<?xml version="1.0" encoding="UTF-8"?>
<rss version="2.0">
<channel>
<title><![CDATA[RSS for Emerging Markets]]></title>
<description/>
<link><![CDATA[http://search.autonews.com/]]></link>
<atom:link xmlns:atom="http://www.w3.org/2005/Atom" type="application/rss+xml" rel="self" href="http://search.autonews.com/urss?pageid=369666"/>
<item>
<title><![CDATA[Jaguar Land Rover targets 1 million sales in long term]]></title>
<link><![CDATA[http://www.autonews.com/article/20130618/RETAIL01/130619860/jaguar-land-rover-targets-1-million-sales-in-long-term]]></link>
<guid>http://www.autonews.com/article/20130618/RETAIL01/130619860/jaguar-land-rover-targets-1-million-sales-in-long-term</guid>
<pubDate><![CDATA[Tue, 18 Jun 2013 15:39:12 EDT]]></pubDate>
<description><![CDATA[LOS ANGELES -- Jaguar Land Rover is targeting global sales of 750,000 units by the end of the decade, with an eventual target of 1 million units, a top executive said today. "Reaching 1 million sales will place us with the world's other leading automotive luxury brands," Lindsay Duffield, president ...]]></description>
</item>
<item>
<title><![CDATA[Top 100 Suppliers]]></title>
<link><![CDATA[http://www.autonews.com/article/20130617/DATACENTER/130619910/top-100-suppliers]]></link>
<guid>http://www.autonews.com/article/20130617/DATACENTER/130619910/top-100-suppliers</guid>
<pubDate><![CDATA[Mon, 17 Jun 2013 00:01:00 EDT]]></pubDate>
<description/>
</item>
<item>
<title><![CDATA[Toyota's U.S. aces now run the Americas]]></title>
<link><![CDATA[http://www.autonews.com/article/20130617/OEM02/306179950/toyotas-u-s-aces-now-run-the-americas]]></link>
<guid>http://www.autonews.com/article/20130617/OEM02/306179950/toyotas-u-s-aces-now-run-the-americas</guid>
<pubDate><![CDATA[Mon, 17 Jun 2013 00:01:00 EDT]]></pubDate>
<description><![CDATA[Editor's note: An earlier version of this story gave incorrect context for St. Angelo's and Lentz's new roles. It is the first time non-Japanese Toyota executives have overseen the entire Western Hemisphere. Also, an unrelated photo and caption that were inadvertently posted with article have been ...]]></description>
</item>
<item>
<title><![CDATA[Mitsubishi ad campaign takes on 2 vital missions]]></title>
<link><![CDATA[http://www.autonews.com/article/20130617/RETAIL03/306179949/mitsubishi-ad-campaign-takes-on-2-vital-missions]]></link>
<guid>http://www.autonews.com/article/20130617/RETAIL03/306179949/mitsubishi-ad-campaign-takes-on-2-vital-missions</guid>
<pubDate><![CDATA[Mon, 17 Jun 2013 00:01:00 EDT]]></pubDate>
<description><![CDATA[LOS ANGELES -- Mitsubishi's new ad campaign to launch its redesigned 2014 Outlander crossover -- built around the tag line "Find your own lane" -- also will have to help the brand find a route back to relevance in the U.S. market. Backed by a marketing budget that has been doubled for the current ...]]></description>
</item>
<item>
<title><![CDATA[UK car production on track to overtake France by 2018]]></title>
<link><![CDATA[http://europe.autonews.com/article/20130613/ANE/130619922/uk-car-production-on-track-to-overtake-france-by-2018]]></link>
<guid>http://europe.autonews.com/article/20130613/ANE/130619922/uk-car-production-on-track-to-overtake-france-by-2018</guid>
<pubDate><![CDATA[Thu, 13 Jun 2013 14:16:52 EDT]]></pubDate>
<description><![CDATA[LONDON (Reuters) -- Britain may overtake France as Europe's second-largest automotive producer within the next five years if UK car sales and exports maintain current strong growth, industry executives said. Nissan, BMW's Mini brand and Jaguar Land Rover are among automakers exporting vehicles from ...]]></description>
</item>
<item>
<title><![CDATA[India's Apollo Tyres to buy Cooper Tire for $2.5 billion]]></title>
<link><![CDATA[http://www.autonews.com/article/20130612/OEM10/130619947/indias-apollo-tyres-to-buy-cooper-tire-for-2-5-billion]]></link>
<guid>http://www.autonews.com/article/20130612/OEM10/130619947/indias-apollo-tyres-to-buy-cooper-tire-for-2-5-billion</guid>
