It’s a new month, and new April incentives are gradually rolling out. GM’s the first to post, and thus far the deals are slightly underwhelming.

Chevy is offering $1,500 cash back on its Impala sedan, a perennial best-seller despite its otherwise bland personality. The carmaker is also giving back $2,000 on the 2008 Avalanche, which Cars.com reviewer Kelsey Mays lauded in his review when the truck first hit the scene. Both cars also have 36-month, 2.9% financing offers.

Chevy is continuing its usual high-dollar truck incentives in April, offering between $1,500 and $3,250 cash back on its various Silverado trucks. Incentives expire April 30.

Sales of new cars nose-dived last month by more than 23 percent from a year before, partly because early Easter holidays shortened the trading month.

Total new vehicle sales reported to the National Association of Automobile Manufacturers of SA (Naamsa) declined by 17.5 percent year on year to 47 778 units, with new car sales falling to 27 724 units.

Motor industry analyst Tony Twine, a director of Econometrix, said last month had two fewer trading days than in March 2007, or a 9 percent reduction in selling time.

He noted that growth in passenger vehicle sales had been in a downswing since October 2006, an early response to the interest rate hikes that began in June 2006. Car sales had fallen 30 percent in the 18 months since hitting an incredibly high point just before October 2006.

There was a huge dichotomy in the economy as downward pressure on consumers to prevent them spending contrasted with a ballooning business sector that was trying to sustain the fixed investment cycle.

Sales of new light commercial vehicles, bakkies and minibuses dropped to 16 616 units last month, a dip of 10.7 percent from March last year.

Medium truck sales rose by 2.6 percent to 1 321 units and heavy truck and bus sales leapt 9 percent to 2 117 units.

Nico Vermeulen, Naamsa’s executive director, said the data should be seen in context, because new vehicle sales in March last year represented one of the highest sales months on record and Easter holidays fell in March this year, reducing the number of selling days.

Jacques Brent, the vice-president for sales and market at the Ford Motor Company of Southern Africa, said sales last month were slightly up on February, but overall market sentiment remained unchanged with “tough times ahead”.

Brent said Ford had revised its forecast for total industry new vehicle sales downwards to 570 000 this year from 590 000.

Brand Pretorius, the chairman of McCarthy Motor Holdings, said the key reason for the much lower car sales was that both business and consumer confidence were under siege.

Current sales figures were not an accurate reflection of spontaneous demand, he added. They resulted from intense discounts, cash-back offers and subsidised interest rates that were stimulating the market artificially.

“We believe market demand is actually at a significantly lower level. Purely from a motor industry perspective, there is no need for a further interest rate increase, as demand has already slowed right down.”

Malcolm Gauld, the vice-president of sales and marketing at General Motors South Africa, said the significant cost push burden of a sudden deterioration in the rand meant pricing adjustments were unavoidable in the short term.

Ford Motor Co. is selling its storied Jaguar and Land Rover brands to India’s Tata Motors Ltd. in a deal that will net the U.S. automaker $1.7 billion — roughly a third of the price it paid for the two luxury brands.

The deal announced Wednesday will expand the Indian carmaker’s reach around the globe and give Jaguar and Land Rover badly needed capital to update and expand their product lines.

The agreement had been in the works for months as cash-strapped Ford sought money to fund its turnaround plan.

Tata will pay $2.3 billion for the British brands, but Ford will pay about $600 million into the Jaguar-Land Rover pension fund when the deal closes, Tata’s statement said.

Ford bought Jaguar for $2.5 billion in 1989 and Land Rover for $2.7 billion in 2000. But the Dearborn-based automaker has been struggling and wants to focus on its main brands.

Selling the companies at such a loss clearly shows buying them was a mistake for Ford, said Erich Merkle, vice president of auto industry forecasting for the consulting company IRN Inc. in Grand Rapids.

Jaguar never has made a profit under Ford, Merkle said.

“You have to cut your losses at some point. It’s been draining them of cash and resources,” Merkle said.

