CT&T United is a US subsidiary of a South Korean technology firm. CT&T has announced their plans to build an assembly plant in the US, becoming yet another EV manufacturer for America.

The race is on.

Thanks to billions of dollars in federal loan money being made available, companies from around the world are converging on the US to build new assembly plants to produce electric vehicles (EV). Ford and Nissan are among the first companies who applied and have received funding to build or convert assembly plants for EV production along with Tesla Motors, the upstart California company who has given the world the lithium-ion powered Tesla Roadster and has plans to build the Tesla S sedan in 2011.

CT&T Joins In

Now a technology company from South Korea plans to toss its hat into the ring, promising to build tiny EVs in US which they say will employ as many as 2600 people over the next five years. CT&T Company, Ltd. already produces EVs in Korea and plans to build similar vehicles in the US. CT&T United, which is the US subsidiary of the firm, claims that its vehicles will start at about US$8000 and sell for $16,000 fully equipped.

In making the announcement, CT&T President and CEO Young Gi Lee said, “While we are reviewing a number of locations for our operations, we are committed to having a major presence in the Southeastern and West Coast regions.”

Using Various Battery Technologies

The company says that it will use lead acid, advanced lead acid, lithium polymer and lithium ion batteries to power its vehicles. This is a departure from the strictly lithium ion batteries expected to power the upcoming pure electric and plug-in hybrid electric vehicles expected to hit the market beginning next year from Mitsubishi, Nissan, Ford and other manufacturers.

“We are accelerating our plans to become a major investor in zero emissions vehicle technologies in the U.S.,” said Lee. “CT&T has become a category leader because of our advanced technology, plus we offer a solution to the primary barrier to consumer adoption of electric vehicles by offering EVs at affordable prices.”

Shopping For A Production Site

CT&T is looking at sites in Alabama, Georgia, the Carolinas and California in which to build its vehicles. CT&T United will produce and market City Drive Electrical Vehicles (EVs), Mid-speed Electric Vehicles, High-speed Electric Vehicles, and Utility Electric Vehicles, to provide a wide variety of vehicles for the US market.

Source: CT&T United

See Also — Coda Automotive

Of the Big Six manufacturers – GM, Ford, Chrysler, Toyota, Honda and Nissan – Ford led the way seeing sales falling by just 10.7% over June 2008. Ford’s success comes as the company continues to steal sales away from GM and Chrysler and as its chief Japanese competitors stumble. Thanks to having arguably the newest product line of any full line manufacturer, Ford has been able to win over customers and further separate itself over its restructuring neighbors, GM and Chrysler who saw sales fall 33.4% and 41.9% respectively.

Subaru Leads The Way

Subaru, who last year managed to sell more cars than they did in 2007, thus being the only full line manufacturer to achieve this goal was up 3.4% for the month and is now down only 0.8% for the year. With the government’s car scrappage program set to begin in the next few weeks, Subaru should enjoy continued good news for the at least the next two months.

Kia is also showing that they have the right product mix. Earlier this spring the Korean automaker introduced its boxy urban car, the Soul, and has since followed that up with the Kia Forte, a Corolla fighter that has replaced the Spectra. That car will be joined by an attractive two door version later this summer, the Forte Koup, yet another in a line of winning vehicles from Kia.

Shaking Up The Standings

For the third consecutive month Ford outsold Toyota and is now ahead of Toyota for the year. Although they are still 160,000 units behind GM, Ford sold just under 20,000 fewer vehicles than GM in June, the month that GM filed for bankruptcy. Although GM could emerge from bankruptcy as soon as this month, the automaker has cut back production significantly and continues to lose customers. The one bright light for GM is the Chevy Camaro which has been selling like hotcakes with no discounting.

By the end of this year, I believe Ford will sell more cars than GM although GM should still finish first for the year. Toyota should remain third followed by Honda, Chrysler and Nissan. Chrysler, though could tumble further if the combined Hyundai/Kia conglomerate continues to gain.

What Will CARS Bring?

The Car Allowance Rebate System will be kicking in no later than July 23rd which means that eligible consumers will be flocking to showrooms the moment it begins. If the program gets started by the middle of the month, the impact on July 2009 sales will be quite good. If so, then expect Congress and the president to agree to additional program funding, perhaps the one boost that will help the auto industry escape its current doldrums and finally recover.

See Also — May 2009 Auto Sales

Pitted against the Cadillac CTS, the Lincoln MKZ finishes second. However, pit the angry GM customer against Government Motors and the Ford Motor Company smells an important opportunity to poach disgruntled customers from its chief competitor.