<pubDate><![CDATA[Wed, 12 Jun 2013 09:57:25 EDT]]></pubDate>
<description><![CDATA[GURGAON, India -- India's Apollo Tyres Ltd. is buying Cooper Tire and Rubber Co. in an all-cash deal valued at $2.5 billion, or about a 40-percent premium over the 30-day average price of Cooper's stock. The combination of the Nos. 16 and 11 tire makers worldwide will create an entity with roughly ...]]></description>
</item>
<item>
<title><![CDATA[India's Apollo Tyres to buy Cooper Tire for $2.5 billion]]></title>
<link><![CDATA[http://europe.autonews.com/article/20130612/ANE/306129945/indias-apollo-tyres-to-buy-cooper-tire-for-2-5-billion]]></link>
<guid>http://europe.autonews.com/article/20130612/ANE/306129945/indias-apollo-tyres-to-buy-cooper-tire-for-2-5-billion</guid>
<pubDate><![CDATA[Wed, 12 Jun 2013 09:57:25 EDT]]></pubDate>
<description><![CDATA[GURGAON, India -- India's Apollo Tyres Ltd. is buying Cooper Tire and Rubber Co. in an all-cash deal valued at $2.5 billion, or about a 40-percent premium over the 30-day average price of Cooper's stock. The combination of the Nos. 16 and 11 tire makers worldwide will create an entity with roughly ...]]></description>
</item>
<item>
<title><![CDATA[China's Great Wall targets Jeep's SUV crown]]></title>
<link><![CDATA[http://www.autonews.com/article/20130531/RETAIL/306029999/chinas-great-wall-targets-jeeps-suv-crown]]></link>
<guid>http://www.autonews.com/article/20130531/RETAIL/306029999/chinas-great-wall-targets-jeeps-suv-crown</guid>
<pubDate><![CDATA[Fri, 31 May 2013 05:04:22 EDT]]></pubDate>
<description><![CDATA[SHANGHAI (Bloomberg) -- Chinese billionaire Wei Jianjun has set a target for Great Wall Motor Co.'s Haval marque to surpass Chrysler Group LLC's Jeep and become the world's best selling SUV brand in three to four years. As part of the plan, Great Wall's chairman has started construction of a new ...]]></description>
</item>
<item>
<title><![CDATA[Acura eyes emerging markets]]></title>
<link><![CDATA[http://www.autonews.com/article/20130527/OEM/305279977/acura-eyes-emerging-markets]]></link>
<guid>http://www.autonews.com/article/20130527/OEM/305279977/acura-eyes-emerging-markets</guid>
<pubDate><![CDATA[Mon, 27 May 2013 00:01:00 EDT]]></pubDate>
<description><![CDATA[PORTLAND, Ore. -- Honda's Acura Division has mostly been a North American entity during its 28 years of existence, but Honda plans to take its upscale brand onto the global stage. Honda has announced plans to introduce Acura in Russia and the Ukraine in 2014 and move into Brazil and the Middle East ...]]></description>
</item>
<item>
<title><![CDATA[New S class key to boosting Mercedes profit margins, China sales]]></title>
<link><![CDATA[http://europe.autonews.com/article/20130517/ANE/305179964/new-s-class-key-to-boosting-mercedes-profit-margins-china-sales]]></link>
<guid>http://europe.autonews.com/article/20130517/ANE/305179964/new-s-class-key-to-boosting-mercedes-profit-margins-china-sales</guid>
<pubDate><![CDATA[Fri, 17 May 2013 00:01:00 EDT]]></pubDate>
<description><![CDATA[SHANGHAI (Bloomberg) -- Daimler CEO Dieter Zetsche was leaning back in the rear seat of a prototype Mercedes-Benz S-class sedan in 2010 when he realized it didn't recline far enough. With wealthy consumers accustomed to sumptuous airline seats, he figured Mercedes needed to approach that level of ...]]></description>
</item>
<item>
<title><![CDATA[New S class key to boosting Mercedes profit margins, China sales]]></title>
<link><![CDATA[http://www.autonews.com/article/20130516/GLOBAL03/305169995/new-s-class-key-to-boosting-mercedes-profit-margins-china-sales]]></link>
<guid>http://www.autonews.com/article/20130516/GLOBAL03/305169995/new-s-class-key-to-boosting-mercedes-profit-margins-china-sales</guid>
<pubDate><![CDATA[Thu, 16 May 2013 09:00:00 EDT]]></pubDate>
