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2013 Detroit complete coverage

Maybe it was the brand new, bright red <a href="/topics//Chevrolet_Corvette">Chevrolet Corvette</a> gleaming in one corner, or the elegant BMW coupe in the other. Maybe it was just the free-flowing espresso at nearly every stand. But car companies were positively giddy this week as the North American International Auto Show opened in Detroit. 
 They have reason to be. U.S. new car and truck sales reached a five-year high of 14.5 million in 2012, and many executives and analysts think they'll climb to 15.5 million this year. Credit is easier to obtain, interest rates are low and many people who held on to old cars during the <a href="/topics//Economic_Recession">recession</a> are ready to buy. 
 To catch those customers' eyes at the Detroit show, car companies are unveiling 59 new cars and concepts. That's up from just 41 in 2012, a sign that auto makers have more profits at their disposal and expect higher sales. <a href="/topics//Toyota">Toyota</a>, <a href="/topics//Nissan">Nissan</a> and Mercedes have larger, more elaborate displays. Ford is luring visitors with the oldest surviving Ford in the world, a 1903 Model A, and the newest, a chiseled pickup truck concept called Atlas that could become the next F-150. <a href="/topics//General_Motors">General Motors</a> can just sit back and watch the crowds gather around the Corvette. 
 The Detroit show, one of the country's biggest, opens to the public Saturday. Here are five trends visitors will see: 
 Getting more efficient: 
 One lesson from this year's show: There are plenty of ways to squeeze more efficiency from cars and trucks. 
 Volkswagen is showing a plug-in hybrid SUV prototype called the CrossBlue that mates a diesel engine with two electric motors. It can travel 14 miles in all-electric mode and gets an estimated 35 miles per gallon while running on both gas and electricity. The <a href="/topics//Jeep_Grand_Cherokee">Jeep Grand Cherokee</a> is also making a jump to diesel power with a new, optional 3-liter V-6 diesel that gets 30 miles per gallon on the highway, five better than the gas-powered V-6. 
 Automakers are trying other tricks to save fuel as they face higher fuel economy requirements, even in muscle cars. The eight-cylinder engine on the 2014 Corvette kicks down to four at highway speeds. The grille and wheels of Ford's Atlas concept pickup have shutters that automatically close at high speeds to cut wind drag. Many carmakers are replacing steel with aluminum, carbon fiber and other materials to save weight. 
 Jeremy Anwyl, vice chairman of the Edmunds.com auto website, said many people have been surprised by the resurgence of internal combustion engines as new technology makes them more efficient. 
 "It is one reason why we're not all driving hybrids now, or EVs," Anwyl said. 
 Even so, there are plenty of gas-electric hybrids and some new electric cars for customers to look at. Nissan, a late convert to the hybrid market, is showing the Resonance concept, a dramatically styled hybrid crossover. Acura has the NSX hybrid supercar. And <a href="/topics//Cadillac">Cadillac</a> debuted the ELR, its version of the Chevrolet Volt plug-in, which will go around 35 miles in all-electric mode before a small gas engine kicks in. And Tesla is showing its all-electric Model X crossover, whose futuristic wing-like doors are among the handful of stop-and-stare features this year. 
 Pickups take off: 
 With new home construction back on the rise, pickup truck sales are poised to grow in the coming year. And Detroit is ready. 
 General Motors is showing its new trucks for the first time at the Detroit show. The Chevy Silverado and <a href="/topics//GMC_Sierra">GMC Sierra</a>, which will go on sale this Spring, have mean-looking grilles, restyled interiors and new engines and transmissions that <a href="/topics//General_Motors">GM</a> promises will be very efficient. The trucks even have steps inset into the rear bumper so people can jump into the bed to get tools or tie down cargo. 
 <a href="/topics//Chrysler">Chrysler</a>'s just-refurbished Ram pickup — named the truck of the year by automotive journalists at the show — is also no slouch, boasting a segment-best 25 mpg on the highway. 
 But Ford, whose F-Series has been the top-selling truck for more than three decades, won't cede that title without a fight. The company pulled off one of the show's few surprises, lowering its Atlas pickup concept from the ceiling amid a shower of sparks during media previews. Ford gave few details about the beefy, chiseled Atlas, other than to say that it hints at the look of the next F-Series, due to come out in 2014 or 2015. 
 "It sends a message that we hope to continue to strengthen our leadership in commercial vans and trucks," Ford's Chief Operating Officer Mark Fields said. "We know there's a lot of people who want to take that away from us." 
 The competition could mean good deals for buyers in a segment already known for big discounts. Chrysler sales chief Reid Bigland said Ram will stay competitive, but Chrysler also wants to make money. 
 "We're not going to do anything crazy in the marketplace," he said. 
 Luxury boom: 
 Supple leather seats, finely stitched dashboards and sparkling chrome grilles are everywhere at this year's auto show, a sign that car companies are clawing at each other for a piece of the growing and lucrative U.S. luxury market. 
 From a well-crafted new E-Class lineup from Mercedes to the plush, decked out luxury Cadenza sedan from once-lowly Kia, automakers are vying for customers who are ready to be pampered a little more. 
 Luxury sales grew almost 12 percent last year to over 1 million sales, and automakers are expecting further increases as people feel better about the economy and the Great <a href="/topics//Economic_Recession">Recession</a> recedes into the rear-view mirror. 
 For the past few years, much of the U.S. auto sales growth has been in compact and midsize cars at the lower end of the price range, says Jeff Schuster, senior vice president of forecasting for LMC Automotive, a Detroit-area industry forecasting firm. But recent trends show that buyers who want luxury items such as leather seats and touch screens are coming back into the market and are willing to pay a little more. 
 "The premium market took a couple of years off" during the recession, he said. "I think we're going to see a comeback over the next couple of years." 
 Lincoln continues the revamp of its lineup with the MKC concept, a small crossover that is the second of four new Lincolns coming by 2015. Bentley is showing a new convertible. Lexus is introducing a new version of the entry-level IS sedan. <a href="/topics//Maserati">Maserati</a> debuts its new Quattroporte sedan. Infiniti, Nissan's luxury brand, introduced its new sports sedan using performers from Cirque du Soleil. And even mainstream companies like Hyundai and <a href="/topics//Honda">Honda</a> are showing off luxurious concept vehicles. 
 Blurring the lines: 
 The unveiling of the BMW 320i sedan, an entry-level 3-Series that starts at $33,445, renewed questions about whether luxury cars are starting to bump into mainstream models. 
 In the last couple of years, mass-market brands have started offering features once reserved for luxury brands. Ford offers a hands-free, automatic parallel parking systems and lane-departure warning signals on the midsize Fusion. Even the little <a href="/topics//Dodge">Dodge</a> Dart has a heated steering wheel. 
 Buyers will have to decide: Do they buy a loaded Fusion for nearly $37,000 or the new 320i? 
 And carmakers need to decide how to market their cars. The <a href="/topics//Chrysler_300">Chrysler 300</a>, for example, competes with other mainstream large cars at the low end, but it has two high-end versions — the 300c and 300 Luxury Series — that compete with BMW. 
 "It's really like having two cars," said Olivier Francois, Chrysler's marketing chief. "What we probably need to do is amplify the gap, separate the two poles." 
 Jim Lentz, who runs Toyota's operations in the U.S., isn't worried. In his own lineup, he says, the <a href="/topics//Toyota_Avalon">Toyota Avalon</a> and Lexus ES sedans are very similar, but few shoppers consider both. "A Lexus buyer is buying the prestige. They're buying the dealership experience," he said. Avalon, he said, is the "accountant's car," not showy but with nice features. 
 Chrysler's Bigland says he can't worry too much about the battle between mainstream and premium cars because there's such tough competition on other fronts. 
 "It's just a great example of how brutally competitive this industry is," said Bigland. "From the BMWs to the Mercedes to any of the other 18 manufacturers that we square off with every day. Every single one of them, if you don't come and play your 'A' game, you're going to get your head kicked in." 
 Crossovers get smaller: 
 With explosive growth in crossover vehicles in the past five years, automakers are looking at new ways to attract buyers of more efficient SUVs that are based on car underpinnings. 
 At the Detroit show, Honda opened a new front in the battle with a sharp-looking small utility. It's based on a subcompact frame and will be smaller than Honda's popular CR-V. It's a new part of the market that's attractive to automakers because there aren't any well-established competitors to unseat. 
 "I think the industry as a whole believes there's opportunity here," Schuster says. "It's up for grabs." 
 Nissan already is in the market with its funky Juke. General Motors' <a href="/topics//Buick">Buick</a> is just entering with an all-new Encore. 
 Honda Executive Vice President John Mendel says the new vehicle, called simply an "Urban SUV Concept," is designed for city commuters who still want the cargo space, adventurous lifestyle and high sitting position of an SUV. 
 It's aimed at people who no longer need a bigger SUV, yet don't want to give up the utility. Mendel says technology has allowed it to create more space in a smaller vehicle, matching the interior volume of older compact SUVs. 
 "If you've got a 5- or 7-year-old car, you can move down a class and not give up anything including space," he said. &nbsp;

