As slowdown deepens, car buyers mull option of used vehicles

MUMBAI: As the Indian economy continues to slide, the Indian car buyer is increasingly considering the option of used cars.

According to the study done by J D PowerAsia Pacific 2013 India Sales Satisfaction Index, 13 per cent of the new vehicle buyers considered a used vehicle during their shopping process, which is a 10 per cent increase over the past three years.

The 2013 India Sales Satisfaction Index (SSI) Study is based on responses from 8,434 new-vehicle owners who purchased their vehicle between September 2012 and April 2013, and includes evaluations of more than 71 models within the mass market category. The SSI study was fielded from March to July 2013.

The SSI study highlighted that shoppers who consider a used vehicle use the Internet to search for information regarding vehicle financing, including trade-in options, and service-related aspects. In comparison, shoppers who do not consider a used vehicle use the Internet primarily to look for vehicle features and specifications.

"Automakers have been increasingly focusing on the used-car business in India, specifically with certified used cars which come with a manufacturer warranty," said Mohit Arora, executive director at J.D.Power Asia Pacific, Singapore. "Additionally, automakers have ushered in transparency via their websites that provide real-time information on used vehicle inventory and price information. These activities assure customers of a quality product by providing detailed insights about the vehicles, thereby propelling the consideration of a used-vehicle purchase."

Now in its 14th year, the study examines seven factors that contribute to new-vehicle buyers' overall satisfaction with the sales experience (listed in order of importance): delivery process, delivery timing, salesperson, sales initiation, dealer facility, paperwork and deal.

Overall sales satisfaction in the mass market segment is 841 index points on a 1,000-point scale, a 21-point increase from 2012. On average, automakers post strong increases across all the factors, most notably in salesperson, paperwork and delivery timing.

The overall improvement in satisfaction is driven by a higher quality of engagement between salespersons and customers. The majority (96per cent) of customers indicate that their salesperson spent sufficient time in conversation focused only on them. Additionally, 61 per cent of customers indicate that their salesperson demonstrated the vehicle's features and benefits during the test drive, up from 54 per cent in 2012. Further, overall delivery time for new vehicles has declined significantly to 10 days in 2013 from 12 days in 2012.

Among the 13 brands ranked in the mass market segment, Honda and Maruti SuzukiBSE 1.45 % rank highest (in a tie) with a score of 849. Hyundai, Mahindra and Toyota follow in the rankings, with all three brands tied at 841.

"Sharp growth in the recent past had resulted in stretching the dealers' abilities in engaging customers effectively during the sales process," said

Arora. "Due to relatively lower showroom traffic in 2013, dealers have made efforts to ensure a higher level of engagement during the sales process. In addition, vehicle delivery turnaround time has declined significantly."

Arora noted that all these aspects have resulted in a better shopping experience for customers.

NNG eyes 70% share in bundled navigation devices sales

NEW DELHI: European traffic navigation firmNNG today said it expects to increase itsmarket share in the country to 70 per cent by next year-end from 60 per cent at present in navigation devices sold through car makers. 

"We can name only Renault, Tata andVolkswagen as our partner in India. In the next six to seven months, we expect to partner with 13 out of 16 car companies and as per estimates take our market share in devices sold through OEMs to 70 per cent from 60 per cent at present," NNG Vice President for Eastern Europe and emerging markets Peter Bolesza said here. 

Without disclosing actual numbers, Bolesza said the company is looking to increase its share in post sales as well from 25 per cent to 35 per cent through dealers and other automative sales channel. 

The company is selling its traffic navigation map and application through India firm Ayana Navigation Solutions. 

"We use maps from Nokia and do our own value addition on top of it to make it more suitable for local needs. Since last two years we have been selling applications that can be downloaded on mobile devices but now we are going to launch our personal navigation devices (PND)," Bolesza said. 

NNG expects use of PNDs in India to reach to European and US levels in next 5 to 10 years which is around 20 per cent PND installed in total cars sold every year. 

"The applications are available online at price of Rs 1,650. The devices which we are launching will be available from October onward for around Rs 9,000 and Rs 17,000 through car dealers, retail channels and next year from our website online," ANS' Director Sales and Business Development, Amit Kishore Sharma said. 

