Volvo collaborates to lower personnel costs

Management and unions want to eliminate pink slips

By Nina Russin

Odell unveils the Volvo S60 concept in Detroit.

Dateline Gothenburg: Volvo is one of many automakers struggling to maintain solvency in the current financial turndown. Rather than requesting outside assistance the automaker has decided to deal with the situation internally. Company execs and union members have agreed to a plan that includes postponing pay increases and taking leave without pay.

Postponing pay increases until January 2010 will account for half of the total savings. In addition, the company’s forty highest ranked managers, including the executive management team will take a five percent pay cut. The pay cut begins April 1, and is effective through December 31.

Work time compensation is reduced by 1.5 hours per week for all employees during the same time period. Managers and employees will not accept bonuses through 2010.

To adjust production costs for lower sales volume, employees will take up to 45 lay-off days this year: compensation for lay-off days is fifteen percent below normal.

“We are in an extreme situation with a continuing weak global market for new cars, especially in the US and Sweden,” said Volvo president and CEO, Steve Odell.

“We… need to take extraordinary measures to improve the competitiveness of our business,” Odell continued. “This agreement we all believe is a good model to secure our business and avoid further employee separations at the present time.”

2010 Kia Soul

Hip to be square

By Nina Russin

2010 Kia Soul

Box-shaped crossovers seem to be on every automaker‘s short list. The Kia Soul is one of two such vehicles rolling out this spring: the other being the Nissan Cube. Kia is positioning the Soul as a value-packed alternative to the Cube and Scion xB. With a starting price of  $13,300 for the base model, the Soul appeals to young college grads who want an affordable vehicle with enough versatility for active lifestyles.

The Soul progressed from the drawing board to the showroom quickly. Kia unveiled the prototype at the 2006 North American Auto Show in Detroit. Production models are currently rolling into dealerships.
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2009 Nissan 350Z Roadster GT

Nissan’s iconic two-seater approaches four decades of excellence.

By Nina Russin

2009 Nissan 350Z Roadster

Forty years is a long time for a model to maintain viability in the car market. Those that do usually have a loyal group of enthusiasts to thank for their tenacity: the Z is no exception.

Next year, Nissan’s Z roadster reaches the four-decade mark with a new model, the 370. Although the 350Z is an older platform, it continues to attract enthusiasts who like adding adventure to the daily commute.

This year, the 350Z roadster comes in three grades including the upscale grand touring (tested). A $41,570 base sticker price on the test car puts it square in the mid-luxury segment.
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All-new Honda Insight Starts Under $20,000

Most Affordable New Hybrid Available in the U.S.

Looking for a five-passenger dedicated hybrid for under $20k? Check out the all-new 2010 Honda Insight, which goes on-sale March 24. At $19,800 for the Insight LX, you get 1.3-liter i-VTEC® gasoline engine and a 10-kilowatt electric motor that together contribute to an EPA-estimated city/highway fuel economy rating of 40/43 miles per gallon.

“The all-new Honda Insight brings the cost of entry for hybrid technology within closer reach of an entirely new car-shopping audience,” said Dick Colliver, executive vice president of American Honda. “In addition to making good environmental sense, hybrid technology is now entering a new era where it can also make financial sense for a broader range of customers.”

A sleek exterior blends design elements from the original 2000 Insight’s highly aerodynamic side profile with a front-end design similar to the hydrogen-powered FCX Clarity, a marquee environmental product for Honda. The interior offers a roomy passenger environment with a configurable rear seating and cargo area that benefits from 60/40 split fold-down seats.

Major features standard to the Insight LX include front, front-side and side-curtain airbags; an anti-lock braking system; a continuously variable automatic transmission (CVT); Eco Assist; automatic climate control; tilt and telescope steering column; manual driver’s seat height adjustment; power windows; a four-speaker AM/FM audio system with CD player and auxiliary audio input for external digital music players; and much more.

