Other motors news in brief
Fiat considering brand for new lost-cost motor within the year
Fiat is considering a new brand for a low-cost car it is developing, according to its chief executive.
"The next brand is going to be one that we develop ourselves," Sergio Marchionne told an automotive congress held in Turin last week.
In light of the success enjoyed by France's Renault with its Logan, and the global media attention won by India's Tata Motors for its upcoming Nano, Fiat and other manufacturers are working on their own cheap cars. "The market has the space for what I consider a true value-for-money car," he said.
Marchionne said Tata, Fiat's Indian partner, could have a role in the creation of the new brand. Fiat would take a decision in the next 12 months, he added.
Ford to cut its production in the US
Ford has warned it no longer expected to meet a key target of returning to profitability in 2009, and would cut production through this year in response to a slumping US vehicle market.
The news sent Ford shares down 8 per cent as investors came to terms with the first major setback for the No 2 US car firm since chief executive Alan Mulally was brought in to turn it around in 2006.
Analysts said the weaker outlook showed Ford's recent gains had been overrun by a weak US economy, spiralling prices for oil and other commodities, and an accelerating consumer shift from larger trucks and SUVs. "This is an embrace of reality," said Pete Hastings, a corporate bond analyst at Morgan Keegan. "The market's very soft, and they can't get the cost savings they need."
Ford's warning marked the second time in 20 months it has had to scale back expectations for its return to profitability, the aim since restructuring plans were first launched seven years ago.
Ford, which has lost more than $15 billion (€9.5 billion) over the past two years, has spun off luxury brands Aston Martin, Jaguar and Land Rover to raise cash.
Kia set to showcase new eco-car
Kia is to offer a new green version of its Cee'd hatchback, due for launch at the Madrid motor show. The eco_cee'd uses stop-start technology and is claimed to put out just 104 g/km of CO2.
That's the same as the Toyota Prius or Mini Cooper diesel.
The eco_cee'd is officially a concept car, but we can expect to see something very similar in the showrooms by the end of the year.
Powered by a 1.6 litre CRDi diesel engine, it is engineered for greater economy and is claimed to be capable of delivering a very impressive 3.9 L/100km (72.4 mpg). Meanwhile, the Korean firm has also confirmed its Soul concept will keep that name when it goes into production. The mid-sized people carrier is due at the end of the year.