Although I mentioned yesterday that GM has several vehicles in place that have a proven track record and are the kinds of cars customers want, there is another factor which must be considered when buying a new Cadillac, GMC, Buick or Chevrolet model – do you really want to purchase a car from Government Motors?

Regardless of what GM builds over the coming years (if they survive that long), there are some people who won’t buy a GM vehicle ever again. These consumers have had it with the bail out, disagree with GM’s decision to close down one or more brands and/or are angry that GM abandoned well over one thousand dealers. Don’t forget that there are stockholders who are getting stiffed, suppliers who have been strong armed, employees fired, pension funds obliterated and local governments who lost millions when a GM plant closed down. These people will not purchase a GM (or Chrysler) product again leaving only the Ford Motor Company as the only major homegrown manufacturer for customers to consider.

Cadillac Dominates Lincoln Up Until Recently

GM clearly has the advantage over Ford when it comes to a luxury brand, with Cadillac outselling Lincoln by 2 to 1 in recent years. Lately, however, Lincoln has been closing that gap as the brand brings new products to the market. Although Lincoln doesn’t have anything as good as Cadillac’s best model — the CTS line — in its portfolio, what they will have when the MKT crossover comes on the market later this summer are three models worthy of a look – the MKZ mid-size sedan, the MKS full-size sedan and the MKT.

The MKZ doesn’t quite measure up with the CTS given that the Cadillac is a true European style luxury car with an attitude to go with it. Position the base MKZ against the base CTS and the rear wheel drive Caddy is the easy winner over the front wheel drive Lincoln. But, that doesn’t mean that the MKZ doesn’t have something going for it including fresh new sheet metal, an all wheel drive option and, thanks to a new appearance package, more luxury.

Executive Appearance Package Debuts

Just months after releasing the 2010 model, Lincoln will soon be offering a special “dress up” model for its entry level sedan, an Executive Appearance Package featuring additional genuine walnut trim. Also, its navigation system with Sirius Travel Link will be included along with five new exterior color choices. Not a huge difference between this and other MKZ appearance packages but one that should help Lincoln steal some CTS sales especially for those customers who really don’t care which set of wheels drive the car.

Up until recently, American luxury cars have usually featured faux wood trim, something discriminating buyers have avoided. Why go with a Lincoln or a Cadillac if a similarly priced Lexus, Mercedes or Infiniti comes with the real stuff? That disadvantage has been gradually going away as American manufacturers understand that giving customers what they want is a good way to ensure their loyalty. Duh.

Alan Mulally Steers Ford Through Troubled Waters

Of course, Ford could blow everything and still get complacent, but under the leadership of Alan Mulally the automaker is positioning itself as Not Bailed Out Motors and pushing hard to reinvent themselves. The Ford brand is looking healthy, Lincoln is on the mend and Jill Wagner is still “The Mercury Girl” who desperately needs some fresh product to pitch. As Meatloaf has often sung, “two out of three ain’t bad.”

GM is reporting that demand for the Camaro is exceeding supply, as customers welcome the return of one of America's iconic muscle cars.

I got news for everyone who thinks that car buyers will happily embrace all of the smaller, lighter cars arriving on the market over the next few years – don’t count on it. Sure, a number of hybrid and pure electric models will change the automobile landscape over the next few years, but when its comes down to paying $45,000 for a Coda sedan or $29,000 for a nicely equipped Camaro LS, the land mower model loses that battle hands down.

Seriously, I understand that pure electric and hybrid models will grow in significance, but their high price tags put most of these cars in Cadillac CTS range (even with a federal $7500 rebate). Honestly, if I had that kind of money to spare, my bucks would be going to buy the Caddy.

The Hot Selling Chevy Camaro

Apparently, I’m not the only one who sees it this way because sales of the hot new Chevy Camaro are strong while overall car sales are still down significantly. Some analysts were worrying that the Camaro’s introduction was ill-timed, given the condition of GM, the economy and gas prices. But, pent up demand for the Camaro is demonstrating that Americans still want cars that are attractive, fun and not your typical hybrid-in-a-box, stylish models with primal appeal.

Right now GM has several models which I think are exactly what customers want, cars that defy the assertions of pointy headed opinion makers who repeat over and over again that GM needs to build cars that customers want. I say that GM is already there as evidenced by the popularity of the Camaro.

Michigan Will Build A Subcompact

Certainly, federal government intervention means that GM will be building a number of smaller, lighter passenger vehicles that they probably wouldn’t have built unless pushed into it by the Obama administration. That Orion Township plant in Michigan is a prime example of a car that GM would have sold only if it had been imported from Korea or China. Thanks to government pressure and a union contract agreement, a subcompact model will be built in the US.

