Volkswagen Lowers Prices in China

Wednesday, March 21, 2007

It is a known fact that car makers are always looking for ways to expand their market to boost profit. Recently, most car makers are investing in Asia, particularly in the Indian and Chinese markets where the demand for automobile has increased significantly in the past few years.

The number of competing brands in the Chinese market has increased competition and different marketing strategies are being employed by these car makers. Recently, Volkswagen reported that they have cut down the price of their automobiles for sale in China. This is an effort to make their vehicles more accessible to a large number of Chinese car buyers. The country with its huge population and increasingly growth in terms of economics has been a good place for car makers like Volkswagen to do business in.

Shanghai Volkswagen, the Chinese subsidiary of German Volkswagen AG, recoded 65,000 vehicles sold for the first two months of the year. The figure is 41 percent higher than their sales for January and February of 2006.

In order for the company to sell more products and to tighten its grip on the Chinese market, they have implemented the price reduction scheme. The parent company of Shanghai Volkswagen reported that they have reduced the price of their vehicles by as much as 11,000 yuan or $1,420. The reduction involves different models like the Volkswagen Polo and Santana.

The move by the company is hoped to spark more interest on their product among Chinese car buyers. Of course, the performance and overall features of their vehicles also plays a key role in selling the vehicles. With precision made engines and other components integrated into Volkswagen's cars of high quality like H&K filters, it can be expected that more and more Chinese will be opting for a Volkswagen in the coming months.

The reduction of the price of Volkswagen models came after its rival, Shanghai GM, announced earlier this year that they have cut down the sticker price of their models. Shanghai GM is the Chinese arm of the world's largest car manufacturer, General Motors. The company sold 67,500 vehicles for the first two months of the year. This is an increase of 39 percent from last year's sales for January and February. The company announced that they have cut down as much as ten percent from the prices of their domestically produced vehicles like the Chevrolet Lova and the Aveo.

The reduction of sticker price by these two car companies shows that the competition in the Chinese auto market is intense. While the country is economically improving thus making it a strong market for automobiles, the competition has become so intense when car manufacturers increased their production for the region.

The result, of course, is a huge number of cars that needs to be sold and one way of selling them fast is to lower their price. In the end, Chinese car buyers will be most benefited by these moves from General Motors and Volkswagen.

About the Author

Jenny McLane is a 36 year old native of Iowa and has a knack for research on cars and anything and everything about it. She works full time as a Market Analyst for one of the leading car parts suppliers in the country today.

German Car Manufacturers Going "Green"

Monday, March 12, 2007

The global community is now under siege of the global warming issue. To counter the huge amount of greenhouse gases being released by vehicles all over the world, car manufacturers continue to develop ways to cut down the fuel consumption of their production vehicles.

The American International Automobile Dealers Association's (AIADA) newsletter recently reported that German carmakers are among the players in the auto industry which have taken a keen interest in producing environment friendly cars. This may be their response to the ongoing debate on the stricter EURO6 emission standards set to be implemented in the year 2015. The steps being taken by German car makers are also a big help in the protection of the environment.

While according to the German newspaper Deutsche Welle, German car makers have yet to produce a true hybrid. And several car makers from the region expressed their interest on producing mild hybrids in the near future.

BMW has already announced that they will be teaming up with American car maker Chrysler in developing a mild hybrid transmission system for rear-wheel drive performance cars. This effort by the two car makers will further enhance the hybrid technology being used on cars today.

Another European car maker which has taken steps to produce environmentally friendly vehicles is Volkswagen. The German car maker has presented their lineup of super-efficient, ultra-low emission cars under the BlueMotion line. The company has already announced this technology in 2006 in the famous VW Polo. The technology is named after the color of Volkswagen's logo. Today, the BlueMotion technology is being planned to be incorporated on other Volkswagen vehicles like the Golf, Passat, and the Touran.

The Polo BlueMotion is equipped with a specially designed 1.4 liter diesel engine which has an astounding gas mileage rating of 60.3 miles per gallon. The fuel efficient Polo is also a very low emission vehicle with only 102 grams of CO2 released per kilometer. These figures beat the stats by the renowned Toyota Prius. The further enhancement of the BlueMotion technology will only help the car manufacturer produce more and more environment friendly vehicles.

Aside from the accomplishment of Volkswagen with the BlueMotion technology, they have also announced that they will be working with another German car manufacturer - Porsche. The two famous car maker has announced that they will be working together to produce eco-friendly cars which will be out in the market by the year 2008.

The partnership between the two forward thinking companies is hoped to bring revolutionary technologies which will help not only the companies but the entire auto industry in their battle against global warming. With Volkswagen leading the way for German car makers, it is only a matter of time before we see them as serious competition to Asian car makers who seemed to have the upper hand in the eco-friendly vehicle market all over the world.