The net proceeds aren’t enough to rescue Ford’s finances, but the sale will allow the company to focus on its core Ford brands, Merkle said.

Tata should have the cash to save the brands and develop new products to better compete with luxury automakers such as BMW AG, Merkle said.

Tata said it expects no significant changes in the terms of employment for Jaguar and Land Rover’s 16,000 workers. It said the transfer of the brands would take place at the end of the second quarter.

The sale raises the Tata conglomerate’s profile on the world stage, said V.G. Ramakrishnan, the lead auto analyst with the consulting firm Frost and Sullivan India.

“This is another important landmark step of showcasing that Indian companies are arriving on the global landscape,” Ramakrishnan said. “Many people will see this deal as the future of things to come — you will see more companies out of India acquiring global companies. They want to be seen as major global players.”

In England, some workers were upbeat about the change, but others worried about the future.

“People seem to be generally happy about the buyout. Tata has a reputation as a business which is going places and has ambition to be a major market force,” said Lee Betteridge, a 34-year-old Jaguar toolmaker.

“I think Ford may have made a mistake as the companies are turning around and making profit, especially Land Rover,” he said.

“I am pleased I have kept my job. But for how long?” asked Paul Hoyte, 35, a Land Rover worker. “There has been a lot of cost-cutting under Ford. Will Tata cost-cut? Maybe I will lose my job in the future.”

Tata Motors built the first fully Indian-designed car. In contrast to the high prices that Jaguars and Land Rovers sell for, Tata recently announced plans to build a $2,500 car later this year. Jaguars in the U.S. have sticker prices starting around $50,000 and can cost nearly twice that amount.

Ford CEO Alan Mulally said in a statement that the British brands are leaving Ford in good shape.

“Now, it is time for Ford to concentrate on integrating the Ford brand globally, as we implement our plan to create a strong Ford Motor Company that delivers profitable growth for all.”

Tata said Ford will continue to supply engines, transmissions and other components for five to nine years. Ford also will continue to provide environmental and other technologies as well as engineering support.

Tata Chairman Ratan N. Tata said his company will try to build on the brands’ heritage, keeping their identities intact.

C. Ramakrishnan, Tata’s chief financial officer said the company had secured a 15-month, $3 billion bridge loan from a small syndicate of banks. He said Tata expects to replace that financing with a mix of equity and debt during the next several months, including “unlocking value” from some of its investments in subsidiaries.

He acknowledged Jaguar’s financial difficulties but said the brand is turning around and he expects it to be profitable within two years.

“Land Rover is a highly profitable company … and Jaguar is well on its way,” he said in a conference call with reporters Wednesday.

Ramakrishnan said the brands’ existing management will continue.

Tata Motors is part of Tata Group, India’s oldest and largest conglomerate. The family business is owned mostly by Tata-funded charitable trusts. A substantial portion of the group’s income is channeled into various philanthropies that have helped build some of the country’s finest institutions, including India’s first cancer hospital.

Among Tata’s holdings are steel makers and a consulting service that does software engineering and other work for western firms.

Roger Maddison, an official with Unite, Jaguar and Land Rover’s main labor union, said the deal is good news for the automakers’ employees as well as those who work for parts suppliers.

“Unite has secured written guarantees for all five UK plants on staffing levels, employee terms and conditions, including pensions, and sourcing agreements. The sale ensures our members futures and we look forward to working with Tata,” Maddison said in a statement.

Mulally has said the company would invest the proceeds from the sale in quality and product development at Ford.

Ford named Tata as the preferred bidder for the British automakers in January, essentially dismissing two other bids.

Cash-hungry Ford, which lost $12.6 billion in 2006 and $2.7 billion last year, has been looking to sell Jaguar and Land Rover for months.

It has mortgaged assets to continue operations and expects to burn up $12 billion to $14 billion until 2009, when it plans to return to sustained profitability.

Jaguar and Land Rover are strained by unfavorable exchange rates and high production costs in Britain.

