Bajaj June vehicle sales down 12 pc yr/yr Add to Clippings  
MUMBAI: Bajaj Auto Ltd, India's second-biggest motorcycle maker, said vehicle sales in June fell 12 percent to 187,624 units from 213,918 units a year earlier. It said sales of motorcycles fell 12 per cent to 162,253 units from 183,549 units, and sales of all two-wheelers also fell 12 per cent to 164,758 units from 188,231 units a year earlier.

Sales of three-wheelers slid 11 percent to 22,866 units from 25,687 units a year earlier, Bajaj said in a statement. The company said exports rose 42 per cent to 48,675 units from 34,369 units a year earlier. Bajaj, based in the western city of Pune, said first-quarter sales "have been disappointing", with its focus on safeguarding profitability.

It will launch a new motorbike in September, with an initial sales target of 50,000 units a month by January 2008.


Source : Economic Times (7/1/2007)

Honda studying Rs 1-lakh marketAdd to Clippings  
TAPUKARA (ALWAR): Honda Siel Cars India (HSCI) is betting big on the compact car segment as part of its India strategy. Besides launching a premium small car by 2009, the company is also studying the Rs 1-lakh car segment. Honda Motor Company chairman Satoshi Aoki said,

“We are studying the Fit and City models for the cheap small car segment. But we have to make sure that a cheap small car will have Honda characteristics. However, our mini-vehicles are priced at $9,000, and making a car with one third of that price would be a challenge.” As of now the Japanese auto maker has firmed up its plans to take on Maruti Swift and Hyundai Getz with a compact car that it will produce in its second car plant at Tapukara, Rajasthan.

Explaining the definition of Honda’s small car, HSCI’s president & CEO Masahiro Takedagawa said, “We want to position our small car in the segment which enjoys excise benefits on the 1.2 litre petrol engine and 1.5 litre diesel engine with the size of 4000 mm.” The car would be a global product and would be largely produced to cater to the domestic demand. “We are targeting at localising the small car by almost 90%. After studying the demand, we will look at exporting it to other markets since it’s going to be a global product,” he added.

The auto maker, which currently has diesel offerings in Europe, might also look at getting it to India. “We are entering the US markets with our diesel engines in the next three years. Our future markets are in Japan and Asia. With the Indian government’s commitment to cleaner fuels, we are studying the prospect of bringing in a diesel engine in the country,” added Mr Aoki.

HSCI will pump in Rs 1,000 crore for building an initial capacity of 60,000 units. After production begins in the fourth quarter, the company has plans to ramp it up to 2 lakh unit at a later stage. According to Rajasthan State Industrial Development & Industrial Corporation (RIICO) officials, the company has committed investment worth Rs 2,200 crore for the car plant. Additionally, about eight auto component companies, which are setting up their plants around Honda’s facility, are expected to bring in another Rs 2,800 crore.


Source : Economic Times (7/1/2007)

Indycar - Final Results  
Results Saturday of the SunTrust Indy Challenge IndyCar Series event June 30 at the .75-mile Richmond International Raceway, with order of finish, starting position in parentheses, driver, chassis-engine, laps completed and reason out (if any) and money earned: 1. (1) Dario Franchitti, Dallara-Honda, 250, Running $135,800 2. (3) Scott Dixon, Dallara-Honda, 250, Running $94,850 3. (4) Dan Wheldon, Dallara-Honda, 250, Running $78,750 4. (2) Tony Kanaan, Dallara-Honda, 250, Running $65,000 5. (12) Buddy Rice, Dallara-Honda, 250, Running $59,300 6. (8) Danica Patrick, Dallara-Honda, 250, Running $50,200 7. (10) Tomas Scheckter, Dallara-Honda, 250, Running $48,700 8. (7) Scott Sharp, Dallara-Honda, 250, Running $47,400 9. (9) Vitor Meira, Dallara-Honda, 250, Running $47,400 10. (15) Ed Carpenter, Dallara-Honda, 250, Running $45,900 11. (6) Helio Castroneves, Dallara-Honda, 249, Running $44,400 12. (14) Marco Andretti, Dallara-Honda, 249, Running $43,100 13. (17) A.J. Foyt IV, Dallara-Honda, 249, Running $41,800 14. (13) Darren Manning, Dallara-Honda, 249, Running $40,200 15. (5) Sam Hornish Jr., Dallara-Honda, 248, Running $38,900 16. (16) Sarah Fisher, Dallara-Honda, 247, Running $37,500 17. (18) Kosuke Matsuura, Dallara-Honda, 236, Contact $36,100 18. (11) Jeff Simmons, Dallara-Honda, 153, Contact $36,100 19. (19) Milka Duno, Dallara-Honda, 79, Handling $34,600 Race Statistics Winner's average speed: 133.408 mph Time of race: 1:24:19.6684 Margin of victory: 0.4194 of a second Cautions: 4 caution flags for 33 laps Lead changes: 2 among 2 drivers Lap leaders: Franchitti 1-63, Kanaan 64-71, Franchitti 72-250. Point standings: Franchitti 359, Dixon 294, Wheldon 287, Kanaan 287, Hornish 257, Castroneves 245, Sharp 223, Patrick 213, Meira 207, Scheckter 197.


Source : http://www.theautochannel.com (7/1/2007)

Indycar - Franchitti Scores Dominating Win At Richmond  
IndyCar Series point leader Dario Franchitti stretched his lead to 61 points with a dominating victory in the SunTrust Indy Challenge presented by XM at the Richmond International Raceway.

Franchitti, who started the No. 27 Canadian Club Dallara/Honda/Firestone from pole position, won for the second time in six days and the third time this season. He beat Target Chip Ganassi Racing’s Scott Dixon to the line by 0.4194 of a second and led a series-record 242 laps (of the race’s 250).

Andretti Green Racing drivers swept the short tracks this season, with Franchitti also winning at Iowa Speedway and Tony Kanaan at The Milwaukee Mile.

Target Chip Ganassi Racing’s Dan Wheldon finished third, with Kanaan fourth. Dreyer & Reinbold Racing’s Buddy Rice advanced seven positions to finish fifth, his second consecutive top five.

Danica Patrick, the third Andretti Green Racing driver, was sixth, followed by Vision Racing’s Tomas Scheckter and Rahal Letterman Racing’s Scott Sharp. Delphi Panther Racing’s Vitor Meira, who was driving an untested backup car because of a practice crash a day earlier, started and finished ninth. Vision Racing’s Ed Carpenter was 10th.

RACE DAY NOTES: Brian Barnhart, president of the Indy Racing League competition and operation division and chief official of tonight’s race, is celebrating his birthday today. At the conclusion of the drivers’ meeting, while the attendees were singing “Happy Birthday” drivers Helio Castroneves and Marco Andretti attacked Barnhart with birthday cake, a prank which is commonly pulled on drivers celebrating their birthdays. Barnhart joked he may look into the incident to see if any drivers were involved. *** SUNTRUST INDY CHALLENGE PRESENTED BY XM POST-RACE NOTES: • This is Dario Franchitti’s third win of the season and the seventh of his IndyCar Series career. He is now in sole possession of sixth place on the IndyCar Series’ all-time victory list. • Franchitti’s average speed of 133.408 was the fastest at Richmond International Raceway, bettering the 2006 race record set by Sam Hornish Jr. (129.572 mph). • Dario Franchitti led 241 laps tonight, setting an IndyCar Series record for most laps led. The previous record was 224 by Buddy Lazier here at Richmond in 2001. • This is Andretti Green Racing’s 28th win in the IndyCar Series, the most by any entrant in the IndyCar Series. • Scott Dixon finished second for the fourth time this season – his seventh top-10 finish of the season. With his finish, Dixon tied Tony Kanaan’s record of 25 consecutive race finishes. • Dan Wheldon finished third, his fifth top-five finish of the season. • Buddy Rice finished fifth, his second-consecutive top five finish.

Suntrust Indy Challenge Presented By Xm Post-Race Quotes:

DARIO FRANCHITTI (No. 27 Canadian Club Dallara/Honda/Firestone, winner SunTrust Indy Challenge): “I enjoy driving (Richmond) a lot. I think it suits my style because you have to feel what the car is doing. The Canadian Club guys have given me really good cars here so it makes my job a little bit easier. I have to say big thank you to the engineering staff at AGR. We took some big gambles last night. Allen McDonald, my engineer, took an educated guess and it really worked out today.”

SCOTT DIXON (No. 9 Target Chip Ganassi Racing Dallara/Honda/Firestone, finished second): “I think we had the better car, but it was just track position all night. (Toward the end of the race) Dario (Franchitti) needed to save fuel and you could tell he was using Sam (Hornish Jr.) as a buffer. That was the time we needed to get him. I’m feeling good about these short tracks because we’ve been struggling on them as a team for the past few years. It’s good to run strong on them, and I’m looking forward to Watkins Glen.”