<description><![CDATA[SHANGHAI (Bloomberg) -- Daimler AG CEO Dieter Zetsche was leaning back in the rear seat of a prototype Mercedes-Benz S-class sedan in 2010 when he realized it didn't recline far enough. With wealthy consumers accustomed to sumptuous airline seats, he figured Mercedes needed to approach that level ...]]></description>
</item>
<item>
<title><![CDATA[COMMENTARY: Even for dealers, it's a global business]]></title>
<link><![CDATA[http://www.autonews.com/article/20130513/RETAIL07/305139964/even-for-dealers-its-a-global-business]]></link>
<guid>http://www.autonews.com/article/20130513/RETAIL07/305139964/even-for-dealers-its-a-global-business</guid>
<pubDate><![CDATA[Mon, 13 May 2013 00:01:00 EDT]]></pubDate>
<description><![CDATA[For many decades it was assumed that a local dealer had to stay local. He or she couldn't expand beyond a single point, so the goal was to make the single dealership grow. That notion was destroyed when the imports came looking for dealers to establish North American networks. Thousands of dealers ...]]></description>
</item>
<item>
<title><![CDATA[In boon for Japan's automakers, yen tumbles over milestone]]></title>
<link><![CDATA[http://www.autonews.com/article/20130509/GLOBAL/130509868/in-boon-for-japans-automakers-yen-tumbles-over-milestone]]></link>
<guid>http://www.autonews.com/article/20130509/GLOBAL/130509868/in-boon-for-japans-automakers-yen-tumbles-over-milestone</guid>
<pubDate><![CDATA[Thu, 09 May 2013 22:21:12 EDT]]></pubDate>
<description><![CDATA[TOKYO (Bloomberg) -- Toyota Motor Corp.'s half-decade of fighting the yen is over, at least for now. The weakening yen breached 100 against the dollar in U.S. trading on Thursday, paving the way for Japan to emerge from an unprecedented and largely uninterrupted five-year stretch where the ...]]></description>
</item>
<item>
<title><![CDATA[Toyota's car-buff president makes Lexus his pet project]]></title>
<link><![CDATA[http://www.autonews.com/article/20130506/OEM02/305069975/toyotas-car-buff-president-makes-lexus-his-pet-project]]></link>
<guid>http://www.autonews.com/article/20130506/OEM02/305069975/toyotas-car-buff-president-makes-lexus-his-pet-project</guid>
<pubDate><![CDATA[Mon, 06 May 2013 00:01:00 EDT]]></pubDate>
<description><![CDATA[NEW YORK -- By Akio Toyoda's own admission, his beloved Lexus luxury brand has a big problem. Unlike its German rivals, Lexus has no heritage, no narrative. Now the Toyota Motor Corp. president is investing himself personally in the brand by taking direct control of all things Lexus. His new role ...]]></description>
</item>
<item>
<title><![CDATA[Toyota's 10 million plan: Common parts, randd]]></title>
<link><![CDATA[http://europe.autonews.com/article/20130503/ANE/305039998/toyotas-10-million-plan-common-parts-rd]]></link>
<guid>http://europe.autonews.com/article/20130503/ANE/305039998/toyotas-10-million-plan-common-parts-rd</guid>
<pubDate><![CDATA[Fri, 03 May 2013 00:01:00 EDT]]></pubDate>
<description><![CDATA[N EW YORK -- Toyota Motor Corp. President Akio Toyoda is banking on an overhauled randd strategy to kick the company his grandfather founded into growth mode after four years of crises. The strategy will help boost Toyota's global sales beyond 10 million units a year, Toyoda told Automotive News ...]]></description>
</item>
<item>
<title><![CDATA[VW eyes China growth to ease pain in Europe]]></title>
<link><![CDATA[http://europe.autonews.com/article/20130430/ANE/304309985/vw-eyes-china-growth-to-ease-pain-in-europe]]></link>
<guid>http://europe.autonews.com/article/20130430/ANE/304309985/vw-eyes-china-growth-to-ease-pain-in-europe</guid>
<pubDate><![CDATA[Tue, 30 Apr 2013 00:01:00 EDT]]></pubDate>
<description><![CDATA[FRANKFURT (Bloomberg) -- Volkswagen Group expects profit to grow in China this year as Europe's biggest automaker looks to remain resilient to a recession in its home region. VW plans to grow faster than total auto demand in China, which is set to increase 6 percent to 8 percent this year, the ...]]></description>
</item>
<item>
<title><![CDATA[The 10 million plan: Common parts, randd]]></title>
