Low-Sulfur Diesel Arrives Sunday

Low-sulfur diesel fuel oil is scheduled to go on sale this weekend, ushering in a new era for both carmakers and the makers of diesel engines. Low sulfur fuel is one of the keys to the development of demand for diesel-powered light-duty vehicles, automakers have said for years.  Under the new rules, the sulfur content will drop 97 percent to a level closer to the clean-diesel fuel found in Europe. 

Government regulators, environmentalists and industry groups are hailing the arrival of the new formulation of diesel, which officially goes on sale Sunday with the blessing of the U.S. Environmental Protection Agency.
"Come Sunday it's going to be good news for cleaner air and for the drivers to save energy," said Bill Buff, a spokesman for the Washington, D.C.-based Diesel Technology Forum, which represents more than two dozen companies with a stake in diesel engine technology.

Richard Kassel of the clean fuels and vehicles project for the Natural Resources Defense Council, said the new fuel could help boost the sales of diesel-powered passenger cars.-Joseph Szczesny

Audi Gives "First Look" At R8 in Manhattan

Audi yesterday unveiled its first "look, don't buy" brand-experience showroom in the US, on New York's Park Avenue. The launch of the storefront gallery, called the Audi Forum, was paired with the U.S. debut of the R8 sports coupe, which doesn't go on sale until next fall. 

The car, in which New York Mayor Michael Bloomberg rode shotgun, was part of a caravan of Audi vehicles, including the R10 TDI,  the first diesel to win titles in the Le Mans series. The message was clear:  Audi, which needs a marketing megaphone in the U.S., plans to make as much noise as possible in coming months, to tout what - by the end of next year - will have been 19 new models and derivatives introduced since 2005.

The Park Avenue fanfare follows big changes at the U.S. sales arm of the Volkswagen sibling, including a 48-percent staff turnover. Scott Keogh, who left Mercedes-Benz in May to be chief marketing officer, said the company will boost its ad budget to support the new vehicles, which include a redesigned TT coupe coming next spring, a new A5 niche coupe living between the A4 and A6 sedans, and a new Q5 SUV planned for 2008.

The company recently launched a creative review, including 13-year incumbent McKinney, Raleigh, N.C., Publicis Groupe's Fallon, Minneapolis (formerly BMW's AOR); Bartle Bogle Hegarty, New York (the agency's London office handles Audi's U.K. account); and Venables, Bell & Partners, San Francisco. Audi reportedly spends $70 million in measured media yearly.

"We are looking for big ideas to get people to talk about Audi," said Keogh, adding that Audi will boost dollars in both national and dealer advertising and that the review is an effort to boost the volume on what he called the quality of Audi's message. "We need to be a little more provocative, charismatic and passionate. We have been reserved. I think it's time to take the gloves off." 

The notion of a dealer-free showroom is not new, at least in Europe and Asia. There are Audi Forums in cities like London, Paris, Berlin, and Beijing. Keogh said the showroom, which Audi will replicate in other cities, is meant to be a nexus for fashion events, art shows, and product launches by partners like Louis Vuitton and auto audio supplier Bang & Olufsen. 

Still, while Audi has sold 890,000 vehicles in 40 global markets and has seen sales rise 5 percent this year in the U.S. to 62,579 units, it has not been able to keep pace in the U.S. with BMW, Lexus and Mercedes, the luxury benchmarks. Lexus has sold 234,474 units and BMW 230,084 vehicles through September.-Karl Greenberg

Ford Recalling 145,000 Vehicles

For will recall some of its Five Hundred/Montego sedans and Freestar minivans for a problem with side door latches. The recall of about 140,000 2005 Five Hundred/Montego sedans and 2005-2006 Freestar minivans is being performed because the latches in the vehicles may let in water, the National Highway Traffic Safety Administration (NHTSA) said. The water could freeze and prevent the door from closing properly. Ford will also recall 6164 Escape Hybrids for a potential problem with drivetrain shafts, which could break and allow the vehicle to move even when shifted into Park.

Cadillac Going to South Africa

GM's Cadillac brand will open for business in South Africa early next year, the company announced on Wednesday. The launch of the brand will begin with three vehicles-the European-bred BLS sedan (based on the Saab 9-3), the SRX crossover, and the STS sedan. GM says it's heading to the country because "South Africa is one of the fastest growing automobile markets in the world, and with our distinct portfolio of luxury vehicles, Cadillac is ready to further its expansion on the African continent." Cadillac is trying to expand its brand name globally and is pushing big sales increases in places like Europe and China.

FROM THE SOURCE headlines from the latest press releases

Acura and XM Are First to Offer Complimentary Satellite Radio Program for Certified Pre-Owned Vehicles

Bang & Olufsen Incorporates Cutting Edge Sound System into the New Audi R8

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Autobytel, Inc.	ABTL	3.07	-0.03 (-0.97%)
Autoliv Inc.	ALV	56.04	+0.36 (+0.65%)
AutoNation Inc.	AN	20.68	-0.16 (-0.77%)
ArvinMeritor Inc.	ARM	14.08	+0.03 (+0.21%)
American Axle & Mfr. Holdings Inc.	AXL	17.66	+0.02 (+0.11%)
Ballard Power Systems Inc.	BLDP	6.10	+0.49 (+8.73%)
BorgWarner Inc.	BWA	59.33	-0.46 (-0.77%)
Cummins Inc.	CMI	131.91	-1.53 (-1.15%)
DaimlerChrysler AG (ADR)	DCX	49.80	-0.19 (-0.38%)
Dura Automotive Systems	DRRA	0.24	-0.01 (-4.00%)
Eaton Corporation	ETN	71.75	+0.57 (+0.80%)
Ford Motor Company	F	8.27	+0.08 (+0.98%)
General Motors Corporation	GM	32.13	+0.23 (+0.72%)
Gentex Corporation	GNTX	14.12	-0.17 (-1.19%)
Goodyear Tire & Rubber	GT	14.31	-0.19 (-1.31%)
Honda Motor Co. Ltd. (ADR)	HMC	35.10	+0.61 (+1.77%)
Johnson Controls Inc.	JCI	80.65	-0.35 (-0.43%)
Lear Corporation	LEA	23.47	-0.02 (-0.09%)
Magna International Inc.	MGA	74.84	+0.46 (+0.62%)
Motorola Inc.	MOT	25.02	-0.20 (-0.79%)
Nissan Motor Co. Ltd. (ADR)	NSANY	23.46	+0.39 (+1.69%)
Sonic Automotive Inc.	SAH	22.76	-0.13 (-0.57%)
Siemens AG	SI	83.98	-0.26 (-0.31%)
Sirius Satellite Radio	SIRI	3.79	-0.07 (-1.81%)
Toyota Motor Corporation (ADR)	TM	115.77	+0.77 (+0.67%)
TRW Automotive Holdings	TRW	24.35	+0.01 (+0.04%)
Tower Automotive Inc.	TWRAQ.PK	0.07	+0.01 (+12.90%)
United Auto Group Inc.	UAG	23.59	-0.08 (-0.34%)
Visteon Corporation	VC	7.81	-0.07 (-0.89%)
XM Satellite Radio Hold.	XMSR	11.61	-0.13 (-1.11%)