DAN WHELDON (No. 10 Target Chip Ganassi Racing Dallara/Honda/Firestone, finished third): “It was a very difficult race and very much unlike past races here. When you’re in the lead it’s good but when you were trying to get to the leader and pass it was really difficult. To win around here you have to be deserving and we did have a good car and a chance to challenge. Dario (Franchitti) deserved the win but at the end of the day for us that was the wrong person to win when you are trying to make up points in the championship. From the Target team point of view this was a good result especially after our last few races.”

TONY KANAAN (No. 11 Team 7-Eleven Dallara/Honda/Firestone, finished fourth): “I’m really disappointed. It was really tough today. We just never seemed to get the Team 7-Eleven car where I thought it needed to be. We were just hanging on today.”

BUDDY RICE (No. 15 Dreyer & Reinbold Racing Dallara/Honda/Firestone, finished fifth): “I’m happy. The team is showing it has what it takes to compete. We are missing a couple of pieces, but we’re capable of running well. We were fast in a test in Milwaukee and another test at Mid-Ohio."

TOMAS SCHECKTER (No. 2 Vision Racing Dallara/Honda/Firestone, finished seventh): “For sure, it’s good to get a seventh place finish at Richmond after last week’s incident at Iowa, but I thought we could have finished a little higher tonight. We just couldn’t catch a break all night with things like being caught out by a yellow during a pit stop and getting a bad vibration later in the race. But we stuck with it, the crew did a great job, and we were able to charge back up into seventh at the end so it was good.”

SCOTT SHARP (No. 8 Patron Sharp Rahal Letterman Dallara/Honda/Firestone, finished eighth): “Overall it was a pretty good day for the Patrón Rahal Letterman Racing Team. We had a good car for most of the race. We were loose for the first half of the race like pretty much everyone else was, but the guys did a great job of working on the car, making it better and keeping us in the hunt.”

VITOR MEIRA (No. 4 Delphi Panther Racing Dallara/Honda/Firestone finished ninth): “After we lost the undertray wickers, it got extremely difficult for us out there. That was the best downforce we could have in traffic. The Delphi car was pushing in the corners, then loose on exit, and that made it pretty tough out there. But the race we won was the Delphi Panther crew getting the car ready for the race after the crash. We finished well today because of all their hard work yesterday. We needed to be smart and finish well, and that's what we did."

ED CARPENTER (No. 20 Hitachi Power Tools/Vision Racing Dallara/Honda/Firestone, finished 10th): “I’m disappointed that we didn’t finish a little better tonight. Starting towards the back because of points didn’t help us any, but we were able to overcome a lot of that by the first pit stop. We didn’t have a good first stop though and that really hurt us and caused us to lose a couple spots. Then the car went away from us a little bit in the race, but overall it was good and we ran pretty well, I just thought we could have done a little better. The Hitachi Power Tools car now has back-to-back top-10 finishes heading into Watkins Glen next weekend so that’s something we can take that’s positive tonight and build off of that.”

BRIAN BARNHART (President, Indy Racing League Competition and Operation Division): (About Castroneves’ penalty): “Helio (Castroneves) was on pit road within the boundaries of pit lane and actually was free to stop his first pass through pit lane. The Race Control (radio) channel said that the No. 3 was OK to do a full stop but they apparently chose not to and drove through. When he came back out we have to pack-up (the field) but before we have the pack up he came back in and entered a closed pit and just did a splash (of ethanol fuel) which is what you are supposed to do. Then when he came back out we had the pack-up, so we opened the pits and everybody else comes back in and he instead goes down the front straightaway trying to get around them but the No. 27 (Leader, Dario Franchitti) beat him to the blend line, and the Timing & Scoring showed that right away, so we informed the teams that it was the No. 3 behind the No. 27, the No. 3 behind the No. 27. He passed him and drove on around him and in actuality pitted a lap ahead of where he should have been.” *** The next IndyCar Series race is the Camping World Watkins Glen Indy Grand Prix at 3:30 p.m. (ET) on July 8 at Watkins Glen International. The race will be televised live by ABC and broadcast by the IMS Radio Network. The next Indy Pro Series event is the Corning Twin 100 doubleheader on July 7-8 Watkins Glen International. The race will be televised by ESPN2 on July 12. ESPN2’s coverage of the Iowa 100 will be broadcast at 5:30 p.m. on July 3.


Source : http://www.theautochannel.com (7/1/2007)

Motorcar Parts of America, Inc. Announces Fourth Quarter and Fiscal Year 2007 Results  
LOS ANGELES, -- Motorcar Parts of America, Inc. , a leading provider of remanufactured alternators and starters for the automotive aftermarket, announced today financial results for the fourth quarter and fiscal year ended March 31, 2007.

"During the fiscal year ended March 31 2007, we embarked on a number of important initiatives," said MPA's Chairman, President and CEO, Selwyn Joffe. "Firstly, we focused on increasing market share in both the do-it-yourself and the do-it-for-me market. Secondly, we focused on enhancing our operating margins by moving the majority of our production offshore. We are also in the process of moving the bulk of the remaining logistics support from our California location to our new Mexico facility. We accomplished a great deal, including generating strong revenue growth from new customers and increased sales to existing customers. In addition, the Company was able to grow its sales to the professional installer market, which now represents approximately 21% of total net sales. The Company also successfully transitioned the majority of its production to offshore locations and has established a footprint to move core sorting and logistics offshore. Progress at our Mexico facility to date is proceeding in accordance with our plans. Our operating costs as recently as May 2007, are right on target with expectations. Shortly after our fiscal year end, we successfully completed a private placement financing that provided us with net proceeds of approximately $36.5 million in additional capital to grow our business, take advantage of new business opportunities and complete our off-shore initiative."

GAAP Net Sales and Gross Profit - Quarter

Net sales for the quarter ending March 31, 2007 were $31.4 million, up 11.6% from $28.1 million in the same quarter last year. This increase was primarily due to additional sales to new and existing customers. Gross profit and gross margin were $3.3 million and 10.6%, respectively, as compared to $7.5 million and 26.8%, respectively, in the fourth quarter of fiscal 2006. Gross profit in the fourth quarter of fiscal 2007 was negatively impacted by start-up expenses relating to our initiative of moving production offshore and by the write-down of inventory related to reduction in standard costs from the end of the third quarter, which reduction resulted from the cost savings we are experiencing in Mexico. In addition, during the quarter ended March 31, 2007, $1,575,000 of core revenues were deferred. No core revenues were deferred in prior periods.

"During the fourth quarter of fiscal 2007, we saw strong growth in our top line from sales to new and existing customers," Mr. Joffe continued.

Non-GAAP Discussion

Non-GAAP financial results for the three month and twelve month periods ended March 31, 2007 discussed in this release reflect operating results excluding the impact of (i) revenues and core inventory adjustments recorded as a result of termination of the pay-on-scan ("POS") inventory arrangement, (ii) front-loaded marketing allowances in conjunction with new business, (iii) stock adjustments related to update orders shipped in later periods, (iv) FAS 123R stock compensation expenses, (v) consulting fees incurred in connection with Sarbanes-Oxley ("SOX") compliance, (vi) restatement expenses, (vii) cost reductions associated with the recording of a shareholder note receivable, and (viii) severance and other costs related to staff reductions at the Company's Torrance facilities.

Non-GAAP financial results for the three and twelve months ended March 31, 2006 discussed in this release reflect operating results excluding the impact of (i) front-loaded marketing allowances in conjunction with new business, (ii) stock adjustments related to update orders shipped in later periods (iii) outside professional and consulting fees associated with the SEC's review of the Company's SEC filings and the related restatement of financial statements (iv) consulting fees incurred in connection with SOX compliance, and (v) start-up costs related to the Company's new production location in Mexico and new distribution center in Tennessee.

For a reconciliation of the non-GAAP results to the relevant GAAP results, please see the financial schedules that accompany this release.

Non-GAAP Net Sales and Gross Profit - Quarter

Non-GAAP net sales for the quarter ended March 31, 2007 were $31.6 million, up 23.0% from non-GAAP net sales of $25.7 million in the same quarter of the prior year. Non-GAAP gross profit was $3.8 million, or 12.1% of net sales, in the fourth quarter of fiscal 2007, compared to non-GAAP gross profit of $6.1 million, or 23.8% of net sales, in the same quarter of the prior year.