These devices will be wi-fi enabled and can also be connected through mobile phones internet for live traffic updates on India roads, Sharma said.

Ford plans to sell Edge in China, report says

DETROIT (Reuters) -- Ford Motor Co. expects to sell its Edge midsize crossover in global markets -- including China -- when the car is redesigned in early 2015, two sources familiar with the automaker's plans told Reuters today.

Ford last year announced plans to sell the Edge in Europe, but the plans for China now are emerging.

Ford will build versions of the new Edge in North America and China for local customers, according to U.S. automotive suppliers familiar with the program. For the European market, the Edge would be imported from North America and sold in Ford's European showrooms alongside the redesigned S-Max and Galaxy.

The Edge, the S-Max and the Galaxy will all share a common architecture, known inside Ford as CD4.2, according to suppliers, and all three are slated to go into production about the same time.

In the United States, the new Edge is expected to go on sale in spring 2015 as a 2016 model, suppliers said.

Neither the new S-Max nor the new Galaxy will be sold in the United States, a Ford spokesman confirmed.

Regarding the convergence of the three vehicles on a shared platform, Ford said, "We don't comment on rumor and speculation regarding future products."

Frankfurt preview

On Tuesday, Ford previewed a concept version of the new S-Max that will be displayed next month at the Frankfurt Auto Show.

The new Edge and the new S-Max have been developed simultaneously, according to U.S. supplier sources, and share the same engineering program code, CD391, used by automakers and suppliers.

While their underpinnings are similar, the two vehicles will look different both inside and outside, sources said.

The new Edge and the new S-Max "will not be mirror images" of one another, as Ford's Escape and Kuga utility vehicles are, one source said.

The 2016 Edge will be wider and taller than the S-Max, but will be fitted with just two rows of seats. The Edge will have more rugged styling cues and be aimed at utility-vehicle buyers in both Europe and the United States.

The new S-Max will get three rows of seats and be targeted in Europe toward a different audience, including young families shopping for a multipurpose vehicle.

2014 Honda Odyssey Crash Ratings

IIHS Crash Test - 2014 Honda Odyssey

Honda Odyssey is first minivan to earn the IIHS Top Safety Pick+ award

ARLINGTON, Va. August 29, 2013; The Insurance Institute for Highway Safety (IIHS) reported that the 2014 Honda Odyssey minivan earns the Institute's top safety designation for good performance in all five IIHS crash evaluations, including the challenging small overlap front test. The Institute rates vehicles good, acceptable, marginal or poor based on performance in the moderate overlap front, small overlap front, side, rollover and rear crash evaluations.

The 2014 Odyssey is the first minivan the Institute has evaluated in the small overlap front test. Honda asked the Institute to test the Odyssey to highlight structural changes the automaker made to improve occupant protection in a small overlap front crash. When the Institute conducts a test at a manufacturer's request, the automaker reimburses IIHS for the cost of the vehicle.

Honda introduced the upgraded Odyssey as a 2014 model. While there are no major styling changes, the new model has advanced high-strength steel in the front door frames, floor pan and front wheel wells for a more rigid occupant compartment. The side curtain airbags extend farther forward to offer comprehensive head protection in both a side crash and a small overlap front crash. Even with these modifications, the Odyssey's weight didn't change much because Honda engineers were able to reduce weight elsewhere to compensate for the strengthened structure.

"Safety is high on the list for parents when it comes to shopping for a family vehicle," says Institute President Adrian Lund. "Consumers look for models with the highest safety ratings. Honda is ahead of many of its competitors in building state-of-the-art crashworthiness into its vehicles."

Honda and Acura brands have earned six Top Safety Pick+ awards among 20 current models that the Institute has rated. They are the Honda Accord 2-door and 4-door, Civic 2-door and 4-door, Odyssey and Acura TL. Winners must earn good ratings for occupant protection in 4 of 5 evaluations and no less than acceptable in the fifth test.

The Institute added the small overlap test to its lineup of vehicle safety evaluations last year. It replicates what happens when the front corner of a vehicle strikes another vehicle or an object like a tree or a utility pole. In the test, 25 percent of a vehicle's front end on the driver side strikes a 5-foot-tall rigid barrier at 40 mph. A 50th percentile male Hybrid III dummy is belted in the driver seat.

