No improvement in sight, a problem for all major automakers, including the Detroit Three who are losing billions in the Eurozone.

A total of 1,038,343 personal vehicles were sold in EU the during April, a small + 1.7% gain that was statistical quirk since the month had two more selling days because of where the Easter holidays fell.

This was the third lowest level of new registrations for a month of April, with the historic low for April reached in 2012 at 1,021,358 units, according to ACEA, the auto trade group.

Four months into 2013 new car registrations were 4,026,946 units or -7% less than in the same period a year ago as the Eurozone economic crisis continues. The largest European economy, Germany posted a modest +3.8% gain at 284,444, with the non-euro UK growing 15% at 163,357. Relatively small Spain was up +10.8% or 62,317. However, France (-5.3% at 157,749) and Italy (-10.8% or 116,209) continued their downturns.

There’s no good news is in sight for the balance of 2013, a problem for virtually all major automakers, including the Detroit Three who are losing billions there and will continue to do so in spite of years of turnaround plans.

From January to April, the UK remained the only major market to post growth (+8.9%, 768,555). Spain (-6.7%, 243,042), Germany (-8.5%, 958,401), France (-12.3%, 591,631) and Italy (-12.3%, 471,750) all saw demand decline, leading to the overall decline.

Read AutoInformed on:

• EU Car Sales Decline 10% in March as Crisis Continues
• EU Commercial Vehicle Sales Drop -10% in March, -11% Q1

Ken Zino

During 2012, the Jeep brand set a record, with sales of more than 700,000 units worldwide.

Toledo Assembly has now produced more than one million Jeep Wrangler trucks, a design that has its roots in WW2. A black 2013 Jeep Rubicon 10th Anniversary Edition is headed for a customer in Sarasota, Florida. The small run model comes with serious off-road equipment, including new steel winch-capable bumpers with removable end caps, additional ground clearance, new rock rails and BF Goodrich KM2 Off-road Tires.

The sprawling Toledo complex, famous in its own right, became the center of a Romney Presidential campaign controversy last fall, when a desperate Romney trailing in virtually all industrial states used attack ads proclaiming that Chrysler was going to move the jobs in Toledo to China. It was a complete falsification and came as Chrysler was expanding and retooling the North Plant, where the all-new 2014 Jeep Cherokee will be built.

Marchionne notes Alfa Romeo and Jeep are the only two brands of Fiat and Chrysler with global potential because they are easily identified by consumers nearly everywhere.

The Dart and now the Cherokee are significant because they are the first test of Fiat CEO Sergio Marchionne’s bet that combining with Chrysler a – made possible by billions in U.S. and Canadian taxpayer dollars – can result in a company that can successfully design, develop, manufacture and sell vehicles under Fiat’s control. Under the plan, the majority of Chrysler vehicles by 2014 will be based on ‘donor’ architectures, engines and other major components from Italian Fiat.

During 2012, the Jeep brand set a record, with sales of more than 700,000 units worldwide. The flagship Grand Cherokee sold 220,000 units, including 52,000 units in international markets. Since 2009, the made in Detroit Grand Cherokee has boosted sales more than 200% in the U.S. and 250% outside North America, from a small base.

The Cherokee mid-size SUV is the first offering from the famous off-road brand that uses a Fiat-derived unit- body platform; and a much smaller one is also under development that will be built in Italy. (It was Mitt Romney’s father George who first moved some Jeep production out of the U.S. after WW2.) As a result of the global nature of the auto business it looks like Cherokee will eventually be made in the U.S., Italy, South America and China, where Chrysler is in the final stages of setting up a deal with a Chinese government required partner.

When Cherokee goes on sale in the U.S. this fall, it debuts, four and six-cylinder front-wheel-drive models, three revised four-wheel-drive systems, a 9-speed automatic transmission. There is a new 3.2-liter Pentastar V6 engine with 4,600 pounds of towing capacity. There is also 2.4-liter “Tigershark” MultiAir four-cylinder that will deliver a 45% fuel economy improvement compared to the outgoing and slow selling Liberty model. Fuel Economy numbers have not yet been announced.

