Volkswagen AG of Germany and the Toshiba Corporation of Japan have inked a deal in Wolfsburg, Germany today under which they will jointly develop modern electric drive units and the accompanying power electronics for Volkswagen’s new range of electric vehicles. The two companies will also develop lighter and more efficient lithium-ion battery packs which can make electric vehicles more practical and convenient for various commuting needs. Volkswagen’s new generation of electric cars will all be developed using Toshiba’s proven expertise in electric systems. The chairman of the board of management at Volkswagen AG, Prof. Dr Martin Winterkorn, said “Volkswagen is forging ahead with the development of future drive technologies in many different areas. In order to further strengthen our position, Volkswagen is investing in the long term and is offering cooperation projects to other companies. One of the important components in this context is the cooperation with Toshiba. I am convinced that this will be a major step forward towards the development of series production electric vehicles for our customers.”

Volkswagen’s growing strength is evident in the way the company is investing in research and development and this joint initiative is a point in case. The alliance is likely to yield rich dividends for both partners in the future which is leading to environment friendly mobility.

With rising fuel prices and changing depreciation values of used cars, pre-owned car dealers have been having a tough time assigning values to trade-ins. Now the National Automobile Dealers Association has added two new categories for the wholesale vehicle market. The new categories are “Average” and “Rough” beyond the pre-existing “Clean Trade-In", “Clean Loan” and “Clean Retail” categories which used vehicles are put into.

According to NADA, roughly half of all trade-ins will fall into the newly established “Average” category. “Rough” vehicles are those which have more wear and tear than normal. Though these categories are for the wholesale market only it will help dealers in assigning more accurate value to your trade-in.

The Volkswagen Group has displaced Ford Motor Co. and has become the world’s third largest carmaker in terms of global sales. According to latest sales numbers, VW Group sold 3.31 million vehicles in the first half of the year, with Ford racking up only 3.22 million. For Ford this must be Deja Vu as it was only in 2004 when it lost the second spot to Toyota. Ford has been witnessing very harsh business environment in the U.S and has already closed down thousands of dealerships. Infact Ford has recently announced a $700,000 compensation package for dealers who voluntarily decide to shut shop. In the same pool, Toyota is marching towards the #1 spot by selling 280,000 units more than General Motors globally during the first six months of 2008.

Another piece of American automotive heritage will go on sale with Chrysler confirming the imminent sale of it’s iconic Dodge Viper. Chrysler on Wednesday has said that it will “explore strategic options for the Dodge Viper business". The trouble automaker has been approached by investors and is currently evaluating the proposals.

Nardelli of Chrysler said, “Viper is an integral part of this company’s heritage. While this is a strategic review, our intent would be to offer strong operational and financial support during any potential transaction, in order to ensure a future for the Viper business and perpetuate the legacy of this great vehicle.”

He added “We will do so keeping in mind the best interests of those who have shown tremendous support for the vehicle — including employees, suppliers, dealers and a worldwide group of loyal Viper owners and enthusiasts.” According to the automaker, the sale of Dodge Viper would allow it to focus on it’s core business. The Viper unit currently employs 110 staff and produces 8 cars daily.

Lower demand for cars and trucks from the U.S market has forced Toyota Motors Corp. to cut it’s 2009 sales projection by 6.7 percent. The high fuel prices and deteriorating economic environment have resulted in many American buyers halting or postponing their new vehicle purchases.

Toyota now aims to sell 9.7 million vehicles worldwide in 2009 as against an earlier estimate of 10.4 million. In other developed markets including Europe and even in it’s home market Japan, Toyota has tailored down sales forecasts to more realistic levels. It predicts 2008’s sales to end at 9.5 million. Toyota has stopped production of the Tundra pickups and Sequoia SUV in the U.S. on the back of rising gasoline prices and low demand. Toyota President Katsuaki Watanabe is betting on expansion in developing markets like India, Brazil and China to offset declining demand in North America and Europe and balance company revenues.

