Audi A7 confirmed for U.S. and S8 model in the works

2011 Audi A8 – Click above for high-res image gallery

At last week's tony Design Miami reveal of the 2011 A8 luxury cruiser, we were able to corner Johan de Nysschen, Audi's executive vice president in North America, and ask him for some tasty tibits on the brand's upcoming products, including the A8's sexier derivative, the A7.

In addition to giving us the first official confirmation of the A7's existence, de Nysschen revealed that the four-door coupe model will slot in "a little bit below" the new A8 in terms of pricing, just as we expected. Of course, it's worth noting that the 2011 A8 faces a price bump due to substantial increases in content and technology, so when the A7 finally comes to the States, the average model is likely to sticker at around $82,000-$83,000, which de Nysschen says is about the price for a typically equipped 2010 A8 (pricing starts at $74,550 plus delivery).

Based on Audi's new longitudinal modular platform technology, the A7 will be clearly related to the A8 (and the A6 replacement that will follow it), and de Nysschen says that the 2009 Detroit Auto Show Sportback concept car serves as a "very reliable indicator" of what the production model will look like. Judging by recent spy shots from our friends at KGP, that very much appears to be the case. While parts commonality will be "substantial," de Nysschen says that the A7 will not use the full aluminum spaceframe design of the A8, although it will have aluminum elements.

As expected, the A8 will launch Stateside in both standard and long-wheelbase formats, with the latter predicted to make up the lion's share of the volume (the A8L presently accounts for about 80 percent of the model's sales).

We asked De Nysschen about how the two models will interact in the full-size luxury sedan segment, and he noted that:

"This top end segment is characterized by more conservative people, and we need to clearly take lower levels of risk with a flagship model [the A8]. But we recognize too that there is a sizable enough cluster of customers in that same segment who are ready for a more avant-garde design [the A7]. So we will essentially be positioning two cars into the same segment, which means that independently, the volume each attains is not that significant, but when you put them together, it will mean that our share of that segment will grow quite dramatically."

All-in De Nysschen thinks that the A8 will account for about 4,000 to 5,000 sales per year in the U.S., and the less costly A7 could clear 7,000-8,000 additional units.

And what of a high-performance S8 to take on Mercedes-Benz's AMG lineup, or the A5 Sportback? Click through to the jump for more details.

2011 Audi A8: Live from Miami

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Most auto shoppers who send email leads to dealerships

Most auto shoppers who send email leads to dealerships dislike the way their messages are handled, according to a survey by AutoTrader.com, an online vehicle marketplace.

Only 37% of new-car shoppers who submitted leads were satisfied with the process. The satisfaction rate was higher for used-car shoppers: 49%.

Most satisfied are people who got a response within three hours. A response time of between three hours and a day left shoppers somewhat satisfied. Full dissatisfaction kicked in after a day with no reply.

“Dealers should establish a process for quickly responding to emails,” AutoTrader CEO Chip Perry says.

A personal reply within a day is best, he says. Better than nothing is an automated response saying, “We received your email; someone will contact you soon.”

The study indicates the top three reasons shoppers send dealerships emails are to: confirm a vehicle is still available (76%), get more information about a vehicle (57%) and ask if the posted price is flexible (53%).

Although responding quickly to emails is important, they’re not a primary channel for shopper-dealer communications, AutoTrader research indicates.

Up to 90% of consumers use the Internet to shop for cars but only a quarter of them send emails to dealerships, Perry says.

Dealers need processes for quick email responses, says AutoTrader CEO Chip Perry.

Those that don’t say they prefer dealing with sales people in person and want an immediate response.

Eighty percent of car shoppers who visited a dealership showed up without prior contact, according to an AutoTrader study in conjunction with Northwood University. Seventeen percent phoned beforehand. Only 2% emailed.

“Many people still crave a communication method that is more human,” says Dave Schoonover, a marketing manager for Kia Motors America Inc.

One reason so many car consumers skip emails to dealerships is that “so much information is available online about dealers and their inventories,” says Anna Zornosa, general manager of The Cobalt Group Inc.’s Dealix.com, which provides Internet leads to dealerships.

