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Daily Auto News: Nov. 10, 2006

New U.S.-Bound Smart ForTwo Shown

DaimlerChrysler's smart brand has, at long last, ripped the relatively small cover off its new fortwo minicar. The new smart, which will come to the U.S. next year as a 2008 model through the UnitedAutoGroup chain, has been revamped for more safety features and for a little more room. Styling has been updated as well, and the new smart offers either a three-cylinder engine with 61, 71, or 84 horsepower or a diesel with 45 hp. All engine variants come with a five-speed transmission. Smart says that the new version will earn four stars in the European safety tests and has been designed with alternative fuel power in mind. Convertible and tuned BRABUS versions will be available as well. Stay tuned for more smart coverage from the Detroit auto show in January.

MORE: Ten Questions: Smart's Dave Schembri

Ford Gets Good News on Fusion, Dumps Truck Shift

Ford got good news Thursday from Consumer Reports magazine, but also disclosed some additional production cutbacks brought about by fading sales of big sport-utility vehicles.

The good news was that the automaker placed 21 different vehicles, including cars such as the Ford Fusion, Mercury Milan, and the Ford Five Hundred, on Consumer Reports' list of recommended buys. Only Toyota had more vehicles on the list, jubilant Ford officials noted, and the Fusion was put on the CR cover.

However, Ford also disclosed the company plans to eliminate one production shift at the Michigan Truck plant in Wayne sometime during the second quarter of 2007. Michigan Truck, traditionally one of the company's most profitable plants, now employs about 2800 workers building Ford Expeditions and Lincoln Navigators on two shifts. Ford spokeswoman Anne Marie Gattari said the company responded to softening demand for full-size sport utility vehicles. Gattari also said Ford had not decided how many employees will be laid off when the shift is eliminated. The plant is unique in that many of the workers are fairly young, since the plant was re-staffed in the 1990s when SUV sales were strong. -Joseph Szczesny

We drive the Ford Fusion

Consumer Reports Gives Detroit Cheer

The head of the Consumers Union auto test unit, David Champion, ventured to Detroit this week to talk to a somewhat skeptical Automotive Press Association about CU's conclusions on reliability, fuel economy, and stability control, after extensively testing some 85 new 2007 models - significantly up from only 35 different models a few years ago.

Somewhat surprisingly, some of Ford Motor Company's new products got a good report card, specifically the Fusion/Milan/MKZ/Zephyr family. They were among the handful listed by Champion as "most impressive." Others were the Hyundai Azera, Kia Sedona, and Mazda5.

On the "least impressive" list were the Dodge Caliber, Pontiac Solstice, Subaru Tribeca, and Mitsubishi Eclipse.

Champion said CU believes its fuel economy tests are more representative of consumer driving experience than the current EPA cycles used for labeling purposes. He noted, moreover, that the Japanese brands are way ahead of American, European, and Korean brands in fuel economy. Only four American and two European and no Korean brands made the "best" list compiled by CU, compared with 35 Japanese. Conversely, the "worst" list for fuel economy included 29 American, six Japanese, six European, and four Korean.

Another part of his report, reflecting write-ups in Consumer Reports' "New Car Preview 2007" issue, dealt with CU testers' evaluations of stability control. Listed as "well-tuned" were systems found on '06 Explorer, '06 Corvette, '06 Porsche 911, and '05 Kia Amanti. Rated as "not quite there" were systems on the '07 Audi Q7, '06 Cadillac CTS, '06 Outback VCD, and '05 Lexus GS300.

Consumers Union sends annual product reliability surveys to some five million reader/members. The most recent mailing yielded some 950,000 responses including 1.3 million different vehicles comprising 264 different '97 to '06 models, a huge database but of course potentially biased by self-reporting. CU tries to eliminate duplicate reporting of vehicles, Champion told the automotive writers, and ask respondents NOT to include reports of recalled items. The testing organization also requires a minimum of 100 of any given model to be included in the reported results, he said.

On the basis of predicted reliability, this year Consumer Reports has newly recommended eleven American models, four Japanese, six European, and six Korean. The "not recommended" badge of shame is newly associated with eight Americans, two Japanese, eight European and no Korean models. CR's "most reliable" list includes six American, one European, one Korean, and a whopping 39 Japanese models. But the "least reliable" list comprises 20 Americans, five Japanese, nineteen European (!), and two Korean.

Champion named only a few names to auto journalists in his organization's predicted reliability findings. The Fusion family "matches Accord and Camry" but "I would like to see if how well Fusion is in its fifth year" when most people are ready to trade. He noted that the Buick Lucerne and Cadillac DTS were presently predicting better than Avalon, and that new GM SUV models also looked promising when it comes to trouble-free operation. Other models singled out for favorable ratings were Azera, Sorento, Sedona, Entourage, and MINI Cooper.

Finally, he noted that quality and safety of vehicles has "improved dramatically." The ratings are "moving targets" because the base average of "things gone wrong" or defects is always being improved.