Toledo Assembly Complex’s Supplier Park began production of the Jeep Wrangler and Wrangler Unlimited in 2006. Located on the same site as the former Stickney Plant, the complex includes body and chassis operations, produced in partnership with suppliers Kuka and Mobis, respectively.

The Stickney Plant was built in 1942 and nearly two decades later converted to produce the Jeep Grand Wagoneer. The facility became the Toledo Assembly Plant when Chrysler Corporation acquired American Motors Corporation (AMC) in August 1987.

In the fall of 1997, Toledo North was built for the production of the Jeep Liberty, which launched in April 2001, and later added production in August of 2006 for the 2007 Dodge Nitro, both slow selling entries the booming compact SUV class dominated by Toyota RAV4 and Honda CRV. The last Jeep Liberty and Dodge Nitro rolled off the line in August 2012 and December 2011, respectively. Toledo North will add 1,105 new jobs on a second shift in the third quarter, bringing total complex employment to more than 3,000.

Read AutoInformed on:

• Jeep Cherokee Returns as 2014 Model. New York Auto Show Debut
• First Fiat Platform Jeep to Arrive this fall on 2014 Cherokee
• Chrysler Group Increases Torque Converter Output at Toledo

Ken Zino

F-Series is the long-standing best-selling vehicle in the U.S., which means that potentially big settlements and fees are involved.

An Ohio couple who own a Ford Taurus SHO and an F-150 have filed a class action lawsuit that claims the EcocBoost engine intercooler and intake system design is defective and prone to sudden failure. The suit mirrors one filed last February in another jurisdiction alleging the same thing, asking for $500 million in damages. These legal matters are now looking like just the beginnings of potentially prolonged and image-damaging actions about Ford’s claimed fuel economy breakthrough with the downsized EcoBoost engine. (Class Action Suit Filed Against F-150 EcoBoost Engines for Stalling)

Both suits allege that 2011 and 2012 model F-150 trucks with the 3.5-liter EcoBoost turbocharged V6 engine contain a dangerous defect that causes the vehicles to shake violently, shudder and stall when drivers attempt to accelerate. Ford issued several service bulletins to dealers about the problem, but not to owners, before redesigning the intake system for the 2013 model year. Owners of older models are facing costly repairs.

Attorneys say that when F-150 drivers accelerate that moisture is forced into the engine, causing the vehicle to shudder. In severe cases, the F-150’s computer controls put the engine into “limp mode,” cutting power to prevent damage. The lawsuits against Ford seeks to provide compensation to all current or former owners and/or lessees of model year 2011-2012 Ford F-150 vehicles. Hundreds of thousands of Ford vehicles are potentially affected.

Ken Zino

Lexus prices are steep  starting at $36,845 to $55,230, about the range of  the BMW 3-Series.

The third generation Lexus IS sedan is the Japanese company’s most ambitious attempt so far to run with the widely acknowledged benchmark in the compact luxury class – the BMW 3-series. The new 2014 IS sport sedan has an all-new multi-link rear suspension, a revised front suspension and electric steering derived from the GS sedan adopted to the smaller car. Perhaps more important are increases in the use of sophisticated steel alloys, laser-screw welding and structural adhesives that made higher chassis rigidity possible, one of the long standing strengths of German automakers. The overall initial impression the IS provides is one of a high quality Japanese car that is responsive and easily driven.

A day of test driving at Michigan International Speedway shows that IS core competencies revolve around the use electronic controls and the newly reinforced body structure. These allowed engineers to soften the spring rates while increasing the size of the stabilizer bars. By using the various chassis and engine control computers, which are now much more capable and mostly invisible in operation, the IS ride is smooth, body roll slight under all but extreme maneuvering, and the cornering forces generated high – very high and limited only by the coefficient of friction available at the 17- or 18-inch tire contact patches.