“People can click directly to website pages, fill out forms and inspect inventory,” she says at a J.D Power and Associates’ Internet conference here.

First-time car buyers are more likely to use email, she says. They also are “extremely interested” in independent opinions about cars, such as views expressed on third-party automotive Internet sites.

Modern technology speeds up car shopping, but essential elements remain unchanged, says Christian Nimsky, vice president of Kelley Blue Book’s kbb.com, a vehicle-value guide.

“People are asking, ‘What is my car worth as a trade-in? What car should I buy? What’s the complete transaction price?’” he says. “When you cut through all the technology, these are the questions they want answered.”

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When Online Ends and Offline Begins Survey: Most Dealership Visitors Just Show Up

Perry agrees the basics count. At some point, “people want to see a live car on a dealer lot,” he says. “They want to see a car and a deal. When dealers fulfill that need, it moves the needle.”

Conversely, when information is inconsistent – such as online inventory listings for cars that already have been sold – “people tend to back off and think about contacting another dealer,” Nimsky says.

Most customers would prefer to avoid going from dealer to dealer, Schoonover says.

“Ideally, a customer has a good relationship with a dealer who treats him or her right,” he says. “No one wants to deal with five different dealers any more than you would want to go to five different Nordstrom’s to buy something.”

General Motors on Monday said it would invest US$336m

General Motors on Monday said it would invest US$336m in its Detroit-Hamtramck assembly plant to begin production of the Chevrolet Volt electric car, with extended-range capabilities, in 2010. The plant initially will also build Opel/Vauxhall Ampera variants for Europe although production of those is expected eventually to shift across the Atlantic, possibly to the Vauxhall plant in Ellesmere Port, north west England, though a final decision has not been made.

This brings GM's combined Volt-related investments in Michigan to $700m, over eight facilities. Detroit-Hamtramck will be the final assembly location for the Volt, using tooling from Grand Blanc, lithium-ion batteries from GM's Brownstown Township battery pack manufacturing facility, camshafts and connecting rods from Bay City, and stampings and, eventually, the Volt's 1.4-litre engine-generator from Flint (initial supplies will be imported).

"We expect the Detroit-Hamtramck plant will be the first facility in the US owned by a major automaker to produce an electric car. It is the hub for the wheel that we began rolling in 2007 when the Volt debuted at the [Detroit motor show]," said GM vice president of global product planning Jon Lauckner.

"Since then, the field of challengers and partners has grown significantly. This competition will expedite the development of electric vehicle technology and infrastructure."

After the Volt's debut in January 2007, other automakers announced six plug-in hybrid or electric vehicles later that year, followed by 19 introductions in 2008 and five more this year.

In addition to GM's $700m in Volt-related facility investments, there are the many suppliers, utility companies and organizations investing in Michigan and the US to support Volt production and electric vehicle development. In August, the US Department of Energy selected 45 companies, universities and organisations in 28 states for more than $2bn in awards for electric drive and battery manufacturing and transportation electrification.

To reduce cost and maximize flexible manufacturing techniques, some equipment for Volt production is being reused from other GM facilities and installed in the Detroit-Hamtramck plant's body shop. The car will be built on the existing assembly line at Detroit-Hamtramck. Assembly of prototype vehicles will begin in the spring, with the start of regular production scheduled for late 2010.

Detroit-Hamtramck opened in 1985, and currently employs about 1,200 workers, including 1,100 hourly workers represented by United Auto Workers (UAW) 'Local 22'.

The Volt is an electric vehicle with extended-range capability. It is designed to drive up to 40 miles (60km) on electricity without using petrol or producing tailpipe emissions. When the lithium-ion battery runs out, an engine/generator seamlessly operates to extend the total driving range to about 300 miles (500km) before refueling or stopping to recharge the battery. Pricing has not been announced.

HPP's showstopping Daytona conversion

HPP Daytona - Click above for high-res image gallery

When we saw the HPP Daytona at this year's SEMA show, two things became very apparent. One, we'd really like to drive it. Two, we need better pictures of it. See, the poor thing got itself shoved into a tight booth at SEMA and we just couldn't get too many decent shots. So, being the enterprising lads that we are, we wrote HPP and asked if they had some better pictures. Guess what? You're looking at 'em.

