Worst July car sales since 1990 (U.S)

More bad news for car manufactures and car sales. GM, Ford, Chrysler, Toyota and Honda have reported slowing sales but on a brighter note, Nissan has reported an increase in sales. GM has reported the largest loss in sales with Honda sales only dipping down to -9.2%.

GM: -31.8%

Ford: - 21.7%

Chrysler: - 34.2%

Toyota: - 18.7%

Honda: - 9.2%

Nissan: + 0.1%

Smart raises sales target (U.S)

Fuel-efficient cars are in high demand. Sales of the Smart ForTwo caused its distributor, Penske Automotive Group, to increase forecasts for 2008 sales to 24,000 - 27,500 units, from the previous 20,000 sales.

According to Penske, if Daimler could deliver more vehicles to the U.S, sales could reach between 30,000 and 32,000 units as early as next year.

More motorists leave their cars at home (U.S)

Thanks once again to soaring fuel prices and other economic strains have led people to cut back sharply on driving, which is changing where they go and how they get there and jeopardizing the federal fund for highway construction and repairs.

Americans drove 9.6 billion fewer miles in May 2008 than in May 2007, according to federal data released Monday. The 3.7 percent decline was the third-largest monthly drop in the 66 years the Department of Transportation has been collecting the data.

The May decline also is the seventh monthly drop in a row. Since November 2007, Americans have driven 40.5 billion fewer miles compared to the same period a year earlier. They're cutting the number of car trips they take, and they're walking, taking carpools and, sometimes, simply staying home instead.

The highway trust fund gets 18.4 cents per gallon from petrol sales and 24.4 cents per gallon for diesel sales.

Via MSNBC > As Americans drive less, highway funds drop

Related link:

UK motorists leave their cars at home

GM and Chrysler LLC sales drop in July (U.S)

After reporting a massive loss of a staggering $15.5 billion in the second quarter of 2008, GM also reported that the sales of its vehicles have dropped by 26.7% in July to 235,184 units.

According to GM’s data, July’s car sales were down 2.1% to 105,335 units, while light truck sales fell by 35.4%, down to 129,849 units. Beyond the negative headlines, GM saw the Chevrolet Malibu total sales go up 79% and the Aveo up 17%. The Cadillac CTS sales were up 38%, Saturn Aura up 24% and the Saturn Sky sales up 14% compared to last July.

Chrysler’s 'Let’s Refuel America $2.99 Gas Guarantee' promotion didn’t seem to help much as the troubled American car firm reported July sales of 98,109 units, which is 29% below the same period last year. However, its not all bad news. The Chrysler Town & Country (Grand Voyager overseas) posted a 24% increase with 8,070 sales versus July 2007 sales of 6,513 units while the Dodge Avenger's sales were up 4%.

Mercedes GLK receives 10,000 orders in Western Europe (EU)

Around 10,000 orders for the new GLK were taken by Mercedes retailers in Western Europe. Although I don't define Germany being in Western Europe, every 1 in 4 GLK's are Edition 1's. Edition 1 features 20 inch wheels, EASY-PACK tailgate, privacy glass, interior sports package with black-white nappa leather from the designo range, multi-function AMG leather steering wheel, black roof lining, aluminum trim and COMAND APS system. Deliveries start in October with U.S sales kicking off in early 2009, with the economical BlueEFFICIENCY package on the GLK 220 CDI featuring a new four-cylinder diesel engine available in Spring 2009.

A RHD GLK should arrive in 2011 or 2012 at the earliest.

Press Release:

New Mercedes-Benz GLK-Class Posts Impressive Number of Incoming Orders

10,000 orders in Western Europe alone just one month after vehicle was released for sale
Already 1,000 orders for exclusive “Edition 1” model

Customers especially appreciate the GLK’s attractive design, extensive safety features, and typical Mercedes-Benz driving comfort

Stuttgart – Mercedes-Benz’ new compact SUV has met with an outstanding response from customers in the first month after the vehicle was released for sale on June 30, 2008. In Western Europe alone, Mercedes-Benz has already received a total of 10,000 orders for a GLK-Class vehicle by the end of July. Deliveries of the GLK, which celebrated its world premiere at the Auto China show in Beijing at the end of April, are scheduled to commence in Western Europe in October, with market launch in the U.S set to follow at the beginning of 2009.

