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Kia Motors Announces Mexican Plant Venture

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Kia enters the Mexican market in a big way.

Kia Rio
The subcompact Kia Rio may find a home in Mexico.

Korean automaker Kia Motors Corporation announced this week that it will build a new manufacturing plant in Nuevo Leon, a state located in northeast Mexico, not far from Texas. Kia’s investment will come in at $US1 billion and will represent the company’s second location in North America.

Kia Motors: On to Mexico

The new plant will join one in West Point, Georgia, currently operating at full capacity. Construction is expected to commence in September with the plant operational by early 2016. Kia Motors executives were in Mexico City to sign the agreement with Enrique Pena Nieto, president of Mexico, among the dignitaries present.

Speaking on behalf of the automaker was Hyoung-Keun (Hank) Lee, Vice Chairman of Kia Motors Corp. Said Lee, “We are committed to producing world-class quality vehicles here in Mexico that feature industry-leading styling and high-tech convenience and safety features that customers have come to expect from Kia, while making significant contributions to both the economic growth of the State of Nuevo León and the future development of the Mexican automotive industry.

Access to Affordable Labor

Annual capacity for the new plant has been set at 300,000 vehicles, pushing the automaker’s global build capacity to 3.37 million units, almost evenly divided between plants in Korea and abroad. The automaker hasn’t announced which models will be built in Mexico, but industry experts have named the Rio subcompact and Forte compact as two strong possibilities. Both models are produced in Korea; Mexico would give Kia the low-cost labor to profitability build cars south of the border.

Kia acquired 53,800,000 square feet (1,235 acres) to build its new plant, leaving ample room for suppliers to set up shop nearby. Although the company hasn’t announced how many people will work at the plant, a labor force of 2,000 to 3,000 individuals is typical for a plant this size. Several thousand more supplier jobs will also be created with the local economy receiving an enormous boost as well.

US Sales: On the Rise

Despite capacity constraints, Kia’s US sales are up 7.2 percent in a market showing a 5 percent boost through July 2014. The automaker’s growth is outpacing its Korean sibling, Hyundai, which is seeing a modest 1 percent increase year-to-date. Hyundai also has a US factory — located in Montgomery, Alabama — and taps Kia to build its Santa Fe crossover in Georgia. Combined US sales for the Hyundai and Kia brands are up by 3.7 percent year-to-date according to Good Car Bad Car.

Building in Mexico not only gives Kia access to low, albeit rapidly rising labor costs, but it also gives the company access to approximately 40 markets with which Mexico has trade agreements. Mexico, along with Canada and the United States, compose the North American Free Trade Association (NAFTA). NAFTA is a trade bloc, what eliminated trade barriers between the three nations and has spurred investment. NAFTA has been criticized by some as American companies move to Mexico to save on labor costs while costing US workers their jobs.

Mexico also will represent a new sales market for Kia, one of the few places in the world that the company has yet to penetrate. The automaker says that the Mexican plant will allow it to strengthen Kia’s “sales presence throughout the entire Central and South America region while freeing up supply from Kias domestic plants to address supply shortage issues in other regions of the world.”

Working With Hyundai

Kia’s growth has come largely through its relationship with Hyundai. The two companies comprise the Hyundai Kia Automobile Group with Hyundai supplying many of the platforms, engines and components used by Kia. Kia utilizes its own body shells and interiors to produce models that are differentiated from Hyundai.

Kia’s best selling model is its Optima sedan followed by the Soul multi-purpose vehicle and Sorento SUV. The Soul and Sportage SUV have accounted for nearly all of Kia’s growth so far this year.

Photo copyright Kia Motors.

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Evade Terrorists With a BMW X5 Security Plus

Evade Terrorists With a BMW X5 Security Plus

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What’s new at the 2014 Moscow International Auto Salon.

BMW X5 Security Vehicle

An ordinary BMW X5 does not offer the protection of a security-enhanced model.

It is a dangerous world out there. Drive-by shootings, carjackings and war zone weaponry can put you and your passengers at risk. For these reasons BMW provides a line of Security Vehicles that are specially designed to ward off criminals, gang bangers and terrorists all.

BMW X5 Security Plus

This week at the Moscow International Auto Salon (MAIS), BMW took the wraps off of its latest security model — the X5 Security Plus. This crossover utility vehicle is specially fitted with heavy-duty, lightweight materials to protect the driver and passengers from an assortment of weapons including, .44 caliber handguns, AK-47 rifles, explosive devices and armor-piercing weapons.

BMW says that it uses pre-shaped aramid and polyethylene parts as well as special steel to protect vulnerable areas in the each vehicle. Aramid is a type of fiber originally developed by DuPont more than 50 years ago and valued for its heat-resistant properties. It is the same body armor fabric used in various aerospace and military applications; it will not melt or ignite in normal levels of oxygen. Polyethylene is a common plastic.

Specially Outfitted Vehicles

Even with the special security fittings, BMW claims that the changes are not apparent to the untrained eye. The overall harmony of the vehicle and its form and function remain. BMW makes use of security glass, run-flat tires and a self-sealing fuel tank to protect occupants. It also comes equipped with an attack alarm and an intercom system to communicate with the outside world.