In the Odyssey test, the driver's space was maintained reasonably well. Injury measures on the dummy indicated a low risk of injury in a crash of this severity. Because the structure helped keep the steering column stable, the front airbag stayed in front of the driver dummy during the crash to provide good protection. The side curtain airbag deployed and had sufficient forward coverage to protect the head from contact with the side structure and outside objects.

The dummy's position in relation to the door frame, steering wheel, and instrument panel on the 2014 Honda Odyssey after the crash test indicates that the driver's survival space was maintained reasonably well. Photo courtesy of the Insurance Institute for Highway Safety.

The Insurance Institute for Highway Safety is an independent, nonprofit scientific and educational organization dedicated to reducing the losses — deaths, injuries and property damage — from crashes on the nation's roads. The Institute is wholly supported by auto insurers.

August 29: Gottlieb Daimler patents the first motorcycle on this date in 1885

Tucked on the back of the fairway at last year's Pebble Beach Concours d'Elegance was this contraption, which looks like a cross between a bicycle and some kind of 19th-century medical device. Brought by Mercedes, it's a replica of the world's first motorcycle -- an attempt by Gottlieb Daimler to explore how he might package the four-stroke gasoline engine invented by Nicolaus Otto. While there had been a steam-powered two-wheeler before, Daimler's invention, patented 128 years ago today, is generally considered the primordial vehicle from which modern motorcycles and automobiles evolved. (The real item was lost in a fire during the 1930s.)

8 facts and myths about warming your car up in winter

Old habits die hard, and one of the oldest-still rigorously enforced by many drivers-is that "warming up" the car for a few minutes is necessary to avoid some kind of unspecified damage.

But idling is totally unnecessary, which is why many communities have enacted ordinances against the practice. Don't take my word about idling being ineffective, but do listen to my mechanic, Rob Maier, who runs Maier's Garage in Bridgeport, Connecticut. He says, "You don't really need to idle your car, because of the efficiency of modern fuel injection, which eliminated carburetors and chokes. The only reason to let the car idle at all is to get the oil circulating, but after 30 seconds that's a done deal. My truck has 150,000 miles on it, and I just throw it into gear and go."

Here are some quick facts and tips that should put the idling question to rest: 

1. Driving Warms the Car Faster than Idling.
If your concern is not the health of the car, but simply your own creature comforts, Bob Aldrich of the California Energy Commission points out that "idling is not actually an effective way to warm up a car - it warms up faster if you just drive it." The coming electric cars, such as the Nissan Leaf, will incorporate a wonderful feature that allows the owner to use a cellphone to tell the car (which is plugged into the grid) to pre-warm or pre-cool the interior. No idling necessary. (Photo at right byMika / Corbis)

2. Ten Seconds Is All You Need.
Environmental Defense Fund, which produced the Idling Gets You Nowhere campaign, advises motorists to turn off their ignition if they're sitting stopped for more than 10 seconds. "After about ten seconds, you waste more money running the engine than restarting it, said Andy Darrell, deputy director of the EDF Energy Program. "Switch the car off at the curb and you'll be leaving money in your wallet and protecting the air in your community."

3. Idling Hurts the Car.
According to the Hinkle Charitable Foundation's Anti-Idling Primer, idling forces an engine "to operate in a very inefficient and gasoline-rich mode that, over time, can degrade the engine's performance and reduce mileage."

4. Idling Costs Money.
Over a year of five minutes of daily idling (which causes incomplete combustion of fuel), the "Anti-Idling Primer" estimates that the operator of a V-8-engined car will waste 20 gallons of gasoline, which not only produces 440 pounds of carbon dioxide but costs at least $60. (Related: How to Cut Your Gas Bill in Half)

5. Idling in the Garage Can Kill You.
Idling a car in a garage, even with the door open, is dangerous and exposes the driver to carbon monoxide and other noxious gases. If the garage is attached, those fumes can also enter the house. (Related: Learn these 6 Surprising Sources of Indoor Air Pollution)

6. Block Heaters Beat Remote Starters.
Lori Strothard of the Waterloo Citizens Vehicle Idling Reduction Task Force in Canada says, "Remote starters can too easily cause people to warm up their cars for five to 15 minutes, which is generally unnecessary. A block heater, which is designed to heat the engine and can cost under $30, on a timer set to start one to two hours before driving does the trick in very cold climates.