<link><![CDATA[http://www.autonews.com/article/20130429/OEM01/304299982/the-10-million-plan-common-parts-rd]]></link>
<guid>http://www.autonews.com/article/20130429/OEM01/304299982/the-10-million-plan-common-parts-rd</guid>
<pubDate><![CDATA[Mon, 29 Apr 2013 00:01:00 EDT]]></pubDate>
<description><![CDATA[N EW YORK -- Toyota Motor Corp. President Akio Toyoda is banking on an overhauled randd strategy to kick the company his grandfather founded into growth mode after four years of crises. The strategy will help boost Toyota's global sales beyond 10 million units a year, Toyoda told Automotive News . ...]]></description>
</item>
<item>
<title><![CDATA[VW may cut temporary staff in Europe, Winterkorn says]]></title>
<link><![CDATA[http://europe.autonews.com/article/20130427/ANE/130429903/vw-may-cut-temporary-staff-in-europe-winterkorn-says]]></link>
<guid>http://europe.autonews.com/article/20130427/ANE/130429903/vw-may-cut-temporary-staff-in-europe-winterkorn-says</guid>
<pubDate><![CDATA[Sat, 27 Apr 2013 06:39:15 EDT]]></pubDate>
<description><![CDATA[VIENNA (Reuters) -- Volkswagen may cut temporary posts in response to Europe's weak market but won't close factories or reduce its permanent work force, CEO Martin Winterkorn said. "We will not withdraw any capacity from Europe but rather preserve capacity in Europe," Winterkorn said in an ...]]></description>
</item>
<item>
<title><![CDATA[Honda quarterly profit rises 6.6% on strong U.S. sales, falling yen]]></title>
<link><![CDATA[http://europe.autonews.com/article/20130426/ANE/130429921/honda-quarterly-profit-rises-6-6-on-strong-u-s-sales-falling-yen]]></link>
<guid>http://europe.autonews.com/article/20130426/ANE/130429921/honda-quarterly-profit-rises-6-6-on-strong-u-s-sales-falling-yen</guid>
<pubDate><![CDATA[Fri, 26 Apr 2013 03:00:15 EDT]]></pubDate>
<description><![CDATA[TOKYO (Reuters) -- Honda Motor Co. today posted a 6.6 percent rise in quarterly net profit, helped by the yen's rapid depreciation and strong U.S. sales of its Accord and CR-V models. In the quarter ended March 31, Honda booked net profit of 75.7 billion yen ($760.88 million), compared with 71.5 ...]]></description>
</item>
<item>
<title><![CDATA[Skoda aims to double sales in China by 2018]]></title>
<link><![CDATA[http://europe.autonews.com/article/20130425/ANE/130429933/skoda-aims-to-double-sales-in-china-by-2018]]></link>
<guid>http://europe.autonews.com/article/20130425/ANE/130429933/skoda-aims-to-double-sales-in-china-by-2018</guid>
<pubDate><![CDATA[Thu, 25 Apr 2013 09:42:57 EDT]]></pubDate>
<description><![CDATA[PRAGUE (Reuters) -- Skoda aims to double its sales in China to 500,000 vehicles by 2018, when one-third of its annual output could go to the world's biggest car market. Skoda has plans to raise its annual global sales to at least 1.5 million cars by 2018, up from a record 939,200 vehicles in 2012. ...]]></description>
</item>
<item>
<title><![CDATA[VW, BMW, Daimler plan $25 billion hedge by building more autos abroad]]></title>
<link><![CDATA[http://europe.autonews.com/article/20130416/ANE/304169963/vw-bmw-daimler-plan-25-billion-hedge-by-building-more-autos-abroad]]></link>
<guid>http://europe.autonews.com/article/20130416/ANE/304169963/vw-bmw-daimler-plan-25-billion-hedge-by-building-more-autos-abroad</guid>
<pubDate><![CDATA[Tue, 16 Apr 2013 02:34:20 EDT]]></pubDate>
<description><![CDATA[FRANKFURT (Bloomberg) -- With the yen weakening and Europe's debt crisis spreading, Volkswagen Group and its German peers plan to spend more than $25 billion by 2017 to expand production outside their home region and insulate themselves from currency convulsions. BMW, already among the largest U.S. car exporters, says it will start producing the new X4 crossover at its factory in South Carolina, in addition to the other three SUVs it makes there. Daimler is expanding a Mercedes-Benz plant in Alabama, and VW's Audi is building a $1.3 billion factory in Mexico. The German manufacturers' overseas investment leads European rivals