Ford’s Alan Mullaly.

These are troubled times for the American automotive giants but there were some bright spots at the North American International Auto Show in Detroit, according to the Headlineauto agency.

Volkswagen wowed Detroit show goers in 2009 with its Concept Bluesport and this year it also stole many of the press day plaudits with its New Compact Coupe, based on the latest Golf.

Reports suggest that the NCC could be in production at VW’s Tennessee factory within two years.

The NCC is powered by a 148bhp direct injection and turbocharged 1.4-litre TSI engine, which drives the front wheels via a seven-speed DSG gearbox. But there’s also a 20kW electric motor which is used to boost acceleration or enable zero-emissions running. VW is claiming a top speed of 141mph and 0-62mph in 8.6 seconds. Even more impressive is the claimed 67.3mpg and CO2 emissions of 98g/km helped by a stop-start system.

Crushing mid-range acceleration

Another German stalwart, BMW unveiled its new range-topping version of the Z4 with 335bhp and performance to match the M3 and M5. It's called the sDrive35i and is fitted with a warmed-over version of BMW's excellent straight six engine, featuring a new overboost function that temporarily raises torque to a whopping 369lb ft for crushing mid-range acceleration.

VW NCC: vow on press day.

Fitted with the seven-speed dual clutch gearbox, this Z4 deals with the 0-62mph dash in just 4.8 seconds and can go on to an electronically limited 155mph top speed.

The M Sport and M Suspension packages are fitted as standard, while lower bumpers and new 18-inch alloys mark it apart from the standard car. It'll be loud too, because BMW has adjusted the exhaust system to offer ‘powerful acoustic feedback’.

Prices are yet to be announced, but the Z4 xDrive35i goes on sale in the spring.

European forecast

Back in the sober world of business, car sales in Western Europe could fall as much as 14% this year as government scrappage schemes end, president of General Motors Europe, Nick Reilly told reporters at the Detroit show.  He is predicting total industry sales of between 13 million and 13.5 million for 2010, down from the 15.1 million sold in 2009.

‘I don't think it's going to be a good year,’ Reilly said, adding that he thinks sales in the region will stay below 2008 levels for three years.

Reilly also said that he expects to have a restructuring plan ready for Opel/Vauxhall by the end of the month. ‘It will contain some reduction in capacity, some reduction in people,’ he said. ‘It will contain some investment plans for new products over the next several years.’

Z4: 0-62 mph in 4.8 seconds.

He also said that some form of profit-sharing scheme for the workforce might form part of the package. GM is looking to cut around 9,000 jobs at Opel, about one-in-five of the workforce.

Working together

Meanwhile, it seems the bosses of the two giant US manufacturers (Ford and General Motors) have decided to ‘work together’ to beat the problems in the automotive industry. The decision of the two – GM’s Ed Whitacre and Ford’s Alan Mullaly (both car industry outsiders) – followed a call from Whitacre to Mulally earlier this month when the former boss of AT&T man asked the one-time Boeing top dog for advice, said Ford’s Mulally.

Mulally, 64, also said he has no plans to retire soon. ‘As long as I'm contributing and Ford wants me here, I'm here.’ He told reporters at the show that he would retire only when the job was no longer fun and would not leave for another car maker.

GM’s Ed Whitacre.

He also revealed that, while Ford was planning a complete range of electric vehicles, the idea of electrification will have to become more popular among consumers before manufacturers can go forward with it at any volume. Ford, he said, was looking to team up with as many electric suppliers as possible to bring the electric car to the forefront.

At a separate media event, Mulally said: ‘There is nothing worse than overcapacity in the industry and we still have overcapacity. It's hard to expect rational behaviour when you have overcapacity.’

Ford is taking out production capacity in North America, consolidating three plants over two years to bring it in line with demand.

Mulally also said that Ford is unlikely to compete with Tata's Nano by building a similar-sized car for Asia but could produce something slightly bigger.

One Ford

Ford’s future product strategy centres around the ‘One Ford' plan to globalise core models. Following the show launch of the handsome new Focus hatchback and four-door saloon (which won't come to Britain) sources at the company have confirmed that a Focus estate will make its debut at the Geneva motor show in March.

After that, a Michigan-built all-electric version of the Focus is expected in 2012, along with a coupe-cabriolet, a fixed-roof three-door coupe, an ST and potentially an RS model following in due course.

In addition, a new Ford Kuga, a new C-Max and possibly a second MPV, all of which will be global cars, are likely to be spun from the new C-segment platform.

Focus: goes electric in 2012.

Away from the Focus, the next project for Ford is the new Mondeo, due in 2012, which will unify the Mondeo and Fusion ranges, marking an end to the Blue Oval building two D-segment cars for different markets.
We're told the next Mondeo will be designed to appeal to Europeans, Americans and Asians and that will be a challenge, admits Ford executive design director Martin Smith.

‘We want to design a car that looks dynamic enough to appeal in Europe but doesn't turn off Asian customers,’ said Smith. ‘In China, Mondeo-sized cars are considered more limousines, so are more conservative looking-cars like the Honda Accord are popular. So it's a challenge.’

VP global engineering Paul Mascarenas explained the changes that need to be made to the set-up of the Focus to ensure it drives properly in each global market. Alterations to the spring and damper settings are less extreme than one would expect, but one of the problems facing Ford's chassis engineers comes from the all-season tyres fitted to cars in America which ‘can take the edge off the steering unless compensated for’, according to Mascarenas.

Undeniably, the ‘One Ford' strategy has its challenges then, but CEO Alan Mulally seems absolutely single-minded about its success.

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