"Our success in our offshore initiative will begin to show in our first quarter results for fiscal year 2008. If we were to pro-forma our fourth quarter results with the existing production costs that we experienced as recently as May, our fourth quarter fiscal 2007 gross margins would be approximately 26% after taking into account the effect of GAAP to Non-GAAP adjustments. This compares to a gross margin of approximately 24% for the fourth quarter of fiscal 2006. These pro-forma results are very encouraging as we expect our operating costs to further decrease as we complete our transition," said Mr. Joffe.

GAAP Operating Results and Interest Expense - Quarter

Operating loss for the fourth quarter of fiscal 2007 was $4.2 million, compared to operating income of $2.6 million in the same quarter of the prior year. Operating expenses increased 52.9% in the quarter, driven primarily by higher costs.

It is expected that the above costs will decline going forward especially the production start-up expenses, redundant moving costs and SOX-related fees. FAS 123R non-cash stock compensation expenses will continue.

Interest expense also increased in the fourth quarter of fiscal 2007 due to increased interest rates and higher levels of debt. Net loss in the fourth quarter of fiscal 2007 was $2.6 million, or $0.32 per diluted share, compared to net income of $1.2 million, or $0.14 per diluted share for the same quarter last fiscal year.

Non-GAAP Operating Results - Quarter

Non-GAAP operating loss in the fourth quarter of fiscal 2007 was $1.7 million, compared to non-GAAP operating income of $1.2 million in the same quarter of the prior year. Non-GAAP net loss was $2.2 million, or $0.26 per diluted share, in the fourth quarter of fiscal 2007, compared to non-GAAP net income of $0.2 million, or $0.03 per diluted share, in the same quarter of the prior year.

Operating results in the fourth quarter of fiscal 2007 were negatively impacted by start-up expenses relating to our initiative of moving production offshore and redundant costs associated with moving our operations to our Mexico facility.

Mr. Joffe further stated, "Pro-forma operating income results, with the existing production costs that we experienced as recently as May, for the fourth quarter fiscal 2007 would be approximately $3.4 million after taking into account the effect of GAAP to Non-GAAP adjustments."

GAAP Net Sales and Gross Profit - Fiscal Year

For the year ended March 31, 2007, net sales were $136.3 million, up 25.8% from $108.4 million in fiscal 2006. Net sales in fiscal 2007 were favorably impacted by a one-time catch up of $19.8 million in net sales from the sale of products previously shipped on a POS basis, which was partially offset by $8.1 million in core inventory adjustments, $3.3 million in front-loaded marketing allowances and $0.6 million in expenses related to the buy back of core inventory. Gross profit was $21.3 million, or 15.6% of net sales, in fiscal 2007 versus $25.4 million, or 23.4% of net sales in fiscal 2006. Gross profit in fiscal 2007 was negatively impacted by the previously mentioned core inventory adjustments, front-loaded marketing allowances, stock adjustments as well as the fourth quarter inventory write-down. In addition, during the year ended March 31, 2007, $1,575,000 of core revenues were deferred. No core revenues were deferred in prior periods.

Non-GAAP Net Sales and Gross Profit - Fiscal Year

Non-GAAP net sales for the year ended March 31, 2007 were $130.1 million, up 17.4% from non-GAAP net sales of $110.8 million in fiscal 2006. Non-GAAP gross profit was $29.3 million, or 22.5% of net sales, in fiscal 2007, compared to non-GAAP gross profit of $28.5 million, or 25.7% of net sales, in fiscal 2006.

GAAP Operating Results - Fiscal Year

Operating loss in fiscal 2007 was $2.5 million, compared to operating income of $6.3 million in fiscal 2006. Operating expenses increased 24.3%, primarily due to the previously mentioned consulting fees incurred in connection with SOX compliance, FAS 123R stock compensation expenses, higher research and development expenses incurred in connection with the Mexico facility and severance costs. Operating expenses for the full year also include restatement expenses and a reduction in expenses associated with the recording of a shareholder note receivable. Net loss was $5.0 million in fiscal 2007, or $0.59 per diluted share, compared to net income of $2.1 million, or $0.25 cents per diluted share, in fiscal 2006.

Non-GAAP Operating Results - Fiscal Year

Non-GAAP operating income in fiscal 2007 was $9.2 million, compared to non-GAAP operating income of $12.4 million in fiscal 2006. Non-GAAP net income was $2.0 million, or $0.23 per diluted share, in fiscal 2007, compared to non-GAAP net income of $5.7 million, or $0.67 per diluted share, in fiscal 2006.

Financial Condition

As of March 31, 2007, the Company had cash and equivalents of $0.3 million, negative working capital of ($27.2) million and total assets of $132.0 million. Debt and capital lease obligations totaled $28.0 million and shareholders' equity stood at $47.8 million. Cash flow used in operating activities totaled $9.3 million for the year ended March 31, 2007.

In the fourth quarter of fiscal 2007, we reclassified core inventory held at our locations and held at customers' locations to long-term core inventory. The reclassified core inventory totaled $42,492,000 and $33,822,000 at March 31, 2007 and 2006, respectively. This reclassification had no impact on total assets or core inventory value.

In May 2007, the Company raised $40.1 million of capital through a private placement.

"In fiscal 2007, we devoted significant resources toward achieving compliance with section 404 of Sarbanes-Oxley. We completed this endeavor, and are now able to provide our shareholders with a greater level of confidence in our financial controls and procedures," said Mervyn McCulloch, MPA's Chief Financial Officer. "With net proceeds of approximately $36.5 million in additional capital, we have the resources needed to meet our working capital requirements and execute our current business strategies."

Business Outlook

"In fiscal 2008, we anticipate another year of strong revenue growth, along with a continued reduction of our operating costs. We will also continue streamlining our distribution and logistics operations in an effort to lower our production costs even more," said Mr. Joffe. "These initiatives should further improve our competitive position and allow MPA to further expand our market share. We expect our quarterly operating results to continue to improve, with a significant increase in our operating margins by the end of this fiscal year."

Use of Non-GAAP Financial Measures

To supplement the Company's condensed consolidated financial statements presented on a GAAP basis, the Company is providing certain income statement information that is not calculated according to GAAP. The Company believes that its non-GAAP disclosures are useful in evaluating its operating results as this information supplies the user with another view of the matching of costs and expenses. A reconciliation of the adjustments to GAAP results for the three and twelve month periods ended March 31, 2007 and March 31, 2006 is included below. The non-GAAP information presented is supplemental and is not purported to be a substitute for information prepared in accordance with GAAP.


Source : http://www.theautochannel.com (7/1/2007)

Bajaj sales dip 12% in June  
Sales of the country’s second-largest two-wheeler maker, Bajaj Auto, dipped in double digits for the third consecutive time in each of the first three months of the current financial year.

The company sold 162,253 motorcycles, down by 12 per cent over 183,549 motorcycles sold during the same month in the previous year.

The total two-wheelers (scooters included) sold in June 2007 were 164,758 units (including exports) against 188,231 units sold in June 2006.

Exports of two- and three-wheelers grew by 42 per cent to 48,675 units against 34,369 units exported during the same month last year.

Sales for the first quarter ended June 30 were further down at 14 per cent, with sales of total two-wheelers at 499,777 units compared with 578,621 units sold during the year-ago period.

In a company release, Managing Director Rajiv Bajaj said the first quarter of the current financial year had been disappointing.

The company will launch a new motorcycle in September with a monthly target of 50,000 units by January 2008.


Source : Business Standard (Online Edition) (7/1/2007)

Honda plans small car by `09-end  
Japanese automaker Honda Motors is rolling out its small car in India by the last quarter of calendar 2009. “We plan to start our small car venture in India from this plant,” said Satoshi Aoki, chairman, Honda Motor Company, at the foundation stone laying ceremony of its subsidiary’s (Honda Siel Cars India) second facility in Tapukara in Rajasthan.

The car is supposed to counter the likes of Maruti Suzuki Swift and Hyundai Getz, premium-end hatchbacks, as Aoki subtly said, “We cannot make a car without Honda-like characteristics.”

About the viability of making a $3,000 car that Renault-Nissan plans to market in India, Aoki said personally he would be surprised. Currently, the cheapest car that Honda makes is priced at $9,000 with a 660 cc engine that is sold in Japan.

“Definitely our aim with the small car is to qualify for the excise duty benefits,” said Masahiro Takedagawa, president and CEO, HSCI, while clarifying that the car would be primarily for domestic sale.

The new 600-acre facility, which envisages an initial investment of Rs 1,000 crore, will have an initial annual capacity of 60,000 units, which will be later scaled up to 2,00,000 units.

The plant, besides manufacturing the small car, may also produce existing models to lessen load on the 150-acre Greater Noida plant. The company said the plant would profit from its proximity to the Mumbai-Delhi freight corridor.