Ford had hoped to turn Jaguar, which was founded in 1922, into a high-volume brand that could compete with BMW and Mercedes-Benz. But its entry-level X-Type sedan, introduced in 2001 to lure younger buyers, sold poorly and was slammed for its conservative styling. Jaguar’s U.S. sales were down 24 percent last year.

Land Rover, which was founded in 1948 — the year after India gained its independence from Britain — has fared better thanks to popular products such as the Range Rover Sport and LR2. Land Rover’s U.S. sales were up 4 percent last year. But unlike Jaguar, which has improved its quality rankings under Ford, Land Rover placed last in J.D. Power and Associates’ rankings of initial quality and dependability in 2007. The rankings measure problems per vehicle after 90 days and again after three years of ownership.

Ford shares edged up a penny to $6.01 in morning trading Wednesday. They have traded in a 52-week range of $4.95 to $9.70.

As the pressure to reduce fuel consumption and carbon dioxide emissions continues unabated, it’s not just gasoline engines that are getting the right-sizing treatment. The diesel engine is set to shrink as well, at least at BMW and Mercedes-Benz. Both manufacturers currently offer diesel V-8s of 4.4L and 4.0L sizes respectively in their top models. However, both companies are likely to start replacing their current diesel model range with newer, smaller displacement alternatives with new boosting technology that will improve the power while reducing fuel consumption. That means following the path BMW has been traveling recently with sequential twin turbocharger systems such as the one on the 123d. These setups use a pair of different sized turbos that help to enhance torque at both low and high revs. This will allow the V-8 to be replaced by inline and V-6 cylinder engines while current six cylinder applications will go to fours. All of these will also likely be combined with mild hybrid systems for even more improvement. Besides the improved efficiency of the smaller engines, weight will also be reduced, further enhancing fuel economy. So far, the one exception to this trend is Audi which just announced production of the Q7 V-12 TDI with its new 6.0L V-12 diesel. That however will be a very low volume application and more mainstream units will probably go the downsizing route.

MAGNA STEYR presents the third concept vehicle in the MILA innovation family at the 2008 Geneva Motor Show. The MILA Alpin is a compact off-roader with a body specially designed for integrating various different types of alternative drives. This means: Excellent all-terrain capability, wide-ranging uses and emissions of under 100 g CO2 per kilometer. Creating an attractive vehicle was by no means MAGNA STEYR’s only priority in the MILA Alpin project. The entire product development process was also designed always to make assembly as cost-efficient as possible - whatever the market demands.A new vehicle segment

Its unique configuration makes the MILA Alpin a vehicle that stands out because of its excellent all-terrain capability and outstanding rough road characteristics. As a result, it is not only suitable for recreation but also as a utility vehicle for special uses. What allows such wide-ranging applications is the mid-engine layout with a low-cost, but effective all-wheel drive system. Its climbing ability is impressive: 100% or 45 degrees. On the road, too, exceptional handling makes the MILA Alpin great fun to drive. What’s more, the hybrid drive using natural gas reduces the impact on the environment.

The MILA Alpin’s shape language also adds to its attraction - inspired by Nature, its lines are as clear as rock and ice.

Engineering

The engineers at MAGNA STEYR set themselves the challenge of developing an off-roader in several variants with maximum climbing ability - all at low cost. And they certainly succeeded.

The frame consists of straight sections, which are made of different materials to guarantee low weight and enable a flexible body concept. Modular design makes it easier to use components and systems from volume production and combine them with various different innovative modules and optional extras. Thanks to independent suspension and ESP, the chassis guarantees safe on-road characteristics. The mid-engine layout ensures good traction. The considerable ground clearance, large overhang angles, option of locks in the transfer case and axle drives, and low crawling speed all go to make driving safe and relaxed off the road.

A higher sitting position that is relatively far forward and large panoramic roof give the driver and passengers perfect visibility. The MILA Alpin has 3 + 1 seats.

There is also the option of a CNG drive, a hybrid or a small, supercharged gasoline engine.