Each model comes with BMW’s xDrive all-wheel drive system, ensuring superior handling and excellent traction. The modified chassis and control systems perform the same way that BMW’s other sport activity vehicles or SUVs work, with fuel economy enhanced by the automaker’s Efficient Dynamics technology.

BMW X5 Security Vehicle

An onboard fire fighting system is a security vehicle feature.

BMW 7 Series Sedan

The X5 is not the only BMW model that offers security protection. In addition, customers can also choose a standard X5 Security package that offers a standard level of protection against handguns. For optimum safety a BMW 7 Series offers state-of-the-art security in its High Security model. That model protects occupants from armor-piercing munitions and explosives.

BMW follows international Bullet Resistant Vehicle (BRV) guidelines as set forth in 1999 and updated as recently as 2009 to cover five categories of protection: VR4, VR5, VR6, VR7 and VR9. The most recent update introduced a change in trajectories for projectiles that strike a vehicle. The old standard offered protection for only certain types of shots conducted from limited angles. The new standard warrants protection for shots from any angle.

BMW X5 Security Vehicle

Special materials protect vehicle occupants including Aramid and high-grade steel.

Security Plus Advanced Training

Customers can order security vehicles outfitted with additional equipment such as: sirens, flashing lights and signal systems. Security driver training is also available as is special intensive training where drivers learn how to perform challenging maneuvers at high speeds, including escape turns and double lane changes. Are you looking to acquire James Bond-type driving skills? Your primer awaits you.

Choosing the Moscow auto show to debut its latest Security Vehicle may have been timed to coincide with the rash of threats along Russia’s border with the Ukraine. Apart from that volatile area of the world there are many other places where crime, war or terrorism has diplomats, corporate executives and other high-profile individuals demanding the best protection they can get.

BMW X5 Security Vehicle
BMW X5 Security Vehicle

Photos copyright BMW Group.

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Chevrolet Niva Rocks, But Will it Roll Here?

Chevrolet Niva Rocks, But Will it Roll Here?

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What’s new at the 2014 Moscow International Auto Salon.

Chevrolet Niva Concept

Take a look at the current Chevrolet utility vehicle line and you will find traditional Suburban and Tahoe SUV models at the top followed by the Traverse and Equinox crossovers. What the bow-tie brand has been lacking until now is a small utility vehicle, something it plans to remedy early in 2015 when the Chevrolet Trax makes its debut.

In reality, the Chevy Trax will not be the first small utility vehicle to wear a Chevrolet nameplate. Models supplied by Suzuki and Isuzu once filled that bill. In other markets, Chevrolet sells the Orlando and Niva models. You also might see a Chevrolet Captiva crossover here and there, a fleet-only utility vehicle sold to rental car fleets.

The Captiva has six more inches between the wheels and is nearly a foot longer overall than the Trax. Used models are available for sale and occasionally you’ll see one without the fleet sticker.

Chevrolet Niva

Inasmuch as the Trax will fill a hole in Chevrolet’s line up, a second small utility vehicle could add some pizazz that no other model currently offers. That model would be the Chevrolet Niva, a small crossover utility vehicle that is roughly the same size as the Trax.

The Chevrolet Niva has been in production since 1998, the offspring of a joint business endeavor GM has with AvtoVAZ, the Russian car manufacturer for the Lada brand. AvtoVAZ is now part of the Renault-Nissan alliance; the new edition will still be produced by the joint venture.

The big deal about the Chevrolet Niva is that a concept model was introduced at the Moscow International Auto Show (MIAS) this month. It is a much more muscular utility vehicle, one that will go into production late in 2015 as a 2016 model year offering.

Masculine Lines and Stance

The next generation Niva has masculine lines and comes equipped with 235/50 / R16 all-terrain tires, skid plates, roof rails and an on-roof light bar assembly. The picture that follows is of the current generation model and the proposed Niva. Guess which one has the best visual appeal?

Chevrolet Niva Concept

Jeffrey Glover, General Director of the Joint Venture said, “The style of the new car will be much closer to Chevrolet’s line. At the same time a more brutal appearance and the characteristics of the car suggest that it will continue to be a real Niva!

That “brutality” will be powered by a 1.8-liter four cylinder engine paired with a five-speed manual transmission. All-wheel drive and a locking rear differential will be included. The 135-horsepower engine comes courtesy of GM’s alliance with French automaker Peugeot.

Other details about the proposed vehicle were not divulged. Most likely, GM will use upcoming auto shows elsewhere to showcase prototypes.

Chevrolet Niva Concept

Chevrolet Niva Concept

Rocking and Rolling Here

With automakers building vehicles for multiple markets, will we see the Chevrolet Niva in North America? There certainly could be room for this model, especially in snow belt markets and for consumers that want the off-road utility. And given that the Trax is not something you’d take off road, the Niva (or whatever it is called here) could work out well. Expect GM to pay close attention to the upcoming Jeep Renegade’s sales performance when weighing its Chevrolet Niva options stateside.

Photos courtesy of the General Motors Company.