About the adverse impact of rising input costs on profits, Aoki said, “We may revise our earlier forecast of 3 per cent dip in bottom line during the announcement of the first quarter results because of the favourable impact from a weakening yen.” Honda currently derives more than 70 per cent of its revenue from the US market, which will give greater returns on exports because of the strong dollar.

The company is expanding its capacity at the Greater Noida plant to 1,00,000 units a year and plans to sell 1,50,000 units by 2010.

Aoki said the new car would have a localised content of 90 per cent against the City and the Civic’s 80 per cent and 78 per cent, respectively.

On the company’s foray into the diesel segment in India, Takedagawa said the company was studying the possibility of such a venture.

Honda also said although the North American market was the most crucial, it is now diverging into Europe, Asia and even South America.


Source : Business Standard (Online Edition) (7/1/2007)

Drive Your Way to Better Fuel Economy this Summer with Pep Boys  
PHILADELPHIA, -- With a busy summer travel season ahead, The Pep Boys - Manny, Moe & Jack , the nation's leading automotive aftermarket retail and service chain, offers families information on how to prepare for safe summer travel and how to improve fuel efficiency when prices at the pump are high.

"Pep Boys recommends that motorists seek preventive maintenance inspections and services to make sure their vehicle's mechanical, electrical and brake systems are able to perform optimally in hot summer driving conditions," said Joe Cirelli, senior vice president of service at Pep Boys. "In addition to preventive maintenance services, there are several simple things that motorists can do to improve fuel efficiency, including ensuring that their tires are properly inflated and that their air filters are clean."

An estimated 32 million motorists hit the road during Memorial Day weekend alone, and heavy Independence Day travel is also expected. However, an ill- prepared vehicle, or one that is not fuel efficient, could stall road trip plans.

Here are five easy steps to maximize gas mileage this summer:

Step 1: Check Your Tire Pressure

Under- or over-inflation of tires can lead to decreased fuel mileage, as well as shorten the life of the tires. In fact, the U.S. Department of Energy (DOE) reports that properly inflated tires can improve gas mileage up to 3.3 percent, saving up to 10 cents a gallon. Consumers should consult their owner's manuals for the recommended tire pressure and check their tires monthly with a good quality tire pressure gauge. Also check the tread for uneven or irregular wear and cuts or bruises along the sidewalls. It only takes five minutes.

Step 2: Change Your Air Filter

Dirty air filters can cause engines to run at less than peak efficiency. Regular visual checks of the air filter can show if it needs replacing, and the owner's manual will suggest appropriate replacement intervals -- usually every 12,000 miles. The DOE reports that replacing a clogged air filter can improve gas mileage by as much as 10 percent, saving up to 32 cents a gallon.

Step 3: Change Your Oil

For maximum engine life, change your oil and filter every three months or 3,000 miles or as directed in your owner's manual. Use the correct oil viscosity because high viscosity oils have greater resistance to an engine's moving parts, which uses more gas. According to the Department of Environmental Protection (DEP), motorists can increase fuel efficiency by up to 2 percent, saving 2 cents a gallon, by using the proper grade of motor oil.

Step 4: Clean Your Fuel System

The biggest waste of gas is an inefficient engine, commonly shown to the driver through an illuminated check engine light. Often, repair or replacement of malfunctioning components such as mass airflow sensors, oxygen sensors and others will frequently restore fuel efficiency. A properly operating ignition and emissions system can improve gas mileage by up to 40 percent, saving 80 cents a gallon, according to the DEP.

Step 5: Get a Tune Up

A properly tuned engine can increase fuel efficiency from 4 percent to 20 percent, saving 26 cents a gallon, notes the DEP. As part of a modern day tune-up, the following systems should be inspected to improve performance and maintain the reliability of a vehicle.

Fuel Factoid: According to the Car Care Council, a vehicle's spark plugs fire as many as 3 million times every 1,000 miles, resulting in a lot of heat and electrical and chemical erosion. A dirty spark plug causes misfiring, which wastes fuel. Spark plugs need to be replaced regularly.


Source : http://www.theautochannel.com (7/1/2007)

Bajaj registers 12 pc fall in bike sales  
New Delhi Country's second largest two-wheeler maker Bajaj Auto on Sunday reported a 12 per cent dip in its motorcycle sales (including exports) during June at 1,62,253 units as against 1,83,549 units in the corresponding month in 2006.The exports during the month, however, grew 42 per cent to 48,675 units, compared to 34,369 units in June 2006,BAL said in a statement. Three-wheeler sales declined by 11 per cent in the month to 22,866 units, down from 25,687 units in the same monthin 2006, while total two and three-wheeler sales dipped by 12 per cent to 1,87,624 units, it said.For the quarter ended June 30, the company's motorcycle sales (including exports) were down by 13 per cent to 4,93,565 units, compared to 5,68,187 units in 2006 quarter.

Total three-wheeler sales during the quarter under review were up marginally by one per cent to 71,336 units while exports were up 52 per cent to 1,49,804 units. The company reported a total sales of 5,71,113 units during the first quarter of this fiscal, down 12 per cent from 6,49,496 units reported in the corresponding quarter of previous fiscal. It said the first quarter sales have been disappointing and the company is focusing on enhancing market and product mix to safeguard profitability. The company would launch a new motorcycle platform in September in 2007 which would focus on shifting 100 cc customers to a higher powered bike.

BAL said existing motorcycle owners desirous of repurchase represented over half of all new sales, and there is increasing evidence of their diminishing interest in the 100 cc motorcycles currently available.


Source : headlinesindia.com (7/1/2007)

Maserati's Rebound: Italian Brand Finds Success By Carefully Managing Image  
Matt Vella writing for the Wall Street Journal reported that after years of losses, Maserati, the Italian exotic car brand, that has at times flirted with financial disaster over the course of its 93-year history, is on the verge of profitability and is carving out a larger share of the U.S. market thanks to the success of its flagship Quattroporte sedan.

Maserati Maserati's flagship Quattroporte sedan. The Quattroporte, which ranges in price from $100,000 to $120,000, competes with more mainstream luxury sedans like the BMW 7 Series and best-selling Mercedes-Benz S-Class from DaimlerChrysler AG. But with Maserati's carefully managed image, dramatic styling and Ferrari-derived engines, the sedan carries a level of prestige similar to vehicles that cost twice as much.


Source : http://www.theautochannel.com (7/1/2007)

Vincentric's Best Value in America™ Awards  
BLOOMFIELD HILLS, Michigan – Vincentric’s Best Value in America™ awards were announced, with hybrid vehicles leading the way.

The Toyota Prius, along with the hybrid versions of the Ford Escape, the Honda Civic, and the Toyota Highlander each won the Best Value in America™ award in their segment. Other hybrids receiving Excellent Value ratings are the Mercury Mariner hybrid, the Lexus RX400h, and the Honda Insight.

To determine Vincentric’s Best Value in America™, Vincentric analyzed over 1,800 different vehicle configurations and computed the cost to own and operate each vehicle.

Eight different cost factors were calculated to determine overall Cost of Ownership: depreciation, fuel, insurance, opportunity cost, financing, maintenance, taxes and state fees, and repairs.

Using a statistical model, the company identified the Best Value in America™ by measuring which vehicles have a lower than expected ownership cost given their market segment and price.

The strong value of hybrids was clear when both a hybrid and non-hybrid version of the same vehicle were compared to other vehicles in the same segments.

In those instances, the hybrid version had ownership costs that averaged 16.2% lower than a similarly priced competitor, while the non-hybrid version had ownership costs 7.9% lower.

"Hybrids benefited from three main factors", stated David Wurster, President of Vincentric. "First was their strong fuel economy ratings, resulting in lower fuel costs for these vehicles. Second was their strong residual values due to high demand, resulting in lower depreciation costs. And third was the federal tax credit that went into effect this year. This combination of factors creates extremely strong value for consumers."

Including the Prius and Highlander hybrid, Toyota had eleven Best Value in America™ awards, with Honda also faring well with six winners.

In addition to the annual Best Value in America™ awards, Vincentric compiles updated results each month to incorporate current fuel prices, manufacturer rebates and incentives, interest rates and residual values.


Source : http://www.theautochannel.com (7/1/2007)

Hayes Lemmerz Announces Sale of MGG Group  
Hayes Lemmerz International, Inc. today announced the sale of its wholly owned subsidiary, MGG Group B.V. to an affiliate of the ECF-Group, a privately held company based in Switzerland and The Netherlands.

Located in The Netherlands and Belgium, MGG Group's three facilities manufacture a variety of components including heat exchangers for gas-fired boilers, intake manifolds and other aluminum components for the European automotive, commercial vehicle and other industries.

Under the agreement announced today, the investors acquired all of the outstanding stock of MGG Group B.V. and its subsidiaries. While financial terms of the transaction were not disclosed, Hayes Lemmerz did announce that MGG's annual sales for fiscal 2006 were approximately US$140 million.