carsTRENDS17

Detroit Auto Show: Five automaker trends emerge

Tesla Model X -- cropped

Fancy nameplates in the auto business are prepping for a bruising battle for buyers of entry-level luxury sport sedans. 
 At the <a href="/topics//North_American_International_Auto_Show">North American International Auto Show</a> in <a href="/topics//Detroit,_MI">Detroit</a> this week, the Germans and Japanese showed a flurry of new lower-end luxury models, which analysts say have big growth potential among cost- and efficiency-minded buyers who still want nicely&nbsp;appointed performance sedans. 
 The new crop includes redesigned versions of the Lexus IS line, the first <a href="/topics//Mercedes-Benz">Mercedes-Benz</a> front-wheel-drive sedan for the U.S. market, <a href="/topics//Infiniti">Infiniti</a>’s Q50 replacement for its G37 sedan and a BMW 320i, priced about 10 percent below where the current 3-Series&nbsp;line starts. Those join the previously launched <a href="/topics//Cadillac">Cadillac</a> ATS, a rear-wheel-drive 3-series fighter already making waves and winning awards. 
 "We see a worldwide trend to smaller engines and smaller cars, even in the luxury market," said Herbert Diess, a member of BMW’s board of management. 
 The car companies are all going for people moving up from functional-but-pedestrian cars such as the <a href="/topics//Toyota_Camry">Toyota Camry</a>, <a href="/topics//Honda_Accord">Honda Accord</a> and <a href="/topics//Ford_Fusion">Ford Fusion</a>. 
 "We want to capture them," said Mark Templin, Lexus group vice president and general manager. "Nobody in the luxury space gets a lot of customers from any other luxury brand. It just doesn’t happen that way." 
 Lexus needs a winner in this segment. It has long trailed the market-leading BMW 3-series sedans, and sales of the outgoing Lexus IS models fell 6.6 percent to 27,708 last year - even at a time when the Lexus brand overall grew 23 percent. 
 The jockeying in the bottom rung of the luxury market started even before the first curtain was lifted off a new model car at the <a href="/topics//North_American_International_Auto_Show">North American International Auto Show</a> on Monday. 
 Before the show opened in <a href="/topics//Detroit,_MI">Detroit</a>’s sprawling <a href="/topics//Cobo_Center">Cobo Center</a>, <a href="/topics//Mercedes-Benz">Mercedes-Benz</a> offered a private preview at a hotel of its CLA 250 - the least expensive Mercedes-Benz to be sold in the U.S. market and the first with front-wheel drive. 
 The CLA will slot below Mercedes’ C-Class when it goes on sale in September with a base price of about $30,000, comfortably below the $35,000 starting price of the larger C-Class. Mercedes is trying to give the car a more expressive, aggressive look&nbsp;so that it doesn’t cannibalize C-Class sales. 
 "We think that a primary <a href="/topics//Shooting_at_the_2012_Summer_Olympics">target</a> for this are people in their 30s and early 40s," said Steve Cannon, chief executive of Mercedes-Benz USA. "We want to bring new people into the brand." 
 Not to be outdone, BMW used the first day of the show to unveil its BMW 320i, a lower-powered version of its bread-and-butter 3-series line that will start at $33,445 and go on sale in late spring. (The new Lexus and <a href="/topics//Infiniti">Infiniti</a> sedans will go on sale&nbsp;this summer, but neither company has announced pricing.) 
 Although it will be slower than its siblings with bigger engines, the new offering will be no slouch, Diess said. 
 "The 320 is already a powerful car, the lightest in its segment," he said. "It is agile and has good fuel efficiency, which is an advantage over the more powerful cars." 
 On Tuesday, <a href="/topics//Toyota">Toyota</a>’s Lexus division unveiled new versions of its IS 250 and IS 350 with the promise that it has gotten the message from <a href="/topics//Akio_Toyoda">Akio Toyoda</a>, the automaker’s chief executive back in Japan, to make the cars more fun to drive. 
 Finally, Infiniti showed off its new Q50 sports sedan, a replacement for the outgoing G37 from Nissan’s luxury division. Infiniti, now run by a South African who once worked at Audi, believes it can steal customers from the old-line luxury &nbsp;companies. 
 "The German brands in particular are all occupying particular positions in the marketplace," said Johan de Nysschen, president of Infiniti Global Ltd. "We would like to present Infiniti as the seductive alternative. We’ve got a strong reputation for&nbsp;performance, and we can deliver hospitality coming from our Japanese roots. . It’s part of our DNA." 
 Historically, the Germans, followed by the Japanese, have been the big players in this segment. But <a href="/topics//General_Motors">General Motors</a> Co. recently made a bold statement in the same market, the <a href="/topics//Cadillac">Cadillac</a> ATS. 
