, so fouled spark plugs, oil contamination and drivability problems are fewer. And of course, cold starts are quicker and cleaner. Now, the bad news. There is still considerable condensation in the engine and exhaust system when starting a cold engine. This contributes to oil contamination and

exhaust system corrosion. Frequent cold starts without a full warm-up can also contribute to carbon deposits on valves, pistons, rings and combustion chambers. Frequent cold starts and short trips may not keep the battery fully charged, thus leading to shorter battery life. Remember, starting batteries do not like to be left not fully charged. The sulfate buildup on the battery plates can permanently harden and reduce cranking capacity. So, some things change while others stay the same. In this case, I still recommend at least 30 minutes of driving at full operating temperature at least once per week to evaporate moisture, minimize depos-

its and keep the battery fully charged. Also, consider cold weather operation as “severe service” and change the oil and filter more frequently, perhaps every 2,500 to 3,500 miles. Q: I have a 2004 Subaru Outback with minor head gasket leaks for the past year or so. During a month or so, I add maybe 2 tablespoons of antifreeze mix. It has never overheated and the drips on the floor appear minor. What damage can occur to the engine if I delay in replacing the gaskets? Can I use a stopleak additive? A: Besides allowing the coolant to drop to a dangerous level and overheating the engine, what you should be concerned about is coolant leaking into the com-

bustion chambers, causing oil dilution, corrosion to aluminum pistons and serious lubrication problems. But, from your description, it looks like the head gaskets are leaking externally, not internally. Other than the loss of coolant and mess on the garage floor, no engine damage will occur. I’ve had good success with minor external and internal coolant leaks with Zecol’s Mendtite and Gunk’s Solder Seal, cooling system stopleak additives you can find in auto-parts stores. I wouldn’t hesitate to try a stop-leak product for this minor coolant leak. You might be amazed at the results. MOTORING NOTE: After reading about the

hard-shifting Montana in a recent column, Maj. Fred Dietze shared his experience. “I had the exact problem with a Pontiac Aztek with the same engine and transmission. A reputable transmission shop replaced the transmission at 110,000 miles, but the same problems immediately occurred. They replaced the transmission a second time — same problems again. This time they traced wiring and discovered a frayed wire harness, replaced the frayed harness and the third transmission worked like a charm. So, have a shop check the wiring harness.” Thanks for the tip — and for the reminder to look for the simple fixes first.

Page 6 / Monday, March 12, 2012

Tallahassee Democrat / OnTheMOve

Chinese cars gain buyers in Latin America By Adriana Leon and Chris Kraul Los Angeles Times

LIMA, Peru — At first, Lima taxi driver Mario Segura was disgusted by the thought of buying a Chinese-made car. He had doubts about the vehicles’ durability, service and resale value. But favorable word of mouth, assurances that spare parts are plentiful and, of course, unbelievably low prices won him over. “Little by little, I heard favorable comments,” said Segura, speaking in a Chery showroom in the Surquillo district. He had just plunked down $12,000 in cash for a new Fullwin XR sedan, half the cost, he said, of a comparable Fiat or Renault. “It took a long time to decide, but I’m risking it.” So is Luis Luna, a doctor just back in Lima after working for several years in Argentina. He had planned on buying a secondhand Japanese car. Until, that is, he noticed billboards touting low-price Chinese brands and listened as his relatives insisted that he kick tires at a JAC dealership, one of dozens of Chinese brands sold here. “We realized for the same money that we’d pay for a crummy secondhand car that inspired no confidence, we could have a brand-new Chinese car with a two-year warranty,” Luna said as he fin-

ished paperwork on his new $16,000 JAC B-Cross family wagon. “I’m totally convinced this is the right decision.” Similar buyer testimonials can be heard across Latin America these days, where Chinese cars with unfamiliar brand names like Great Wall, JAC, Brilliance and Sinotruk are selling like hot cakes. Chinese cars were introduced in Peru in 2006 and now one in six new cars sold here is a Chinese make. There are no fewer than 90 Chinese car manufacturers to choose from, according to the trade group Automobile Association of Peru. The Chinese auto industry has yet to undergo the winnowing process that, over a century of competition, has reduced the U.S. car industry to three big players. The Chinese brands’ main selling point is, of course, price: New Chinese cars typically sell for half to two-thirds the cost of a comparable European, U.S. or Japanese vehicle, said Guido Vildozo, an auto industry expert with consultants IHS Automotive in Lexington, Mass. “What makes Chinese cars so much cheaper? Start with labor,” Vildozo said, noting that a typical Chinese autoworker makes $300 to $400 a month, a fraction of the $2,000 to $3,000 in wages that Mexican workers make or the $5,000 to $7,000 a month that U.S. auto workers average.