One thing we really dig about these studio shots is the detailing. Just check out the custom exhaust tips – the square suckers sticking out of the Daytona's side behind the rear wheel. Nifty, no? Great hood latches, great front splitter, good looking (and apparently functional) hood scoops and really nice hood pins. And just look at that wing – fabulous. Really, the more we look, the more we like this 600-horsepower supercharged bad boy. Which leaves us with one big question: who is HPP?

Well now, included with the purty pictures was a very interesting explanation to that very question. Gordon M. Heidacker is the president of Heide Performance Products (HPP). He's been in the car business for 23 years, working for AMC and Chrysler while getting his hands dirty with cars like Plymouth Prowler and Dodge Viper. After the Cerberus debacle, Heidacker decided to go it on his own, and set up HPP to fill, "a general hole in the market for accessories and upscale vehicles that could be converted into passionate expressions of metal, glass, plastic to become rolling art." Sounds good by us.

As far as this here Daytona goes, Heidacker had a conversation with Chrysler explaining what he and his team wanted to do. And if Chrysler liked it, they'd fund it. But, as Heidacker points out, they "Delivered that proposal to Mopar exactly 1.5 hours before they declared bankruptcy. So we decided to internally fund the project." Timing, as it's said, is everything. What's next for HPP? Next up is another Challenger, but for next year's SEMA show, they'll be bringing a Chevrolet Camaro. We, for one, will be there. For a partial list of the 50 individual changes HPP made to the Challenger when turning it into the Daytona, make the jump.

HPP Daytona Studio Shots

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HPP Daytona Challenger

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Mercedes Grand Prix searches for drivers

The new Mercedes GP car rendered – Click above to view in high-resolution

With two manufacturers leaving the series, four new teams joining the grid and a giant game of musical chairs amongst the drivers ensuing, the off-season between the 2009 and 2010 Formula One World Championships is packing in as much action as the racing itself. But few developments have garnered as much attention as the coup orchestrated by Mercedes-Benz Motorsport, withdrawing from McLaren after fifteen years as its active partner in favor of a more conventional engine supplier role, while buying over 75% of the Brawn GP outfit to enter the sport as a full manufacturer team under the Mercedes Grand Prix banner.

The acquisition has drawn public criticism from Erich Klemm, employee representative on the Daimler board and chairman of its Corporate Works Council, who decried the move as an unnecessary cost when money is tight and other automakers are withdrawing from the series. Chairman Dieter Zetsche responded that the acquisition of the Brawn team will give the company more exposure for less cash: The deal reportedly cost the German automaker some $336 million, but its operating costs are expected to drop to about $74 million annually by 2011, analyzed as far less than what Mercedes was contributing annually to the McLaren budget.

Zetsche might have more trouble, however, explaining to the board how their star driver slipped through their fingers and defected to the team they just ditched. McLaren just announced the recruitment of Jenson Button to team up with Lewis Hamilton for a twin-champ "super team," and Rubens Barrichello is off to Williams next season, leaving the new Mercedes GP team looking for new drivers. Considering they're the reigning champions suddenly flush with cash, they shouldn't have much trouble, though.

Zetsche and Mercedes motorsport boss Norbert Haug are reportedly keen to capitalize with an all-German line-up, fueling speculation that Michael Schumacher could rejoin Mercedes (whose junior driving program gave him his start) and Brawn (who orchestrated all seven of his world championships). Nico Rosberg is thought to already have signed on to switch places with Barrichello, while Nick Heidfeld has been linked with a switch from the departing BMW to its arch-rival Mercedes. Toyota's Timo Glock was also reportedly in the running, but the young German driver signed with newcomer Manor GP instead. Haug has indicated an announcement will come within the next couple of weeks, so stay tuned.

Nissan GT-R or Ford Mustang GT500?

Click above to read the rest of the post and vote in our poll

A few months back we were lucky enough to roll around in a 2010 Nissan GT-R. On our way up to a pre-burnt Angeles Crest Highway for the now infamous flip-flop-gate photoshoot, yours truly began explaining to our intrepid photographer Drew Phillips just exactly how Nissan's latest and greatest is faster than a speeding Gallardo, more powerful than a F430 and able to leap tall canyon roads without breaking a sweat. And on and on and on. When I finally shut up, Drew asked me, "Would you take a GT-R over a GT500?" Whoa...