The exclusive GLK “Edition 1” variant has already attracted a lot of interest even before its official introduction to the market, as Mercedes-Benz has received 1,000 orders for the special model to date. In Germany, every fourth GLK order is an “Edition 1” vehicle. The special model will only be available for the launch of the GLK-Class. Among other things, the high-end model will feature a specially designed exterior and interior with a sports package as well as an AMG multifunction leather steering wheel. “Apparently the GLK-Class perfectly meets the current trends,” says Dr. Klaus Maier, head of Sales and Marketing at Mercedes-Benz Cars. “The GLK is a compact SUV that has everything that is typical for a Mercedes-Benz: an expressive design, extensive safety features, and the typical Mercedes-Benz driving comfort. Moreover, it impresses customers with its outstanding performance in both on and off-road applications.”

The media response to initial GLK-Class test drives was also very positive. During a three-week driving presentation on all types of terrain in July, a total of 600 international media representatives were able to experience for themselves the superior driving quality offered by the model series. Thanks to its AGILITY CONTROL chassis, the GLK boasts excellent handling and safety combined with outstanding driving comfort.

In addition, the model’s variable 4MATIC all-wheel drive system and electronic stability control ensure perfect on-road performance, and reliability in off-road applications. Mercedes-Benz offers four and six-cylinder engines for the GLK that are both powerful and economical. The brand will also begin offering a BlueEFFICIENCY model in the spring of 2009 in the form of the GLK 220 CDI featuring a new four-cylinder diesel engine.

The GLK-Class boasts pioneering passive safety systems, excellent interior comfort and low noise, and a high level of value retention. Mercedes-Benz is also making available for the first time in this vehicle class state-of-the-art systems such as the PRE-SAFE® safety package and the ILS intelligent light system.

Related links:

Mercedes GLK goes off-roading

Concept Car: Mercedes Vision GLK

Jeep Cherokee pricing announced (UK)

The Ohio built Jeep Cherokee will start from £24,595 for the manual transmission and £25,595 for the automatic. Only one trim-level and engine will be available - 177bhp 2.8-litre diesel engine. The Limited grade comes with ESP, Hill Descent Control, 17-inch alloy wheels and leather trim.

Permanent Selec-Trac four-wheel drive plus an active traction control system to anticipate and prevent wheel slip will be standard across the range.

Full specification for Limited:

Safety and Security:

All speed traction control Anti-lock four-wheel disc brakes Panic Brake Assist

Child seat anchor system-latch ready

Electronic Stability Programme (ESP) Enhanced Accident Response system

Locking fuel filler cap

Next generation multistage front air bags with supplemental side curtain air bags

Premium security alarm with immobiliser

Sentry key theft deterrent system

Speed sensitive power locks

Selec-Trac® II full-time 4WD system

Hill Descent Control with Hill Start Assist

Remote keyless entry

ParkSense® rear park assist system

Compact spare tyre

Exterior:

17 x 7.0 alloy wheels 235/65 R17 tyres

Automatic headlamps

Body coloured fascias with bright inserts

Bright grille

Bright side roof rails

Chrome bodyside mouldings

Front Fog Lamps

Power folding heated door mirrors

Interior:

12v auxiliary power outlet

Air conditioning with automatic temperature control

AM/FM MP3 radio

Compact spare tyre

Courtesy lamps

Cruise control

Front passenger forward fold flat seat

Illuminated entry

Instrument cluster with display screen

Leather wrapped steering wheel

Luxury front & rear floor mats

Power 6-way driver seat

Power front windows, 1-touch up & down

Rear 60/40 folding split recline seat

Auto-dimming rearview mirror

Reversible/waterproof cargo storage

Six speakers

Steering wheel mounted audio controls

Temperature & compass gauge

Tilt steering column

Tip start ignition

Tyre pressure monitoring display

Variable intermittent windshield wipers

Vehicle Information Centre

Power 6-way driver and 2-way passenger seat

Luxury door trim panel

Leather trimmed seats

Leather wrapped interior items

Leather wrapped shift knob

Bright sill scuff pads

Heated front seats

Manual driver lumbar adjust

Memory package (seats, mirror and radio)

Related link:

Jeep Cherokee/Liberty production starts

New Car: 2009 Hyundai Grandeur/Azera facelift

The Hyundai Grandeur/Azera hasn't really been a hit with European customers, even when a diesel is available in selected markets. Compared to the Citroen C6, Peugeot 607 and Vauxhall/Opel Signum, it is good value for money, considering it only starts at £27,100.