 The sedan, which has been on sale for a few months, grabbed its own attention at the show, winning the North American Car of the Year award. 
 "We didn’t compromise, and we demonstrated that we can compete in that segment," said Mary Barra, senior vice president for global product development at <a href="/topics//General_Motors">General Motors</a>. "We need to make sure the world understands what we have there, and that’s why&nbsp;winning the award was great. It will help tell that story." 
 Barra concedes that the bottom of the luxury market, especially when it comes to sports sedans, is pretty entrenched. 
 "But I also think today’s consumers are looking around," Barra said. "They are not letting anyone rest on their past."

carsLUXURY17

Mercedes, Lexus and BMW sharpen focus on entry level

Benz CLA -- cropped

Volkswagen’s CrossBlue concept, which previews a new midsize seven-passenger crossover vehicle the German automaker plans to build in <a href="/topics//Tennessee">Tennessee</a> in early 2015, is not the sexiest model on the floor of the <a href="/topics//North_American_International_Auto_Show">Detroit auto show</a>. 
 But it may be one of the most significant. The production version of the CrossBlue appears to be aimed at the sweet spot in a burgeoning U.S. market segment that continues to draw new entries in a variety of shapes and sizes, from compact&nbsp;to fullsize. 
 The show demonstrates an increasing diversity in crossovers, or car-based vehicles that provide the space, styling and functionality of a truck-based sport-utility vehicle without the penalty at the gas pump. 
 On display are such new concepts as the Nissan Resonance, an early look at both the redesigned 2014 Murano crossover and the utomaker’s new hybrid gasoline-electric powertrain; the Honda Urban SUV, which teases the redesigned 2014 Fit&nbsp;subcompact; and the Lincoln MKC, which arrives early next year as the first compact crossover for <a href="/topics//Ford_Motor_Company">Ford Motor Co</a>’s premium brand. 
 VW predicted this week that the U.S. market for midsize crossovers will grow by more than a fifth by 2021. This expanding segment attracts a wide swathe of consumers, from young families seeking an alternative to the minivan to recent&nbsp;retirees looking for a smaller vehicle to prepare for a possible spike in fuel prices. 
 Attractive to Automakers 
 The rise of the U.S. crossover market began in the mid-1990s and built on the popularity of <a href="/topics//Toyota">Toyota Motor Corp</a>’s RAV4 and Honda’s CR-V compacts. Now, the segment accounts for 29.4 percent of U.S. auto sales, up from 26.4 percent in 2009,&nbsp;according data firm TrueCar.com, and ranges from small, economical entries to expensive, high-performance variants. 
 These models are critical to automakers as they strive to meet federal standards that call for a sharp rise in fuel economy by 2025. 
 But crossovers are also attractive because they often fetch premium prices, thus offering higher margins than the more conventional models on which they are based. 
 "When you think about it, a crossover is just a hatchback," said <a href="/topics//Jim_Hall">Jim Hall</a>, managing director of 2953 Analytics, an automotive consulting firm. "The difference in cost to build the two is not that great." 
 More and more, it is the midsized vehicle that is considered the sweet spot of the crossover market, executives say. 
 VW executives have said the company’s new midsize crossover, designed to compete with the <a href="/topics//Ford_Explorer">Ford Explorer</a> and the <a href="/topics//Honda_Pilot">Honda Pilot</a>, could be one of the key drivers in achieving the German parent’s annual U.S. sales target of 1 million vehicles by &nbsp;2018. 
 The new model also will give the VW brand crossovers in three sizes, starting with the compact Tiguan and ranging up to the fullsize Touareg. 
 VW’s premium <a href="/topics//Audi">Audi</a> brand, meanwhile, is planning to expand its U.S. crossover range in 2014, slotting the new Q3 compact below the Q5 and Q7. It is also filling out the line with a 354-horsepower performance edition of the Q5, called SQ5, on&nbsp;display at the Detroit show. 
 <a href="/topics//Porsche">Porsche</a>, another high-end VW brand, is also building up its crossover presence, showing the potent Cayenne Turbo S in Detroit and laying plans for the world debut later this year of the compact Macan. 
 Porsche plans to unveil the Macan in November at the Los Angeles show, rather than at the big <a href="/topics//Frankfurt">Frankfurt</a> show in September - evidence of the importance of the U.S. market, which is expected to account for at least 25 percent of the 50,000 or&nbsp;so Macans that <a href="/topics//Porsche">Porsche</a> hopes to sell worldwide each year. &nbsp;