7. Quick Errands Aren't Quick Enough.
Natural Resources Canada points out that "quick errand" idling is another way to waste gas and pollute both your town and the planet. "Leaving your engine running is hard on your pocketbook, produces greenhouse gas emissions and is an invitation to car thieves," the agency says.

8. Idling is Bad for Your Health (and Your Neighbor's Health).
According to Minneapolis' anti-idling ordinance, "Exhaust is hazardous to human health, especially children's; studies have linked air pollution to increased rates of cancer, heart and lung disease, asthma and allergies." Isabelle Silverman, who runs EDF's anti-idling campaign, says that car idling "is the second-hand smoking of the outdoors. One of the problems is that cars idle close to the curb, where pedestrians are walking. And when you have a child in a stroller, they are particularly close to the tailpipe. Studies show that children's IQ levels are lower when they live near major roads with lots of traffic."

Alex Scaperotta, who created an anti-idling campaign with a classmate when he was in fifth grade in Wilton, Connecticut, came up with a slogan that was used on bumper stickers and websites: "If you're stopped for more than 10, turn it off and on again." Sounds like good advice.

20 Crazy Car Facts

1. Until 1973, whale oil was used in the transmissions of many cars.
2. Over the course of his/her lifetime, the average driver will swear roughly 32,000 times while driving.
3. The first speeding ticket was given out way back in 1904, and the driver was going 18 kph.
4. The longest traffic jam of all time occurred in 1980, between Paris and Lyon on the French Autoroute. The jam stretched an astounding 175 km.
5. Sixteen percent of car owners never wash their car.
6. Thrust SSC set a land speed record at 1,228 kilometers per hour in 1997. It is the fastest car ever built and the first land vehicle to break the sound barrier.
7. The world's most produced car is the Toyota Corolla. More than 32 million units have been sold since its introduction in 1966.
8. The following materials are currently being used by researches to make fuel for cars, trucks, and even airplanes: sawdust, wood chips, nuts, used diapers, bad batches of chocolate, cow waste, coffee grounds, and turkey guts.
9. Wheels on purpose-built mining dump trucks can be as large as 12 feet high, and one tire can range from $6,000 to an unbelieveable six figures! The worst part is that, because these trucks carry such heavy loads over rough terrain, the tires wear down extremely quickly.
10. You will spend about two weeks of your life sitting at a red light.
11. Before the 1920s, cars didn't have fuel gauges. Drivers had to guess how much was left in their tank.
12. According to the National Insurance Crime Bureau, 21% of car owners do not lock their doors. 1 in every 170 cars is stolen each year.
13. The first traffic light was used in 1914. It was not automatic, and had to be operated by an officer who manually controlled them from a nearby booth.
14. The most likely time for fatal car crashes is on weekends between midnight and three o'clock in the morning.
15. The United States has an amazing 765 cars per 1,000 people living in the country (including children!). This is the highest cars-per-capita rate in the world.
16. The first electric car was built in 1891 by William Morrison. However, the increasingly popular electric cars fell out of favor once Henry Ford introduced the gas-powered Model T in 1908.
17. In 1911, during the first ever Indianapolis 500, driver Ray Harroun drove to victory ... alone. His car was streamlined and built for only one man, meaning he had no room for the (at the time) traditional riding mechanic. In order to keep an eye on drivers behind him, he mountained a rear-facing mirror in the car. It worked, and he won the race. Soon after, manufacturers adopted the idea, and rearview mirrors became standard safety procedure.
18. An airbag takes only 40 milliseconds to inflate and deploys at nearly 500 km an hour
19. It takes about 25 hours to build a car, and 10 of those involve the painting process.
20. In America, more people are killed every year while walking in crosswalks than illegally jaywalking.

New S class made for back-seat drivers

Relaxed by a hot-stone massage, I opted for a targeted shoulder massage for neck tension that never seems to disappear.