MIAS News

Moscow: Datsun Makes a Splash With Its mi-DO Hatchback

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Moscow: Datsun Makes a Splash With Its mi-DO Hatchback

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What’s new at the 2014 Moscow International Auto Salon.

The last time that the Moscow International Auto Salon (MIAS) was held the Datsun brand was a historical footnote in the annals of the automotive industry. That was 2012 — since then, Nissan revived the Datsun brand and is now selling budget models in Indonesia, India, South Africa and Russia.

Nissan at the MIAS

The Russian market is important to Nissan, which is also heavily invested in AvtoVAZ, the largest car company in Eastern Europe. The Renault-Nissan alliance controls the company and through its Lada brand it has been gaining market share. The just introduced Datsun brand will further Nissan’s growth across the Russian land mass.

The newly resurrected Datsun brand is on display at the MIAS, which is holding its press day today followed by a business day on Thursday. Beginning on Fri. and running through Sept. 7, 2014, the bi-annual show will be open to the public.

Datsun mi-DO and on-DO Models

Datsun miDOTwo new models are on display, including the on-DO sedan that will begin delivery to customers in early Sept. The second model, a mi-DO hatchback, goes on sale early next Jan.

The model names may seem odd to western ears, but they have special meaning in the east. The word “DO” is Japanese for “moving” and also represents the “way” in doing things. The word “on” is Russian for “he” and “mi” sounds like the English word for “me” or what personalizes the car. So, “he moving” and “me moving” are what Russian consumers understand when hearing the names for the two Datsun models.

MIAS represents the international debut for the Datsun mi-DO, a model that shares the same platform and wheelbase as the Datsun mi-DO, but is shorter overall. Both models sit on a 94.5-inch wheelbase and are 59 inches tall and 66.9 inches wide. The hatchback is 155.5 inches long; the sedan comes in at 170.7 inches long.

Engine and Transmissions

Datsun mi-DO hatchbackThe two Datsun models are powered by an 87-horsepower, 1.6-liter four cylinder engine and are paired with a standard five-speed manual transmission. A four-speed automatic is also available.

Standard equipment includes: driver and front passenger air bags, anti-lock brakes, heated seats, heated door mirrors, and other amenities. To serve the Russian market, 25 Datsun dealers are in place in key areas across the country. Another 75 Datsun dealers are expected to be up and running within the next two years.

A new vehicle warranty for 3 years or 100,000 kilometers (62,137 miles) is standard for Russian market Datsuns. Nissan has also set up Datsun Finance to provide financing solutions to Russian customers.

Commitment to Russia

Speaking to the press, Vincent Cobee, Global Head of Datsun, underscored his company’s commitment to the new market, by noting that the brand’s highly affordable price has struck a chord with Russian car buyers. That price is 329,000 Russian rubles or roughly US$9,100 or far below the lowest price of any car sold in America. The Renault-Nissan alliance has no plans to sell Datsun in the United States or Canada.

Photos copyright Nissan Motor Corporation.

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Opel Adam to Buick, Not Chevrolet

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Jam, Glam & Slam to the US?

Last week, Auto Trends looked at Buick’s expanding line up, particularly its connection to Opel that will likely yield at least two new models. A third model is also planned, one based on the not-yet-released Envision crossover for the Chinese market.

Opel Adam
Colorful Adams are traversing Europe’s bustling city streets.

Opel Adam City Car

Two more models may also make an appearance — a rear-wheel drive coupe based on Cadillac’s Omega platform and a possible third model from Opel. The third Opel model, however, could find its way to Chevrolet, but most likely will be sold by Buick. And that vehicle is the Opel Adam, a three-door city car that was introduced in 2013 and is consistently beating sales forecasts with strong month-over-month gains.

The Opel Adam would be a better fit for Chevrolet given its size. But, the Chevrolet small car line up is at its strongest yet with the Spark, Sonic and Cruze offering a 1-2-3 punch that the bow-tie brand has long wanted. Spark year-to-date sales through July are up 21.4 percent and it is also the lone model GM imports from South Korea. Although entirely different vehicles, Spark and Adam products sitting side-by-side in Chevrolet showrooms would dilute sales for both models.

For Buick, the Opel Adam does not seem to be a good fit at first glance. GM has been carefully transforming its premium brand to battle it out with select models from Acura, Lexus and Audi. And as BMW and Mercedes-Benz continue to push to the lower end of the market, Buick will be waiting. Cadillac, on the other hand, will maintain its luxury standards and push further upmarket.

Buick Adam, Opel Adam

There are two approaches that GM could take for Buick and Adam. The first would be to sell the hatchback as a Buick. That move would be consistent with what happens to Opel models when they arrive in North America.

A second approach would be to sell the model as the Opel Adam in North America as well. Just as Toyota has the Scion sub brand, Opel would stand in as the sub brand for Buick in North America only. No other models would need to carry the Opel name, just the Adam.

Adding another brand name is the last thing GM wants to do after shedding Hummer, Saturn, Pontiac and Saab following its 2009 bankruptcy and restructuring. Treating Opel as a sub brand would be a different approach and the Adam might be reserved for select Buick or Buick/GMC dealerships only.

