As Nano Sales Fall, Tata Motors Invests on Jaguar and Land Rover to Raise Profits

When Tata Motors bought Jaguar and Land Rover from Ford in 2008, it had great plans for both brands. Driven by sales of the sub-$5,000 Nano, the Indian conglomerate would have enough funds to secure their future. Now it seems that the tables have turned, and it's the Jaguar Land Rover (JLR) unit that may have to bring in the profits.

Tata Motors reported an 8.5% drop in sales in India for the first quarter of 2011, due to rising interest rates in a country where, according to Bloomberg, 80% of new car sales are based on loans.

Demand for the Nano dropped by a whopping 48% in the last two months alone. Jaguar's global sales dropped even more in the first quarter, as the luxury carmaker reported a 27% decrease.

“Tata Motors had a pretty flat quarter as far as Jaguar sales are concerned, and Indian passenger vehicles sales went down” said Juergen Maier, a manager at Raiffeisen Capital Management in Vienna.

“Everyone is looking at the Evoque and also the product launches from Jaguar that will help increase sales”. Ashvin Chotai, the managing director of Intelligence Automotive Asia, agrees: “The company now revolves around the JLR unit and not the other way around”.

Fortunately for Tata, Land Rover is doing quite well: its sales in the past quarter grew by 22% to 50,747 units. And the Range Rover Evoque has already 18,000 orders even before it officially goes on sale in September, something that according to the brand’s director, John Edwards, will create a waiting list “well into next year” for new buyers.

Tata also has in the pipeline several Jaguar products including a Sport Break version of the XF and the exotic 200 mph C-X75 hybrid supercar. More importantly, Jaguar will launch a small sedan to rival luxury models like BMW’s 3-Series (hopefully with better results than the X-type).

In order to achieve its goals, the Tata Group plans to invest $2.4 billion annually in the development of 40 new products and variations of Jaguar and Land Rover models in the next five years.

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Reports, Saab, Saab 9-1, Saab 9-3

Refreshingly enough, this isn’t a story about Saab’s troubles. Instead, it is a ray of hope as the Swedish carmaker lays out its plans for the future. These include a replacement for the aging 9-3 sedan, which according to Saab’s North American president, Tim Colbeck, will debut in the first quarter of 2013.

The new 9-3 will be an all-new model and will feature, as Colbeck says, an “edgy reinterpretation of design cues from the company’s past”, though he declined to elaborate.

What he did divulge though is that Saab is seriously contemplating dropping the 9-3 moniker and adopting another one from the company’s heritage: “There’s a chance we might move away from that” was his statement.

Colbeck also revealed that Saab has plans for the development of a smaller model which would be a modern-day successor to the 92 that was produced from the late ‘40s till the mid-50s: “It wasn’t in the business plan prior to the new investment, and now it is”.

In the meantime, the Swedish company said it will introduce in US this fall the 2012MY versions of the 9-4X and the 9-5 sedan and station wagon

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Ford Green-Lights Next-Generation of Focus RS

We've yet to see the next Focus ST in final production trim, but Ford’s German vehicle line director for C-Segment models, Gunnar Herrmann, recently told Australian news site Drive that the company has given the green light for a high-performance RS version.

Built in limited numbers, the previous Focus RS was a 305HP, front-wheel drive hot hatch that wouldn’t look out of place in a WRC rally stage. Despite the fact that all that power was directed only to the front wheels, it handled extremely well partially thanks to Ford’s RevoKnuckle suspension.

Herrmann told the Australian website that Team RS, which is responsible for all hot versions of European Fords, will stick to FWD for the new Focus RS, denying rumors that the company was thinking of making the car a hybrid by using electric motors to power the rear wheels.

“I think we will stay with our two-wheel-drive strategy for the new RS, which was well executed for the previous version,” said Herrmann.

Surely, the new RS should have more power than its predecessor, but how much can the front wheels handle before terminal understeer?

Herrmann doesn’t seem worried: “More power for the next RS is sustainable. With the limited edition, UK-only RS500 we went up to 350HP – and some of our development units had up to 380HP and even more torque. Then you get into the issue of durability – but the car can handle it”.

The next Focus RS, which is expected in early 2014, will retain the RevoKnuckle suspension but ditch the Volvo-sourced 2.5-liter five-cylinder in favor of a more powerful version of the 2.0-liter Ford EcoBoost four-cylinder that will also power the ST.

So, how much power will the new RS muster?

2010 FORD FOCUS RS

Mazda’s Rotary Engine: Reports of its Demise Greatly Exaggerated

Much has been said and written about Mazda’s rotary engine. The Hiroshima-based company is the last mass manufacturer who insists on using and developing Felix Wankel’s internal combustion engine that has done away with pistons for close to five decades.