PSA/Peugeot-Citroen, Renault and Fiat Group, which remain more focused on their home region. VW opened its 100th production facility this year -- a $550 million engine plant in Silao, Mexico -- helping make the company the world's most global carmaker. VW has 77 percent of its production capacity outside its home country, outpacing General Motors Co.'s 76 percent and Toyota Motor Corp.'s 59 percent, consultancy Oliver Wyman estimates. BMW, Mercedes and Audi have a more diverse footprint than luxury rivals Lexus, Cadillac and Volvo. "Our approach is a global approach," Jonathan Browning, head of VW's U.S. operations, said in a Bloomberg TV interview at the New York auto show last month. "If you've got a spread of geographic presence, a spread of brand segments across the marketplace, then you can manage these fluctuations more easily." Currency squeeze The investments come even though the euro's 18 percent slide against the dollar since its 2008 peak has made it more profitable for the Germans to manufacture at home. Daimler says its operating earnings got a 958 million euro ($1.25 billion) boost from currency swings last year as the euro sank to a two-year low versus the dollar. And with the dollar up almost 20 percent against the yen since November, analysts expect Toyota's profit to jump 50 percent this fiscal year. Yet Germany's automakers know the other side of an exchange rate squeeze. Daimler says currency swings this year will reduce operating profit by 200 million euros. And Porsche --now part of VW Group -- almost collapsed in the early 1990s because it sold most of its cars in the United States while having all its production in Germany, exposing it to a drop in the dollar that choked finances. That lesson led to the first wave of international expansion, when Mercedes and BMW opened U.S. factories in the 1990s. With Europe struggling and China, Russia and Brazil getting richer, German carmakers are boosting investment away from home to target growth and keep currency risks in check. European blues "We aim to move closer to the customer," said Joachim Schmidt, head of Mercedes-Benz sales and marketing. "We're expanding our production capacity in China and the U.S. and we're considering other countries for vehicle assembly, such as Russia or Brazil." The companies haven't given up on traditional financial hedging. BMW raised its protection in foreign-exchange markets by 39 percent in 2012 to 36 billion euros, according to its annual report. VW boosted hedges by 27 percent to 103 billion euros, and Daimler increased its currency hedging by 11 percent, the companies said in their annual reports. Currency volatility, meanwhile, is at near historic lows. JPMorgan's Global FX Volatility Index dropped to 8.74 percent on April 12 from 9.88 percent in February, and it remains below its 10-year average of 10.64 percent. Remaining profitable International expansion has kept German automakers growing and profitable even with European car sales in the midst of a six-year contraction. Since 2007, VW's market value has risen 21 percent to 68 billion euros and BMW's has surged 56 percent to 44 billion euros. While Daimler has fallen 35 percent, that's better than Peugeot's 83 percent plunge in part because of limited international operations. "The manufacturers suffered from currency fluctuations in the past," said Fabian Brandt, a partner at Oliver Wyman in Munich. "That's why they are now trying to manufacture in the regions where the demand is." VW, based in Wolfsburg, has seven new Chinese plants in various stages of planning, part of $19 billion in investments in production outside Europe expected by 2017. After spending $1 billion on a factory in Chattanooga, the company may further increase U.S. capacity with production of a big SUV based on the Crossblue concept. Daimler will spend about $5 billion by 2015 expanding operations in China and upgrading a factory in Alabama to produce the Mercedes C-class sedan and a new high-end SUV. SUV