carsXOVERS17

Honda, Nissan and VW pursue growing U.S. crossover market

Nissan Resonance -- cropped

Japanese automakers are spicing&nbsp;up their compact and subcompact lineups in the United States,&nbsp;with <a href="/topics//Toyota">Toyota Motor Corp</a>’s Furia concept car hinting at&nbsp;more aggressive styling for the 2014 Corolla and Honda Motor Co.&nbsp;taking subcompact cars to the next level with its&nbsp;Fit-based SUV. 
 Toyota, Japan’s biggest automaker, gave a glimpse of what&nbsp;the new Corolla, likely to go on sale later this year, could&nbsp;look like when it unveiled the Furia concept sedan this week at&nbsp;the <a href="/topics//North_American_International_Auto_Show">Detroit auto show</a>. 
 The orange Furia has an aggressive front face with sharply&nbsp;angled headlights and a low center of gravity, design features&nbsp;that already have been applied to some recent models like the&nbsp;Avalon and the Auris hatchback and could help attract younger&nbsp;buyers. 
 "It’s only a concept, but the Furia sends a clear message&nbsp;where we are going in the future. Not only is the styling more&nbsp;expressive, but also reflect our overall approach to the compact&nbsp;segment in every way," Bill Fay, the group vice president and&nbsp;general manager of the Toyota Division at <a href="/topics//Toyota">Toyota Motor</a> Sales,&nbsp;U.S.A., said on Monday. 
 The Corolla is Toyota’s top-selling model globally and the&nbsp;second most-popular Toyota vehicle in the United States after&nbsp;the Camry. Toyota sold 290,947 Corollas in the United States in&nbsp;2012, up 21 percent from a year earlier. 
 Honda unveiled a concept urban SUV that will share platforms&nbsp;with the Fit subcompact car. 
 Honda has been vocal in its emphasis on small cars, aiming&nbsp;to secure a quarter of its global sales with the Fit series by&nbsp;the financial year ending March 2017. The Fit is also known as&nbsp;the Jazz. 
 Japan’s third-biggest automaker, Honda aims to sell 6&nbsp;million vehicles globally by March 2017, a jump from the current&nbsp;4 million, and is set to start selling the remodeled Fit by late&nbsp;2013 in Japan. 
 "There is no doubt that increasing fuel efficiency and&nbsp;making cars smaller to cut materials and energy used to build&nbsp;them is a trend in the auto industry," Honda Chief Executive&nbsp;<a href="/topics//Takanobu_Ito">Takanobu Ito</a> told reporters on Monday. 
 "The path that cars should take in the future cannot be&nbsp;discussed without the development of small cars, and this is not&nbsp;just for Honda." 
 The Fit-based SUV, which will be manufactured in Honda’s new&nbsp;Celaya plant in Mexico as well as in Japan and Asia, is set to&nbsp;go on sale in Japan later this year and in the United States in&nbsp;2014. 
 <a href="/topics//Nissan_Motor">Nissan Motor</a> Co, Japan’s second-biggest automaker,&nbsp;presented the Versa Note compact at the Detroit show on Tuesday. 
 The Versa Note, which is a hatchback companion to the Versa&nbsp;sedan, is set to go on sale in the United States in the summer&nbsp;with a starting price of $13,990. <a href="/topics//Nissan">Nissan</a> sold 113,327 Versa&nbsp;vehicles in 2012 in the U.S. market, up 14 percent from a year&nbsp;earlier.&nbsp;