Target: Fiat 500 and Mini Cooper

Internal wranglings aside, an Adam model under any name could find a loyal following, selling more models than the Fiat 500, but coming in below the Mini Cooper. Opel’s designers crafted a model that takes elements from both competitors such as the hatchback lines of the 500 and the contrasting roof of the Cooper.

Inside, there is room for four although as reviewed by Edmunds.com “…the rear seats in the Adam are as upright as dining room chairs,” providing enough room for children only. On this side of the Atlantic the 6-cubic-foot storage area is too small; folding down the rear seat solves that problem.

Jam, Glam & Slam

Opel put some funk and spunk in the Adam’s design, creating three trim levels: Jam, Glam and Slam. Multiple body colors, three roof colors, interchangeable dashboard and door panels and more than a dozen upholstery options allow shoppers to select a vehicle that suits them.

US-spec models would need something a bit more powerful than the current 1.2- and 1.4-liter naturally-aspirated engines, a problem immediately resolved by selling the larger engine with a turbocharger as is now available in Europe (Adam S). That 150-hp model is paired with a six-speed manual. Maybe save a slushbox for the standard engines.

Decisions, Decisions

If it were my decision, I would sell the Adam as a Buick, but offer it in limited quantities only. Make that model an Adam S and let its scarcity draw people to the Buick brand. That isn’t GM’s typical approach to the low end of the market, but it could provide two bookend halo models with the Riviera holding sway at the top end.

Photo copyright Adam Opel, AG.

Looking Ahead: Moscow International Automobile Salon

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And the show goes on.

LADA Kalina
This Lada Kalina is just one of many cars built by AvtoVAZ.

Moscow plays host to an important automotive event this month, the biennial Moscow International Automobile Salon (MIAS). This auto show is held on even numbered years and is slated to begin on August 29 and run through September 7, 2014.

This year’s show will take place amidst international tension following Russia’s seizure of the Crimea region from the Ukraine this past spring and ongoing tensions with its former USSR republic elsewhere. The press and business days are set for Aug. 27 and 28 respectively — alas, Auto Trends will not be there, but our press contacts will be on site to share those updates. We plan to feature the Moscow highlights later this week.

Moscow Auto Show

The Moscow show is sanctioned by the “Organisation Internationale des Constructeurs d’Automobiles” (OICA) or “The International Organization of Motor Vehicle Manufacturers” as it is known in English. Not all major shows receive that designation although Detroit, Washington, DC, and Los Angeles are among the three US shows that are currently sanctioned.

The Moscow show is held at the International Exhibition Centre or “Crocus Expo.” The Expo is part of the larger “Crocus City” trade fair and business center, and is located in Moscow’s Krasnogorsk district.

The Moscow show has been the site of several important global debuts including the 2014 Mazda 6 sedan in 2012. This year, the show will feature an updated BMW X6 crossover, an assortment of Chevrolet models, a Hyundai Equus limousine, a Russian market Ford EcoSport, as well as models from Renault, Lada and Nissan. Clearly, the world’s automakers understand the importance of this strategic market.

BRiC Nations

Like many countries, the auto industry is a significant contributor to the Russian economy. Hundreds of thousands of people are employed directly by automotive manufacturers, with millions more employed by suppliers and ancillary industries. Russia, along with Brazil, India and China comprise the BRIC nations, representing large nations with economies that are emerging global.

The dust up between Ukraine and Russia has lead to sanctions from the west. Those sanctions have driven up inflation within the Russian Federation and are contributing to auto sales falling by more than 7 percent year-to-date. Talk that Russia might retaliate by restricting automotive imports has yet to pan out. Whatever the course that the Putin administration plans to take, it will have little bearing on this year’s show.

Russian Production and Consumers

The Russian automotive industry produced more than 2.2 million vehicles in 2013. Russians bought 2.9 million new vehicles, ranking sixth in the world and coming in just behind Germany in Europe. The long-term outlook for the Russian consumer market remains bright with sales expected to recover within the next few years. A RolandBerger study pins sales at 3.3 million per year by 2020, considerably below the lofty 4 million annual units analysts had forecast earlier.

AvtoVAZ is the largest Russian automobile manufacturer, producing Lada brand vehicles for the local market mostly. Nissan is the biggest foreign brand in Russia and along with its French partner, Renault, has taken controlling interest in AvtoVAZ.

The Japanese manufacturer is currently building Nissan and Datsun models for the local market. AvtoVAZ has the capacity to build 1 million vehicles per year and the Russian market is expected to overtake the German market within the next few years.

Potential Deeper Conflict

Perhaps the one thing that might detract from this year’s Moscow show is if things heat up in the Ukraine. At present, thousands of troops that have pledged allegiance to Russia are battling with Ukrainian nationals to the east and along Russia’s border. Putin has been carefully weighing his approach to this conflict, mindful that his response could lead to deeper sanctions. If so, the Russian economy could sustain a harder hit, perhaps reversing the long-term prospects of that nation’s budding automotive industry.

Photo courtesy of AvtoVAZ (Lada).