Champion was a test engineer for Goodyear, Land Rover, and Nissan before joining Consumer Union in 1997. -Mike Davis

Domestics Get White House Meeting, Finally

Big Three executives have been invited to meet with President George Bush at the White House next Tuesday, according to a White House spokesman. The executives had asked for the meeting last spring but it was delayed several times and was only confirmed as the Republicans were scrambling for votes in the run-up to the mid-term election. The automakers insist they are not looking for a bailout but executives said they would like some relief from on healthcare costs and for the administration to apply more pressure on Japan, which has kept the yen artificially low to help key Japanese exporters such as Toyota. For his part, Bush has said he is not interested in any changes that would allow the companies to walk away from healthcare obligations for retirees. -Joseph Szczesny

Fiat CEO Marchionne To Retire

Following a wave of departures at European carmakers - voluntary and involuntary - Fiat Auto CEO and turnaround leader Sergio Marchionne says he will retire next year but will stick around as Fiat Group CEO at least until 2010. Automotive News reports that Marchionne hasn't begun to pick a successor, though. He took the helm of Fiat in 2004 and took over Fiat Auto in early 2005 and has successfully turned a profit in recent financial quarters, and also presided over the cash-out of GM's stake in the Italian automaker.

Handbuilt Kiddie Cars On the Auction Block

There's a new solution to that tricky Christmas problem of what to give the child who has everything - the ultimate kiddie car. A British auction house is selling five totally unique hand-built machines, including a ten-foot-long NASCAR replica said to be inspired by Tom Cruise's racecar in Days of Thunder. The machine cost $20,000 to create, features full crumple zones and is powered by a 300-cc Kubota engine. Selling with it is an eleven-foot drag racer, complete with safety harness. It's performed at the legendary U.K. Santa Pod raceway, reaching speeds of more than 60 mph over the quarter mile. The set is completed with a pair of American-style bathtub hotrods, plus a stunning ten-foot replica of the Batmobile from Batman Returns. It features on-board computers, pit-to-car communications and a sound-effect system that mimics a machine gun and rocket launcher. It's listed in the catalogue as being suitable for drivers aged five and above. For more details, e-mail info@classic-auctions.co.uk. -Richard Yarrow

FROM THE SOURCE headlines from the latest press releases

Auto Affordability Best Since 1980 Reports Comerica Bank's Auto Affordability Index

Name	Symbol	Last	Change

Autobytel, Inc.	ABTL	3.25	-0.01 (-0.31%)

Autoliv Inc.	ALV	55.63	-0.63 (-1.12%)

AutoNation Inc.	AN	20.01	+0.04 (+0.20%)

ArvinMeritor Inc.	ARM	15.36	+0.01 (+0.07%)

American Axle & Mfr. Holdings Inc.	AXL	18.53	+0.08 (+0.43%)

Ballard Power Systems Inc.	BLDP	7.25	0.00 (0.00%)

BorgWarner Inc.	BWA	57.78	+0.09 (+0.16%)

Cummins Inc.	CMI	118.77	-1.82 (-1.51%)

DaimlerChrysler AG (ADR)	DCX	59.00	-0.33 (-0.56%)

Dura Automotive Systems	DRRA

Eaton Corporation	ETN	73.59	-0.04 (-0.05%)

Ford Motor Company	F	8.56	-0.07 (-0.81%)

General Motors Corporation	GM	34.54	-0.16 (-0.46%)

Gentex Corporation	GNTX	16.34	+0.13 (+0.80%)

Goodyear Tire & Rubber	GT	17.54	+2.37 (+15.62%)

Honda Motor Co. Ltd. (ADR)	HMC	36.26	-0.15 (-0.41%)

Johnson Controls Inc.	JCI	82.45	-0.72 (-0.87%)

Lear Corporation	LEA	31.32	-0.16 (-0.51%)

Magna International Inc.	MGA	72.39	+0.64 (+0.89%)

Motorola Inc.	MOT	21.20	-0.27 (-1.26%)

Nissan Motor Co. Ltd. (ADR)	NSANY	24.83	-0.17 (-0.68%)

Sonic Automotive Inc.	SAH	26.58	-0.17 (-0.64%)

Siemens AG	SI	94.50	+2.47 (+2.68%)

Sirius Satellite Radio	SIRI	4.29	+0.17 (+4.13%)

Toyota Motor Corporation (ADR)	TM	122.39	-1.07 (-0.87%)

TRW Automotive Holdings	TRW	24.03	+0.21 (+0.88%)

Tower Automotive Inc.	TWRAQ.PK	0.069	-0.001 (-1.43%)

United Auto Group Inc.	UAG	22.68	-0.06 (-0.26%)

Visteon Corporation	VC	7.99	-0.01 (-0.13%)

XM Satellite Radio Hold.	XMSR	13.62	-0.03 (-0.22%)

You'll find lots more at TheCarConnection.com, including service tips from our resident gearhead Bob Weber; buying, selling, and leasing tips; recall and safety links; and a wide range of news, views, and reviews from the automotive world's top columnists.

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Daily Auto News: Nov. 10, 2006