There are still some dogs in GM’s fleet and way too much badge engineering. GMC and Chevy trucks are essentially one and the same while the distinction between Pontiac and Chevy cars is fairly minimal. With Pontiac’s demise that will change, but there is a good chance that Buick will get its own version of the Chevy Cruze, possibly perpetuating bad engineering.

Good Stuff From GM

I still like Chevy trucks and some of its SUVs, but I believe that the Cadillac CTS line, Buick Enclave, the all new Buick LaCrosse and a number of Chevrolet models including the Corvette, Camaro, Malibu and the upcoming Cruze are what customers want today. The Volt is a nice looker, though it will be strictly a low volume model for Chevrolet for at least the first year or two.

Sorry about the rant. This isn’t meant to be a promo for GM per se – I still think they wasted tens of billions of dollars over the years and the federal bailout is over the top – but I get tired of reading stupid stuff online from journalists who parrot worn out and inaccurate phrases about the automotive industry.

See Also — GM Turns 100!

Family Owned To The Fourth Generation

Some of the dealerships facing closure are part of national chains while others are family owned businesses who have been in operation for as long as three or four generations. Anyone who has ever run a business knows how difficult business succession can be, thus some of these long time operations have survived the Depression, Second Word War, deaths of its founders and subsequent heirs, but not the current economic downturn.

One has to think that had GM and Chrysler not gone bankrupt that most of the long established dealers would have found a way to survive. However, their fates were quietly sealed in corporate boardrooms located in Auburn Hills and Detroit.

Last Cadillac Dealership Standing

Dalgleish Cadillac is the last Cadillac dealership in Detroit and it, too, has been served notice by GM that it will have to shutter its doors next year. Founded in 1922, the Dalgleish family began selling Cadillacs in 1954, surviving the loss of its Oldsmobile operation when GM closed down that brand in 2002.

What is striking about the Cadillac closure is that the Motor City will no longer have a dealership for the brand named after French explorer Antoine Laumet de La Mothe, sieur de Cadillac (or Cadillac). Monsieur Cadillac founded Fort Pontchartrain du Detroit in 1701; the French outpost that was later shortened to Detroit.  Cadillac, the essence of GM luxury will exit Detroit even though the corporate headquarters of the automaker is just blocks away. Now, residents of Detroit will have to travel to Warren, Dearborn and other suburban locations to buy a Cadillac or perhaps switch to another brand.

Automotive News, which reported the Dalgleish closing, seems to think that certain influential Detroit pastors might be able to work together to reverse the dealership closing. Because with tens of billions of dollars in taxpayer money riding on the company’s restructuring, turning your back on Monsieur Cadillac’s city might end up being the worst possible move that a restructuring GM might make.

Source: Automotive News

See Also — Playing Hardball, GM Dealers Strike Out

The energy secretary noted that to outfit vehicles with the special gaskets and fuel lines necessary to make E85 work would cost about $100 per vehicle ($1.5 billion annually for 15 million vehicles sold). Regrettably, Chu failed to take into consideration several important points including that the cost of outfitting cars would further burden struggling automakers while benefiting only those with a financial stake in the industry, namely midwest farmers and agricultural conglomerates.

The push for an ethanol fueling option comes even as there are some very real problems with this type of fuel namely:

• E85 is largely unavailable outside of most corn growing states. A number of states do not have a single pump available to consumers while other pumps are reserved for state motor vehicle fleets.

• E85 offers improved octane over straight gasoline, but it is much less fuel efficient. Fuel mileage drops by 20 to 30 percent when a car is filled up with E85. Minimally, E85 fuel prices must be at least 20-30% lower than regular gasoline in order to make it worthwhile for consumers to use it.

• There are environmental concerns about converting existing forest land to produce corn and other grain products which can be converted into ethanol. Fewer standing trees can have an adverse impact on the world as trees reduce heat, absorb carbon monoxide and produce oxygen. Never mind what sort of impact stripping forests will have on wildlife whose habitat would be destroyed.

• Energy and water is needed to convert grain products into ethanol while pesticides are used to keep the grain growing. Leeching into the soil could harm water sources while lakes, rivers and streams would become polluted.

• Ethanol is typically locally made and distributed, however to get it to population centers on both coasts the fuel would have to be shipped in by truck or rail. Pipelines are prone to corrosion and are not a viable way to move E85.