A more premium version is also available: The Insight EX, with a MSRP of $21,300. For complete details, visit the official site.

2010 Mercedes-Benz GLK350 4matic

Compact sport-utility vehicle with sports car performance

By Nina Russin

2010 Mercedes-Benz GLK

On the surface, the Mercedes-Benz  GLK looks more like a show car than an active lifestyle vehicle. Twenty-inch chrome wheels, part of a sport appearance package on the test car, can be misleading. Stylish as it is, the automaker’s first compact SUV is more than a pretty face.

On-road performance is akin to a sports car. The GLK swallows up turns like a panther on the prowl. Its 3.5-liter V6 engine and seven-speed automatic transmission are so well suited to each other that shifts between gears are barely perceptible.
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Ford Invites Drivers to Join Global Fiesta

North American test-drive program reaches out to young buyers

By Nina Russin

1976 Ford Fiesta

2011 Ford Fiesta

The original Ford Fiesta was the epitome of “slow and steady wins the race.” First introduced to the US in 1978, the pint-sized Fiesta sported an 84 horsepower, four-cylinder engine and four-speed manual transmission. With a good tailwind, and a downhill slope, the Fiesta accelerated from zero-to-sixty in just over ten seconds.

While it didn’t do much time on the drag strip, the Fiesta became a fixture on the American road and abroad: one of the first compact cars produced in response to that decade’s fuel shortages. The first seven generations of the car sold over 10 million units globally.

This year, a new Fiesta four-door sedan and five-door hatchback go on sale in China. The China-market cars are produced at the company’s Changan Ford Mazda Automobile Company manufacturing facility in Nanjing.

The North American model doesn’t go on sale until 2010, but Ford is whetting the appetites of prospective buyers with a marketing campaign through social media sites such as You Tube, Facebook and FlickR.

Contestants make short videos explaining why they should be chosen to be the new Fiesta’s secret agents. Ford will choose a hundred drivers to conduct six-month test drives, with monthly secret assignments. Drivers will capture their experiences digitally and share them with Ford and others online.

Visit The Ford Fiesta Movement to learn more.

2009 Mazda MX-5

Twenty years of roadster magic

By Nina Russin

2009 Mazda MX-5 Miata

The Mazda-MX-5, nee Miata, celebrates its twentieth birthday this year, with a restyled exterior and mechanical upgrades. Mazda’s two-seat roadster has always been a personal favorite: beautifully styled, and even more fun to drive.

The original Miata was the love child of  Mazda’s design studio. Chief designer, Tom Matano, and his colleagues wanted to create a contemporary car reminiscent of classic British roadsters from the 1960s and 70s.
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2009 Suzuki Equator Crew Cab Sport

Big truck; bigger value

By Nina Russin

2009 Suzuki Equator Crew Cab

The name, Equator, conjures up images of a truck much bigger than the actual product. Suzuki’s midsized truck shares underpinnings with the Nissan Frontier. While Nissan uses the Frontier to offer certain Titan features on a downsized platform, the Equator is the first vehicle to bring big truck capability into Suzuki‘s showrooms.

Because Suzuki has such a loyal base of motorcycle, ATV and marine customers in the United States, it makes sense to sell a light duty truck capable of hauling these vehicles around. That’s where the Equator comes in.
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2009 Land Rover LR3

Luxury sport-utility vehicle gets wheel and interior upgrades

By Nina Russin

2009 Land Rover LR3

Of all the products in Land Rover’s line-up, the LR3 is the model that resonates most with active buyers. It combines the automaker’s legendary off-road capability with an ergonomic interior that incorporates the technology these buyers look for, without some of the luxury accoutrements they don’t want.

Over the past two years, Land Rover has added some upscale features to the LR3’s standard equipment: leather upholstery, nineteen-inch wheels, and seating for seven passengers. While the leather seats are less practical than cloth, they make sense in light of the vehicle’s mid-luxury positioning.
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