exports BMW has earmarked some $900 million for adding to its 4 million-square-foot facility in South Carolina, and it will spend 500 million euros on its Chinese facilities together with its local partner. BMW's U.S. plant, which makes cars for 130 markets worldwide, is the company's only SUV factory and exports some 70 percent of its output. That helps offset the currency exposure to imports of vehicles such as the 3 series manufactured in Germany. The Munich-based company is also planning a new factory in Brazil. "The markets that are supporting us now are the markets where we have expanded our capacity," BMW CEO Norbert Reithofer told reporters at the Geneva auto show in March. "It's our aim to be balanced globally and not depend on one market." BMW, the world's largest luxury-car maker, last year built 29 percent of its vehicles outside Europe, up from 16 percent a decade earlier. Mercedes produced more than 90 percent of its cars in its home region 10 years ago, when European demand accounted for 70 percent of the brand's global sales. In 2012, Mercedes made about 70 percent of its cars in Europe while deliveries in the region dropped to 40 percent of its total. Faster pace The faster pace of international expansion is evident with plans by VW and its joint-venture partners in China to spend 9.8 billion euros by 2015, versus 16 billion euros invested in the course of more than 25 years in the country. German carmakers are also increasingly sourcing components from local manufacturers. VW says it aims to purchase 80 percent of the parts of its North America-made vehicles from local suppliers. Still, the strategy forces VW, BMW and Daimler to deal with other risks, especially maintaining "made in Germany" quality so far from home. "Back in 2002, the world was relatively easy," but as emerging markets take center stage, regional diversification is critical, said Stefan Bratzel, director of the Center of Automotive Management at the University of Applied Sciences in Bergisch Gladbach, Germany. That, he said, "increases complexity enormously."]]></description>
</item>
<item>
<title><![CDATA[Hyundai puts growth on hold]]></title>
<link><![CDATA[http://www.autonews.com/article/20130415/OEM01/304159944/hyundai-puts-growth-on-hold]]></link>
<guid>http://www.autonews.com/article/20130415/OEM01/304159944/hyundai-puts-growth-on-hold</guid>
<pubDate><![CDATA[Mon, 15 Apr 2013 00:01:00 EDT]]></pubDate>
<description><![CDATA[YONGIN, South Korea -- Hyundai Motor Co.'s limited global production capacity is capping the company's growth, a top executive says. The company is squeezing nearly every unit possible from its assembly plants, said Lee In-cheol, Hyundai's vice president of international sales. "Without building a ...]]></description>
</item>
<item>
<title><![CDATA[Pirelli studying plan to offset weak Europe demand, source says]]></title>
<link><![CDATA[http://europe.autonews.com/article/20130408/ANE/304089916/pirelli-studying-plan-to-offset-weak-europe-demand-source-says]]></link>
<guid>http://europe.autonews.com/article/20130408/ANE/304089916/pirelli-studying-plan-to-offset-weak-europe-demand-source-says</guid>
<pubDate><![CDATA[Mon, 08 Apr 2013 00:01:00 EDT]]></pubDate>
<description><![CDATA[MILAN (Reuters) -- Pirelli plans to offset weakening demand in Europe for its premium tires by shipping tires produced in Europe to emerging markets, where demand is growing, said an industry source on Sunday. Pirelli said on Friday that it is carrying out a "significant review of its commercial ...]]></description>
</item>
<item>
<title><![CDATA[Scion weighs a move to entry-lux]]></title>
<link><![CDATA[http://www.autonews.com/article/20130401/RETAIL03/304019942/scion-weighs-a-move-to-entry-lux]]></link>
<guid>http://www.autonews.com/article/20130401/RETAIL03/304019942/scion-weighs-a-move-to-entry-lux</guid>
<pubDate><![CDATA[Mon, 01 Apr 2013 00:01:00 EDT]]></pubDate>