Hyundai has also kept the price low, meaning added value for the car. For 2009, the Azera comes equipped with new features such as redesigned 17-inch hyper-silver alloy wheels, new chrome grille, blue interior lighting, chrome interior accents, dark brown woodgrain accents, saddle brown interior option, new audio head unit with larger screen, and standard AUX/USB ports. Electroluminescent cluster display is now standard in the entry-level GLS model. Hyundai has also improved the steering and suspensions to eradicate the wallowy handling of the 2006-08 Azera. Top spec Limited trim can be opted with a LG navigation system.

The Azera is available with two powertrain: a 234bhp 3.3 litre V6 and a 268bhp 3.8 litre V6. Both are mated to a 5-speed SHIFTRONIC automatic transmission. The GLS is priced at $24,600, while the Limited is priced at $28,550.

The 2009 Azera has been on sale for quite some time now in the U.S. If you live in Aurora, Illinois, you will be able to see it at your local Hyundai dealership. The '09 Azera will offically go on sale in September.

Press Release:

2009 AZERA PACKS MORE PERKS INTO PREMIUM SEDAN SEGMENT

FOUNTAIN VALLEY, Calif., Hyundai Azera’s long list of features has been expanded and upgraded once again for the 2009 model year, adding to its outstanding reputation for luxury and value in the premium sedan segment. Updates to the 2009 Azera include improved steering and suspension for better ride and handling on all models, new blue interior lighting, chrome interior accents, more distinctive chrome grille, redesigned alloy wheels and first-ever standard iPod®/USB and auxiliary inputs. Mid-year model changes carried over into the 2009 Azera include an LG in-dash navigation system. This more competitive Azera features no price increase for the GLS or Limited base models.

NEW EQUIPMENT HIGHLIGHTS FOR 2009:

·Redesigned 17-inch alloy wheels

· More distinctive chrome grille

· Signature blue interior lighting

· Electroluminescent cluster display standard on GLS

· Chrome interior accents

· Dark brown woodgrain accents

· Ion-plated metalgrain accents

· More contrasting interior trim panels

· Brown interior color choice

· Audio head unit with larger display screen

· Standard iPod®/USB auxiliary inputs

· New exterior color options – Ivory Pearl, Black Onyx Pearl, Mystic Blue Pearl, Crimson Red Pearl, Smoky Gray Pearl, Silver Frost Metallic, Silk Beige Metallic.

More and more customers are discovering how well Azera stacks up against the competition. Enhanced design and convenience features, together with comprehensive standard active and passive safety technology packages, make the 2009 Azera a strong competitor to vehicles like the Lexus ES350, Toyota Avalon, Nissan Maxima and Buick Lucerne. Spacious and luxurious, the Azera even features more interior volume than expensive luxury sedans such as the Mercedes Benz E-Class and BMW 7-Series. There’s no question that Azera is one of the smartest premium large-sedan choices available in the American market today.

STRIKING FIRST IMPRESSIONS:

Azera’s proportions are elegant, purposeful and aerodynamically efficient, reducing wind noise while adding maximum stability on the highway. Inside, its spacious cabin provides not only roomy comfort, but a luxurious look and attention to detail that makes both driver and passengers alike feel that they are riding in a much more expensive sedan.

SAFETY FEATURES:

Maintaining Hyundai’s emphasis on class-leading safety technology, the 2009 Azera boasts impressive active and passive safety features to protect its occupants in the event of a collision, earning the vehicle the Insurance Institute for Highway Safety’s (IIHS) top crash test ratings for frontal offset impacts. The Azera continues to set standards by making key life-saving active safety technology standard, such as Electronic Stability Control (ESC) with a Traction Control System (TCS).

Also standard are independent double-wishbone front- and multi-link rear suspension, large four-wheel disc brakes and an Antilock Braking System (ABS) that includes Brake Assist, which provides maximum braking force when a panic stop is detected, and Electronic Brakeforce Distribution (EBD), which automatically adjusts the amount of force applied to each of a vehicle’s brakes for optimal performance under poor road conditions, speeding, loading and other potentially hazardous situations.

Additionally, Azera offers impressive passive safety features including eight standard airbags, active front head restraints to help prevent whiplash, a Lower Anchors and Tethers for Children (LATCH) system for children’s seats and three-point seatbelts for all positions while shingle-style rear-seat head restraints provide drivers with improved visibility. Security is further advanced with an anti-theft engine immobilizer and remote keyless entry with alarm.