A fragrant aroma called Freeside Mood, with hints of citrus, wafted through the ionized air. I wondered about the scents of the other choices: Nightlife Mood, Sports Mood and Downtown Mood. Ambient mood lighting was set at mandarin, but I was about to change that to a bluish hue, while music played through a high-end Burmester surround sound system.

Was it my turn to drive already?

I was having too much fun pushing buttons and changing settings on the 2014 Mercedes-Benz S500 (it will be called the S550 when it comes to the United States in September) during a press drive in Canada.

Usually I'm a terribly jittery passenger, scanning the road and making sure the driver isn't headed into trouble -- about to take a turn that will send me flying.

This time, I just wanted to dive into the rear plush leather reclining seat, lower the airplanelike tray, play with the video monitor and push an endless row of buttons that change the lighting and seat massage style, release different scents and adjust the cooling cupholder to keep my water at the perfect temperature.

The S class has front- and rear-seat amenities unlike anything I've seen in a luxury car.

That's because it's designed for two markets. The front seats were designed for the United States and the rear for China, where most people who can afford an S class want to be chauffeured.

It's also loaded with high-technology safety features packaged into what Mercedes calls Intelligent Drive and Magic Carpet Ride handling that automatically adjusts to road conditions. Before I could try them myself, I had to interview Dieter Zetsche, CEO of parent company Daimler AG. He was behind the wheel and I was in a rear passenger seat.

Zetsche took his hands off the steering wheel to demonstrate how Distronic Plus with Steering Assist automatically allowed the S class to follow the car in front at the same speed and even turn by itself. Ten seconds later, red hands began flashing above the steering wheel because regulators don't want drivers taking their hands off the wheel. Zetsche said if you don't put your hands back on the wheel, you get warning beeps and then the steering assist turns off.

Hands back on the wheel. I was relieved -- until Zetsche offered to show me how the car also automatically comes to a full stop if the vehicle in front stops or if there is a pedestrian or animal in its path. I shook my head from side-to-side.

"You don't trust me?" Zetsche asked.

I replied that it wasn't him I didn't trust, it was the technology. He laughed. I returned to asking Zetsche questions and jotting down answers when WHAM! The car stopped short. No collision. Zetsche grinned and professed he didn't do it on purpose; the car in front suddenly stopped, and the Distronic Plus system brought our car safely to a halt. My eyes popped wide open.

Just for that, my next question was going to be really hard. I demanded S-class sales forecasts. "Diana, you have been asking me that for 20 years and I never give you an answer," Zetsche said.

European pricing starts at 107,635 euros -- $140,996 at current exchange rates -- for the long-wheelbase model. U.S. pricing will be disclosed closer to launch. The 2013 S550 starts at $95,905, including shipping, in the United States. Zetsche said Mercedes-Benz already has 20,000 orders for the S class. The car went on sale in Europe this month. Last year in the run-out, Mercedes sold 65,128 S-class cars globally, keeping its leadership in a segment that includes the BMW 7 series and Audi A8.

And then I had to get out of the car and into another S class and follow Zetsche.

I didn't turn on the Distronic Plus.

Mercedes tops satisfaction survey; overall industry score dips.

Mercedes-Benz became the new leader in the latest American Customer Satisfaction Index, while three Japanese brands led their non-luxury counterparts.

The German luxury automaker scored 88 on a scale of 0 to 100, ascending to the top spot after Lincoln, last year's winner, stopped being measured because of low market share.

Lexus remained the runner-up, scoring 87, down 2 percent from 2012.

Third-place Subaru, Toyota and Honda -- the highest ranking non-luxury nameplates -- each scored 86 -- 3 points above the industry average.

Overall, European manufacturers ranked first with a satisfaction score of 84.7, followed closely by Asian automakers with a score of 84.1, and a score of 82 for U.S. companies.

The American Customer Satisfaction Index, based on phone and e-mail interviews with 4,078 recent customers randomly picked between April 6 and May 22, found that customer satisfaction with automobiles and light vehicles dropped 1.2 percent to an industry wide average of 83, down from 84 in 2012.

The index was started in 1994 and measures customer satisfaction with the quality of 20 foreign and domestic nameplates, along with other factors such as price and the dealership experience.

GMC, 85, tied with Cadillac in fourth place and was the only non-luxury domestic brand north of the industry average.