"We are pleased that we have completed this transaction," said Curtis Clawson, President, CEO and Chairman of the Board of Hayes Lemmerz. "By divesting this non-core business and focusing on high growth/high return markets, we are continuing to execute our strategic business plan and our drive toward profitability and positive free cash flow." Mr. Clawson added, "We have enjoyed our relationship with the MGG Group for many years and we are confident that they will be a valuable addition to the buyer."

The Company does not expect this transaction to have a material impact on its previously released full fiscal year 2007 guidance.

Hayes Lemmerz International, Inc. is a world leading global supplier of automotive and commercial highway wheels, brakes and powertrain components. The Company has 27 facilities and approximately 7,800 employees worldwide.


Source : http://www.theautochannel.com (7/1/2007)

Tech Mahindra eyeing China, Europe and Latin AmericaAdd to Clippings  
BANGALORE: Tech Mahindra is actively looking at regions outside India to set up new development centres to enhance its global delivery capability.

The Rs 3,000-crore Indian IT services major is looking at setting up centres in China, Europe and Latin America to be in closer reach to the markets as well as to harness the talent pool.

Tech Mahindra recently opened its second development centre outside India at Belfast in Northern Ireland. Tech Mahindra president (strategic initiatives) Sanjay Kalra said the work culture at Northern Ireland is very similar to India and it would be actively engaged in coming out with innovative IT services.

The Belfast centre currently has 60 people and will be providing both IT and BPO services for Europe and US markets. It also has the capability to provide multilingual support to Tech Mahindra’s customers.

Mr Kalra said that the Belfast centre will expand to 220 people over the next three years. Tech Mahindra currently has around 7 development centres with six in India and one in Milton Keynes, United Kingdom and employs over 19,000 people.

For Tech Mahindra, which gets 67% of its revenues from British Telecom (BT), the Belfast centre will actively support BT as well as other customers.

Northern Ireland has been one of the key destinations for some of the Indian companies in expanding their reach with HCL also having centre in Belfast. Leslie Morrison, chief executive of Invest Northern Ireland, said, “This investment (Tech Mahindra) will bring to over 2,500 - the number of people employed by Indian companies in Northern Ireland.”


Source : Economic Times (7/1/2007)

Buyers ignore rate heat to drive top-end car variantsAdd to Clippings  
NEW DELHI: Despite hardening interest rates adversely impacting car sales, buyers are lapping up the top-end variants of most models, including the new launches. With no takers for low-end variants, top-end variants constitute more than 50% of most car models.

Take Mahindra-Renault’s mid-size offering Logan, which was recently launched in two new variants as a reaction to this demand. Positioned at the entry level of the C segment, the car’s petrol variants are priced in the range of Rs 4.27 lakh to Rs 5.68 lakh and the diesel variant is tagged at Rs 6.43 lakh. “Nearly 63% of our Logan sales have come in from the top-end variant.

Going ahead, we expect our sales to be driven by the high-end model and our new variants — 1.6 GLX petrol and 1.5 dci (DLX) diesel. This is largely because early adopters are not price-sensitive,” says Mahindra-Renault’s marketing V-P Nalin Mehta.

Maruti Suzuki’s marketing V-P Mayank Parekh says, “Though it is too early to comment, initial response shows SX4’s top-end variant is drawing the largest chunk of demand, largely because consumers today want the latest features and are ready to shell money.” The top-end variant comes with a Rs 7 lakh plus price tag. In fact Maruti is facing production constraints in manufacturing SX4 as the demand is completely driven by highest variant.

The phenomenon is not just predominant in the mid-size segment but also in the price-sensitive compact car segment. General Motors’ lone compact car Spark’s demand is skewed towards the top variant. “We are receiving nearly 60-70% bookings for the top-end variant of Spark,” says General Motors India marketing V-P, sales & after sales. This is despite the fact that Spark’s top-end variants are priced almost Rs 1.15 lakh - Rs 80,000 higher than its lowest variant.

Models like Honda City and Diesel Swift have seen a similar pattern. Honda Siel Cars India’s marketing senior V-P Jnaeshwar Sen said that nearly 70% of the demand for City comes from its top-end variant.


Source : Economic Times (7/1/2007)

Maruti on overdrive mode in rural IndiaAdd to Clippings  
NEW DELHI: After establishing its foothold in urban and semi-urban markets, the country's top Maruti Udyog Ltd has embarked on an ambitious penetration drive in villages and entered into an understanding with regional rural banks for car finance to push sales.

The company, which early this year began executing its pan-India plan, has already started seeing the results.

"Already, we have sold 2,700 cars and generated about 20,000 enquiries through the rural scheme which was started in April," MUL Managing Director Jagdish Khattar told PTI.

Interestingly, of the cars sold under the scheme, 50 per cent were Alto while about 23 per cent were M800, he added.

Khattar said one of the main reasons for the company's confidence in doing well in rural areas was its ability to rope in regional rural banks as partners for financing, besides taking help from the company's existing umbrella of car financiers, including Mahindra Finance and Magnum.

"We wrote to 95 regional rural banks, which together have about 14,000 branches all over the country for financing purchases," he said.

Besides approaching the banks, MUL has also been innovating its rural sales strategy by asking dealers to appoint rural sales executives (RSEs) to build and maintain relationship with potential customers.

"Since January, our dealers have started appointing RSEs in villages, who belong to the place and are stationed there itself. The idea is to strengthen interaction with potential customers and convert them to buyers," he said.

Khattar said so far various dealerships of MUL have appointed about 1,500 RSEs and "many more will be added".

These RSEs have been able to talk to a wide range of customers from different walks of life in rural areas, starting from teachers to big farmers who already own other vehicles like tractors, he added.

Taking a step further, MUL has also started involving village panchayats to boost sales by taking part in many of the rural events.

"We have been taking part in a number of rural sports such as kabaddi and other school events to increase our visibility," he added.

Besides, the company has been holding roadshows with about 45 floats (vans on which the company's cars are displayed) across the length and breadth of the country.

Talking about the potential of the rural market, Khattar said: "There are about 21 lakh village panchayats and two lakh pradhans. We are trying to work on the basic human psychology of one buyer influencing the other."

Khattar said MUL's rural scheme has also thrown up employment opportunities for villagers who can learn to drive cars and can migrate to cities where there is a lot of demand for drivers.


Source : Economic Times (7/1/2007)

The Risks of All Non-Automobile Motorized Vehicles to Children  
Although all-terrain vehicle (ATV)-related injuries are a serious concern, so are pediatric injuries related to other types of non-automobile motorized vehicles. A study conducted by researchers in the Center for Injury Research and Policy (CIRP) at Columbus Children’s Hospital, is the first to use a nationally representative sample to describe the epidemiology of pediatric (19-years-old and younger) non-automobile motorized vehicle-related injuries, and to compare ATV-related injuries with injuries sustained from other types of non-automobile motorized vehicles.

According to the study, published in the July issue of Pediatrics, there were an estimated 1.2 million non-automobile motorized vehicle-related injuries that resulted in treatment in U.S. emergency departments from 1990 through 2003. Overall, the number of injuries increased 86 percent during the 14-year study period from 70,500 injuries in 1990 to 130,900 injuries in 2003.

“Although most public health and legislative attention to date has been focused on all-terrain vehicles, parents, children and public officials should be educated about the injury risk that all types of non-automobile motorized vehicles pose to children,” explained lead author Christy Collins, MA, CIRP research associate. “Most children simply do not yet have the judgment and motor skills needed to operate non-automobile motorized vehicles safely.”

Although many injuries were associated with ATVs, more than half of the 1.2 million injuries were associated with other types of non-automobile motorized vehicles, such as two-wheeled, off-road vehicles and go-carts/buggies. Boys accounted for 77 percent of the injuries, and the most common diagnoses were contusions, abrasions, fractures and lacerations.

“In this study, we found that in almost every year from 1990 to 2003, children 12 to 15 years of age sustained the greatest proportion of non-automobile motorized vehicle-related injuries,” said co-author Dawn Comstock, PhD, CIRP principal investigator and a faculty member of Ohio State University College of Medicine.

There were greater proportions of ATV-associated injuries among children 12 years of age and older. Conversely, the proportion of other non-automobile motorized vehicle-related injuries among children younger than 12-years-old was greater.

“Future research is needed to evaluate the effectiveness of safety legislation for ATVs and two-wheeled vehicles,” said co-author Gary Smith, MD, DrPH, director of CIRP at Columbus Children’s Hospital and a faculty member of Ohio State University College of Medicine. “All states in the United States should be encouraged to adopt the most effective policies to prevent injuries to children, and these polices should be expanded to include all types of non-automobile motorized vehicles.”