carsSMALL16

Toyota, Honda up the ante on small cars for U.S. buyers

Toyota Furia -- cropped

When <a href="/topics//General_Motors">General Motors</a> Co. decided to make a plug-in hybrid, there was lively discussion behind closed doors whether the first model should be a <a href="/topics//Chevrolet">Chevrolet</a> or a Cadillac. The Chevy arguments won out and the Volt was born. 
 The Volt -- the first car to mix all-electric capabilities with a gas engine to extend the range -- has had a tough time, with disappointing sales and, for <a href="/topics//U.S._Republican_Party">Republicans</a> during the presidential campaign, as a symbol of the failings of <a href="/topics//Barack_Obama">President Barack Obama</a>’s auto-industry bailout. 
 Now, <a href="/topics//General_Motors">GM</a> has a second chance with Volt technology: the Cadillac ELR plug-in hybrid, revealed Jan. 15 at the <a href="/topics//North_American_International_Auto_Show">North American International Auto Show</a> in Detroit. 
 “<a href="/topics//General_Motors">GM</a> is saying to the world we’re committed to this extended-range hybrid system,” said Larry Dominique, executive vice president of TrueCar.com, a website that tracks auto sales. 
 The Volt, chosen as 2011’s North American Car of the Year, succeeded in satisfying its customers, with 92 percent of survey respondents telling <a href="/topics//Consumer_Reports">Consumer Reports</a> they would buy one again -- the second straight year it ranked highest. GM’s luxury brand Cadillac won its first such award yesterday with its ATS sedan. 
 While the electric-drive Cadillac won’t go on sale until 2014 and first-year sales will likely be small, it’s important to Cadillac and to GM. It will help to freshen Cadillac’s image at a time when other luxury brands, which tend to have higher profit margins than less-expensive vehicles, have pushed Cadillac to the second tier. 
 ‘Provocative’ Technology 
 “The ELR puts us in a position to be provocative, to be a technology leader, to offer something that is unique and exclusive, and those sound like attributes that go back to ‘Cadillac’ the adjective,” Bob <a href="/topics//Bob_Ferguson">Ferguson</a>, the brand’s leader, said in an interview last week. 
 In addition, offering another model for sale can spread the costs of the technology over more vehicles and reduce the cost per car to accelerate the time to break even on the expensive technology. 
 The ELR will compete most directly with offerings from unprofitable luxury electric-car start-ups <a href="/topics//Tesla_Motors">Tesla Motors</a> Inc. and <a href="/topics//Fisker_Automotive">Fisker Automotive</a> Inc., rather than <a href="/topics//Toyota">Toyota Motor Corp.</a>’s <a href="/topics//Lexus">Lexus</a> luxury hybrids, which are based on technology used in the popular Prius line. GM’s new car will land closer to Bayerische Motoren Werke's <a href="/topics//BMW">BMW</a> i3 electric model, set to go into production in the fourth quarter, and Volkswagen’s <a href="/topics//Porsche">Porsche</a> 918 Spyder, an $845,000 hybrid, coming later this year. 
 More Than Volt 
 While GM hasn’t said what the ELR will cost, it will be more than the Volt. It will probably cost around $60,000 to $70,000, said a person familiar with the pricing who asked not to be identified revealing private plans. 
 The Volt went on sale in 2010 with the aim of putting GM’s <a href="/topics//Chevrolet">Chevrolet</a> on the forefront of green technology globally and taking on <a href="/topics//Toyota">Toyota</a>’s mass-market Prius hybrid, which starts at $24,200. GM originally aimed to sell 60,000 Volts worldwide last year before lowering the target to 35,000. In the U.S., it sold 23,461. GM hasn’t said how many it sold worldwide. 
 Part of Volt’s problem has been price. Starting at $39,145, the four-seat small car loaded up with pricey batteries is much more costly than a similar-size traditional compact, even with a $7,500 tax credit. The Toyota Corolla, for example, starts at $16,230. The best deal on a Volt has been through a lease, with monthly payments currently advertised at $329 on Chevy’s website. 
 Cadillac Demographics 
 That’s one of the arguments for why offering Volt as a Cadillac may have helped. Cadillac buyers expect to pay more than Chevrolet buyers, and luxury buyers are also attracted to the latest in technology, such as the Volt’s unique powertrain system. 
 “The demographics of the electric-car buyer are really more in line with Cadillac than Chevrolet,” said Rebecca Lindland, an industry analyst with <a href="/topics//IHS_Inc.">IHS</a> Automotive. 
 Compared with buyers of mainstream models, luxury buyers more often finance the purchase with a lease, which often requires a smaller down payment or lower monthly bill. About 38 percent of Cadillac sales last year in the U.S. were leases, while Chevrolet had only 12 percent, according to Edmunds.com. Of GM’s U.S. Volt sales last year, 46 percent were leases, Edmunds said. 
 Since the days of Henry Leland, who founded Cadillac more than 110 years ago, the brand prided itself on having some of the auto industry’s innovations. Electric starters, power steering and mass-produced V-8 engines were first in Cadillac cars before costs came down and spread to cheaper vehicles. Volt technology would have been another in the list. 
 Brand Arguments 
 Ferguson acknowledged that’d he heard the arguments before that Cadillac should have gone first. Another GM executive, Ed Welburn, the company’s design chief, confirmed it was part of the early development discussions. 
 If the model was just for the U.S., then the arguments for selling the technology under a Cadillac badge first would be right, said <a href="/topics//Bob_Lutz">Bob Lutz</a>, the former GM vice chairman, who led development of the Volt. 
 “But Chevrolet was/is GM’s global brand, and we wanted global distribution,” he said in an e-mail. “A Cadillac- branded Volt would have had almost zero potential in Europe, <a href="/topics//Latin_America">Latin America</a>, Eastern Europe, <a href="/topics//Australia">Australia</a> and Asia.” 
 As the debate about Volt continued, GM designers and engineers worked in the background on the ELR. The new two-door Cadillac is sportier than the four-door Chevy. It’s as if the Volt and <a href="/topics//Cadillac_CTS">Cadillac CTS</a> Coupe had a baby named ELR. The electric car’s styling includes a muscular hood, wide stance, 20-inch wheels and tail-lights that form slight wings that hint at Cadillac designs of a bygone era. 
 Interior Touches 
 Inside, the SLR has four seats, just as the Volt does, while the interior touches are less nerdy and more refined than its Chevrolet brother. Opus semi-aniline leather seats are offered and engineers dreamed up an electronic-assisted cup- holder door. 
 The Volt can go about 38 miles on all-electric power before the gasoline engine kicks on, Chris Thomason, ELR chief engineer said. The ELR, which is heavier, will go about 35 miles, while having a “radically” driving experience, he said, one that is “more performance-oriented.” In focus groups held in California, GM found that potential buyers of the ELR, which starts production late this year, were interested in different things than Volt shoppers. 
 “The top question was not around fuel economy,” Ferguson said of ELR’s market. “It was more around performance, styling and technology leadership.” 
 While U.S. Volt sales may increase 70 percent to 40,000 this year, ELR’s first year of sales in 2014 may reach only 1,500, said Alan Baum, an industry researcher. 
 Still, this isn’t just about ELR sales, GM Chief Executive Officer Dan Akerson said last week in Detroit. 
 “It will be a statement car that I think will bring people into the showroom,” he said.