Chu’s plan may not go anywhere as a number of companies who produce ethanol have gone out of business or are in bankruptcy. Currently, a 45 cent per gallon tax subsidy and a federal government requirement that oil producers use 12 billion gallons of ethanol annually is keeping the industry afloat. However, with little consumer demand for the product, the only way E85 will spread is if the government mandates its usage.

Further Reading

Corn biofuel ‘dangerously oversold’ as green energy

Energy secretary wants E85 capability in all cars

Ethanol Distribution (U.S. Department of Energy)

Battery Manufacturing Overseas Mostly?

One disturbing trend not lost on many Americans is that the manufacturer of these types of vehicles and their all important lithium-ion (li-ion) battery packs will mostly come from overseas locations (good-bye jobs). GM, Ford and others are sourcing batteries from South Korea and Germany while a new US car company, Coda Automotive, plans on importing cars already equipped with li-ion batteries from China.

Japanese automaker Nissan Motors announced recently that they will produce both an electric car and li-ion batteries at its plants in Tennessee thanks to loan interest loans offered by the federal government to encourage the development of “green” or environmentally-friendly vehicles. Nissan plans to invest more than $500 million at its Smyrna facility to build these cars, possibly expanding its investment to one billion dollars or more eventually.

Compact Sedan To Be Built

Nissan says that the Smyrna facility will build between 50-100,000 electric vehicles annually, the first model based on a Sentra sized sedan. A production facility for high-capacity li-ion batteries will be built adjacent to the assembly plant in conjunction with its battery partner NEC Corp.

The automaker applied for funding from the U.S. government under a low-interest-loan program to support the automobile industry and expects to receive a loan totally more than one billion dollars. Similar facilities are expected to spring up in Michigan and elsewhere as US manufacturers look to build their own assembly plants with battery production taking place nearby. However, without federal funding in place most of these facilities would not be built in the first place.

See Also — Nissan EV Road Show Rolls Into Raleigh

GM's main engine choices for the 2010 Buick LaCrosse include a pair of six cylinder motors. But, they'll also begin to offer an ECOTEC 2.4L I4 DI engine, producing just 182 horsepower and 172 lb.-ft of torque. Will Buick buyers opt for the I4?

This past Monday when General Motors (GM) announced the release of the 2010 Buick LaCrosse, they also noted that the sedan would begin to offer a four cylinder engine as an option later this fall. That move, which comes on the heels of the 3.0L and 3.6L V6s powering the LaCrosse probably surprised a number of analysts given the size of the Buick. With the LaCrosse weighing two tons, the ECOTEC 2.4L I4 will have its work cut out for it, producing just 182 horsepower to move the sedan. I can see that this won’t be a popular option embraced by too many LaCrosse buyers.

But hold on there one moment!

It turns out that the 2.4L ECOTEC I4 will be of the “direct injection” variety which will allow the four banger to produce more power while limiting the amount of emissions spewed into the air. If this sounds familiar, it isn’t too far removed from Ford’s EcoBoost technology which does the same thing, but with one important advantage for the Blue Oval: the inclusion of twin turbochargers with direct injection allows the Ford engines to produce more bang for their size.

How Direct Injection Works

I’m not saying that the ECOTEC engine planned for the Buick LaCrosse will be sufficient enough to move the sedan with authority, but it may end up being an improvement over older engine design themes. Direct injection sprays fuel directly into the combustion chamber which cools the intake charge thereby allowing an increase in the compression ratio in the engine’s design. The result is a much more efficiently running engine that uses less fuel and emits cleaner emissions.

The six cylinder engines powering the LaCrosse are expected to deliver 17 mpg city and 27 mpg highway and be paired with six-speed automatic transmissions. The smaller I4 is expected to get 20 mpg around town and 30 mpg on the highway and also be paired with a six-speed automatic transmission. Clearly, GM is looking to squeeze fuel economy savings out of the LaCrosse, but will they be able do that with most customers? Not if they regularly carry four to five people in the sedan.

Small Engines = Not Enough Power?

You see, too many Americans remember a time a generation ago where Detroit placed smaller, underpowered engines in cars in order to meet toughened Environmental Protection Agency (EPA) standards. True, the technology today is much different, but if customers are worried that they won’t be able to get out of the way of ongoing traffic in a hurry, then the four banger won’t sell.

For GM, this will become an important marketing problem that they’ll have to win in order to ensure the I-4’s success. With perceptions being one thing and reality possibly something different, the burden is on GM to prove to customers otherwise.

Source: GM Corp.