This allows the driver the illusion that his or her skill is making the IS go really fast. Actually, this is truly the ‘revenge of the nerds’ and thousands of lines of their computer code make this the best IS to date, one that is finally able to run against a BMW 3-Series and not get left behind. IS models, like many others, have sophisticated computer controls, which integrate anti-lock braking, electronic brake-force distribution, traction control, damping and vehicle stability control with the driver inputs to the electronic power steering, throttle and brake pedal.

Unlike earlier computerized systems, the latest ones cover far more driving situations, and  are slickly integrated and now even predictive, instead of slowly reactive. The upshot is a fully electronic car that is capable of driving at the limits all the time. These systems are now capable of producing faster lap times than professional racing drivers can without them. The IS system is a rollicking demonstration that Lexis is on top of  the state of this dark electronic art.

With its two, high-strung V6 engines with double overhead camshafts, 24 valves with continuously variable intake and exhaust timing, this small Lexus is very quick, and it is not just straight line fast either. The IS 250 is powered by a smooth 2.5-liter V6 rated at 204 horsepower at 6400 rpm and 185 lb.-ft. of torque at 4800 rpm. The engine is matched to a six-speed (alas, where’s the eight-speed?)  electronically controlled transmission  that has a sequential manual-shifting mode with rev-matched downshifts in Sport mode as the electronics overrule ham-fisted driver inputs.

The even more powerful IS 350 has a 3.5-liter V6 with direct and port fuel injection to increase power. The 3.5 produces 306 horsepower at 6400 rpm, 277 lb.-ft. of torque at 4800 rpm. The 350 inherits the eight-speed, Sport Direct Shift automatic transmission from the older IS F high-performance model. This transmission features paddle shifters (I hate them, and you can still get a true 6-speed manual or 8-speed automatic in the 3-Series) and what’s dubbed a G-force Artificial Intelligence system, which automatically selects the optimum gear and downshift pattern in response to, guess what, G forces being generated.

Optional for both IS models, is an electronically controlled all-wheel drive system designed to enhance traction and grip under all driving conditions by automatically varying front-to-rear torque balance from 50:50 to as much as 30:70. Skip it, and the same applies to BMW’s awd. The heavier awd (starting at $39,380) lightens your wallet, adds weight, and notably slows acceleration and response times. If you live in the Snow Belt, a rear-wheel drive chassis setup is a loser, unless you can park a performance car during the winter, which given the steep IS and 3-Series prices – more below – might be a distinct possibility for its buyers.

The optional F Sport package, not tested here, includes 18-inch wheels and firmer suspension tuning, as well as some different interior and exterior design cues. It is available for IS 250 and IS 350 rwd and awd models. The Adaptive Variable Suspension used on IS 350 F Sport allows the driver to tune the F Sport’s ride characteristics with a choice of settings: Normal, for everyday use,  and Sport S or Sport S+ mode, for more body control and what is termed ‘agility.’

IS 350 models and IS 250 F Sport, now have an intake sound generator that is said to create a more sporting engine tone, a technology pioneered by the Germans long ago and in widespread use.

Claimed IS acceleration times, which I have no argument with based on my limited testing, include for the 2.5-liter V6 a 0–60 mph acceleration of 7.9 seconds and a 1/4-mile trip of 16 seconds flat. The top speed, electronically limited, is 140 mph. Fuel economy is rated at 21/30/24 mpg city/highway/combined for rwd. I averaged about 28 in moderate suburban driving based on the (unregulated – nobody tests these) trip computer. The awd is 20/27/23.

The larger 3.5-liter V6 redlined at 6600 rpm provides a 0–60 mph time of 5.6 seconds, and a 13.8-second 1/4-mile. It, too, is electronically speed limited, this time at 143 mph. Lexus claims 19/28/22 mpg city/highway/combined with 2wd; 19/26/21 awd.