<description><![CDATA[NEW YORK -- Toyota is weighing a major shift in positioning for its struggling Scion brand: moving upscale to target entry-level luxury models coming from European makes. The new lower-luxury niche includes Mini, the front-wheel-drive Mercedes-Benz CLA arriving this fall and Audi's compact A3 sedan shown last week on the eve of the New York auto show. Scion has gone after young entry-level buyers since its inception 10 years ago but has lost its early momentum. "Everybody is looking at what direction Scion should go," said Jim Lentz, CEO of Toyota's North America Region. "We have to take a real hard look at what the future of the industry looks like strategically, and where we want Scion to play." Scion, not Lexus, may be the way Toyota meets the new premium competition typified by the CLA, which will start at under $30,000, not including shipping. The Toyota brand, which has 18 nameplates, may be too product-heavy to compete in the mass market and join the entry-luxury fight as well. And Lexus has refused to drop below the $30,000 price point. "There's a cost to provide that outstanding Lexus customer service," Lentz said. "We don't want to lose that, and we don't want to cheapen our cars." No decision has been made about Scion's future, but Scion Vice President Doug Murtha says: "If we stand still, we're going to be in trouble." Lentz, who was Scion's first boss, said that when Toyota executives discussed strategy at the brand's birth they split on whether it should be a Korea-fighter or an entry-luxury brand. "We were torn at what direction to go," he said. "We could go any of those directions." Lentz cautioned that the idea of Scion moving upscale "is not a widely held view in the company." For one thing, the overall size of the segment for entry-luxury cars starting between $25,000 and $30,000 has not been demonstrated. But Scion could move up the price ladder because it's already part of the way there. When the brand launched, entry-level cars were in the $13,000 range. "Today it's hard to find much value below $18,000 to $20,000," Lentz said. "There's going to be a big need in the $25,000 range for a fun-to-drive, nice-looking, value-oriented product." Scion also could compete against the German luxury brands that insist true luxury means rear-wheel-drive but also have developed less expensive fwd platforms for the entry-luxury segment. The Scion FR-S is rwd, and Toyota executives have said the platform is flexible and could spawn variants. "As we look at Europeans coming downmarket, the FR-S fits into that position," Lentz said. Staying put Moving up the price ladder could expand Scion's lineup. The FR-S coupe starts at $25,255, but a Toyota-badged convertible version unveiled at the Geneva auto show last month likely would be several thousand dollars more -- making it a stretch for the current target Scion buyer. "The same body can't do a coupe for Scion and a convertible for Toyota," Lentz said. Still, Lentz feels there is cause for Scion to remain in its current econobox niche. "The Corolla is a great car, but it's a Corolla," Lentz admits about the dowdy but perennially strong-selling compact. Toyota hopes the 2014 Corolla's styling, seen in the Furia concept, will increase the Corolla's cool factor among Gen Y buyers. Plus, a new low-priced segment could be erupting with Honda entering the subcompact crossover segment in 2014. There's another possibility cited by some insiders: Fold entry-level Scion products back into the Toyota brand. With the Corolla aiming for younger buyers, it's starting to play in Scion's original sandbox. Lentz discounted that possibility. Scion has sold 900,000 vehicles in its short history. The recession took a huge bite of out of sales, which fell from a peak of 173,034 units in 2006 to 45,678 in 2010, as young buyers couldn't get steady jobs or good credit. Scion has rebounded slightly, selling 73,505 vehicles last year. But the brand has room to grow. Among the age group it targets, "60 percent weren't in the market when we launched," Murtha