Ford and Chrysler, which gained 5 points from 2012, tallied scores of 83, matching the industry average.

Dodge and Chevrolet came in last with scores of 79, just below Jeep, with a score of 80.

GMC and Chrysler had the largest percentage increases, both 6 percent. Buick -- which scored 82 -- and Chevrolet had the largest declines, at 6 percent.

ACSI Director David VanAmburg said it's unclear how Ford's decision to reduce the stated fuel economy of the C-Max hybrid could impact next year's rating, saying only it wouldn't be "terribly helpful."

He said the index doesn't focus on a particular model.

Consumer demand

If the U.S. market tightens because of lower consumer demand, competition from Toyota, Subaru and Honda could squeeze Detroit's General Motors, Ford Motor Co. and Chrysler Group.

VanAmburg said American companies will need to attract foreign-brand consumers with competitive pricing and a time-tested strategy: building better cars with higher quality and more features.

"The risk is what happens when that pent up demand is gone, and it certainly isn't going to last forever. It's going to run out at some point and you're going to drop back to more regular levels of demand," VanAmburg said.

"Right now, in the U.S. automakers are churning out cars like crazy. There certainly is some risk there that, on the one hand, they could be stuck with a lot of inventory. On the other hand, even if they're not, what is there to build future growth on? Really, the only thing to build future sales growth on is to do a better job of satisfying customers," he said. "You've got win over some of those purchasers of Asian brands and European brands."

Although U.S. light-vehicle sales continue to rebound, customer satisfaction with automobiles fell in 2013 for the first time in two years.

Despite the drop in 2013 satisfaction levels, the industry's customer satisfaction score still tops the original baseline of 79 in 1994.

Authors of the study said the slight drop in satisfaction may be linked to previous improvements in customer satisfaction with the auto industry.

"Higher levels of customer satisfaction create greater customer expectations that automakers are then challenged to meet -- let alone exceed," the authors said today in releasing the report.

While the slight drop in satisfaction isn't "cataclysmic" for manufacturers, companies should still take note and be wary of waning pent-up demand and excess production, VanAmburg said.

This is especially true for domestic automakers, which are losing ground to foreign companies in perceived quality, he said.

Higher expectations

Recalls can also have an impact on an automaker's score, the authors said. Frequent or highly publicized recalls often create customer dissatisfaction. Vehicles that were recalled at least once in the past year had an average score of 81 compared to a score of 84 for vehicles that were not recalled.

The overall decline in customer satisfaction levels with the auto industry could be viewed as a glass half-full scenario.

Consumers may have been pleased with their previous purchases and now expect their latest vehicles to meet or surpass their expectations, VanAmburg said.

"As the industry has been doing better, particularly since the recession, we've seen higher numbers for many nameplates, and certainly for the industry as a whole. That tends to engender higher expectations in customers the next time they make a purchase," he said. "That can put a little pinch in customer satisfaction as the automakers are challenged to keep meeting and exceeding those customer expectations."

The American Customer Satisfaction Index, created by the University of Michigan's Ross School of Business and now produced by ACSI LLC, is a national economic indicator of consumer evaluations of the quality of products and services available to household consumers in the U.S. market.

ACSI tracks numerous industries and consumer goods and publishes results monthly.

BMW owners vent anger at months-long wait for spare parts.

MUNICH (Bloomberg) -- South African Neels Kilian was as proud as any BMW owner could be when he got his new 3 series in May. After getting into an accident a few weeks later and still waiting today for repairs, he's reconsidering that sentiment.

The resident of Gauteng, South Africa, needs a rear fender replaced before the car is driveable again. In the meantime, he's still making a monthly payment of 8,000 rand ($770) and has to bear additional costs for work travel because he hasn't been offered a loaner.

"This is shocking!" Kilian wrote in an e-mail. "It is impossible to repair my vehicle; why is BMW unable to issue a warning to customers when buying this brand?"

Kilian is among customers across the globe angered by BMW's failure to promptly deliver spare parts to fix their vehicles.

BMW has struggled since the beginning of June to ship components on time because of a new supply-management system being introduced in its central warehouse in Germany. The delays have caused ripple effects globally because orders for BMW's 40 parts-distribution centers originate at the main facility in Dingolfing. The warehouse also directly supplies about 300 repair shops in Germany.