Data for the study were collected from the U.S. Consumer Product Safety Commission’s National Electronic Injury Surveillance System (NEISS). The analysis included all patients 19-years-old and younger in the NEISS database who were seen in U.S. hospital emergency departments for a non-automobile motorized vehicle-related injury during the 14-year period.


Source : http://www.newswise.com (7/1/2007)

Honda eyes a bigger Indian share, starts work at new plant  
NEW DELHI, The auto sector might be reeling under a mini recession but the spate of investments continues to grow. Japanese auto major Honda’s India subsidiary Honda Siel Cars India today announced the commencement of construction at its second plant at Tapukara Industrial Area in Rajasthan.

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The new plant is built on a 600 acre land out of the total industrial area of 750 acre out of which the car manufacturing capacity would be built on an acre plot while a research and development centre and component suppliers would occupy the remaining 250 acre land. Honda is planning to launch its maiden small car from this plant by October next year. Honda’s initial investment in the plant is to the tune of Rs 1,000 crore. The car plant will have an initial capacity of 60,000 units per annum.

“We have envisaged close to Rs 5,000 crore investment in this automotive cluster alone and this will be the second such automobile hub in the state after the 200 acre exclusive auto engineering zone in Pathredi in Bhiwadi region, where Caparo Engineering, Shriram Pistons, Pearaylal & Sons, TPS Infrastructures amongst others will set up their automotive units in the near future,” said Rajasthan State Industrial Development & Industrial Corporation MD Kuldeep Ranka. RIICO hopes to facilitate fresh investments worth around Rs 13,000 crore by the end of this fiscal.

Just like other states like Uttar Pradesh, Haryana and Uttaranchal, Rajasthan is doling out sops in the form of duty waivers to attract investment. Honda will be benefitted by sops like electricity and VAT exemption for years and stamp duty and entertainment tax exemption for 7 years.

“This area has a lot of advantages by way of its location which is very close to the NCR region. In a way it is an extension of the existing auto hub in Manesar-Guragaon-Dharu-hera region in Haryana which is just 30 kilometres from here,” said HSCI Senior GM Marketing Jnaneswar Sen.


Source : Indian Express (Online Edition) (7/1/2007)

MG and Austin-Healy Ride Again  
Great news for lovers of classic sports cars as two iconic brands rise from the ashes. The well-loved and historic MG marque made a welcome return to the spotlight last weekend as the first car produced by its new Chinese owners was unveiled at Silverstone's 2007 MG Car Club gathering. Nanjing also announced an agreement with Healey Automobile Consultants to take over and revive the Austin Healey, another famous sportster that has been out of production for over 35 years. With MG production starting later this year, Nanjing is receiving strong interest in global dealer partnerships from a number of major brands, so it won't be long until these famous names are back on a street near you.

First new MG unveiled at Silverstone

Visitors to the 57th MG International Race meeting at the weekend were treated to the first public appearance of the new MG TF sports car.

The Longbridge built sports car took pride of place at the 57th annual MG Car Club celebration, which is world's largest gathering of MG cars spanning over 80 years of the marque's history.

The new TF, which is due to go into production later this year, features numerous new engineering innovations and cosmetic changes that Nanjing hope will make the car a desirable proposition when it appears in showrooms.

"The public response to the new TF has been fantastic," says Gary Hagen, Sales & Marketing Director for NAC MG (UK) Ltd. "This car represents a fresh new addition to the UK sports car market, and judging by the reaction at Silverstone over the weekend this car looks set to enjoy a healthy sales success here in the UK."

"This car has undergone extensive re-engineering and it is a very different proposition from the previous generation TF," says Hagen. "From the outset our objective was to produce a highly desirable sports car that offers performance, fun, reliability and value for money in equal measure. This is a demanding market and the British public will not be disappointed."

Silverstone International is the highlight of the MG racing season and this year attracted 550 race entries -- and broke all previous records in the process. The racing covered all eras of the brand's long history, whilst the headline MG Trophy race for MG TF and ZR models, won by Malcolm Gammons, was sponsored by Nanjing Automobile Corporation (NAC) for the first time since buying MG in 2005.

MG's enormous fan club were very pleased to be the first to see the new model. "We are delighted that NAC MG (UK) chose to debut the new TF at this event," says Richard Jones from the MG Car Club. "It's great to know that NAC understands the importance that enthusiasts will continue to play in the future success of the MG brand."

Austin Healey brand to be revived

Earlier this month, NAC and Healey Automobile Consultants Limited, in conjunction with HFI Automotive Ltd, annoiunced their intention to collaborate with each other on the future development of the Healey and Austin Healey brands and sports cars bearing their name.

The agreement puts an end to long standing issues about ownership of the brands and trade marks and expands opportunities for joint trade between the companies.

While no date has been set for the release of the new Austin Healey, Nanjing moved very quickly with the production of its first MG, so we can surely expect to hear more within the next 12 months.

Global MG dealership interest very strong

In the run-up to the commercial launch of the new MG TF 2-seater sportscar, NAC MG (UK) has received an overwhelming response to their request for applications to become an MG franchised dealer. The high level of enthusiasm has not only come from retailers within the UK, but also from those located as far afield as Greece and South Africa.

The majority of applicants in the UK, a key market for MG cars, are former MG franchise dealers who continue to demonstrate a passion for the brand and are equally keen to apply their extensive knowledge of the product, marque and client base.

Further enquiries have also been received from other manufacturer franchises which include Citroen, Lotus, Renault, Mitsubishi, Mercedes and Vauxhall, highlighting the renewed confidence in the brand. Potential UK locations for the newly established dealers span nationwide from Northern Ireland to the Channel Islands.

Commenting on the large volume of applications which NAC MG (UK) has received to become part of the new MG retail network, Stephen Cox, Sales and Franchising Manager for NAC MG (UK) explains: "We are delighted by the global interest which we have received and are also very encouraged by the high quality of the applicants. This is a true demonstration of the continued appeal of the MG brand, and an illustration of the confidence in a very promising future."

NAC MG (UK) is currently reviewing all applications, and will shortly announce the appointment of those who can fully satisfy the company's demanding criteria.


Source : http://www.businessweek.com (7/1/2007)

Centenary cars back on the road for re-run of 1895 race  
PARIS (AFP) - The Bordeaux to Paris vintage car race, due to start Wednesday and end on Sunday, is the brainchild of Robert Panhard, great grandson of the founder of the eponymous French automobile firm.

Panhard, a 60-year-old solicitor, will himself be at the helm -- there were no steering wheels at the time -- of an 1892 Panhard Levassor. "It's the oldest one still running in the world," Panhard, whose 54-year-old brother Alain will co-pilot, told AFP.

Not attending will be the late tyre mogul Edouard Michelin, who helped organise the commemoration in honour of the world's automobile pioneers, but who drowned after a boating accident last year.

Of the 39 cars signed up for the 2007 race, the newest dates back to 1904.

At the helm of the legendary fleet of Panhard et Levassor, Peugeot, De Dion Bouton, Renault, Berliet and even a steam-powered Stanley Steam Car, will be pilots from Britain, France, Belgium, Switzerland, The Netherlands, as well as an American and an Australian.

The cars, which will follow the original itinerary as closely as possible, are due at Paris' Place de la Concorde on Sunday July 8 after a gruelingly slow five-day rally over a mere 600 kilometres (375 miles).

"I plan to drive at an average 18 kilometres per hour (11 miles per hour)," said Panhard.

The speediest car at the 1895 Paris-Bordeaux-Paris rally was the number 5 Panhard Levassor, taking just over two days to complete the 1,200-kilometre circuit at an average speed of 25 kph but at times going as fast as 35 to 45 kph. "It was a revolution," said Panhard.

The June 11, 1895 race was organised by Count Albert de Dion, pioneer of the steam-powered automobile, and involved 20 cars, many of them driven by their makers, and three petrol-powered bicycles.

Only nine of the cars crossed the finish line.

The first prize went to a petrol-powered Peugeot, which took 59 hours and 48 minutes. The two-doored Panhard et Levassor took only second prize though it was fastest at 48 hours and 48 minutes, because the rally rules specified that only four-seaters could compete for top prize.

Of the six steam-powered vehicles in the race, only one, driven by automobile designer Amedee Bollee, managed to end the race -- but in last place and two days after its speedier petrol-powered contenders.

The only electrically-powered vehicle in the race, a Jeantaud, made it halfway before grinding to a standstill.

"The race underlined the triumph of petrol-powered vehicles," said Panhard. Count Dion, who took part in his steam-driven vehicle, from that moment switched to making gasoline-fuelled automobiles.