How Many Miles Per Gallon Does a Minivan Get?

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The modern minivan movement began in 1983 when the Chrysler Corporation brought the Plymouth Voyager and Dodge Caravan to the market. Those early models were based on the automaker’s K-Car platform, a compact car line that spawned numerous other Chrysler, Dodge and Plymouth models.

The earliest minivans lived up to the segment’s name, weighing about 3,000 pounds and measuring 176 inches long. Today’s minivans typically weigh closer to 4,500 pounds and have added about two feet to the length. Even so, today’s models are just as fuel efficient as the original minivans, as state-of-the-art engines and transmissions are now in use.

Chrysler still produces minivans even as its domestic competitors have bowed out of the market. You can buy a Dodge Grand Caravan or a Chrysler Town & Country, models with combined sales greater than the Honda Odyssey, Toyota Sienna, Nissan Quest and the Kia Sedona. The following are the miles per gallon or mpg ratings for today’s minivans.

Chrysler Town & Country

Chrysler Town & Country

Both the Chrysler and Dodge minivans are powered by a 3.6-liter V-6 engine mated to a six-speed automatic transmission. These models are rated at 17 mpg in the city and 25 mpg on the highway for a combined 20 mpg. The Chrysler Town & Country and Dodge Grand Caravan take regular grade gasoline.

You can also fill these models with E85 fuel, an ethanol blend, but your fuel economy will suffer. With E85 fuel only, this model is rated at 12 mpg in the city and 18 mpg on the highway for a combined 14 mpg.

2015 Honda Odyssey.
2015 Honda Odyssey.

Honda Odyssey

The Honda Odyssey is powered by a 3.5-liter V-6 engine and is paired with a six-speed automatic transmission.

This model takes regular grade gasoline and is rated at 19 mpg in the city and 28 mpg on the highway. The Odyssey’s combined gas mileage comes in at 22 mpg.

Toyota Sienna
Toyota Sienna.

Toyota Sienna

The only minivan model that offers optional all-wheel drive is the Toyota Sienna. This vehicle is powered by a 3.5-liter V-6 engine paired with a six-speed automatic transmission. All Siennas take regular grade gasoline.

The standard front-wheel drive model is rated at 18 mpg in the city and 25 mpg on the highway for a combined 21 mpg. Choose all-wheel drive and this model is rated at 16 mpg in the city and 23 mpg on the highway for a combined 19 mpg.

2014 Nissan Quest
2014 Nissan Quest.

Nissan Quest

The Nissan Quest is powered by a 3.5-liter V-6 engine and paired with a continuously variable automatic transmission.

This model takes regular grade gasoline. The Quest is rated at 19 mpg in the city and 25 mpg on the highway for a combined 21 mpg.

Kia Sedona
Kia Sedona.

Kia Sedona

Korean automotive manufacturer Kia has returned to the minivan market with its Sedona. The Kia Sedona takes regular grade gasoline and is rated at 17 mpg in the city and 24 mpg on the highway. Its combined fuel economy comes in at 20 mpg.

Other Minivan Players

There are other van models on the market that may be better representatives of the minivan name, at least in size and in weight.

The Ford Transit Connect offers a pair of four cylinder engines (1.6 and 2.5 liters) and is sold in standard and stretched wheelbase models. The Transit Connects takes regular grade gasoline and is rated from 20 mpg in the city and 28 mpg on the highway (23 mpg combined) for the long-wheelbase model. You can get 22 mpg in the city and 30 mpg on the highway (25 mpg combined) for its most efficient model.

2014 Nissan NV200
2014 Nissan NV200

Presently sold as a cargo van to retail customers, the Nissan NV200 is powered by a 2.0-liter four cylinder engine making 24 mpg in the city and 25 mpg on the highway or a combined 24 mpg. This model takes regular grade gasoline.

Not to be left out is the Mazda 5, a model that is powered by a 2.5-liter four cylinder engine paired with a five-speed automatic transmission. This minivan or multi-purpose vehicle is rated at 22 mpg in the city and 28 mpg on the highway for a combined 24 mpg. The “5” takes regular grade gasoline.

Photos copyright the respective manufacturer except for the Nissan NV200: copyright Auto Trends Magazine.

UC Davis Study Shows Confidence in Hydrogen

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Report offers support for an emerging infrastructure.

Toyota Mirai.
The Toyota Mirai fuel cell arrives on the market in April 2015.

A new study from the Institute of Transportation Studies at the University of California, Davis, sees tremendous promise in hydrogen vehicles. The study says that fuel cell electric vehicles (FCEVs) may be just a few years, not decades behind conventional electric vehicles, as the state of California partners with industry to construct much-needed fueling stations.

The Hydrogen Transition

Titled, “The Hydrogen Transition,” the study’s researchers believe that a “convergence of factors” are at work to advance the market introduction of FCEVs, at least in California. Indeed, by clustering the hydrogen fuel cell infrastructure in regional areas, costs will be greatly reduced and an early market established before it is deployed nationally.

Hyundai Tucson FCV
Hyundai’s Tucson Fuel Cell is available for lease in California.