From concept to reality

To manufacture a vehicle with low production volume and high number of variants economically, tool investment has to be reduced as far as possible. This fact in particular was taken into account when designing the MILA Alpin. Given the modular design, automation can be kept at a low level and, at the same time, flexibility in assembly at a high level. The MILA Alpin concept can therefore be used for volume production without any problems - especially by a flexible specialist in engineering and vehicle assembly, such as MAGNA STEYR. The requirements for production have been met by optimizing the overall process and the individual systems at every stage of development. This approach also enables the costs of any subsequent modifications due to market demand to be kept down to a minimum.

All the innovative components, such as energy storage systems, and the expertise for hybrid drives stem from in-house advance development.

MAGNA STEYR has developed and designed the vehicle to be brand neutral. It can therefore be built together with various OEMs.

The Aston Martin V8 GT Concept was designed by Adam Gompertz. The sketch development concentrated on keeping certain elements of the V8 Vantage, namely the side strake that run through the bodyside, and the rear bumper surface. Yet at the same time, there was a real desire to create a new identity, with harder edges, and more muscular forms. The V8 GT Concept is inspired by old models from Aston Martin, such as the DB3S and the DB4 GT Zagato.

Major inspiration for this project came from the DB3S. The sharp creates lines on the top of the wings lend that car a feeling that underneath the muscular bodywork, are tendons stretching over the wheels.

The DB3S also serves as pointer to the philosophy of this concept. A sportscar with a clear purpose: to enhance the racing tradition of Aston Martin. A lighter, faster, more focused and bespoke Aston Martin.

The flexfuel-compatible Aston Martin Vantage GT2 that we first reported on back in January has finally been captured in the photo studio. Not surprisingly, it’s a looker. After all, the Vantage is a car that activates the pheromones in many a gearhead. Making it Le Mans Series-worthy just piles on the awesome. The car makes its competition debut for James Watt Automotive on April 5 in the European Le Mans series at Barcelona, and it’s also good to go for ALMS if any teams decide to take the plunge. Without further ado, have a look for yourself. We like the subtle Gulf colors — who knew orange lipstick could be so pretty? If baby blue and orange doesn’t do it for you, check out the menacing black car that participated in the Paul Ricard test session with the rest of the Aston racers. The phrase, “It’s all good” applies here.

India’s Tata Motors Ltd. says it will acquire British automakers Jaguar and Land Rover from Ford Motor Co. for $2.3 billion.

The Tata Group is an Indian conglomerate with 98 companies spanning a variety of industries.

The sale is essentially the death knell for Ford’s Premier Automotive Group, which former CEO Jacques Nasser created in 1999 as the company’s luxury vehicle division.

The dissolution of Ford’s so-called PAG unit started in March 2007, when Ford, trying to raise cash for its bleeding North American operations, sold the ultra-luxury Aston Martin brand for $848 million.

After the sale of Jaguar and Land Rover, which are based in Britain and have conjoined management, engineering, manufacturing and distribution operations, PAG will have just one foreign luxury brand in its portfolio: Volvo.

Ford, and many experts who follow the industry, have expressed a desire to see the Swedish Volvo brand more tightly incorporated into Ford’s worldwide operations, where it can share a lot of its engineering expertise, specifically in the area of safety, with Ford. The new Taurus, for example, was engineered with assistance from Volvo.

While some analysts have speculated that Jaguar and Land Rover could fetch as much as $8 billion, other experts previously told the Free Press that amount would be surprising. Prior to the sale, Merrill Lynch & Co. estimated the sale of the brands would put an extra $1.3 billion to $1.5 billion in Ford’s pocket.

That’s far less than what Ford paid for the brands. Ford bought Jaguar for $2.5 billion in 1989 and Land Rover for $2.75 billion in 2000.

In November, Ford said it was creating a new plan to improve the financial performance at Volvo, which includes enhancing the brand’s position as a global producer of premium vehicles; establishing appropriate business arrangements between Volvo and Ford-brand operations to allow Volvo to operate on a more stand-alone basis in the absence of the PAG structure.