The AssociATed Press

A Chinese worker labors on an assembly line of cars at a factory of Jianghuai Auto Corp. (JAC) in Hefei in central China’s Anhui province on March 6. Another price advantage, said Jian Sun, a partner with AT Kearney business consultants in Shanghai, stems from the “reverse engineering,” or design and mechanical imitation, that many Chinese carmakers use in competing models to save them the expense of designing new models from scratch. Chinese manufacturers are entering the market as Latin American incomes are rising to unprecedented levels, flush from the decade-long global commodities boom filtering down to an expanding consumer class.

Augusto de la Torre, chief Latin America economist at the World Bank, said the region’s middle class now encompasses 30 percent of its population of 570 million, up from 20 percent in 2002. In Colombia, where the economy is thriving on global sales of its oil, coal, coffee and bananas, the increase in disposable income is especially dramatic. Bank of Bogota economist Camilo Perez said economic output per capita has nearly doubled in five years, to $6,700 last year from the $3,400 average in 2006. So it comes as no surprise

that car sales are accelerating. New units sold last year in Colombia totaled 325,000, a 28 percent increase from 2010. New car sales in Peru totaled more than 100,000 last year, up 26 percent from the previous year. According to Scotiabank, Brazil’s car sales will grow to 2.8 million in 2012, up 4 percent from last year, but in a much larger population base than those of its neighbors. The expanding new-car market is what attracted Chinese automakers, who see Latin America as a proving ground for its plan to con-

quer the world car market in coming decades. According to AT Kearney, China exported 800,000 cars last year but hopes to boost that number to 2 million by 2015 and to 3 million by 2020. The Latin focus is also explained, AT Kearney’s Jian said, by the fact that Chinese manufacturers are not yet prepared to tackle the U.S. and European markets, which are more demanding in quality and emissions standards. The competition is less intense and the regulatory restrictions are lower in emerging markets, he said. (The domestic Chinese car market, where sales last year totaled about 18 million vehicles, is the largest in the world, far surpassing that of the United States, where about 12.8 million new cars and trucks were sold in 2011.) Many buyers, like Antonio Benevides, a 26-year-old theme park worker in Bogota, are first-time owners. In early December, he bought a new Chery QQ model for $9,000, two-thirds the cost of a comparable Renault he had considered. “That difference in price is what put a new car within my reach for the first time,” Benevides said as he drove his car off the dealership lot near Bogota’s international airport. “I’ve heard they hold together well, that they are cheap to operate and, as you can see, they are not bad looking.”

Fisker lays off workers, wants to renegotiate federal loan By Jerry Hirsch Los Angeles Times

LOS ANGELES — Fisker Automotive Inc. has stopped work at a former General Motors auto plant in Delaware where it plans to build Project Nina, a family-size plugin hybrid that is expected to sell for about $50,000. The Anaheim, Calif.-based

auto company laid off 26 workers at the plant and let go 40 contract employees working at its headquarters. That leaves the company with about 600 employees working on automotive development in Anaheim. The company said it “delayed work at the plant based on ongoing discussions”

with the Department of Energy “regarding funding for the Project Nina program.” The agency is withholding loans for the Nina project because Fisker missed milestones in getting its first vehicle, the Karma sports car, to market. It hit showrooms in December, about three months later

than the company had committed to in its loan agreement, according to Fisker officials. Fisker has delivered 250 of the $103,000 Karmas, a high-powered hybrid. Fisker said that it still plans to launch the Nina in 2013, but that could be delayed because “it can take some time to renegotiate to the DOE’s satisfac-

tion the new milestones and goals,” said Fisker spokesman Roger Ormisher. Fisker has received $193 million of the $529 million loan, and most of that money was spent in developing the Karma. The automaker is renegotiating the terms for the $336 million balance of the

loan, money that would be earmarked for Nina development. Fisker is a startup car company working on the development of plug-in hybrid vehicles that can run on just electricity and also on a combination of electric and gasoline power to extend the range of the autos.

Monday, March 12, 2012 / Page 7

OnTheMOve / Tallahassee Democrat

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Page 8 / Monday, March 12, 2012

Tallahassee Democrat / OnTheMOve

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