The study noted that government and industry collaboration is already driving down vehicle and hydrogen station component costs as new vehicles come to the market. Several manufacturers have been testing small groups of prototype or production vehicles for years. Just this spring, Hyundai introduced its Tucson Fuel Cell, the first mass-produced model to hit the market. Next year, Toyota will bring its own vehicle to the market and other manufacturers have promised to do the same.

“We seem to be tantalizingly close to the beginning of a hydrogen transition,” said lead author Joan Ogden, professor of environmental science and policy and director of the Sustainable Transportation Energy Pathways (NextSTEPS). “The next three to four years will be critical for determining whether hydrogen vehicles are just a few years behind electric vehicles, rather than decades.”

Building Out an Infrastructure

hydrogen fueling station

A California hydrogen fueling station built by Toyota.

Besides the steep manufacturing costs that has made FCEV production cost prohibitive, a nonexistent infrastructure has also slowed the transition. Indeed, until this year, there were only 11 fueling stations in the United States, with nearly all of them concentrated in Southern California.

Various public-private partnerships have emerged just this year to build a hydrogen infrastructure in California. That collaboration is reducing design costs, what is giving manufacturers and consumers alike the confidence that hydrogen may take hold.

The Davis researchers have estimated that a $100 to $200 million regional investment would make hydrogen cost effective for up to 50,000 vehicles supported by 100 fueling stations. Reaching that threshold would make hydrogen competitive with gasoline on a cost-per-mile basis, according to the study.

Government Backing in Place

Already, California has made a financial commitment of $46 million to build 28 fueling stations. The governments of Japan and Germany are making similar investments in their respective infrastructures.

This past May, Auto Trends reported that Toyota agreed to invest an unspecified amount of money to help bolster California’s infrastructure. The automaker is also partnering with Linde LLC to build a hydrogen fuel station on its property in San Ramon, just outside of San Francisco.

Hydrogen Deployment Highlights

The 53-page report looked at several other points related to hydrogen deployment.

The researchers concluded that effective public policies will go far in developing infrastructure with consumer incentives paving the way toward acceptance. Just as the current crop of electric vehicles come with benefits such as tax credits, free parking and access to High Occupancy Vehicle lanes, FCEV owners might also receive the same.

A recent boom in low-cost natural gas will have a corresponding effect in keeping hydrogen costs affordable. As for national benefits, the researchers found that the subsequent reduction in air pollution, climate change and oil dependence will outweigh the transition costs by a factor of 10 to 1.

The study also noted that automakers are already heavily invested in FCEVs, having committed more than $9 billion thus far. The US Department of Energy says that its own investments have encouraged private sources to jump in, who have spent 6 to 9 times the government contribution.

Tesla Model S.
FCEVs may pose a challenge to Tesla Motors as its Model S.

FCEV Detractors

Despite the billon dollar efforts to build a hydrogen infrastructure, the industry is not without its detractors. Elon Musk, chairman of Tesla Motors, is a strident critic having called fuel cells “fool cells” and a “load of rubbish” reports Bloomberg. Then again, Musk may have the most to lose if FCEVs catch on as his own company is heavily invested in EVs.

Photos courtesy of the respective manufacturer.

Buick Forecast: Bright With New Models Due

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Projecting the near-term future of GM’s premium marque.

Opel Cascada

This Opel Cascada may someday become a Buick.


GM’s Buick marque finds itself in a unique position among premium brands. Its two closest domestic competitors for years were Mercury and Chrysler, but the former brand is now defunct and the latter brand has been demoted to common status. Chrysler now competes with Chevrolet and Ford, leaving Buick to go after near-luxury buyers who aren’t quite yet ready for Cadillac.

GM likes to call Buick a “luxury brand” but that honor belongs solely to Cadillac. What Buick does right is to battle the luxury brands at the lower end of the segment, by taking on models such as the Lexus ES, Acura TLX and Audi A3, to name a few.

Buick Sales Surge

Last month, Buick had its best July since 2006 as its sales rose by 8 percent. Buick sales year to date are up by almost 12 percent, outpacing GMC, Chevrolet and Cadillac. The subcompact Encore crossover utility vehicle and the Regal midsize sedan are providing the most significant lift for Buick. A redesigned Verano is waiting in the wings, what most certainly will help fuel sales growth moving forward.

The big money for America’s automakers has always been full-size pickup trucks and big SUVs, segments that Chevrolet and GMC represent well. Most dealers sell both Buick and GMC products, giving them a wide selection of trucks, SUVS and sedans to market.

GM, though, plans to continue to distinguish Buick from GMC by offering additional models. Apart from GMC, its five-vehicle line up is fairly thin and is in need of new product. We see the following changes coming Buick’s way through 2018:

Cascade Convertible

Before GM’s bankruptcy, Saturn was the brand that was slated to source new product from Opel, GM’s European subsidiary. That soon changed when the new GM emerged with Saturn gone. Today’s Buick Regal is sold as the Opel Insignia and will continue to share its platform with its European stablemate.

