Honda is all set to bring in the 2008 Civic Hybrid edition to the Indian car market.

Significantly, when this happens, Honda would become the first company to launch a hybrid car in the Indian market. According to a report, the hybrid Civic would come loaded with a combustion engine integrated with an electric powered motor. The car would switch between the two engines as and when required to save on fuel. This model is likely to give a fuel efficiency of around 20 kmpl.

Targeting added volumes, Honda looks at launching the hybrid version with a view that the Indian customers would go for it. The company aims at bringing in an environment-friendly technology to India. It already sells the Civic Hybrid globally. It has been reported that Honda Siel Car India, the Indian arm of Honda Motor Company, is trying to make bring in the Civic hybrid in 2008.

Reports added that the Civic hybrid will be the first mass produced hybrid car to hit Indian roads. The Japanese car maker had launched the hybrid version of the Civic in 2003, and the version that will debut on Indian soil would be the 2008 Civic Hybrid. The car which burns less fuel and provides a mileage which is double of the petrol version at around 20 kmpl, when compared with the petrol version which turns out a 130bhp, will give around 110bhp, said automobile writers.

Honda is expected to import completely built units of the model. A steep import duty will push the price of the car to nearly Rs 20 lakh, it is believed.

The auto industry and its allies in Congress are lobbying congressional leaders and the Bush administration to back fuel efficiency increases that would maintain separate standards for passenger cars and trucks.

The industry opposes a plan that was approved in the Senate last June that would increase fuel economy standards on new vehicles to 35 miles per gallon by 2020. In 2008, cars must average 27.5 mpg and trucks need to reach 22.5 mpg.

Auto executives have been making their case to the Bush administration about the energy bill and a regulatory plan on vehicle emissions being developed by the Environmental Protection Agency and the Transportation Department.

The industry, along with agriculture and recreational groups, back an alternative led by Reps. Baron Hill, D-Ind., and Lee Terry, R-Neb., that would seek a combined standard of 32 to 35 mpg by 2022 along with separate standards for cars and Trucks.

Environmental groups say the proposal does not go far enough to reduce oil consumption and want the final energy bill to include fuel economy standards passed by the Senate.

“Any energy bill that has the Senate fuel economy compromise in it guarantees oil savings,” the Sierra Club’s Ann Mesnikoff said Friday. “The Hill-Terry bill is a weaker goal.”

General Motors Co. Chairman and Chief Executive Rick Wagoner on Tuesday met with Al Hubbard, director of the National Economic Council, Nicole Nason, the administrator of the National Highway Traffic Safety Administration and EPA officials to discuss energy issues.

Ford President and CEO Alan Mulally is expected to be in Washington next week to discuss the energy bill and fuel economy regulations.

“It’s quite clear that there are a variety of efforts both legislative and administrative that are under way and could potentially come to a close this year,” said GM spokesman Greg Martin. “So it’s important that we clearly state what our positions are and our concerns on the details.”

In a letter to White House chief of staff Josh Bolten on Friday, Hill and Terry and 62 other lawmakers urged the Bush administration to support their alternative.

They said their approach was more realistic and would “protect good-paying American manufacturing jobs, preserve consumer choice in auto vehicles and set achievable timetables for compliance.”

In a separate letter, 13 Senate Democrats, led by Sherrod Brown of Ohio and Byron Dorgan of North Dakota, urged Majority Leader Harry Reid, D-Nev., to ensure that the energy bill includes job protections for small car production.

The Senate measure would eliminate the so-called “two-fleet rule,” which keeps different mileage standards for cars and trucks and end the different calculations used for vehicles made overseas and in North America. The United Auto Workers union has said eliminating the separation would lead to a loss of 17,000 jobs involved in small car production in the United States.

“We believe that these policies should be aimed at promoting - and ultimately expanding - manufacturing jobs in the United States,” the senators wrote. It was signed by Democratic presidential hopefuls Hillary Rodham Clinton of New York, Barack Obama of Illinois, Chris Dodd of Connecticut and Joe Biden of Delaware.

A group of senators, including Michigan Democrats Carl Levin and Debbie Stabenow, wrote congressional leaders earlier this week in support of the alternative.

Leading frozen food distributor Yearsley Group is trying a new Trucking flavour in the shape of five Mercedes Actros tractor units.

The company runs a fleet of over 200 temperature-controlled vehicles. Although it has long experience of running Mercedes Atego rigids at 12 and 15 tonnes, Yearsley has traditionally favoured Swedish-built tractors.

It chose the Actros on this occasion after an impressive performance by a trial unit. All 460hp 2546 models, its five new Mercedes were supplied by dealer Enza, of Trafford Park, Manchester.

“We’ve always been happy with our Mercedes rigids, and the Actros demonstrator proved fuel-efficient so we decided to try these Mercedes tractors,” says Operations Director Edward Yearsley.