It is hard to say what will be more important to the buyers this fall. Naturally, there is the new Lexus front snout look that is working its way through the lineup, or in marketing talk, a “dynamic spindle grille,” which is even more dynamic or whatever you call it. Moreover, the F-Sport snout is the most exaggerated yet. In addition, the wheelbase is lengthened about three inches and width is increased by nearly half an inch, which will significantly increase rear seat room, a glaring weakness of the current IS.

Ten airbags are standard on the new Lexus. The new IS may also be equipped with an optional pre-emptive pre-collision system, which incorporates adaptive cruise control. The model range adds several new active safety features, including an automatic high beam headlamp switch, lane departure alert, blind spot monitor with rear cross traffic alert, and a standard tire pressure warning system.

An industry first comes via free real time traffic and weather on all multi-media systems. This might be more enticing to the wired generation than the performance aspects discussed above. The IS has two systems: a standard display audio system, or an optional navigation system. The navigation system is operated by a multi-function display, which also allows adjustment of the climate, audio, and phone controls, among other driver distracting things.

Once you get past the marketing of free telematics as something thus far unique, the substantive sport sedan issue remains whether Lexus can continue to chip away at BMW’s dominance in the small sporty car class in the face of the impressive new 3-Series lineup and the impending 4-series, no trivial matter. (Read AutoInformed on BMW Shows a “Concept” 4-Series at NAIAS)

Lexus prices are steep, ranging from $36,845 to a breathtaking $55,230, which is roughly the territory where the 3-Series now also resides. Even the new Cadillac ATS can top $50,000 for a compact sedan that is fully competitive here. Lexus is fighting a strong Japanese Yen, and will face pricing pressure from the Germans if they feel threatened. The days of ignoring Lexus are long over. The new rear-wheel-drive 320i just on sale starts at $33,445 with destination; 320i xDrive (all-wheel-drive) starts at $35,445, but options quickly add up as they do on the Lexus.

Lexus is exploring new territory here. Its pricing advantage is now gone, but so is its former lack of competitiveness. Initially this won’t be a problem when the IS starts appearing in showrooms this summer, but a cautionary note comes from the Lexus GS experience of last year.

Initially the GS (See First Drive – 2013 Lexus GS 350 Sport Sedan) aimed at the BMW 535i sold well as showrooms were stocked, but once you got past the early adapters and those with the need for what was perceived as the latest and greatest, sales dropped off. Year-to-date, the competitive GS 350 has sold only 5,325 cars, a 25% decline, the reasons for which Lexus executives at the IS preview feigned ignorance. Compare this to the BMW 535i ytd at more than 17,000, with 5,200 sold in April alone. Therefore, in spite of increasing competence at Lexus, the chase is still from behind.

2014 Lexus IS Prices

Model              Engine             Trans   MSRP, add $895*

IS 250 rwd      2.5L V6           6AT     $35,950

IS 250 awd     2.5L V6           6AT     $38,485

IS 350 rwd      3.5L V6           8AT     $39,465

IS 350 awd     3.5L V6           6AT     $41,700

Packages        IS 250 rwd      IS 250 awd     IS 350 rwd      IS 350 awd

Premium          $1,050             $610                $1,050             $610

Luxury             $3,665             $3,225             $3,665            $3,225

F Sport             $3,115             $2,675             $3,620             $3,180

Optional Equipment

• Navigation System                              $2,085
• Navigation with Mark Levinson         $3,225
• Backup Monitor                                  $350
• Power Rear Sunshade                         $210
• 18” Wheels All-season tires                $935
• 18” Wheels Summer tires                    $935
• Variable Gear Ratio Steering              $400
• Intuitive Park Assist                           $500

*MSRP excludes delivery, processing and handling fee of $895.