Raimund Nestler, who lives in Ingolstadt, Germany, has been waiting six weeks for a new part that controls engine speed. "I have always been a die-hard BMW driver and am currently driving my seventh BMW, but will consider which brand I'll buy the next time," he said. "For a premium carmaker like BMW, this is particularly disappointing."

About 10 percent of parts are not immediately available in Dingolfing because of the logistics changeover, Manfred Grunert, a spokesman for the automaker, said on Tuesday. BMW has workers on extra shifts to help shorten the wait, and aims to have the new system working properly by early September. "We deeply regret any inconveniences caused to our customers," Grunert said.

Image tarnished

The logistics troubles come as BMW is under pressure to maintain the global luxury sales crown with both Audi and Mercedes-Benz vowing to take the top spot by the end of the decade. The longer the delays drag on, the more BMW's image as a high-end automaker is tarnished.

"The logistics problem is comprehensible, but three months is too long," said Juergen Pieper, a Bankhaus Metzler analyst in Frankfurt. "Damage has certainly occurred. I see a hit to their reputation and a financial burden of tens of millions."

The logistics project -- named ATLAS for Advanced parTs Logistics in After Sales -- was started in Dingolfing in 2009, according to a joint press release at the time from International Business Machines Corp. and SAP AG. IBM, which was the main contractor, said last week that it's no longer involved in setting up the program. SAP is supplying the software for the warehouse management system, the German company said. BMW declined to comment on its suppliers.

Australia woes

Australian Eric Gibson said repairs on his BMW motorcycle have been dragging on for three months.

"I can now ride the bike, but I'm still waiting for one more part, a driving light," Gibson said.

Fellow Australian Lisa Stephenson, who lives in Coolamon, a farming community 480 kilometers (298 miles) northeast of Melbourne, isn't as fortunate. Her mechanic has advised her not to use her BMW, which she needs to get around in her rural area, because the part that needs replacing could cause a fire.

"I've been waiting for five weeks for a fuel elbow," Stephenson said. "My mechanic informed me this week that the part won't arrive until sometime in October. This is extremely frustrating. Shame on BMW. I am one very unhappy customer."

BMW is sending components via airfreight to speed up delivery times and is trying to provide replacement vehicles for waiting customers, Grunert said.

Stephenson and Kilian both said they haven't been offered a loaner.

"BMW is unable to inform me when to expect this part in South Africa or when my vehicle would be repaired," Kilian said. "It could be another four months or so.

How white-haired 'Vette owners helped shape Stingray's design

MONTEREY, Calif. -- About four years ago, when General Motors designers were just starting on the seventh-generation Corvette, Ed Welburn had something of an epiphany while watching his local news.

GM's global head of design happened to catch a segment on a Corvette club gathering at a local Chevrolet dealership. He doesn't recall what the story was about. But one detail stood out: All of the club members had white hair.

"That's what really did it for me," Welburn told me this week while riding shotgun as I drove the 2014 Corvette Stingray through barren coastal mountains during Chevy's media test drive here. "I knew that we had to do something that appeals to younger buyers and to more international buyers."

That partly inspired Welburn to conduct an unprecedented global call for proposals from GM designers scattered across studios from Brazil to India to Korea.

Welburn, 62, figured that by casting such a wide net, he was more likely to end up with the exotic design he was after.

Plus, Welburn figured it would be a good morale builder, which it was. During a recent visit to GM's design studio in Brazil, he noticed one designer's discarded 'Vette sketch still tacked proudly over his desk.

Welburn personally reviewed the hundreds of sketches that flowed into GM's global design center in suburban Detroit. Eventually, the list of candidates was whittled down to 12 scale models, and eventually to two full-sized clay models.

Then it was gut-check time. One of the finalists included the traditional round taillights; the other had a more provocative look, with squared-off taillights.

Welburn concedes that he initially was opposed to discarding the round lights that had been a signature styling cue on every 'Vette since 1963. But then he remembered the snowy-haired Corvette clubbers.

"That image was just etched into my mind," Welburn says.