ACCOMMODATING INTERIOR:

The 2009 Azera offers luxurious appointments and spaciousness that rivals the finest premium competitor brands. It offers a roomy cabin, with nearly 44 inches of legroom up front and more than 38 inches of legroom for rear-seat passengers. Hyundai engineers have created efficient packaging to maximize interior volume, with the 2009 Azera offering more interior volume (123.5 cu.-ft.) than the Toyota Avalon, Mercedes Benz E-Class sedans and the BMW 7-Series.

Special attention has been paid to other interior details, such as the enhanced electroluminescent cluster display and steering wheel audio control functions. The new blue backlighting for interior gauges, switches and buttons along with ion-plated accents highlight the vehicle’s modern appearance. Other unexpected luxury appointments include rain-sensing wipers, power adjustable foot pedals and power folding side mirrors with turn signal indicators on the Limited version.

The Azera comes standard with dual front automatic climate controls, electrochromic auto-dimming mirror with HomeLink®, power seats for driver and front passenger, as well as woodgrain and new metalgrain interior accents. More contrast has also been added to the interior trim panels, and for the first time ever, a brown interior color choice is available.

An AM/FM/XM/CD/MP3 audio system that includes a four-channel, 172-watt internal amplifier and six speakers comes standard in the Azera GLS. Audiophiles with even more demanding tastes will be impressed by the available Infinity audio system that includes a seven-channel, 315-watt amplifier with an in-dash six-disc CD changer and 10 speakers, standard in Limited trim levels.

Music lovers will also welcome the 2009 Azera’s inclusion of standard auxiliary input jacks (3.5 mm mini-jack and USB input) to accommodate and charge audio devices such as iPods®. When an iPod or flash drive is connected through the USB port, which is located in the center storage compartment, not only does it play music through the vehicle’s speakers, but it also charges the iPod and allows the driver to access tracks with the steering wheel audio controls. This system also allows both driver and passengers to easily view song/artist/title information and control the music from the audio head unit rather than just the iPod itself.

LG NAVIGATION:

LG, the South Korean-based international manufacturer of consumer electronics has developed an exclusive navigation system for the Hyundai Azera, Santa Fe and Veracruz models. Using touch screen functions, the navigation system comes equipped with a premium 605-watt Infinity Logic 7® surround sound system with 12 speakers, 11-channel digital amplifier and AM/FM/XM Satellite Radio/CD/MP3 reception capability which replaces the six-disc CD changer and auxiliary input jacks. It also includes mapping software for the continental United States and has available POI’s (Points of Interest) for entertainment, shopping and dining. Route guidance is provided by audio and visual prompts.

POWER AND PERFORMANCE:

The Azera GLS is equipped with a 3.3-litre, DOHC V6 engine that produces 234-horsepower and 226 lbs.-ft. of torque. As the first member of Hyundai's “Lambda” engine family, this engine has all-aluminum construction, four valves per cylinder and Continuously Variable Valve Timing (CVVT), all for a broad power spread. It also features a Variable Intake System (VIS) that further broadens its power curve to improve the vehicle’s off-the-line acceleration and passing performance. EPA fuel economy estimates for the Azera GLS are 18 mpg city / 26 mpg highway. The Azera Limited delivers a powerful performance, due to its clean and efficient all-aluminum 3.8-litre, DOHC V6 engine, which delivers 263-horsepower and 257 lbs.-ft. of torque. To maximize the power spread, this engine also uses CVVT and a Variable Intake System (VIS) to help cylinders breathe efficiently at both low and high rpms. The Azera offers more standard horsepower than the Buick LaCrosse and even the BMW 528i, yet still remains environmentally friendly with an Ultra Low Emission Vehicle (ULEV) certification rating. EPA mileage figures for the Azera Limited are 17 mpg city / 26 mpg highway.

Both V6 engines are matched with Hyundai’s five-speed automatic transmission with SHIFTRONIC® manual control. This transmission offers smooth shifts and a wide ratio spread that ideally suits the engine’s characteristics.

COMFORTABLE AND CONTROLLED SUSPENSION:

Hyundai engineers benchmarked the best cars in the category before designing the Azera’s double-wishbone front and multi-link rear four-wheel independent suspension system. By using high-tensile steel in critical unibody areas, the Azera features increased stiffness and rigidity, which ensures formidable resistance to flexing, enhanced ride and handling tuning, while at the same time lowering interior noise levels. Attached to the Azera’s rigid structure is improved suspension and steering hardware to keep the vehicle even flatter through turns and more compliant over bumps. The enhanced suspension features four revalved twin-tube, gas-charged dampers, softer bushings and a quicker steering rack. The Azera also has front and rear stabilizer bars and rides on 17-inch wheels and 235/55VR17 tires.