Ford also plans to disclose Volvo’s financial performance beginning with 2008 results.

Nissan’s top executive said Friday he believes environmentally friendly electric cars will dominate the future as automakers join the fight against global warming.

Nissan and French alliance partner Renault are already developing its first electric car in Israel that it hopes to mass market by 2011, Nissan CEO Carlos Ghosn said.

However, the group is also working on other advanced vehicles including hybrid engines and hydrogen fuel cells as government policies in different parts of the world will dictate the trend for automakers, he said.

Ghosn was in Malaysia to deliver a speech hosted by the Malaysian government’s investment arm, Khazanah Nasional Bhd.

“I think the future would be … zero emission cars. Particularly among urban drivers, there is a lot of appeal. We are pushing particularly this technology but we are not putting all our eggs in the same basket,” Ghosn said at a news conference.

Ghosn, who is also chief executive at Renault, pointed out that diesel cars accounted for half of sales in Europe but only less than 1 percent of sales in Japan and the United States.

“We have to be careful that we do not, as car manufacturers, embark in only one direction because we can be taken by surprise as regulations and political campaigning can bring different twists into what in the end is the dominant technology,” Ghosn said.

“We have to be prepared into pushing different technologies in different markets… that is, in a nutshell, our strategy,” he said.

Ghosn earlier visited a new 230 million ringgit ($72 million) plant by Tan Chong Motors, the sole distributor of Nissan cars in Malaysia.

Despite a slump in the U.S., Japan and Europe markets, he said Nissan expects its global sales for the fiscal year through March 2008 to exceed its forecast of 3.7 million units, but didn’t give a specific figure.

For the fiscal year through March 2009, he said mature markets are likely to remain stagnant but sales will be boosted by growth in developing countries such as Russia, China, India, the Middle East and Southeast Asia.

“In 2008 you are going to see a mixed picture,” he said.

“But we have a strategy of technology and products and enlargement of the brand … that will allow us to grow even though the overall market is stagnant.”

Ghosn said the group is working with India’s Mahindra and Mahindra Ltd. to produce a below $3,000 car by late 2010 or early 2011. He pledged the car will be fuel-efficient and environmentally friendly.

“If it is successful in India, we will launch it in many developing countries where we think there is demand,” he said.

India’s Tata Motors in January unveiled the world’s cheapest car, a $2,500 four-door subcompact that it said would transform the auto industry. But environmentalist have expressed concerns over increasing pollution and pressure on global oil prices.

This week certainly has been a good one for MDI, the company that first decided it was possible to run a car on compressed air. First, it announces that Tata Motors has invested $30M to get the cars on the road in India and Europe this year, and now, its comin’ to America!

The cars run off air that is compressed into a extremely strong tank. The air is then slowly released, driving an engine that can propel the American version of the car up to 95 MPH. The American distributors, Zero Pollution Motors, already has its price set ($17,800) and a design (seen above).

This also comes with a new bit of news about the air car’s propulsion system. The air tank can only hold so much air, right, so how do they extend the range and power for the American market? Well … what does air do when it’s heated? It expands! So MDI has developed a way for the car to get a range of over 800 miles.

A small petrol engine heats the air, providing the extra energy necessary to get the car up to 95 MPH and more than triples the vehicle’s range. So, indeed, you will have to fill up both a gasoline tank and an air tank to get the car to work.

The bad news is that it takes about an hour to fill the air tank. But, theoretically, the car could come with an at-home charger, since being parked at a gas station for an hour-long fill-up would be pretty horrible. The other bad news is that you’ll be burning gasoline … which kinda defeats the purpose, right?

Well, not if the car gets an effective 106 mpg when traveling above 35 MPG and doesn’t use a drop of gas when going slower than that.

Sounds to me like a pretty good compromise for bringing this otherwise not-very-suited-for-the-American-lifestyle car to America.

Via Auto Blog Green and BusinessGreen