Read the rest of the post and vote in our poll after the jump.

2010 Nissan GT-R

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Ford Shelby GT500 Mustang

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Hyundai, Kia and Subaru all report +40% increase in sales

Hyundai, Kia and Subaru all report +40% increase in sales

If you've been paying attention to recent editions of By the Numbers, you'll have noticed that the amount of green on our chart below is growing. Month after month, more and more brands and manufacturers are managing to produce sales numbers that exceed the same month last year.

For October 2009, the list is topped by three familiar players: Hyundai (+49%), Kia (+45%) and Subaru (+41%). The South Koreans and this lone Japanese brand have bucked the trend all year, and now that other brands are beginning to sell relatively well, they are distancing themselves from the pack even further.

Their success shouldn't overshadow the rest of the industry, though, which includes many players surprisingly high on our chart. All four "Core" brands of General Motors (Chevrolet, Buick, Cadillac and GMC) posted positive numbers, and GM as a whole, which still counts sales from "non-Core" brands like Hummer, Pontiac, Saab and Saturn, managed to post a 4.1% gain in sales. Likewise, the Ford brand (+3.6%) and Ford Motor Company (+3%) both reported sales gains versus October of last year. The rest of the big Japanese manufacturers, meanwhile, were close behind but didn't quite manage to earn a green cell this month, while the Chrysler Group LLC landed farthest off the mark with a drop of 30.4%.

Have industry sales turned the corner? Are we headed into a bright future of 14+ million sales per year and green cells for every automaker? Hardly, though it's increasingly clear that new product, being competitive in key segments, and creative marketing and incentives are the best recipe for climbing out of the red.

*Brands and companies are both displayed in descending order according to their percentage change in volume sales. There were 28 selling days in October 2009 and 27 selling days in October 2008, so the change in monthly sales volume will be different than the change in the average daily sales rate (DSR) for each brand/company.

Brand	Volume %	10/09	10/08	DSR*%	DSR 10/09	DSR 10/08
Hyundai	48.92	31,005	20,820	43.60	1,107	771
Kia	45.26	22,490	15,483	40.07	803	573
Subaru	40.66	18,169	12,917	35.64	649	478
Cadillac	21.60	11,602	9,541	17.26	414	353
Mercedes-Benz	21.32	18,193	14,996	16.99	650	555
GMC	20.44	25,423	21,109	16.14	908	782
Lexus	19.77	19,502	16,283	15.49	697	603
Volvo	19.37	4,437	3,717	15.11	158	138
Buick	18.46	9,053	7,642	14.23	323	283
Porsche	15.07	1,642	1,427	10.96	59	53
Chevrolet	8.50	116,436	107,313	4.63	4,158	3,975
Nissan	7.69	53,664	49,833	3.84	1,917	1,846
Volkswagen	7.23	17,037	15,889	3.40	608	588
Ford	3.57	119,072	114,969	-0.13	4,253	4,258
Honda	-0.01	75,751	75,756	-3.58	2,705	2,806
Mercury	-1.14	6,676	6,753	-4.67	238	250
Audi	-1.14	7,358	7,443	-4.67	263	276
Toyota	-2.32	132,663	135,818	-5.81	4,738	5,030
Acura	-3.53	9,751	10,108	-6.98	348	374
Lincoln	-8.97	6,735	7,399	-12.23	241	274
Infiniti	-9.29	6,451	7,112	-12.53	230	263
Pontiac	-18.45	10,646	13,054	-21.36	380	483
BMW	-18.61	16,443	20,203	-21.52	587	748
Mini	-20.79	4,176	5,272	-23.62	149	195
Dodge	-22.21	26,265	33,763	-24.99	938	1250
Chrysler	-35.61	12,815	19,903	-37.91	458	737
Jeep	-36.80	13,500	21,360	-39.05	482	791
Mitsubishi	-48.34	3,867	7,486	-50.19	138	277
Suzuki	-49.89	1,745	3,482	-51.67	62	129
Saturn	-57.79	3,623	8,583	-59.30	129	318
Smart	-70.44	661	2,236	-71.49	24	83
Saab	-74.03	513	1,975	-74.95	18	73
Hummer	-77.56	307	1,368	-78.36	11	51
Mazda	N/A	N/A	N/A	N/A	N/A	N/A
COMPANIES
General Motors	4.11	177,603	170,585	0.40	6,343	6,318
Ford Motor Company	3.07	136,920	132,838	-0.61	4,890	4,920
Nissan NA	0.28	60,115	59,945	-3.30	2,147	2,220
Toyota Mo Co	0.04	152,165	152,101	-3.53	5,434	5,633
American Honda	-0.42	85,502	85,864	-3.98	3,054	3,180
BMW Group	-19.06	20,619	25,475	-21.95	736	944