carsELR16

Cadillac borrows Chevy Volt technology for hybrid model

Cadillac ELR -- cropped

<a href="/topics//Ford_Motor_Company">Ford Motor Co</a> gave a sneak peek on Tuesday at the future direction of its highly popular F-150 pickup truck series by unveiling a concept version called the "Atlas" that reflects Ford’s push to improve gas mileage across its product line. 
 The vehicle, due out for the 2015 model year, will be much lighter than its predecessor and has a more rugged look. It also represents a vision of the future of pickup trucks that contrasts with that of rival <a href="/topics//General_Motors">General Motors</a> Co. 
 Pickup trucks are a lucrative slice of the U.S. automotive market, and the <a href="/topics//Ford_F-150">Ford F-150</a> is the best-selling vehicle in the United States. 
 The F-150 concept is outfitted with the next generation of Ford’s turbocharged engine, known as EcoBoost, to wring out more miles per gallon. It also features active grille and wheel shutters to improve aerodynamics - a technology that improves fuel economy by about 2 percent, Ford has previously said. 
 Ford shares rose 2.2 percent to close at $14.30, the highest level in about 18 months, after the Atlas unveiling on Tuesday. 
 The concept "shows that we’re going to do whatever it takes to be preferred in the market segment," Chief Executive <a href="/topics//Alan_R._Mulally">Alan Mulally</a> told reporters Tuesday during an industry conference held in conjunction with the <a href="/topics//North_American_International_Auto_Show">Detroit auto show</a>. 
 "Every indication that we’re absolutely committed to improving these vehicles is a major proof point for the Ford plan," he said. "That is what is going to allow us to grow." 
 The second-largest U.S. automaker is cutting the weight of its cars and trucks and using turbocharged engines to meet stricter federal standards for fuel economy and attract the growing number of truck buyers who value fuel-efficiency. 
 Ford must comply with the U.S. government’s target for corporate average fuel economy of 54.5 mpg by 2025. This translates to 36 mpg or higher in real world driving - on average. 
 Boosting fuel economy in trucks is particularly challenging because they are large and must be capable of towing heavy loads. Using hybrid and electric car technology on these models remains extremely costly. 
 While Ford said the next F-150 would be lighter than the outgoing version, executives stopped short of specifying the kinds of materials or weight savings targeted for the new F-150. Raj Nair, head of global product development, said Ford is exploring the use of lightweight materials like high-strength steel, aluminum and carbon fiber across its lineup. 
 In its F-150 overhaul, Ford is looking to shave an average of 700 to 750 pounds from each vehicle through extensive use of aluminum as well as a redesign of components including brakes and axles, people familiar with the matter have said. 
 "Part of our strategy is to have all of our vehicles go on a diet in terms of weight," Chief Operating Officer <a href="/topics//Mark_Fields">Mark Fields</a> said on the sidelines of the <a href="/topics//North_American_International_Auto_Show">Detroit auto show</a> on Tuesday. 
 Diverging Paths 
 The F-series and sport-utility derivatives such as the Expedition account for more than 90 percent of Ford’s global profit, according to <a href="/topics//Morgan_Stanley">Morgan Stanley</a> auto analyst Adam Jonas. 
 Analysts say the segment is due for a rebound this year as the U.S. housing market rallies. Ford’s decision to reveal the upcoming pickup at the auto show 18 months before it hits the market reflects the highly competitive nature of the lucrative truck market. 
 Ford’s U.S. rivals, <a href="/topics//General_Motors">GM</a> and <a href="/topics//Chrysler">Chrysler</a> Group LLC, showcased new trucks at the show as well. <a href="/topics//General_Motors">GM</a> will begin selling a new <a href="/topics//Chevrolet_Silverado">Chevrolet Silverado</a> and <a href="/topics//Colorado">Colorado</a>, considered <a href="/topics//General_Motors">GM</a>’s most crucial launches since its 2009 bankruptcy. 
 GM and Ford are fierce competitors in the full-size pickup segment, which accounted for about 11 percent of the U.S. auto market last year and will grow increasingly competitive as more truck owners look to replace their vehicles. 
 But in their latest truck redesigns, they have diverged in their focus, with Ford placing more emphasis on fuel economy. 
 "In our industry over the last 20-plus years, there have been many manufacturers that have tried to redo the size-value equality in the truck market," said Jim Farley, Ford’s head of global marketing. "Over the next several years we’ll see how it plays out once again." 
 More than half of trucks on U.S. roads are more than 10 years old, <a href="/topics//Mark_Fields">Fields</a> said. So-called style buyers or consumers who liked but did not really need trucks are now buying different kinds of vehicles. 
 Truck buyers now are eager for the latest technology and are willing to pay for it, Farley said, adding that the average price today for a light-duty pickup truck is nearly $30,000. 
 The current version of the F-150 already features an aluminum hood as well as other aluminum components. 
 Ford is looking to strip out between 250 and 750 pounds from vehicles across its lineup. The weight savings can also be achieved through changes to the overall design process. 
 The company’s designers are "almost working backwards from what would be an ideal structure from a weight and load basis and then working to get the manufacturing and production feasibility out of it," Nair told reporters.

