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Hyundai CEO Krafcik warns against price war, short-term thinking

Filed under: GM, Hyundai, Toyota, Earnings/Financials

Hyundai Motor America President and CEO John Krafcik believes that some automakers are starting a price war, which would be an unwise move that focuses solely on short-term sales.

General Motors had strong sales in January 2011, but its 23-percent gain was due to increased incentives and price-cutting. After GM made its move, Toyota followed suit.

Krafcik says that Hyundai, whose incentive spending is among the lowest in the industry, has no plans to join in this game. Heavy incentive spending leads to sharp up and downswings in an automaker's accounting ledger. Hyundai sales rose 24 percent in 2010 and Krafcik expects to see improvements in 2011. While some automakers are fiddling with the radio, Krafcik is paying attention to the road in front of him.

[Source: The Economic Times]

Hyundai CEO Krafcik warns against price war, short-term thinking originally appeared on Autoblog on Sun, 13 Feb 2011 11:01:00 EST. Please see our terms for use of feeds.

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Video: Ferrari P4/5 Competizione laps Vallelunga during test session

Filed under: Motorsports, Coupe, Performance, Videos, Ferrari, Racing

Ferrari P4/5 Competizione - Click above to watch video after the jump

We've seen video of James Glickenhaus' "daily driver" Ferrari P4/5 by Pininfarina on the track and the street, and we already know that his race-prepared P4/5 Competizione is progressing nicely. While photos show the Ferrari P4/5 Competizione to be just as sexy as the Enzo-based road car that inspired it, nothing shows off a racing car's chops like actual footage of it in action.

That's now available via just-released in-car video of the Ferrari P4/5 Competizione lapping Italy's Vallelunga circuit. It's the latest exidence that Jim Glickenhaus' new machine is indeed the business. Sounds as good as it looks, too. Follow the jump to watch. Thanks to Don for the tip!

Gallery: Glickenhaus Ferrari P4/5 Competizione

[Source: YouTube]

Continue reading Video: Ferrari P4/5 Competizione laps Vallelunga during test session

Video: Ferrari P4/5 Competizione laps Vallelunga during test session originally appeared on Autoblog on Sun, 13 Feb 2011 13:02:00 EST. Please see our terms for use of feeds.

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2012 Mercedes-Benz CLS 63 AMG called into duty for New York Fashion Week

Filed under: Sedan, Mercedes-Benz, Police/Emergency, Design/Style, Luxury

Mercedes-Benz Fashion Force CLS 63 AMG - Click above for high-res image gallery

We've seen all manner of vehicles being equipped and commissioned for police duty around the world. But this is no ordinary police car. This 2012 Mercedes-Benz CLS 63 AMG is the ride of choice for the Mercedes-Benz Fashion Force.

The fashion enforcers are out in full force this week in New York as part of Mercedes-Benz Fashion Week. Fortunately for "the rest of us" Benz's fashion cops aren't looking for people wearing outfits that clash; instead, they're identifying trendsetters on the street and offering them free rides to their next destinations in this specially-prepared CLS 63 AMG, which may well be the best car for the job. See for yourselves in the high-resolution image gallery below and the press release after the jump.

Gallery: Mercedes Benz CLS 63 AMG Fashion Force

[Source: Mercedes-Benz]

Continue reading 2012 Mercedes-Benz CLS 63 AMG called into duty for New York Fashion Week

2012 Mercedes-Benz CLS 63 AMG called into duty for New York Fashion Week originally appeared on Autoblog on Sun, 13 Feb 2011 15:04:00 EST. Please see our terms for use of feeds.

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As Audi plants struggle to meet demand, buyers wait months for cars

Filed under: Audi, BMW, Mercedes-Benz

2012 Audi A6 - Click above for a high-res image gallery

The Volkswagen Group wants to be number one in global sales, luxury sales and, hopefully, profits. In order to reach the auto sales zenith, however, Volkswagen may need to make room for more Audi production.

Bloomberg reports that Audi is struggling to meet demand for the A3 and A6, with buyers waiting three to four months to take delivery of those models. Audi sales boss Peter Schwarzenbauer tells Bloomberg that its factories are running at full throttle and that if sales continue to grow it will be "difficult to say how long it could take to reduce waiting times."

So why aren't car buyers leaving Audi for the likes of BMW and Mercedes-Benz? The line for Germany's other luxury makes can be just as long. All three automakers reported record sales in January, and that's with buyers waiting up to six months for hot new vehicles like the new BMW X3. While all three German luxury struggle to keep pace with demand, experts say Audi is in the toughest spot, with wait times up to two months longer than its competitors.

Will the Volkswagen Group address the problem in a timely manner? Since Audi reportedly contributed 47 percent of VW's overall profits for the past nine months, execs should be eager to take care of their cash cow.

Gallery: 2012 Audi A6: Detroit 2011

[Source: Bloomberg]

As Audi plants struggle to meet demand, buyers wait months for cars originally appeared on Autoblog on Sun, 13 Feb 2011 17:03:00 EST. Please see our terms for use of feeds.

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New Lancia Stratos reportedly attracting potential buyers at $500k a pop

Filed under: Coupe, Performance, Ferrari, Lancia

New Lancia Stratos by Pininfarina - Click above for high-res image gallery

When Pininfarina and Michael Stoschek unveiled the new Lancia Stratos, they hinted that limited production was a possibility if there was enough demand. According to new reports, prospective buyers are already lining up at the door.

The latest rumors indicate that since unveiling the coachbuilt custom, around 40 customers in Europe and elsewhere approached Stoschek (the German enthusiast who commissioned the New Stratos in the first place) and Pininfarina, expressing their desire to buy one for themselves. The pair reportedly figure that, although it cost about €3 million (~$4m) to develop and build the first example, they could offer a quantity of the neo-retro supercar at around €400,000 ($540k) apiece, including €100,000 ($135k) for a (presumably used) Ferrari F430 and €300,000 to convert it into the New Stratos.

If you had around a half-million dollars lying around and an empty space in your garage, is this what you'd do with it? Check out the images in the gallery below and share your thoughts in the comments.

Gallery: New Lancia Stratos