Audi is set to star in the upcoming Marvel blockbuster Iron Man along with the primary cast of Robert Downey, Jr., Jeff Bridges and Gwyneth Paltrow. Audi has managed to get good placement for the R8 the Q7 and other cars from its portfolio which are used in the movie in multiple scenes. The R8 is going to be Iron Man’s ride in the movie. Audi has also launched it’s own Iron Man mini site. The last time we saw Audi in a major Hollywood movie was in the Will Smith starrer “I Robot”

The site looks cool and has pictures of scenes where the Audi’s are showcased as well as movie trailers and Audi’s Super Bowl TV commercial. Watch out for the Iron Man flick which releases on 2nd May 2008 and is likely to be one hell of a super movie.

Audi Iron Man Mini Site

Dodge’s most successful, in your face American muscle car the Viper has sold 25,000 units since it’s launch about 17 years ago. Dodge has stated that the 25,000th Viper would roll out of it’s Conner Avenue assembly plant on 12th March along with festivities and some bubbly. NASCAR Sprint Cup driver Kurt Busch would be the lucky guy getting the keys to the factory fresh 2008 Viper SRT-10 ACR.

The Viper has carried on it’s shoulders the image of being a re-born American muscle car since its inception in 1991. Critics would tell you though that the Viper is one difficult car to take to the extreme and would bite your head off if you even blink more. What the Viper did give muscle car enthusiasts was raw power, lots of torque, straight line speed and looks to match, in a package which even today starts at $87,000, much lower than what a European car of comparison would cost.

What do you think of the Viper? Let the comments roll >>>

Congratulations to Bugatti Automobiles S.A.S. for making the impossible possible by creating the Bugatti Veyron 16.4 and then selling 220 of these $1.4 million hyper cars within two years of its launch. 132 Veyons are already sitting pretty in climate controlled garages and 88 are on the production line on confirmed orders. Bugatti had earlier announced limited production of only 300 Veyrons, a figure which they are likely to clock in another year at the max.

So if you are still thinking of putting you money down for this mean machine, time’s running out. What is good news though is that with customers showing more interest in “special” cars, the Bugatti factory is authorizing an “individualisation programme” to meet such requests. For true exclusivity you could opt for the Bugatti Veyron Pur Sang with its polished aluminum body and unpainted carbon fiber or the opulent Bugatti Veyron Fbg Hermes which is a collaborative effort that marries the craftsmanship of the Parisian-based saddle maker and the precision automotive engineering of the Molsheim-based car maker.

Italian super car manufacturer Automobili Lamborghini is suing North American Exotic Replica Cars Inc. (NAERC) over illegal use of trademarked logos and creation of counterfeit imitations of the companies famous models. You might be thinking what’s the big deal, replicas are made all over the world, but Lamborghini is accusing NAERC of blatantly using the name ‘Lamborghini’ and using the company logos which obviously dilutes the companies brand equity. Infact most people cant distinguish between the replica’s and the real thing. The replica’s are built on a custom chassis or a Pontiac Fiero and customized according to the customer’s preferences, ensuring exclusivity. They don’t come cheap at $59,000 - $79,000 a piece. The small company must be shaken at the thought of fighting the mighty ‘Italian Bull’ in court.

NAERC LAMBO REPLICA

America’s largest car market and second largest auto industry region, Southern California, would soon see two auto manufacturers shut their design centers. Volvo of North America, a subsidiary of Ford Motor Company, would abandon its Irvine headquarters in favor of Rockleigh, N.J., by the end of 2008. Chrysler too is shutting its Pacifica Advanced Product Design Center in Carlsbad in a bid to control costs.

Chrysler’s Pacifica Design Center opened in the 80s and has produced some popular designs including the Jeep Willys concept, new Dodge Challenger and the Chrysler 300. This is one of Chrysler’s design studios that focuses on concepts and is considered as their “skunkworks” facility. Chrysler is now combining it’s resources at the Advance Design Center in Auburn Hills, Michigan.

Volvo’s Irvine center is a shared facility with Land Rover and Jaguar, (also part of Ford). As these are likely to be sold to Tata of India Ford is moving Volvo’s operation back East.