carsFORD15

Ford concept pickup brings fuel efficiency to F-150

28 Ford Atlas

Volkswagen AG, Europe’s largest carmaker, debuted a concept sport-utility vehicle designed for the U.S. market to challenge <a href="/topics//Ford_Motor_Company">Ford Motor Co</a>.’s Explorer and <a href="/topics//Chrysler">Chrysler</a> Group LLC’s <a href="/topics//Jeep_Grand_Cherokee">Jeep Grand Cherokee</a>. 
 VW today at the <a href="/topics//North_American_International_Auto_Show">North American International Auto Show</a> in Detroit showed the Crossblue, which will be priced between the smaller Tiguan and upscale Touareg. The SUV would seat as many as seven passengers and compete against the Explorer, Grand&nbsp;Cherokee and <a href="/topics//Toyota">Toyota Motor Corp.</a>’s Highlander, which all start at about $29,000. 
 The new SUV could help Volkswagen reach its target of increasing sales in the U.S., where it lags competitors, to 1 million <a href="/topics//Audi">Audi</a> and VW vehicles by 2018 from 577,443 last year. The SUV segment accounts for 29 percent of the U.S. market, trailing only&nbsp;sedans, which have a 38 percent share, according to data supplied by VW. 
 “The SUV segment is posting the strongest growth,” said Frank Biller, an analyst with LBBW in Stuttgart, Germany. “This is where the action is.” 
 VW, which today reported group deliveries rose 11 percent in 2012 to 9.07 million vehicles, says it’s preparing for tougher competition and more uncertainties in 2013 as its home region slumps a sixth year. VW came in third globally for 2012, being&nbsp;edged out by General Motor Corp.’s 9.2 million deliveries and <a href="/topics//Toyota">Toyota</a>’s forecast sales of 9.7 million vehicles. 
 Record Results 
 Last year “was the best sales year ever,” Chief Executive Officer Martin Winterkorn said in the statement. “This is another big step forward in our strategy 2018.” 
 The new SUV may help VW catch up in <a href="/topics//North_America">North America</a>, which is crucial to the Wolfsburg, Germany-based automaker’s plan to overtake <a href="/topics//General_Motors">GM</a> and Toyota and become the world’s largest automaker by 2018. VW is trying to compensate for the effects of the debt&nbsp;crisis on European car demand, which has fallen more than 20 percent since the 2007 peak, by expanding in the U.S. and <a href="/topics//China">China</a>. 
 Volkswagen could build the car at its $1 billion plant in <a href="/topics//Chattanooga,_TN">Chattanooga</a>, <a href="/topics//Tennessee">Tennessee</a>, where it started production of a U.S. version of the mid-sized Passat sedan in 2011. The factory, which can currently produce about 220,000 vehicles annually, was VW’s&nbsp;first in the U.S. since it closed a facility in <a href="/topics//Pennsylvania">Pennsylvania</a> in 1988. 
 Producing vehicles in <a href="/topics//North_America">North America</a> instead of importing them from Europe has reduced Volkswagen’s exposure to currency swings between the dollar and the euro, which have weighed on profits in the past. Volkswagen has the goal of making its&nbsp;money-losing U.S. operations profitable again in 2013. 
 Losing Momentum 
 Volkswagen said in its 2011 annual report that the company globally targets increased deliveries this year and aims to top last year’s operating profit. The manufacturer’s ability to do so will be challenged by slowing sales in Germany. Industrywide&nbsp;registrations in VW’s home market tumbled 16 percent in December, leading to a 2.9 percent drop in 2012. 
 “Many markets are losing momentum,” Winterkorn said at an event in Detroit late yesterday. “If the European markets are getting weaker, we need to expand abroad.” 
 VW’s growth last year was paced by the <a href="/topics//Audi">Audi</a> luxury brand. Sales at the carmaker’s biggest earnings contributor rose 12 percent to 1.46 million cars and sport-utility vehicles. The Ingolstadt, Germany-based premium brand grew U.S. deliveries 19&nbsp;percent to 139,310 vehicles led by gains for the Q5 and Q7 SUVs. 
 Enormous Potential 
 “The SUV market in the U.S. offers enormous opportunities,” <a href="/topics//Audi">Audi</a> CEO Rupert Stadler told reporters today in Detroit. “We want to expand our SUV lineup globally.” 
 Audi’s deliveries in 2013 may stagnate, according to <a href="/topics//IHS_Inc.">IHS</a> Automotive, with <a href="/topics//Daimler">Daimler</a> AG’s <a href="/topics//Mercedes-Benz">Mercedes-Benz</a> set to gain ground helped by the refreshed E- and S-Class sedans. Volkswagen’s total sales are forecast to edge 0.7 percent higher to 9.15 million&nbsp;vehicles in 2013, its slowest growth pace since the financial crunch in 2009, according to <a href="/topics//IHS_Inc.">IHS</a> Automotive. 
 Sales at the Stuttgart, Germany-based sports carmaker Porsche, which was fully integrated into the company in August, edged up 19 percent to 141,075 vehicles, also a record. All regions posted more than 10 percent growth.