said. Many Scion buyers have moved up in the world, and are ready to buy a more expensive vehicle. Murtha says part of Toyota's study involves whether Scion should follow them up-market, or await the next round of entry-level buyers. Stale product For nearly a year, Toyota executives said last week's New York auto show would display a new direction for the brand. Instead, there were several minor mid-cycle freshenings. That's odd because the xB and xD hatchbacks are 6 years old -- ancient for a brand that promised quick-turn product cadences. Lentz declined to comment on the future of the xB and xD. Part of the reason for the slow product cadence is global. Scion must struggle for engineering and product development resources. As the parent company invests heavily in emerging markets such as China and South America, funding and staff for low-volume niche products only sold in the United States and Canada has a low priority, Lentz said. The bottom line is that Toyota can't stand still. Said Lentz: "If the market is coming to you, do you do it with Toyota or do you do it with Scion?"]]></description>
</item>
<item>
<title><![CDATA[Hyundai exec: We're studying pickup for U.S.]]></title>
<link><![CDATA[http://www.autonews.com/article/20130401/OEM03/304019965/hyundai-exec-were-studying-pickup-for-u-s]]></link>
<guid>http://www.autonews.com/article/20130401/OEM03/304019965/hyundai-exec-were-studying-pickup-for-u-s</guid>
<pubDate><![CDATA[Mon, 01 Apr 2013 00:01:00 EDT]]></pubDate>
<description><![CDATA[YONGIN, South Korea -- Hyundai Motor Co. is looking into launching a pickup in the United States, Hyundai's sales boss says. Product planners and engineers at headquarters in South Korea are studying what size truck would be best, Lee In-cheol, vice president in charge of international sales, said at a Hyundai training center here, southeast of Seoul. "We do not have a pickup truck. Other than that, we cover almost every segment," Lee told Automotive News on the eve of the Seoul Motor Show. "We are studying that one very hard -- what kind of pickup truck we should produce, if we have to. Is it a big-size pickup truck like in the United States or a small kind of pickup truck?" Hyundai has no plans to produce a pickup, but dealers in the United States and other countries are asking for one, he said. Lee declined to give a timeline for a decision. "We just study and submit our request to the randd center, and the randd center is studying, too," the executive, who also goes by Edward Lee, said. "We don't know yet which market would be the first" to get a pickup, he said, adding that the company could choose to build a small truck to target emerging markets. Hyundai has transformed its reputation from that of a purveyor of cheap, low-quality compacts into a global powerhouse known for quality products and smart design. The shift helped the brand successfully branch into new segments such as crossovers. But Hyundai has no pickups. Attempts to penetrate the United States, especially with a Korea-built import, could get a boost from the U.S.-South Korea free trade agreement that took effect in March 2012. The accord stipulates that the U.S. tariff of 25 percent on imported light-duty trucks and vans, the so-called chicken tax, will remain in place for seven years, then be phased out by 2021. Hyundai can likely afford to wait. "We are doing a good job in recent years without a pickup truck," Lee said of Hyundai's sales. "A pickup truck is important, but it's not a big priority for our company. But we have to consider how to respond. It is under study." Rumors of a Hyundai pickup have been on-again, off-again. But the brand has remained focused on its bread-and-butter portfolio of cross-overs, sedans, SUVs and coupes. In the late 2000s, Hyundai and Kia were considering a unibody, front-wheel-drive mid-sized pickup. But the talks were derailed by rising oil prices and a declining truck market.]]></description>
</item>
</channel>
</rss>