Opel has another car that Buick would love to receive, but GM has been mum about its North American release. And that vehicle would be the Opel Cascada, a beautiful 2+2 convertible that some in GM management have insisted will not be imported.

Well, last December Opel registered a pair of names with the US Patent Office: Cascada and Calibra as reported by Motor Trend. The Cascada rides on the same platform that underpins the Buick Verano. The Calibra could serve as a two-door Regal. If it came down to one or the other, the Cascada would seem to have the edge.

GMC Terrain

The GMC Terrain may be joined by the Buick Envision.

Envision Crossover

The Buick lineup has two crossovers: the subcompact Encore and the much larger Enclave. The gap between the two is filled by the GMC Terrain and Buick is not getting a variant.

What Buick may get is the Envision, a small crossover designed and built for China’s market. Based on an all-new platform, the Buick Envision would fill the slot between the Encore and Enclave and would be separate from the GMC Terrain. GM hasn’t committed to a US introduction for the crossover, but it seems likely that we’ll see such a model.

Buick Riviera

Is there room in Buick’s lineup for a the Riviera?

Riviera Luxury Coupe

Cadillac may have the luxury market, but Buick most likely will be given its own slice when the Riviera coupe bows in 2018. The vehicle remains unannounced and its future is tied in with the destiny of the full-size, rear-wheel drive Cadillac LTS that has been rumored for several years, but is expected to debut by next April in New York.

The LTS will ride on GM’s new Omega platform. That platform will underpin other GM products, but it will not produce a host of badge-engineered models. Instead, the Riviera would be sold as a coupe and have shorter overhangs if not a shorter wheelbase. The style may be based on the Buick Riviera concept that made its debut at the 2013 Shanghai Auto Show.

An Expanded Model Line

Three new models would bring Buick up to eight, giving the brand a much more significant footprint in the premium market. Buick plus Cadillac would also give GM a strong 1-2 punch among premium and luxury vehicle shoppers with the combined sales of the two brands outpacing Mercedes-Benz, BMW and Lexus, for customer sales.

Off-Road Fun With a Toyota FJ Cruiser Ultimate

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2014 Toyota FJ Cruiser Ultimate

Toyota is saying “good-bye” to its FJ Cruiser in a big way. To mark the end of this utility vehicle’s 8-year model run, it launched a special “Ultimate” edition in Jan. Instead of the usual solid color body with a white roof, this edition features a white grille and Heritage Blue paint, a look that pays tribute to the FJ40 from which the FJ Cruiser’s design is based.

Just 2,500 units of this special edition model have been built. One copy found its way to me recently, giving me the opportunity to experience everything it offers, especially its off-road prowess.

One and Done Model

But first some background information regarding the model at hand. When Toyota released the FJ Cruiser for the 2007 model year, it said that it would be a “one and done” model. In other words, Toyota promised that it would build the FJ Cruiser for just one generation, then end production.

That generation lasted about as long as Toyota dared to keep this model around with the automaker confirming last fall that production would end following the close of the 2014 model year. The timing was just right too as its platform-mate, the Toyota 4Runner, had just made its own generational shift. Toyota wasn’t about to invest in a new model and break its promise, nor was it going to extend production of the older model at the expense of the 4Runner.

The FJ Cruiser, along with the 4Runner, the Nissan XTerra and the Jeep Wrangler are among the last body-on-frame utility vehicles on the market. These truck-based platforms are more rugged, less refined, but can handle an assortment of off-road conditions that today’s crossover sport utility vehicles would find difficult to do. Sure, there are models such as the Jeep Grand Cherokee that are designed to take a beating, but if you are a hardcore 44 person, it is the traditional SUVs that offer the best design.

2014 Toyota FJ Cruiser Ultimate

2014 FJ Cruiser Ultimate Edition

The 2014 Toyota FJ Cruiser is priced from $27,680 for the standard 42 (rear-wheel drive) edition. The 44 MT, equipped with a six-speed manual transmission, retails from $28,860. Choose the 44 AT ($29,270) and that comes equipped with a five-speed automatic transmission with overdrive. If your heart is set on the Ultimate package you will pay an $8,185 price premium for the many goodies offered. When all was said and done, my test model came in at $39,494, including an $815 delivery fee.

Among utility vehicles, the FJ Cruiser won’t easily be confused with other models on the road, although my wife kept referring to it as a “Jeep.” Indeed, this model’s closest competitor is the Jeep Wrangler, itself drawing on a rich legacy that extends back to the early 1940s. Toyota, for its part, has long built a Jeep-like vehicle as it was first commissioned by the US Army in 1950 to build 100 copies based on Willys’ specifications. Known as the Jeep BJ (Toyota Jeep, that was before the Jeep name was trademarked and likely has led to some of the confusion that remains even to this day. The BJ later became the Land Cruiser, with Toyota also adding the smaller FJ.

2014 Toyota FJ Cruiser Ultimate

View manufacturer details and pricing

Like the 4Runner, the exclusive engine for the FJ Cruiser is a 4.0-liter, 24-valve V-6 making 260 horsepower and 271 foot-pounds of torque. Toyota did not make any engine enhancements with the Ultimate edition, although a supercharger is available for any 4Runner or FJ Cruiser courtesy of Toyota Racing Development (TRD). The engine has been around for some time, first put into use in 2002 and updated in 2010 to include dual variable valve timing with intelligence (VVT-i), technology that varies the timing of the intake valves for improved engine efficiency.