Toyota and Honda has been leading the way when it comes to producing green cars. The Toyota Prius, the first successful electric hybrid car, is still selling in large quantities. The popularity of the Prius is well documented, aside from being the best selling hybrid car in the U.S., the owners of these cars have created a group to celebrate their concern for nature.

A website dedicated to hybrid car owners is put up with the cooperation of Toyota. Another hybrid car which has been racking up sales in the U.S. is the Honda Civic Hybrid. The Honda Civic in itself is already famous thanks to its fuel efficiency and good performance in handling and in ride comfort. But with the introduction of the hybrid version, the buyer base of the Asian brand in the U.S. quickly supported the hybrid version.

The accomplishments of Honda and Toyota are what German car makers are shooting for. With continued developments, German car makers will surely be coming up with hybrid cars as efficient and as reliable as Dodge Rancho shocks.

About the Author
Mike Bartley, 49, is a professional automotive journalist domiciled in Irvine, CA. He travels from one state to another to cover the hottest auto shows, racing events and automotive revelations. His penned compositions cover press releases, reviews, and suggestions. Where the auto action is, that's exactly where you can find Mike.

HONDA STORY

Wednesday, March 7, 2007

The Honda story is the story of one man, Soichiro Honda, and his unparalleled achievement of bringing motor cycles to the masses. Soichiro Honda was a racer, a businessman, and a manufacturer. But most of all he was a dreamer. He dreamed of a better way of making piston rings, founded a small company, and began production. He dreamed of giving people everywhere an economical form of transportation, and began producing small motorcycles, including one built in 1949 called the D-Type Dream.

He also loved racing too. So his company built bigger and faster machines, two, four, five and six-cylinder race bikes and won the Isle of Man.

Honda Motor Company is by far the world's biggest motorcycle maker. Honda's first motorcycle was born out of necessity in immediate post World War II Japan, where public transportation was desperately overcrowded and gasoline severely restricted.

Looking for a solution to his, and thousands of others', personal transport problems, Honda came across a job lot of 500 war surplus two-stroke motors designed to power electric generators; nobody else wanted them so Honda picked them up cheap.

His aim was to adapt them for attachment to push-bikes and, by October 1946, his small factory in Hamamatsu was making complete, makeshift motor bikes using proprietary cycle frames. Because gasoline was in short supply, Honda adapted his motors to run on turpentine, a fuel that he himself distilled from pine trees and sold throughout Japan. Turpentine (or gas thinned out with turpentine) was not the best thing for powering motorbikes, and required a lot of strenuous pedaling to warm the engine up enough before you could get going.

Honda's first bikes were very successful and supplies of the surplus engines ran out after a few months. Business was good by then, so he decided to manufacture his own motors. Using the surplus motor as a model, Honda designed and built his own 50cc engine.

In November 1947, the 1/2 horsepower A-Type Honda was being manufactured and sold as a complete motorbike. Because the motorbike gave off a lot of smoke and a stench of turpentine it was known as the "Chimney".

Soichiro Honda started Honda Motor Company in 1948, at the age of 41. Soon after he hooked up with financial whiz Takeo Fujisawa and together they built an empire.

1948 saw Honda introduce a 90cc version of the A-Type known as the "B-Type".

By 1949 Honda came out with the "D-Type". Mr. Honda was involved in every step of the two-stroke D-Type Dream's design and manufacture. This was Honda's first motorcycle. This was far from simply slotting a motor into a pushbike frame. Honda called his machine 'The Dream', because his dream of building a complete, motorcycle had come true. Soichiro Honda was an engineer and was always looking to produce better and more sophisticated machines.

It turned out to be the 146cc, OHV, four-stroke E-Type Dream. A powerful machine producing 5 1/2bhp capable of 50mph. It had a steel frame and proper suspension front and rear. By October 1951 the new Dream was in production at the rate of 130 units per day.

In 1952 Honda produced the first "Cub" F-Type, a 1/2 horsepower, 50cc, two-stroke engine that was produced in huge numbers. You could get one to fit to your pushbike or buy the complete red and white Honda "Auto Bai". Less than a year after its Introduction, production was 6500 units per month, at that time it was 70% of Japan's powered two-wheeler market.

In 1953 Honda produced the 90cc, four-stroke single, a motorcycle of even greater sophistication. This was known as the Benly, in Japanese this means "convenience". The J-Type Benly had a three-speed gearbox, produced 3.8bhp, a pressed steel Frame, rear suspension with the engine and swinging arm on a sprung pivot, and telescopic front suspension. Before long they were selling at a rate of 1000 units a month.