So squared taillights it is, anchoring a 'Vette design that looks even more angular and fighter jet-esque when seen in the wild. With Stingrays hitting dealerships by early October, we'll see if Welburn's epiphany pays off.

Lamborghini Launches Indian Version Of The Gallardo

Image Credits: Lamborghini Mumbai FB page

For the people in India, Lamborghini celebrates its 50th anniversary in style, with the launch of the limited edition of the model Gallardo LP550-2 with an ex-showroom Maharashtra price of Rs.3.06 crore.

The India Edition Gallardo Sports Car will be limited to only six super-sports cars adorned with the colors of the Indian flag, of which one car has already been sold to a Bangalore-based entrepreneur prior to the launch.

“This is the way we wanted to pay tribute to India and be different. We could have an Indian monument painted on the car for exclusivity, but we decided for the tri-colour theme,” said Pavan Shetty, Head of Operations, Lamborghini India.

The Gallardo LP550-2 Indian edition sports three colours such as arancio borealis (pearl orange), bianco monocerus (white) andverde ithaca (pearl green) on its exterior the tricolour strip of the Indian national flag that run from the front bonnet to the rear engine bonnet.

The interior has also got shades of the tricolor too, with stitching on the driver's seat in verdeulysse (green), on the passenger seat in arancio leonis (orange) and on the doors, center console and dashboard in bianco polar (white).

The India edition Gallardo is also equipped with the front nose lifting facility which provides better ground clearance for Indian road condition, making this as an advantage for Lambo buyers in India.

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MISTAKEN IDENTITY - A News On Bangalore Mirror

Literally, something took me over exasperating while reading Bangalore Mirror published article "HDK's son gifts himself a RS 5-crore Lamborghini", dated 5th July. The reason is, ignorance of information being published - by the most popular publication publishing, mistakenly, about the most exclusive spotted exotic supercar The Lamborghini Aventador LP700-4 as Lamborghini Gallardo LP550-2.

Well, as an AutoHead, I respect the article and no offence to its writers or the medium, however, the fact remains incorrect as the entire article revolves around the Lamborghini Gallardo LP550-2.

The orange-coloured stunner, which is the latest addition to his collection, puts the young Turk, who is getting ready to take the family political legacy forward by simultaneously dabbling in politics and business, in a league all his own. He is the first Bangalorean to own the limited edition model. In fact, the Italian automobile manufacturer has launched only six exclusive limited edition cars in the country. "But Nikhil got it even before the manufacturer formally launched the cars in India. The car was delivered last month," a source close to Kumaraswamy's family told Bangalore Mirror. [As in Bangalore Mirror]

Now, the information above from Bangalore Mirror's 2nd and 3rd paragraph only reflects the actual information in one sentence "The orange-coloured stunner". The remaining lines do not reflect the actual car at all. In fact, the supercar is an Orange (Arancio Argos Pearl Effect) Lamborghini Aventador LP700-4, launched in India in the last quarter of 2011. The six exclusive limited edition cars said above is with regards to the Indian Edition Lamborghini Gallardo. Which would be a limited edition and only six will be produced exclusively for India (read article here http://goo.gl/wj9Pp).

While I can see the table in the BM's article said this, however I had a question in mind. Are we talking about an engine 5.2 litre-10 cylinder V90? I have heard V8, V10, V12 and V6 too, OR was it actually meant to say V90°, which gave another meaning to the "V" if otherwise.

Specification of Lamborghini AventadorLP700-4: The bull is mated with a 6.5 liter V12, 60° engine which unleashes uncensored power of 700bhp at 8250rpm. The bull is capable of reaching 0-100 km/h in 2.9 seconds and can cruise at a top speed of around 350 km/h making theAventador stand among the fastest street-legal cars in the world.

There was a finishing statement to the article saying "Perhaps, the only road where the Lamborghini can be driven at its maximum speed is the NICE Road built by Gowda's other rival, Ashok Kheny! ". Now, this can be quite challenging taking it to the NICE road every time you want to test the bull's patients, I would ask WHY? Since, Bangalore has already seen two Lamborghini Aventador LP700-4 cruising Bangalore roads after dark, this being the third one I have personally seen it gushing on the regular streets like a Bat Mobile.

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