However, Mazda will discontinue the sole model that is powered by a Wankel engine, the RX-8, at the end of 2011.

According to a report from Ward’s, the Japanese firm's executive officer for product planning and powertrain development, Kiyoshi Fujiwara, said that “there is a huge discussion” within the Japanese company about whether to continue its development or not.

Fujiwara admitted that economic issues have made some of the executives start looking for programs to cancel – and the rotary engine may just be on that list. But the reasons behind their decision could be more than just about cutting down on costs.

Even though admired for its sophistication, its low center of gravity and its high-revving nature, the Wankel still has some inherent problems including, increased fuel and oil consumption, questions about durability and high CO2 emissions.

Fujiwara told Ward’s that, even though the engine’s development has been put on hold for the time being, that doesn’t necessarily mean it is the end of the road for the Wankel. In fact, he is one of the project’s supporters: “I have always said that rotary engines are literally part of our soul. We have to continue the rotary-engine evolution”.

He also admits that although there are three major problems with the rotary engine (probably the ones we mentioned…) Mazda has already solved two of them, but he refused to elaborate.

So what if Mazda finally decides to abandon the rotary engine after more than four decades of evolution? Will a version of the new SKYACTIV range of engines be its replacement?

Ironically, according to Fujiwara, the future of the Wankel does indeed depend on the success of the SKYACTIV gasoline and diesel engines that will eventually power almost all of Mazda’s mainstream models: “If the SKYACTIV is profitable, we get money to invest in the rotary engine”.

So far, things are looking good: 70% of sales of the facelifted Mazda2, which exceeded sales projections by more than 100% in its first month of production in Japan, have been for the 1.3 SKYACTIV model, with buyers citing its extremely low fuel consumption and high technology as reasons for choosing it.

The SKYACTIV engines will also power the facelifted Mazda3 as well as the all-new CX-5 crossover, and if initial projections prove to be correct, Mazda will secure the necessary funds to continue the Wankel’s development.

After all, it is an important part of its DNA – it even powered the only Japanese car to ever win the 24 Hours of Le Mans. Plus, we can’t wait for a worthy successor to the RX-8: that Shinari concept looks quite an enticing candidate, doesn’t it?

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Rolls-Royce Expanding Operations of its Bespoke Division after Sales Surge

Good news for Roll-Royce's 'Bespoke' division which is responsible for the creation of unique automotive parts as well as life style items such as custom picnic sets for the brand's clientele, as due to growing customer demand, the British company has decided to expand its operations.

Mazda’s Rotary Engine: Reports of its Demise Greatly Exaggerated

Much has been said and written about Mazda’s rotary engine. The Hiroshima-based company is the last mass manufacturer who insists on using and developing Felix Wankel’s internal combustion engine that has done away with pistons for close to five decades.

However, Mazda will discontinue the sole model that is powered by a Wankel engine, the RX-8, at the end of 2011.

According to a report from Ward’s, the Japanese firm's executive officer for product planning and powertrain development, Kiyoshi Fujiwara, said that “there is a huge discussion” within the Japanese company about whether to continue its

F1: Ecclestone Says No to Electric Engines in the Pit Lane

As you may have already heard, Formula 1’s regulations have been overhauled for the 2014 season with 1.6-liter turbocharged V6s replacing the current 2.4 V8s, while te new cars will also feature a new, more powerful Kinetic Energy Recovery System (KERS).

The whole concept behind FIA’s proposal is that F1 cannot stay behind the times that demand lower fuel consumption and an environmentally-friendly profile.

However, Bernie Ecclestone has discovered what he believes to be a serious flaw in the proposed regulations for 2014. Ecclestone says the article 5.19, which stipulates that cars must run on electric engines alone in the pit lane with no fuel whatsoever sprayed in the V6 gasoline engine, must be crossed out because “people could be killed”.

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Feds Probe E65/E66 BMW 7-Series after Cars Break Free in Park

U.S. safety regulators are investigating an estimated 120,000 BMW 7-Series sedans from the 2002 to 2008 model years (E65 and E66) after receiving a complaint from a consumer alleging a roll-away incident after parking and exiting a 2006MY BMW 7 Series.

According to the complaint filed with the National Highway Traffic Safety Administration [NHTSA], the vehicle was fitted with BMW's Comfort Access electronic access and ignition system and an electronic transmission shifter with the gear selector mounted on the steering column.

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GM to Cut its Platforms by More than 50% in the Next Decade

At the second Annual Global Business Conference for investors and financial analysts, General Motors revealed details on a new plan that “will ensure a long-term sustainable performance” for the Detroit automaker.

Among other measures is the massive reduction of platforms used by GM brands globally in order to cut development costs and benefit from economies of scale.

“More of our components will be common and more of our vehicles will be on global architectures” said the GM CEO, Dan Akerson.

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