Source : http://news.sawf.org (7/1/2007)

Oldest working car up for sale  
PEBBLE BEACH, Calif., (UPI) -- A French-built, steam-powered car -- believed to be the world's oldest working car -- is for sale in California.

The car, built in 1884, is expected to fetch between $1.5 million and $2 million when it is auctioned off Aug. 19 in Pebble Beach, CNN reported.

The De Dion-Bouton et Trepardoux, nicknamed "La Marquise," has had only two owners beside its original one, French Count De Dion, who was one of the car company's founders. The car is fueled by coal, wood and paper, and runs on solid rubber tires on metal wheels. It can go as fast as 38 mph.

"That's as fast as you want to go," said David Gooding, founder of the auction company. "It feels like going 80 (mph) or 90 mph in a newer automobile. And by newer, I mean 1910."

There may be some other steam-powered vehicles still around that run, but they are essentially rail cars without rails and arguably aren't automobiles,


Source : http://www.upi.com (7/1/2007)

NHRA - Top Friday Times Hold As Field Is Set For  
Clear, sunny weather conditions in Northern Ohio kept elapsed times and top speeds in check Saturday during the final day of professional qualifying for the inaugural Summit Racing Equipment NHRA Nationals in Norwalk, Ohio.

All four of Friday night's professional category leaders remained in control of their respective categories, including Funny Car top gun Robert Hight, the son-in-law of 14-time world champion John Force, who posted a best of 4.713 at 313.73 mph.

Top Fuel's "Hot Rod" Fuller (4.533), Pro Stock's Greg Anderson (6.654), and Pro Stock Motorcycle's Matt Smith (6.965) joined Hight on the low qualifier's podium at Summit Racing Equipment Motorsports Park.

Fuller scored his third No.1 qualifier of the season with his 4.533 at 323.50 mph pass from Round 2. He remains one of only three racers to have qualified fourth or higher at every race this season. This was Fuller's fifth career low qualifying effort.

“Five is my lucky number,” Fuller said. “I’m number five, five was my number in both football and soccer and I’m 5-foot-5. I’m just really impressed by this facility and the fans. The place just has a feeling of home to it, like I’m at a bracket race. I just feel really comfortable here."

Clay Millican's second-place seeding is the best of the year for the driver of the RATT -- Back for More dragster. Budweiser’s Brandon Bernstein (4.554) and SkyTel's Larry Dixon (4.561) rounded out the top four.

Considering his racecar hasn't been running on all eight cylinders, Funny Car leader Hight continues to impress in his Auto Club of Southern California Ford Mustang, ringing up his fourth low qualifier award of the year with a 4.713 at 313.73 mph.

"With the exception of one run in Gainesville, we haven't made a full pass all year on all eight cylinders," Hight said. "It's been dropping one every pass and now it's trying to drop two. Jimmy [Prock] decided to make some giant moves today to fix that and we're really encouraged by what it showed us."

Hight's sister-in-law Ashley Force, a huge favorite among the capacity Norwalk crowd, is a strong second in her Castrol GTX Ford Mustang after a best of 4.734 at 320.13 mph. Tony Pedregon follows with a third-best 4.757 in his Q Horsepower Chevrolet Impala SS.

Points leader Ron Capps is seventh in the Brut Test Drive Dodge Charger. He'll face legend Kenny Bernstein and his Monster Energy Drink Charger in Round 1.

Del Worsham barely bumped into the field in the third round in his Checker, Schuck's, Kragen Chevrolet Impala SS, running a 16th-best 4.873. The drama came when he reached the top end as his car exploded into several pieces, which relegated him to the sidelines for the final session. Nevertheless, his time held and he'll race Hight in the morning.

Even when he struggles, Anderson, the Pro Stock points leader, still tops his category. Anderson's opening pass of 6.654 at 207.59 mph earned his Summit Racing Pontiac GTO team the No. 1 qualifying position for the eighth time in 11 races this year. They've converted six of those top starts into wins. Anderson failed to make it down the track in Rounds 2, 3, and 4.

"Spirits were high after Round 1 but it's been all downhill since then," said Anderson, who will open against Erica Enders. "We pride ourselves on consistency and we don't have it here. It's not a real confidence builder. I think we just need to forget about today. It was just a bad day at the office. We've got to move on because this is our sponsor's race and we need to do well tomorrow."

Mopar Racing teammates Richie Stevens and Allen Johnson are second and third here. Stevens' Dodge posted a 6.659, while Johnson was a thousandth back at 6.660.

Smith's third low qualifying effort of the season and seventh of his career makes the Torco Buell V-Twin rider the early favorite for Sunday's race. Only one rider, Paul Gast, bumped into the field Saturday, changing Smith's first-round foe to fellow Buell pilot Matt Guidera. Guidera's more than a tenth of a second back of Smith's 6.965 at 189.60 mph with a best of 7.084 at 185.13 mph.

"As soon as we got here I figured no one would run quicker than us so I just started trying other things out," said Smith, who tunes both his bike and that of teammate Chris Rivas. "I tried some things with the timing in the early session and scuffed in a new tire in the afternoon. I just wanted to make sure we were totally prepared for tomorrow."


Source : http://www.theautochannel.com (7/1/2007)

NHRA - Pontiac-Gmc Return As Official Vehicles Of NHRA  
NHRA officials announced today that it has signed a multi-year agreement with Pontiac-GMC to return in 2008 as the Official Car and Official Truck of the NHRA.

It will be the 13th consecutive year that Pontiac has served as the Official Car of the NHRA and the 19th for GMC as the Official Truck of the NHRA, the world’s largest motorsports sanctioning organization.

“Pontiac-GMC has become synonymous with the sport of NHRA Drag Racing,” said Tom Compton, president, NHRA. “Clearly, over the last two decades, they have seen the incredible value of association with NHRA and the NHRA POWERade Drag Racing Series and, in turn, we are proud to be associated with Pontiac-GMC and look forward to a mutually rewarding relationship in the future.”

Since becoming the Official Car of the NHRA in 1996, Pontiac has earned a winning reputation for amassing No. 1 qualifying awards, national event victories, performance records and series championships. Pontiac is the all-time win leader among auto manufacturers in the competitive world of NHRA Pro Stock racing, and a 10-time winner of the NHRA’s prestigious Manufacturer’s Cup.

In 2006, Pontiac earned 12 national event victories, 27 final round appearances, 19 No. 1 qualifying awards and set 34 individual track elapsed time and top speed records. Three drivers in Pontiac GTOs placed in the top five of the NHRA POWERade Series points standings. Pontiac claimed its fourth straight (ninth overall since 1996) Pro Stock driver’s title with the crowning of Jason Line as the ’06 champ.

Pontiac’s on-track performance has been impressive in the early part of the 2007 season, as three-time world champ Greg Anderson set the national elapsed time record in Pro Stock, posting a 6.536 second run in his GTO at Gainesville, Fla., while teammate Line set the national speed record at the same event, powering to a speed of 211.69 mph in his GTO. Anderson has raced to six victories and leads the current point standings.

“The NHRA POWERade Drag Racing Series continues to be an outstanding forum to showcase the quality and performance of the automobile designed for action,” said Jim Bunnell, divisional general manager, Buick-Pontiac-GMC. “Pontiac is proud to return as the Official Car of the NHRA, and we look forward to continuing our growing relationship with the nation’s premier drag racing series and its fans for years to come.

“GMC’s 19 year affiliation with NHRA is its longest-running promotional platform ever. For a celebrated brand known for Professional Grade trucks, and its association with the legendary Safety Safari, GMC is a perfect fit as the Official Truck of the National Hot Rod Association.”

As the Official Car of the National Hot Rod Association, Pontiac provides support vehicles for administrative and on-site personnel of the NHRA. As the Official Truck, GMC also provides support vehicles for NHRA staff, and GMC Sierras and Yukons for the NHRA Safety Safari, allowing them to perform their important trackside duties.

General Motors Corp. , the world’s largest automaker, has been the global industry sales leader for 76 years. Founded in 1908, GM today employs about 280,000 people around the world. With global headquarters in Detroit, GM manufacturers its cars and trucks in 33 countries. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM’s OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com.

Headquartered in Glendora, Calif., the NHRA is the primary sanctioning body for the sport of drag racing in the United States. It presents 23 national events through its NHRA POWERade Drag Racing Series. The NHRA has 80,000 members nationwide and 140 member tracks. The NHRA-sanctioned sportsman and bracket racing series’ provide competition opportunities for drivers of all levels. The NHRA develops the stars of tomorrow by offering the NHRA Lucas Oil Drag Racing Series, NHRA Xplod Sport Compact Racing Series, NHRA Summit Racing Series, and the NHRA Street Legal Drags presented by AAA. The NHRA also offers the O’Reilly Auto Parts Jr. Drag Racing League for youths ages 8 to 17.