2014 Toyota FJ Cruiser Ultimate

Toyota Racing Development

TRD’s hands are all over the Ultimate edition. Besides the special color scheme and white grille, this edition brings in a roof rack with rails, 16-inch Goodrich tires with headlock TRD wheels, wheel locks, special badging and privacy glass. The suspension system was enhanced with Bilstein shock absorbers; a TRD aluminum skid plate, active traction control, a rear wiper, and remote keyless entry were also added. Inside, this model has a floating ball multi-information display affixed to the dash with an inclinometer, compass and outside temperature readout. Gray fabric seat inserts, a leather-trimmed steering wheel, and a 120-volt/400-watt outlet were also added.

A few other goodies were included with the test model. These were: all-weather mats and cargo mats ($200), a TRD cat-back exhaust system ($550), a towing hitch with wiring harness ($349) and a passenger armrest ($125). Further customization such as light bars, grille guards, cargo covers and an assortment of performance upgrades can be had from Toyota.

2014 Toyota FJ Cruiser Ultimate

Part-Time 4×4 System

The FJ Cruiser’s 4×4 system is part-time and that means that the four-wheel-drive system must be engaged to activate it. Toyota says that you can do this on the fly, up to speeds as high as 50 mph. You may find it easier to move the shifter when stopped and in park or while in neutral before making the changeover. I’ve heard people say that a lot of force must be applied to shift into 4×4 mode when on the move.

Once you are locked and loaded, the off-road fun begins. I had already fulfilled my on-road travels with the FJ Cruiser when I “found” a logging road that wasn’t in use on a recent Saturday. Here in North Carolina, those trails are all over the place as landowners sell off mature trees and dump trucks move back and forth across large swaths of land. That means the clay is packed down in some places, but is also quite loose mostly everywhere else.

2014 Toyota FJ Cruiser Ultimate

Not once did I become stuck nor did I have to rely upon a lower gear for improved crawl ratio. The FJ Cruiser skipped, no romped, through the mess and splattered red mud everywhere. I am no 4×4 maven, but after 10 minutes of churning, stomping and kicking up clay, I felt fully confident that the FJ Cruiser would not let me down. Had more time been allotted to me, I would have headed to the Appalachian range to ford a few creeks and taken to a handful of wooded trails. Even so, I found a second off-road area where the trees had been felled and the stumps are taken out, hilly terrain that extended my off-road experience.

The big, boxy look of the FJ Cruiser places this vehicle somewhere between the Jeep Wrangler and the defunct Hummer H3. It is a four-door model, but the rear doors are rear-hinged and about half the size of the front doors. To access, you need to open the corresponding front door first, then reach inside to pull up a lever that opens the rear door. It is an unusual design, one that adds to this model’s mystique. You can get three people in the back, but legroom for tall passengers is limited.

Other notables about this model include its three front wipers, a huge rear door that swings out to the left side, and numerous hooks and tie-down points in the cargo area. The cloth seats are water-resistant, rubberized flooring is standard and the center console has an iconic face that hearkens to the original FJ display.

Toyota 4Runner Goes it Alone

With the FJ Cruiser’s departure, the 4Runner will handle midsize SUV duty for Toyota. The latest edition is an off-road beast in its own right, something Toyota proved at a journalist meetup I attended last September north of Atlanta. We put this burly beast as well as the Toyota Tundra pickup truck through a punishing off-road course and both vehicles shined brightly. You can find that review here.

2014 Toyota FJ Cruiser Ultimate

 

2014 Toyota FJ Cruiser Ultimate

 

 

  • Sticker price from $29,270
  • Price as tested: from $39,494
  • Seats 5 occupants
  • 4.0-liter 24-valve V-6 gasoline engine
  • 260 horsepower @ 5,600 rpm
  • 271 foot-pounds of torque @ 4,400 rpm
  • 3.70 inches bore by 3.74 inches stroke
  • Engine compression ratio: 10:4-to-1
  • 5-speed automatic transmission
  • Wheelbase: 105.9 inches
  • Length: 183.9 inches
  • Width: 75 inches
  • Height: 72 inches
  • Passenger volume: NR/li>
  • Storage volume: 27.9/66.8 cubic feet
  • Towing capacity: 4,700 pounds
  • EPA: 17 mpg city, 20 mpg highway
  • Regular grade gasoline
  • Fuel tank: 19 gallons
  • Curb weight: From 4,295 pounds
  • IIHS safety rating: Good; Roof Strength (Acceptable)
  • Limited vehicle warranty: 3 years/36,000 miles
  • Powertrain warranty: 5 years/60,000 miles
  • Corrosion warranty: 5 years/Unlimited miles
  • Vehicle assembly: Hamura, Japan (Hino Motors)

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2014 Toyota FJ Cruiser Ultimate photos copyright Auto Trends Magazine. All rights reserved.