carsCROSSBLUE14

VW unveils CrossBlue SUV to boost U.S. sales

14 VW Crossblue -- cropped

<a href="/topics//Nissan_Motor">Nissan Motor</a> Co.'s Infiniti, lagging larger German, Japanese and U.S. luxury brands, is replacing the G sedan with the Q50 sports car as the company links growth goals for its rechristened lineup to better looks and technology. 
 The 2014 Q50 will be available as a 3.7-liter V-6 engine car and as a hybrid-electric, 3.5-liter engine model, Infiniti said today at the <a href="/topics//North_American_International_Auto_Show">North American International Auto Show</a> in Detroit. Along with a more “sculpted” exterior the car has automatic systems to aid steering for better handling and also prevent lane swerving, Infiniti said. 
 Nissan’s <a href="/topics//Hong_Kong">Hong Kong</a>-based luxury brand last month said it would revamp model names this year -- Q for cars, QX for light trucks -- as part of a growth push in the U.S. and <a href="/topics//China">China</a>. In U.S. luxury-vehicle sales, Infiniti ranks seventh, trailing <a href="/topics//BMW">BMW</a>, <a href="/topics//Daimler">Daimler</a> AG’s <a href="/topics//Mercedes-Benz">Mercedes-Benz</a>, <a href="/topics//Toyota">Toyota</a>’s <a href="/topics//Lexus">Lexus</a>, <a href="/topics//Honda">Honda</a>'s <a href="/topics//Acura">Acura</a>, <a href="/topics//General_Motors">General Motors</a>' Cadillac and Volkswagen's <a href="/topics//Audi">Audi</a> last year. 
 “Infiniti has been around since 1989, and it’s been a largely U.S.-centric brand,” Johan de Nysschen, Infiniti’s president, told reporters in Detroit late yesterday. “On the one hand this gives us wonderful opportunity, and on the other it also holds us back. If we want to be a major player in the global stakes, we have to be more successful in other global markets.” Infiniti sales grew 22 percent to 119,877 last year, less than half the U.S. volume reported by <a href="/topics//BMW">BMW</a>, <a href="/topics//Mercedes-Benz">Mercedes</a> and <a href="/topics//Lexus">Lexus</a>. Model renaming is to be completed in the 2014 model year. 
 <a href="/topics//Audi">Audi</a> Hire 
 Carlos Ghosn, chief executive officer of Yokohama, Japan- based Nissan, hired long-time Audi executive de Nysschen last year to revamp Infiniti and boost global sales of the brand to 500,000 vehicles annually. 
 Worldwide sales were less than 200,000 in 2012, de Nysschen said. Q50 and other new models will lift U.S. deliveries further in 2013, Ben Poore, head of U.S. Infiniti sales said late yesterday, without elaborating. 
 Nissan moved Infiniti’s global operations to <a href="/topics//Hong_Kong">Hong Kong</a> in May and plans to produce Infiniti vehicles in <a href="/topics//China">China</a> in 2014. Annual sales in China, the biggest growth market for Infiniti, should reach 200,000 units by the end of the decade, de Nysschen said. 
 Last month, Infiniti became a separate corporate unit with Nissan, he said. To boost the appeal of its products in China and Europe, Infiniti will also be adding more high-output, small engines for its vehicles, hybrid systems and other powertrains, he said, without elaborating. 
 Executive’s Vision 
 “My vision for Infiniti is to establish the company as a fully accredited member of the club of premium auto brands in the world,” de Nysschen said. “I don’t know whether that takes 10 years, 15 years or 20 years.” Nissan’s emphasis on increasing Infiniti sales relates to the higher profit margins luxury cars generate. 
 “The premium brands account for about 12 percent of global sales worldwide, but almost 50 percent of industry profits,” de Nysschen said. The brand planned to use a performance by Cirque du Soleil acrobats to debut the sculpted Q50 today in Detroit. U.S. sales begin in mid-2013, the company said, without giving prices. 
 The current G sedan and coupe models are the brand’s top sellers in the U.S., with a combined 59,844 sales last year, almost half of Infiniti’s U.S. 2012 deliveries. 
 Other name changes including the current G Coupe becoming the Q60 and the M sedan rechristened the Q70, Infiniti said last month. Among the brand’s crossovers, the JX becomes the QX60; the EX will be the QX50; the FX is to be the QX70; and the full- sized QX sport-utility vehicle will be the QX80. 
 U.S. headquarters for Nissan and Infiniti are in Franklin, Tennessee.

carsINFINITI14

New Infiniti Q50 marks Nissan's renewed luxury push

6 Infiniti Q50 -- cropped

This year's Detroit auto show, which opens Monday, has a decidedly green theme. Green as in the color of money, that is. 
 An aura of luxury pervades many of the show's new models as automakers from Europe, Asia and the Motor City itself strive to bring more affluent consumers into showrooms. Whether one seeks a sedan, coupe or crossover, pricey new choices are not in short supply. 
 A familiar companion to luxury is performance. Exuding both traits is a hometown showstopper, the redesigned 2014 <a href="/topics//Chevrolet_Corvette">Chevrolet Corvette</a> from <a href="/topics//General_Motors">General Motors</a> Corp. The latest edition of "America's sports car" should reach dealers in late summer. Pricing may be in the general realm of the 2013 Corvette, which starts at $50,595. 
 A trio of expensive performance models from Europe, all priced from well over $100,000, is headed to the U.S. market in the coming year, and they, too, will be on display at the show. 
 Leading the pack is the redesigned 2014 <a href="/topics//Maserati_Quattroporte">Maserati Quattroporte</a>, which <a href="/topics//Chrysler">Chrysler</a>'s Italian parent, <a href="/topics//Fiat">Fiat</a> SpA, hopes will <a href="/topics//Spearhead_(musician)">spearhead</a> a resurgence of the <a href="/topics//Maserati">Maserati</a> brand when it arrives here in summer. 
 Also on view will be the potent 2014 <a href="/topics//BMW">BMW</a> M6 Gran Coupe, and the 2014 <a href="/topics//Bentley_Continental_GT">Bentley Continental GT</a> Speed Convertible, from Volkswagen AG's British uber-luxury brand. The Bentley claims to be "the world's fastest convertible," with a top speed of 202 miles per hour.&nbsp;

BZRAIL14

Pricey models reign at Detroit auto show

Benz CLA - cropped

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