TWO ENHANCED, WELL-EQUIPPED MODELS:

From the well-equipped GLS, to the downright luxurious Limited, the 2009 Azera lineup addresses the needs and desires of premium sedan customers with a highly competitive mix of features and benefits. Each model delivers a level of standard equipment that is a cut above competing models.

AZERA GLS:

The GLS now includes a more impressive range of standard features that give it a competitive edge, including a powerful and efficient 3.3-litre, DOHC V6 engine with 234-horsepower, a smooth-shifting, five-speed automatic transmission with SHIFTRONIC manual control, standard ESC with TCS, eight airbags, active front head restraints, electroluminescent gauge cluster and a six-speaker AM/FM/XM/CD audio system with iPod®/USB and auxiliary inputs. The vehicle achieves 18 mpg city/26 mpg highway fuel economy ratings.

Further enhancing the GLS’s first-class appearance are new 17-inch, 10-spoke alloy wheels and 235/55VR17 tires. Upscale features include LED tail and brake lights, auto-dimming inside rearview mirror with HomeLink®, power seats for both driver and front passenger, dual front automatic climate controls and automatic headlight control.

AZERA GLS with PREMIUM PACKAGE:

The Azera with Premium Package adds leather seating surfaces, heated front seats and a power sunroof to an already-loaded standard equipment package.

AZERA LIMITED:

A truly impressive array of standard features and amenities define the prestigious Azera Limited. Additional standard features on the Limited include leather-trimmed seating, heated front seats, power glass sunroof with tilt and slide, power folding side mirrors with turn signal indicators, power rear sunshade and a powerful 315-watt Infinity AM/FM/XM/MP3 audio system with an in-dash six-disc CD changer. The Limited now adds new hyper silver alloy wheels and iPod® /USB and auxiliary inputs.

AZERA LIMITED with ULTIMATE PACKAGE:

The Ultimate Package defines Hyundai’s flagship Azera, offering a 605-watt Infinity Logic 7® Surround Sound AM/FM/XM/MP3 audio system with an in-dash six-disc CD changer, 12 speakers (including subwoofer and external amplifier), and iPod®/USB and auxiliary inputs. The Ultimate Package also offers, power adjustable tilt and telescopic steering wheel, power adjustable pedals, integrated memory system (power driver seat, exterior mirrors, and power tilt and telescopic steering wheel), woodgrain steering wheel and door pulls, and rain-sensing wipers.

AZERA LIMITED with ULTIMATE NAVIGATION PACKAGE:

The Ultimate Navigation Package includes all of the Ultimate Package items plus the LG navigation system, which replaces the six-disc CD changer and auxiliary input jacks.

WARRANTY:

The Azera, like all 2009 models, is protected by the Hyundai Advantage, America's Best Warranty. Coverage includes five-year/60,000-mile bumper-to-bumper protection, 10-year/100,000-mile limited powertrain warranty, five-year/unlimited mileage roadside assistance and seven-year/unlimited mileage anti-perforation coverage. In addition, Azera buyers receive 24-hour roadside assistance coverage at no extra charge for five years (no mileage limit), a service that includes emergency towing, lockout service and limited coverage for trip-interruption expenses. There is no deductible on any of this coverage.

HYUNDAI MOTOR AMERICA:

Hyundai Motor America, headquartered in Fountain Valley, Calif., is a subsidiary of Hyundai Motor Company of Korea. Hyundai vehicles are distributed throughout the United States by Hyundai Motor America and are sold and serviced by almost 800 Hyundai dealerships nationwide.

New Car: 2009 Ford Ka

Ford has taken the covers off its all-new Ka city-car. The original launched in Paris back in 1996 and over its 12 year lifetime, sales surpassed 1.4 million units.

Engines and specification details will be finalised closer to the Ka’s launch in September, but there will be crossover with Fiat’s powerplants. So expect a 69bhp, 1.2-litre petrol engine along with the more powerful 99bhp 1.4-litre from the Cinquecento. Fiat’s super-frugal 1.3-litre Multijet diesel is likely to make it to the Ka too, the first time a diesel version’s ever been offered. Naturally, there is an emphasis on younger customers with this model and they can expect iPod connectivity across the range plus Bluetooth hands-free as an option.