Read AutoInformed on:

• The History of Lexus
• Breakthrough – as Toyota Promotes Japanese and American Executives – One to a Lead Job in Nagoya Headquarters in Unprecedented Move
• Toyota to Pay Record $17.35 Million for Lexus Safety Cover-Up
• Driving the 2013 Lexus LS 460, F Sport and 600hL Flagship Sedans
• NHTSA Prompted Latest Lexus Recall after Web Complaints
• 2013 Lexus ES 350 Starts at $36,995, Hybrid at $2,750 Premium
• First Drive – 2013 Lexus ES 350 and ES 300h Hybrid Sedans

Ken Zino

NSX will have a unique powertrain and body structure with a mid-mounted V6 engine.

Acura said that the all-new NSX supercar would be produced at a new Performance Manufacturing Center in Ohio inside Honda’s former North American Logistics facility adjacent to Honda’ Marysville Auto Plant.The $70 million advanced production facility is 184,000 square feet and located in the midst of Honda’s existing R&D and production engineering operations in North America.

The original Acura NSX was built at the Takanezawa Plant in Japan from 1990 until production moved to the Suzuka Plant in early 2004, where it was produced until 2005. Part of the Tochigi Factory, the Takanezawa Plant was the first manufacturing facility in the world to mass-produce an all-aluminum body and balance advanced production equipment with hands-on “craftsman” processes.

The site for the new production facility, Honda’s third auto plant in Ohio, is only a few miles from the Honda R&D Americas that is engineering the sports car for production. The Performance Manufacturing Center also is close to Honda Engineering North America, which develops new production technologies.

In addition to the plant location, Honda announced that Honda R&D Americas chief engineer Ted Klaus is leading the global team developing the new NSX, and Clement D’ Souza, associate chief engineer at Honda of America, is leading the team that will bring NSX to “mass” production in 2015.

The Performance Manufacturing Center will employ 100 skilled manufacturing associates drawn from within Honda’s existing operations in Ohio. In addition, associates at Honda’s engine plant in Anna, Ohio, will assemble the NSX powertrain. The NSX will have a unique powertrain and body structure and will be powered by a mid-mounted V6 engine mated to what is termed Sport Hybrid SH-AWD (Super Handling All Wheel Drive) system.

Ken Zino

“Our fleet customers have asked us for an entry in the commercial small van segment.”

General Motors and Nissan announced today that the companies signed an agreement for Nissan to produce a small cargo van in Mexico that GM will sell in the United States and Canada. GM will rebadge the Nissan NV200 as the Chevrolet City Express, which will go on sale in the fall of 2014. No further technical details or pricing was provided.

Nissan currently sells a version of the vehicle as the NV200 in numerous markets, including the United States and Canada. Nissan also sells full-size NV 1500/2500/3500 Cargo Standard Roof, a 4-row/12-person NV 3500 Passenger and larger NV 2500/3500 Cargo High Roof models. Year-to-date the NV range of vans has sold more than 4,000 units in the U.S.

The NV200 is a cargo van that just went on sale in during April with 200 delivered. It has the lowest claimed starting MSRP in the small segment of $19,990, plus $845 for delivery, and best in class 24 mpg combined EPA fuel economy rating. The front-wheel drive NV200 comes with a 131-horsepower 2-liter inline 4-cylinder engine and a continuously variable automatic transmission.

“Our fleet customers have asked us for an entry in the commercial small van segment, so this addition to the Chevrolet portfolio will strengthen our position with fleets and our commercial customers,” said Ed Peper, U.S. vice president of GM Fleet and Commercial Sales.

Why the world’s second largest automaker needs to go outside for a small commercial van goes back to a decades old Opel decision to outsource small van production in Europe. Ford, Renault and Citroen all thrive in the segment. It is an embarrassing position for GM in AutoInformed’s view.

Ken Zino

Low Interests rates and good trade-in prices should translate to increased sales particularly for the Detroit Three.

Auction prices for full-size pickup trucks are up 7% for the first four months of 2013, according to the May edition of the NADA Used Car Guide.