Source : http://www.theautochannel.com (7/1/2007)

NHRA - Former NHRA Division 3 Director, Orp Manager Daniels Dies  
Bob Daniels, one of the original seven NHRA division directors chosen to organize national operations on a regional basis in November 1959 and a former general manager at O’Reilly Raceway Park at Indianapolis, died June 30.

Daniels served as Division 3 director for 20 years, then spent 12 years as general manager at the venerable Indianapolis facility, the home of the U.S. Nationals since 1961 and then known as Indianapolis Raceway Park. Daniels' many contributions to the sport include the establishment of prominent dragstrips in the North Central United States and significant advancements and renovations at ORP.

Like most of the early NHRA officials, Daniels' interest in hot rodding began with street racing, but after several encounters with local law enforcement, he saw the long-term advantages of organized drag racing on off-road sites and concentrated all of his energies and resources in promoting the growth of NHRA. He built his first serious race car, a '32 Ford with a setback engine, center-point steering, a chopped top, and a '55 Chevy 265-cid engine that was bored out to 292 cubic inches, in the winter of 1956-57. He competed with that car, in C/Altered, at the '57 Nationals in Oklahoma and was so impressed that he made a trip to California to see what hot rodding was all about out west.

Daniels first met NHRA President Wally Parks at Stout Field in Ohio, a track operated by the Cluster Busters car club. Parks, who still was working for Hot Rod Magazine at the time, shot some photos of the club for the magazine. That meeting led to regular communication between Daniels and Parks.

In December 1959, Parks formed the first group of division directors, and Daniels accepted Parks' request to operate Division 3, encompassing the Great Lakes states and surrounding areas. The other original division directors were Ed Eaton, Northwest; Ernie Schorb, Southeast; Dale Ham, South Central; Jack Merrill, Northwest; and Ed Davis, headquarters/Southwest.

The Danielses produced one of the pioneer NHRA divisional races, at Stout Field in Indianapolis and worked with Eaton in the preparation for the construction of Indianapolis Raceway Park, a place they later would call home for many years. Constructed with assistance from the NHRA, the dragstrip was the first of the facility's three courses to be completed, and the facility's first event was held on the strip in the fall of 1960. With Clark Rader, Sr., Daniels also explored and helped plan the site for National Trail Raceway on Rader's 150-acre farm near Columbus, Ohio.

Daniels was also instrumental in establishing tracks in Muncie, Ind.; Saginaw, Mich.; Bowling Green, Ky.; Evansville, Ind.; and St. Thomas, Ont. During Daniels' tenure as Division 3 director, his region hosted such events as the U.S. Nationals, Springnationals, and Bowling Green's Sportsnationals.

“Bob Daniels was a motivated division director who devoted much time with car clubs and toured his territory's meetings and dragstrips in his own private airplane,” said Parks. “Bob and Eileen were among NHRA's most dedicated and active representatives, in their home North Central Division 3 and with countless national events. There aren't enough words to properly recognize the contributions Bob and Eileen have made over the years to build and support NHRA's success.”

In 1979, NHRA purchased IRP and Parks asked Daniels to take over the reins as general manager. Daniels worked in that capacity until he retired on Jan. 1, 1992, but left behind a legacy of improvements to the dragstrip, the road course, and the 5/8th oval, which brought NASCAR racing to IRP in the early 1980s. Other projects included the design and construction of Parks Tower, the Top Eliminator Club, and the permanent portion of the main grandstands.

Daniels and Eileen retired to Leesburg in central Florida, where there is an abundance of hills and lakes, where Daniels loved to fish.

Though technically retired, Daniels worked with Parks, NHRA Vice President Steve Gibbs, and Museum Curator Greg Sharp on the construction and detailing of the Wally Parks NHRA Motorsports Museum in Pomona and was a major contributor to the success of NHRA's Hot Rod Reunions and of nostalgia displays at the Mac Tools U.S. Nationals.

“Few would argue the lifelong commitment made by Bob Daniels to the sport of drag racing and NHRA,” said Tom Compton, president, NHRA. “From the early days as one of the original divisional directors, to his leadership role at O'Reilly Raceway Park turning that facility into one of the premier multi-purpose motorsports venues, up to his active role today with the NHRA Hot Rod Reunions, Bob, with his wife Eileen, at his side, helped grow NHRA to the prominence it currently enjoys.

“Bob always told me his home was at a drag strip, and his loyalty, commitment and unwavering love for NHRA and the sport of drag racing will be sorely missed.”


Source : http://www.theautochannel.com (7/1/2007)

NHRA - K&N Horsepower Challenge Posts Big Bonus Bucks  
NHRA officials announced today a multi-year agreement with K&N Engineering, Inc., to sponsor the K&N Horsepower Challenge, a lucrative bonus event for Pro Stock competitors.

The K&N Horsepower Challenge is a special race-within-a-race bonus program for the top Pro Stock drivers in the NHRA POWERade Drag Racing Series. The $76,000 K&N Horsepower Challenge will move venues in 2008 and will be conducted at Summit Racing Equipment Motorsports Park in Norwalk, Ohio. The race features a special elimination pairing with the eight quickest Pro Stock drivers who have accumulated the most points in qualifying during the 23-race Challenge series.

Drivers will begin earning 2008 K&N Horsepower Challenge points beginning at this weekend’s event in Norwalk and will continue to accumulate points through the race prior to next year’s Summit Racing Equipment NHRA Nationals.

The winner of the K&N Horsepower Challenge will earn $50,000, and the runner-up will earn $10,000. The two semifinalists will earn $3,000 each, while the four first-round finishers will receive $2,500 each.

“K&N has developed racing filters for every form of racing in the world,” said Steve Williams, vice president, K&N Engineering. “We have been working very hard to create new technology for the NHRA Pro Stock category. Now that we have both a new intake scoop and filter combination available for the world’s fastest hot rods, we decided to put up the money to see who is really the fastest. We are very excited to have this event take place at Summit Racing Equipment Motorsports Park, as it is an awesome facility and should produce world record performances. The entire K&N family is excited and proud to be working with NHRA, Bill Bader and the entire Pro Stock community to make the ’08 K&N Horsepower Challenge something very special.”

The K&N Horsepower Challenge features an overall purse of $145,000. In addition to the $76,000 K&N Horsepower Challenge, K&N also will award $69,000 in qualifying bonuses to quick Pro Stock qualifiers throughout the K&N Horsepower Challenge series. Low qualifiers earn $3,000 at each of the 23 events in the Challenge series.

“This is absolutely one of the key attractions for our Pro Stock community, an event that the drivers and fans look forward to with great anticipation,” said Gary Darcy, NHRA senior vice president of sales and marketing. “With K&N’s support of this competitive bonus program, we’re guaranteed many more thrilling side-by-side races in the future. The K&N Horsepower Challenge definitely adds drama and intrigue to the Summit Racing Equipment NHRA Nationals and provides an opportunity for the eight top drivers to showcase their talents in the competitive world of Pro Stock racing.”

In Chicago, Kurt Johnson claimed his fourth title in the prestigious race-within-a-race. Past winners of the K&N Horsepower Challenge include Greg Anderson, Dave Connolly, Jeg Coughlin, Warren Johnson, Darrell Alderman, Larry Morgan, Jim Yates, Bruce Allen and Bob Glidden.

K&N Engineering has been a major NHRA contingency sponsor for many years and has been the title sponsor for several NHRA national events in the past.

K&N Engineering, Inc., with headquarters in Riverside, California, has been the world's leader in performance air and oil filter technology since 1969, serving the needs of the automotive, motorcycle, marine, industrial and military markets. K&N is heavily involved in nearly every form of motorsports from off-road and powersports to drag racing, stock cars and road racing. For more information about K&N Filters, please contact K&N Engineering, Inc., P.O. Box 1329, Riverside, CA 92502-1329, (800) 213-4182 for a dealer near you, (800) 858-3333 for technical service/questions, (951) 826-4001 Fax, e-mail tech@knfilters.com, or visit www.knfilters.com.

Headquartered in Glendora, Calif., the NHRA is the primary sanctioning body for the sport of drag racing in the United States. It presents 23 national events through its NHRA POWERade Drag Racing Series. The NHRA has 80,000 members and 140 member tracks. The NHRA-sanctioned sportsman and bracket racing series’ provide competition opportunities for drivers of all levels. The NHRA develops the stars of tomorrow by offering the NHRA Lucas Oil Drag Racing Series, NHRA Xplod Sport Compact Racing Series, NHRA Summit Racing Series and the NHRA Street Legal Drags presented by AAA. The NHRA also offers the O’Reilly Auto Parts Jr. Drag Racing League for youths ages 8 to 17.


Source : http://www.theautochannel.com (7/1/2007)