in our quaint little hemisphere is likely the North American COTY award

Guess what boys and girls, the auto show season is ramping up and that means the constant flow of Car of the Year awards is upon us. The biggest auto show award in our quaint little hemisphere is likely the North American COTY award, which, we would have thought included Canada, Mexico and our United States. Well, not so much. The Canadians have their own international show and their own COTY, complete with car and utility honors from among 12 categories and 52 award-eligible vehicles of all shapes and sizes.

After pouring over vehicles ranging from the Mazda3 to the Porsche Panamera and everything in between, the Canadians have narrowed their focus to one vehicle in each of the 12 categories. Volkswagen is the best-represented automaker in the final 12, with three VW models, two Audis and the Panamera. The Mazda3 wins in two different categories and the Ford Taurus is the only finalist among Detroit automakers.

Also shut out – somewhat surprisingly we may add – are the Honda and Toyota brands, although the Lexus Lexus RX450h was voted the top crossover/SUV over $60,000. The 2010 Canadian International Auto Show begins February 12. Hit the jump to view the rest of the winners.

[Source: AJAC via Auto North]

SMALL CAR (under $21k)
Mazda3

SMALL CAR (over $21k)l
Mazda3 Sport

FAMILY CAR (under $30k)
Volkswagen Golf Wagon

FAMILY CAR (over $30k)
Ford Taurus

LUXURY CAR (over $50k)
BMW 335d Sedan

PRESTIGE (over $75k)
Porsche Panamera

SPORTS / PERFORMANCE (under $50k)
Volkswagen Golf GTI

SPORTS / PERFORMANCE (over $50k)
Audi S4

CONVERTIBLES
Audi A5 Cabriolet

SUV / CUV (under $35k)
Subaru Outback

SUV / CUV ($35k-$60k)
Volkswagen Touareg TDI Clean Diesel

SUV / CUV (over $60k)
Lexus RX450h

Germany not happy with GM abandoning Opel sale 2009

It was an exhausting 7-month process that finally winnowed down a pool of suitors for Opel, General Motors' European subsidiary, to Canadian parts maker Magna and Russian bank Sberbank. The deal was all set to go through, but GM pulled the plug yesterday at the 11th hour, claiming that because of Europe's improving markets and its own better-than-expected financial footing, the automaker could do better for Opel and employees than any of its proposed buyers.

Not so says government officials in Germany, who are reportedly crying in their steins and cursing the day Fritz Henderson was born (we're guessing). Of course, there's money involved, but GM has vowed to pay back the €1.5 billion bridge loan it received from the German government to keep Opel afloat during the selling process. It reportedly only borrowed €1.1 billion and has already paid back €200 million, so Germany is still owed about €900 million.

Aside from the money, German officials and Opel employees in the country are concerned that there will be more job cuts and plant closings by GM than there would have been if the company had been sold to Magna. As such, some of the unions in Germany that had agreed to concessions in order to woo Magna into ownership have vowed not to extend those same concessions to GM.

Outside of Germany, however, GM Europe workers are reportedly happy with the decision to keep Opel in the family fold. Their jubilation stems from fear that had Germany succeeded in brokering the sale of Opel to Magna, other countries like the UK, Spain and Belgium would bear the brunt of restructuring instead of Deutschland. This way, GM is more likely to evenly spread out the costs of restructuring, including job loss, without one region being able to exert too much influence.