Contributing to the higher values for used, full-size pickups is supply and demand. The supply of full-size pickups up to 8-years-old declined by 17% from 2007 to 2012, and will fall by an additional 8% on an annual basis in 2013, NADA predicts. As a result, trade-in prices of full-size pickup trucks have increased 28% from 2007 to 2012. 

NADA said that wholesale prices for all segments of used vehicles up to 8-years-old dropped by -1.7% in April. Compact and mid-size cars led the decline with prices falling by a combined average of -2.1%. Used prices for full-size pickups slipped only – 0.5% in April.

“The recovery of home values and increased residential construction, stabilizing gasoline prices and a decline in late-model supply have resulted in higher trade-in values for full-size pickups,” said Jonathan Banks of NADA.

As an example, the average trade-in value for a 3-year-old Chevrolet Silverado 1500 Crew Cab LT 5.3-liter 2wd is $20,540, up $1,460 or 8%. Last year, the value of a 3-year-old Silverado was $19,080. The same trend is in evidence at all brands of full-size pickups.

“The late-model, used supply of full-size pickups has yet to recover from the dramatic fall off in new-vehicle sales caused by the economic recession,” Banks said.

New housing starts totaled 781,000 in 2012, and the National Association of Home Builders estimates that housing starts will jump to at least 1 million units in 2013. Home prices are also on the rise, up 8.7% over the first two months of 2013 compared to the same period a year ago, according to the S&P/Case-Shiller 20-City Composite Home Price Index

The increase in home prices should continue to increase demand for full-size pickups, particularly those used most frequently in construction, such as lower-priced 2-wheel drive, regular cab trucks with V6 engines.

“The low rate of depreciation for full-size pickups means that consumers will find themselves in a favorable equity position if they trade-in their used pickups for a new or newer pre-owned one,” Banks said. “There is little evidence to suggest that consumer demand for full-size pickups will diminish in the near-term. We expect prices in the segment to remain above average for the remainder of the year.”

Ken Zino

The latest used vehicles report for May and June shows U.S. used car supply rising, thereby decreasing trade-in values. ALG is forecasting a slight decrease in 36-month residual values of -0.5%, which it claims compares favorably to historical norms that predict a -0.9% decrease.

“Used supply overall is increasing by 800,000 units versus the prior period, which puts downward pressure on residual values,” said Eric Lyman of ALG.

“However that negative impact is being offset by rises in consumer spending on durable goods, which contributes to stronger residual values. Going forward, used supply increases are an indisputable fact, it is volatility of other factors that are driving risk to ALG’s current market forecast.”

The Industry Report includes a look at the U.S. economy and factors that can affect vehicle pricing, including gasoline prices, durable goods and interest rates. Other measures of the nation’s economic health are considered, including job reports, consumer confidence and unique factors such as the recent “sequester,” the impact of which may affect used vehicle values moving forward.

ALG said that the full impact of the fiscal cliff remains to be seen, but early indications are that the combined tax increases and spending cuts are not likely to derail the recovery. Fourth quarter GDP change has been revised upward to a 0.4% expansion, a” substantial improvement from the initially reported 0.1% contraction.”

Ken Zino

The “jobless Obama Administration” trade policies continue to hurt the middle class.

While the Obama Administration promised U.S job growth after it pushed through the so-called Korean Free Trade Agreement last year, it has been quite costly so far for U.S. workers. The latest federal government trade data show that there has been a decline in U.S. exports to Korea and a rise in imports to $52.9 billion. The resulting annual trade deficit of -$16.6 billion belies the Administration’s promises that the pact would expand U.S. exports and create U.S. jobs.

The U.S. deficit with Korea in autos and auto parts increased 16% during the first year of the FTA. U.S. auto imports from Korea have surged by more than $2.5 billion. FTA boosters have touted “gains” in U.S. auto exports without noting that this increase totaled just $130 million, with fewer than 1,000 additional U.S. automobiles sold in Korea compared to the 1.3 million Korean cars sold here in 2012.