“We will now assess them over the longer term against the rest of our fleet,” he continues. “We’re also looking into a fleet management system for our Trucks, to monitor deliveries and collections and provide detailed information on fuel use, braking, acceleration, engine idling time and other factors. That should help us build a more detailed picture of the vehicles’ cost-effectiveness, as well as helping us to work more efficiently overall.”

The new Actros are all fitted with Mercedes PowerShift 12-speed automated transmissions. “We favour auto ’boxes as they make the drivers’ lives easier and help reduce running costs,” says Mr Yearsley.

“We’ll also be monitoring the performance of the dealer. Enza have invested heavily in their premises and the Trafford Park site is conveniently located for us, so we wanted to give them a chance and see how well they look after us.”

The Yearsley Group is based in Heywood, Greater Manchester, and operates a network of depots nationwide. The Actros are all double-shifted, seven days a week, typically trunking between depots by night and delivering to RDCs during the day.

In what could be a sign of the troubled times for Ontario’s auto dealers, the new car inventory of Sarnia Nissan is being put up for public auction next weekend in London.

“There are a lot of car dealers finding it difficult, especially in the border cities with the strong Canadian dollar,” said Kingsley Gardner of Gardner Auctions, handling the Sarnia Nissan sale.

It will be the first time Gardner Auctions has auctioned off brand new vehicles, Kingsley said.

Sarnia Nissan went into receivership, closing its doors Nov. 7.

Vehicle sales in Canada have gone into a skid, dropping nine per cent in November compared to a year earlier. Nissan’s dropped by 13 per cent in November.

Jeff Prossler of Probart Mazda in London, a member of the Ontario Automobile Dealers Association executive, said the high Canadian dollar has created the expectation with consumers that car prices on this side of the border will fall in the future.

“They are holding off buying because they think the Canadian prices will come down. They are stalling,” said Prossler.

Most buyers won’t actually cross the border to buy a car in the U.S. because they don’t know what they’ll really get, he said.

“Ninety per cent of them can’t go across the border because they are either leasing or financing their vehicles. You can’t finance across the border,” Prossler said.

When some Canadians look at the lower prices in the U.S., they fail to take into account the lower financing costs of vehicles here, he said.

“People want zero per cent financing or low interest rates for 60 months. You are not going to get that and a lower price on the car.

“If they want to discontinue the zero per cent financings, you might see a lower price on the car, but when you go to the bank you will be paying seven per cent,” Prossler said.

The auction of Sarnia Nissan’s inventory is set for Dec. 15 at noon.

Toyota recently issued its first update on progress toward the goals and targets in the company’s new 2011 Environmental Action Plan.

The report details Toyota’s efforts in six key areas: environmental management, energy and climate change, air quality, substances of concern, recycling and improved resource use, and co-operation with society.

“Toyota’s approach to reducing CO2 is far broader than just a commitment to fuel economy standards,” said Dian Ogilvie, senior vice-president of Toyota Motor North America. “We take these targets very seriously. Our environmental reports show a consistent history of achieving — and in many cases exceeding — our targets.”

Toyota also announced its first renewable energy power purchase agreement.

Toyota Motor Sales, USA, Inc. has teamed up with SunPower Corp. to install a 2.28-megawatt solar electric power system on the roof of Toyota’s Ontario, Calif., parts centre. The system will be financed and owned by a third-party financier, letting Toyota take advantage of the environmental and financial benefits of solar with no upfront capital costs. When completed in 2008, the photovoltaic system will be the largest one-roof solar power installation on the continent.

Last week, Toyota’s outstanding environmental leadership was recognized with California’s top environmental honour, the Governor’s Environmental and Economic Leadership Award, in the category of sustainable practices or facilities, by the California Environmental Protection Agency.

The award was given in recognition of pioneering efforts to integrate environmental values and conservation of natural resources into long-term decision making and management of businesses and facilities.

Chrysler has unveiled the new 2008 Dodge Dakota mid-size truck with a new engine that offers 25 percent more horsepower and 10 percent more torque, plus better fuel economy. The truck features new exterior and interior styling, and will arrive in dealerships in August.

The new 2008 Dodge Dakota comes standard with a 3.7-liter Magnum V6 engine producing 210 horsepower and 235 lb.-ft. of torque. The engine also comes with Electronic Throttle Control for positive throttle response, and exhaust gas recirculation to help lower emissions.

The new 4.7-liter V8 incorporates two spark plugs per cylinder (the only Chrysler Group engine to do so, other than the 5.7-liter HEMI), increased compression ratio, improved cylinder-head port flow and a new combustion system. The result is 290 horsepower, a 25 percent increase; and 320 lb.-ft. of torque, a 10 percent increase. The new engine is also capable of operating on E85 ethanol fuel, making the Dodge Dakota equipped with this engine a Flexible Fuel Vehicle (FFV).

The 2008 Dodge Dakota’s exterior includes a newly styled hood, grille, front fascia, rear spoiler, fenders and headlamps. The front end has been designed to improve aerodynamics and features better fit and gap management.