In 1954 a 200cc scooter, the Juno, was introduced to capture some of the sales from the Vespa scooter copies that were being built in Japan. Honda produced different versions of the Dream and Benly motorcycles over the next few years incorporating different size engines (up to 350cc) and other refinements.

In September 1957 Honda introduced their first twin-cylinder motorcycle, the sophisticated 250cc OHC four-stroke C70 Dream. It was the forerunner of Honda's high-performance 125 and 250cc twins.

In early 1958 Honda fitted an electric starter to the 250cc Dream and named it the C71 and, in 1959, the latest Benly an incredibly sophisticated 125cc OHC four-stroke twin, capable of 70mph was introduced as the C92.

In July 1958 Honda introduced in Japan what became the world's most successful motor cycle, the C100 Super Cub.

The Super Cub was developed over three years to be a cheap and practical motorcycle that literally anyone could use. It used a 50cc four-stroke OHV motor and centrifugal clutch with three-speed transmission. It was so easy to operate that even new riders could ride it as easily as a pushbike. Its innovative frame without a crossbar made it popular with the ladies and set a new trend in commuter motorcycling. The word "scooterette" was coined to describe this step-through style motorbike which sold in 50, 70 and 90cc versions.

In 1959 it was the first Honda motorcycle sold in the U.S., eventually becoming the world's best-selling vehicle (30 million to date). As proof the original concept and design was perfect is the fact that today's C50, C70 and C90s have only detail changes to set them apart from the machines of 25 years ago.

That same year, 1959, Honda introduced the 250cc C72 Dream in Amsterdam. This was the first Japanese bike to be officially shown in Europe. It surprised the crowd with its unusual pressed steel frame, swing arm and front leading link forks, sophisticated OHC all aluminum engine, electric starter and indicators.

In the UK learners had just been restricted to motorcycles of this size and wanted the fastest bikes they could legally ride. The Honda's were the fastest 250s around, and the C72 with its improvements like 12-volt electric's and wet sump lubrication, successor of the C71, was capable of 80mph and could still get 66 miles per gallon.

The CB92 retained the pressed-steel frame and leading link forks while the CB72 received a tubular style frame and telescopic front suspension.

In 1961 two years after Honda started selling Super Cubs, Honda stunned the racing world with "Mike the Bike" Hailwood's twin victories at the Isle of Man. It was the first of an unprecedented string of victories that was only the beginning of Honda's racing tradition.

From the beginning, Mr. Honda dedicated his company to racing, racking up over 100 major motorcycle championships around the world. What was learned from building high-performance racing machines later led to the development of groundbreaking production motorcycles.

The classic CB72 and CB77 helped fuel interest in riding, got America on two wheels, and established Honda as a serious player. The Hawk name has appeared on Honda models CB72, CB77, CB400T, NT650, VTR1000F ever since, the latest being the 1998 VTR1000F.

In 1962 this breakthrough advertising "You meet the nicest people on a Honda" shattered the myth that motorcycles were only for tough guys and rebels. It reached out and made Honda and motorcycling in general, appealing to everyone.

The C77 a 305cc version of the Dream and the CB77, a Super Sports motorcycle producing 28.5bhp were introduced in 1963.

In 1964 the C95 a 154cc version of the Benly and a 161cc version Of the CB160 was also offered.

The Hondells recorded "Little Honda" in 1964. Honda entered the American pop culture as the subject of this hit song.

In 1965 Honda, always eager for a new market, jumped into the big leagues with their first big, fast production motorcycle, the innovative 43bhp CB450 twin. This was a double overhead-camshaft machine with torsion bar valve springs that would do a genuine 104mph, a machine to challenge the 500cc-plus bikes.

Despite its performance, sales of the CB450 worldwide were Poor. A number of engineering changes were made, in 1967 a five-speed gearbox was added.

In 1967 Honda had their first big off-road win in the "first" Baja 1000.

In 1968 Honda stopped production of the CB72 and CB77 and produced a new line of high performance SOHC twins with five-speed gearboxes, called the CB250 and CB350, with the CB350 able to hit 106mph.

At the Tokyo Show of 1968 Honda, after months of tantalizing rumor, unveiled a landmark achievement that would change the motorcycling world forever. A 750cc bike with four cylinders and a disc brake that was so fast and powerful a new word, "superbike", was coined to describe it. The CB750F four was the biggest bike out of Japan, proving that a high-performance motorcycle could also be very reliable.

In April 1969 Honda set the motorcycle world on fire with the introduction of the CB750. Performance was staggering, easily hitting 120mph and at the time it had better acceleration than anything else on the road.

In 1969 the first Honda automobile sold in the U.S., leading Honda to become a preeminent automotive power.

 
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