The UAW, beholden to Obama for the bailouts of Chrysler and General Motors as well as the propping up of Ford Motor with subsidized loans, supported the agreement, alone among all organized labor groups.

U.S. goods exports to Korea have dropped 10%, a $4.2 billion decrease, under the Korea FTA’s first year, in comparison to the year before FTA implementation. U.S. imports from Korea have climbed 2% percent for a $1.3 billion increase. The U.S. trade deficit with Korea has increased 37% for a $5.5 billion increase. The growing trade deficit indicates the loss of tens of thousands of U.S. jobs.

“The Korea pact’s damaging outcomes being the opposite of the administration’s promises will certainly complicate the administration’s current efforts to use the same claims about export expansion to persuade Congress to delegate away its constitutional trade authority or to build support for the administration’s next trade deal, a massive 11-nation Trans-Pacific Partnership (TPP) based on the same model,” said Lori Wallach, director of Public Citizen’s Global Trade Watch.

The decline in U.S. exports under the Korea FTA contributed to an overall disappointing U.S. export performance in 2012, placing the United States far behind Obama’s stated goal to double U.S. exports by the end of 2014. At the 2012 export growth rate of 2% percent, the United States will not achieve the president’s goal until 2032, 18 years behind schedule.

“Most Americans will not be shocked that another trade agreement has increased our trade deficit, because they know that these NAFTA-style deals are losers, but anger toward the politicians who keep supporting these deals is soaring,” claimed Wallach.

Ken Zino

The engine announcement comes after mixed sales results for Volvo Car Group in April with global retail sales of 33,702 cars for the month. For the first four months of 2013, retail sales were down 6.4%. China is  Volvo’s biggest market. 

Volvo Car Group is now manufacturing the first versions of a new, high-efficiency four-cylinder engine family after two years of preparation. The engine plant in Skövde, Sweden will make smaller engines that are claimed to deliver higher performance than today’s six-cylinder engines, while offering lower fuel consumption than the current generation of four-cylinder.

The Swedish company now owned by Chinese Geely developed a new architecture dubbed VEA (Volvo Engine Architecture) that consists of four-cylinder direct injection gasoline and diesel engines. Together with planned driveline electrification, VEA replaces the previous eight engine architectures on three different platforms.

“Increasing the rail pressure to an exceptionally high 2,500 Bar, while adding the i-ART technology, can be described as the second step in the diesel revolution. It is a breakthrough comparable to when we invented the groundbreaking lambda sensor for the catalytic converter in 1976. It’s another world-first for Volvo,” says Derek Crabb, Vice President Powertrain Engineering at Volvo Car Group.

By using pressure feedback from each fuel injector instead of using a traditional single pressure sensor in the common rail, the new Volvo injection system continuously monitors and adapts fuel injection per combustion cycle in each of the four cylinders.

The new engines will be introduced between 2013 and 2015. About 20,000 engines will be produced in 2013, and by the end of the year the production pace will be 2000 units a week. The first variants will be fitted to the Volvo S60, V60, XC60, V70, XC70 and S80 in autumn of 2013.

The engine announcement comes after mixed sales results for Volvo Car Group in April with global retail sales of 33,702 cars for the month. For the first four months of 2013 retail sales were down 6.4%. China was Volvo’s biggest market in April and both China and Sweden reported growth compared to last year.

In Sweden, Volvo continues to outperform the market and Volvo’s share of the market subsequently grew to almost 20%. China was Volvo Car Group’s biggest market in April with 4,710 sold cars, partly thanks to the XC60 model selling at record levels.

Retail sales in the United States in April amounted to 4,475 cars, and -8% decline.  The S60 and XC60 models continue to lead individual car line sales in the United States. European markets continue to struggle with weak consumer demand following the weak economic situation. The decline in Europe is however showing some signs of a slowdown and all four Nordic markets grew in April.

Ken Zino