See Also – New Tranny Propels Malibu Past Accord, Camry

Quality Continues To Improve

According to the results of the J.D. Power and Associates 2009 Initial Quality StudySM (IQS) the overall industry average for initial quality is now 108 problems per 100 vehicles (PP100) for 2009, representing a decline from 118 PP100 in 2008. Initial quality for domestic brands has improved to an average of 112 PP100 in 2009 from 124 PP100 in 2008. A lower PP100 score indicates a lower rate of problem incidences and higher quality.

“Even in the face of unprecedented challenges, the Detroit automakers are keeping their focus on designing and building high-quality vehicles, which is a precondition for long-term success,” said David Sargent, vice president of automotive research at J.D. Power and Associates. “High quality generally translates into reduced re-engineering costs and lower warranty expenses during a vehicle’s life cycle. High quality also enhances an automaker’s reputation for reliability, which is a critical purchase consideration for many consumers.”

Marketing To The Masses

Results from the annual J.D. Power and Associates survey quickly become an important marketing tool for companies who perform well. Cadillac surged to the number three spot from the tenth position while Hyundai climbed to take over the fourth spot after having finished thirteenth last year. Lexus, which has been at or near the top for years will once again be telling the world why they are the best. Porsche finished second and Honda placed fifth to round out the top five. The next five positions were occupied by Mercedes-Benz, Toyota, Ford, Chevrolet and Suzuki (tied). Suzuki registered the largest gain moving from 32nd to 9th.

This year’s survey showed a refreshing new trend – many all new or next generation models showed good initial quality, which isn’t typical on how new models perform. J.D. Power noted that the Hyundai Genesis, Kia Borrego, Volkswagen CC and Toyota Venza performed admirably as all new models while the latest editions of the Ford F-150, Nissan Z series, Honda Pilot and Acura TL all showed improvements.

“Achieving high levels of initial quality in all-new models is one of the greatest challenges for manufacturers,” said Sargent. “Now that more manufacturers are getting their launch quality right straight out of the gate, consumers can expect the quality of new vehicles to continue to rise.”

MINI Finishes Dead Last

Not every manufacturer scored well or as well as they might have. Infiniti fell from 2nd place to 11th, while MINI brought up the rear just ahead of Land Rover, Smart, Saab and Jeep.

Source: J.D. Power and Associates

See Also — Survey Confirms That Drivers Want Advanced Technology

Although still several weeks away from appearing in Buick showrooms, GM rolled out the 2010 Buick LaCrosse to media folks, a sedan design that is a vast improvement over the current model.

GM introduced the 2010 Buick LaCrosse to members of the media today, a five passenger sedan that is a vast improvement over the current iteration. That isn’t to say that the 2009 model lacks in visual appeal, rather the 2010 is a notable and refreshing change.

The news conference roll out was strictly online which, for itself, was a change in the way GM usually handles introductions. In recent times, GM flew media in to a central location, where everyone could view, touch, and drive the model. Given GM’s bankrupt state, that no longer is a wise option. Instead, GM poured all of their resources into providing a media extravaganza online.

Some Surprises Offered

The Buick LaCrosse will be powered by a standard 3.0L V6 with an optional 3.6L V6 offered.  Those engine choices were to be expected, but not the 2.4L I4 engine which will roll out a few months hence. Apparently, the addition of a four cylinder model was a more recent idea, perhaps given the Obama administration’s recent pronouncments regarding higher corporate average fuel economy (CAFE) ratings. GM expects that the I4 LaCrosse will get 30 mpg on the highway.

I’m spending some of my time this afternoon chatting with GM managers regarding LaCrosse marketing, engineering, design, etc. I’ve posed several questions so far including the following to GM’s Susan Docherty who heads up the sales, service and marketing for Buick-Pontiac-GMC:

The Auto Writer: The AWD LaCrosse could be competition for the Cadillac CTS sedan.  How will Cadillac handle in-house competition?

Susan Docherty: With 4 core brands each brand will target specific consumers with very different needs and wants. Buick targets those wanting premium entries without compromise and Cadillac targets consumers seeking more prestigious luxury.  With respect to AWD, it’s like safety, not specific to a particular brand.

I’m not sure that Ms. Docherty’s answer would satisfy customers who might see the CTS and LaCrosse all wheel drive versions as being models worth comparing. With GM using the words “luxury brand” to describe both Cadillac and Buick, then there is a place for confusion if not in-house competition.

I’ll have some additional details about the LaCrosse in the coming days and will publish my “first drive” as soon as I get the chance to drive one.

Source: GM Corp.

See Also: Luscious LaCrosse Leaves Lexus Lurching