Fiat and Ford are also thought to be considering using an extremely fuel-efficient 900cc, 2-cylinder turbo motor that would offer class-beating, sub-100g/km CO2 emissions and 60+ mpg fuel economy.

The new Ka will be built alongside its counterpart at Fiat’s factory in Poland Since the Panda is built at this plant, the 500 and Ford Ka are both based upon it. This production line and platform sharing helps both companies cut manufacturing costs and therefore offer their respective city cars at a lower price.

While Fiat’s opted for image-driven, premium price market positioning for its 500, Ford has already said that it won’t follow suit with the Ka. A starting price of around £7,500 is expected when this funky little urban cruiser arrives in showrooms early in 2009.

'We are very excited about the launch of the new Ka,' said Roelant de Waard, Chairman and Managing Director, Ford of Britain. 'The original has been a huge hit in the UK with a sales record of over 480,000 -80% of which have been to retail customers, and many of those first-time buyers. I'm confident that the latest design will prove just as big a hit.'

The newcomer will be unveiled at the upcoming Paris motorshow. So, the question is, which out of the 2 would you choose? The Fiat 500 or Ford Ka?

Press Release:

FRESH, FUNKY AND FUN – INTRODUCING THE ALL-NEW FORD KA

Paris Show debut for all-new Ford Ka Bold, fashionable and stylish design

Full of youthful and cheeky Ka spirit

Exciting successor to the iconic original

The exciting new Ka, Ford’s fresh, fun and funky small car, will take centre-stage at the 2008 Paris Motor Show in October. The all-new Ford Ka brings new levels of style and enjoyment to affordable city cars. Twelve years after the original Ka was launched to great acclaim, its successor captures the same youthful and cheeky spirit. The new model retains all of the qualities which made the Ka so popular – its compact size, great looks, lively dynamics and fun personality – but presents them in a fresh new package.

Stylish Inside and Out:

Ford designers have given the new Ka a fashionable, modern appearance based around the company's 'kinetic design' form language. A number of visual cues provide a connection to the original Ka, but with its distinctive face and chunky proportions the new model has its own unique character. The interior of the new Ka also has a stylish, dynamic design, combining bold contrasts and expressive colours which reflect the more adventurous tastes of the typical Ka buyer.

Rebirth of a Design Icon:

The new model is destined to continue the considerable success of the original Ford Ka, which is widely considered to be an automotive design icon. Launched at the Paris Motor Show in 1996, the Ka was immediately praised for its exciting “New Edge” styling and class-leading driving dynamics. Throughout its 12-year life the Ka has remained tremendously popular among small-car buyers, inspiring fierce loyalty from its owners. In total, Ka production has exceeded 1.4 million vehicles. Further information on the new Ford Ka range will be released in time for the Paris Motor Show in early October 2008.

Mercedes cuts SUV production (U.S)

More evidence of global economic downturn has come with Mercedes-Benz’s announcement that it intends to slash production over the next four months.

40,000 units of previously-planned production will be lost, with cuts taking place on both sides of the Atlantic. The Alabama plant that builds the ML and GL SUVs faces the brunt of cutbacks after American SUV sales were hit by economic uncertainty and the rising oil price.

Mercedes bosses will be more alarmed by a sharp decline in sales of its most profitable model, the previously rock-solid S-Class. According to the company insiders, the ‘S’ is down by 23% year-on-year in America.

Full-blown recession in the U.S would cause serious distress to all the established premium car makers, as it is the biggest market for almost all luxury models. Mercedes is responding to the decline in sales by considering taking smaller models to the ‘States, including the next-generation A-Class and B-Class compact hatchbacks.

French car sales plummet (UK)

Production of French cars has fallen sharply according to a report. This provides proof that Europe's car makers are facing an increasingly tough business climate.

Citroen has done better than Peugeot and Renault, helped by its aggressive pricing strategy and a recently refreshed model line-up, with output slipping my just 1% last month compared to the same period last year.

Peugeot has suffered the worse sales, posting a 5% fall in year-on-year volume, while Renault's production has fallen by more than a fifth.

Renault has been hit by disappointing sales for the new Laguna along with slow demand for the Espace and Vel Satis (latter is still sold in Europe and not in UK). The current Megane is also running out to replacement, further depressing the figures. The company is considering reducing production at the Sandouville plant, which produces the Laguna, Espace and Vel Satis, to just one shift.

Despite the sliding sales, Renault boss Carlos Ghosn has said he is confident that the manufacturer will meet its operating profit target for this year.