All-new fascias better integrate with the restyled grille and incorporate fog lamps. The 2008 Dodge Dakota’s tailgate includes a new spoiler that helps smooth air flow over the rear of the truck to improve fuel economy, and the top surface of the cargo box has a new protective surface.

For 2008, the Dodge Dakota will again be offered in two body styles – Extended Cab and Crew Cab – and six trim levels: ST, SXT, SLT, TRX4, Sport and Laramie.

The new 2008 Dodge Dakota’s interior includes a new instrument panel, center console and accent finishes, and several new interior storage choices.

With Cerberus now in control of Chrysler, the company is planing a complete turnaround of the under-performing brand. While the transformation will include extensive cost cutting and heavier scrutiny for upcoming models, such as the scrapping of the Imperial sedan last month, it looks as though some exciting models might make it to production.

In an interview with Wards Auto, Chrysler’s Design Chief Trevor Creed said that the Demon is at the top of his agenda and that conditions are ideal for the car to get a green light. Chrysler has yet to release official plans to make the Demon, but it sounds as the car is on the right track to make production.

Chrysler exhibited the all-new Dodge roadster concept, called the Demon, at the Geneva Motor Show in March. The vehicle is designed to compete with the popular Pontiac Solstice and Saturn Sky, as well as the Mazda MX-5.

“While the iconic Dodge Viper is a dream car for many, the Dodge Demon is designed to be an attainable dream car,” said Jae Chung – Dodge Demon Principal Exterior Designer, Chrysler Group. “The exterior design is simple yet bold, featuring an energetic combination of curves and intersecting planes.”

Power comes from a 172 horsepower 2.4 liter engine, offering peak torque of 165 pound-feet. A six-speed manual sends power to the rear wheels. Weight is estimated a 2600 pounds. Dodge officials say an SRT version could also be offered with a 300 horsepower four-cylinder from the Dodge Caliber SRT-4.

Gas-guzzling sport utility vehicles may be falling out of favour in North America. But Russia’s hunger for them will help power General Motors Corp. and other automakers to a dramatic sales gain here this year in what business leaders say is easily one of the world’s most profitable places to do business.

GM sells eight SUVs in Russia, including the Hummer, Trailblazer, Cadillac Escalade and the popular Chevrolet 4X4 Niva model, produced with local joint-venture partner OAO Avtovaz. And while Americans move slowly towards smaller vehicles as gas prices hover near US$3-a-gallon, Russians, bolstered by their newfound wealth after the end of Communism, want their ride super-sized.

Warren Browne, GM’s top executive in Russia, calls it the “Can you make it any bigger?” trend. He said it’s being fuelled by the country’s sometimes sketchy road conditions, abundant snow, and growing wealth. Personal disposable income will more than double in Russia between 2005 and 2010, according to some estimates, making it Europe’s second-largest auto market by early next decade and surpassing France, Italy and the U.K.

“The market has really, on a quarterly basis, just gone kind of crazy,” Mr. Browne said during an interview in Moscow yesterday. “It’s been positively surprising … We offer more SUVs than most companies offer cars.”

GM sold 132,000 vehicles in Russia last year. It predicts it will nearly double that to 257,600 units this year, boosting its market share from 6.5% to 9.9%. GM, one of the first automakers to set up in Russia, is also seeing surprising strength from its European Opel brand, Mr. Browne said.

As a whole, automakers operating in Russia will boost sales from 1.65 million in 2006 to 2.6 million this year, according to an industry forecast.

Canadian auto supplier Magna International Inc., which inked a deal with Russian billionaire Oleg Deripaska this year to expand in the Russian market, cites the country’s growing middle class and rising average price per car among the key reasons why it is betting big on the former Soviet Union. Auto-makers and suppliers alike make profits thousands of dollars higher on bigger SUVs and their waning popularity in North America has hurt their bottom line.

Magna has told investors it believes it can generate revenue of as much as US$1,100 per vehicle from its metalforming parts alone in the Russian market, and hundreds of dollars more per vehicle in other business lines like seating and transmissions.

While the salaries of ordinary Russians lag far behind those in the West, a flat personal income tax rate of 13% and the remnants of the Soviet system, such as subsidized housing and utilitites, means many Russians have more disposable income than Westerners, Scotiabank Group said in a recent report. As a result, there is a growing middle class, particularly in St. Petersburg and Moscow, where some 20 million live.

“Russians don’t save money. They spend because they’re flourishing in their new-found freedom,” said Andrew Somers, president of the American Chamber of Commerce in Russia. All retail sectors in the country, from groceries to electronics, will grow significantly in coming years, consultancy PMR Publications said in a report, as the value of retail goods tops 10.9 trillion rubles in 2007.

Mr. Somers said he’s seen a growing number of companies, such as Wrigley and Philips, bring their entire board of directors on trips to Russia to convince them of the profits to be made. “Russia has such a bad image abroad that if you haven’t come to Russia, you can’t possibly comprehend the opportunities.”