As vehicles get more and more complex, auto suppliers will need everything in their arsenal to win major contracts from automakers. According to an article on Just-Auto (sub. req'd), by the year 2012, automotive suppliers will bear more than half of the total research and development of a given automobile. What this means for suppliers is that they need to stay at the forefront in environmental technologies. Increasingly complex systems will be necessary for automobiles to meet stringent emissions and fuel efficiency requirements. Biofuels and clean diesel technology are reportedly one area that suppliers are being relied rather heavily upon.

Not only must the suppliers integrate the latest technology into their equipment, they need to do so at an agreeable cost to the manufacturer. Donald Walker of Magna International indicates that the road ahead will not be easy, saying, "There will be fewer pieces of the business to bid on, so the supply chain is going to shrink. Some suppliers will prosper and others will go out of business." Sounds like an already tough business stands to get even tougher.

[Source: Just-Auto - sub. req'd]

They're doing it again. Somebody out there has come up with yet another rendering of what the new electric Isetta from BMW might look like. In contrast to the other ones we've shown you, this looks more like the BMW of today rather than the Isetta of yesteryear. The fancy speculative drawing appeared on AUTOCAR.co.uk along with conjecture that the city car could be powered by a rear-mounted petrol (or possibly diesel) engine in addition to the battery model. It could even have a BMW motorcycle engine. Since there is a strong possibility the car will be based on the underpinnings of the Mila Alpin concept and that its maker, Magna, is currently hard at work on a plug-in hybrid, we feel this seems a likely powertrain option as well.

The article goes on quote BMW CEO Norbert Reithofer as saying, "co-operation [with another car maker (*cough* Mercedes)] is possible" and added that the decision would be made by the end of 2008 "whether to go it alone". With a target production date of 2012 we expect an officially official announcement and drawings any day now.

[Source: AUTOCAR.co.uk]

Those who follow the automotive industry closely are surely familiar with Magna International, one of the largest auto parts suppliers in the world -- so large, in fact, that the company was actually in on the bidding to purchase Chrysler from Daimler last year. Now it seems that the global company is throwing its hat into the plug-in hybrid ring. Magna founder Frank Stronach says, "You don't have to be a great scientist to know that we're going to be out of oil sooner or later." The company is investing $30 million into the hybrid project, which reportedly involves gasoline, electric and natural gas powerplants. Magna's Austrian arm is leading the project.

Magna is no stranger to the assembly of cars, holding contracts for such revered marques as BMW and Mercedes Benz. We have few details on the actual vehicle being considered, though. All we know for sure is that its likely to play in a market not occupied by its customers. We look forward to finding the answers to such questions as whether or not the vehicle will be sold under the Magna name and what countries the vehicle is being designed for. We'll keep you posted.

[Source: ReportonBusiness.com]

By now we are all aware of the sad saga of Tesla Motors and their quest for a reliable two-speed transmission for the battery powered Roadster. After failing to get the necessary durability from the original gearbox supplied by X-Trac, Tesla turned to Magna to try and create a new unit. That obviously didn't work out any better, so they tried to design their own before giving up and revising the motor instead and going to a single speed transmission. Unfortunately Magna apparently didn't take the break-up well and has now resorted to courts for redress.

According to Magna Powertrain's suit against Tesla, they didn't get the money they were owed for the design and development work they did. Interestingly, Magna is claiming that they suggested to Tesla as far back as September 2006 that they should go with a single speed unit, but that path wasn't followed at the time. The suit claims that Tesla had Magna stop work in October 2007 and the Canadian company isn't taking issue with the cancellation of the program. They aren't happy about the fact that Tesla is paying them the $5.6 million they say they are owed for work that was done.

To the best of our knowledge none of Tesla's prospective customers have started litigation yet over the delays and specification changes. If that does happen, things to get ugly for the San Carlos startup. It's not that prospective customers necessarily have a case against Tesla because it appears that Tesla is letting anyone unhappy with what's happening cancel their orders. It's just the distraction and legal costs that could be better spent elsewhere. For Tesla's other legal case, click here.

Update: The filings are public records and the San Mateo Court has them online. You can read them here.

Update 2: Tesla VP Darryl Siry contacted us to clarify the issue with the original X-Trac gearbox. Apparently the problem was not one of actual durability of the transmission itself. Tesla evidently spec'ed out a two speed unit with no clutches. The design intent was to do clutch-less shifting and manage the torque output of the motor during the shifts. Unfortunately the rotational inertia of the motor made this plan unworkable as the torque output couldn't be changed fast enough. According to Siry there were never actually any mechanical failures of the X-Trac transmission, it was simply a matter of Tesla not being able to get their control strategy to work adequately with the hardware. Subsequently Tesla contracted Magna to develop a dual clutch two speed gearbox. Unfortunately, this is the design that had durability issues leading to Tesla's ultimate decision to revise the motor for more power and go with a single speed unit for production. The vehicles running with the interim single speed gearbox are actually using the original X-Trac box with the lower gear locked out (for prototypes) or removed entirely (early production cars). - Sam

[Source: Earth2Tech.com, thanks to Craig for the tip]

Ford's Derrick Kuzak

It's interesting how the overall tenor of the presentations and speeches changes depending on which conference, which collection of auto industry people, one attends. You'd think there'd be some consistency, but the reality is that the auto industry is mighty varied. We shine a light on one corner here at ABG, but there's a lot more to what's going on than just green tech.

To wit: the SAE World Congress opened this morning with five speakers in a session titled "Climate for Change." Featuring keynote speaker Frank Klegon, executive vice president of product development for Chrysler and panelists Derrick Kuzak, Ford's global product development group vice president, Timothy Manganello, chairman and CEO of BorgWarner, Edward Mantey, the vice president of engineering design at the Toyota Technical Center and Donald Walker, co-chief executive officer at Magna International, the session was billed as a gathering of minds on how the industry is changing. The sad news for green car fans is that increased fuel efficiency and reduced emissions are not necessarily at the top of everyone's list. I've written up what each of the five speakers said after the jump. There's audio, too.

At the Geneva Motor Show earlier in March contract vehicle assembler Magna Steyr unveiled a concept for a small, lightweight off-roader called the Mila Alpin. The Mila Alpin was designed to accommodate a variety of different power-trains including hybrids and electric drives. According to German mag Auto Motor und Sport, they are now talking with both BMW and Mercedes about potentially using the Mila Alpin architecture to underpin new models from the German manufacturers. Since Magna doesn't produce vehicles under its own branding, the Mila Alpin was alway intended as a platform that could be adopted by other companies. Mercedes had always designed the sandwich floor architecture of the A and B-Class in part to accommodate alternative drivetrains. Mercedes however has of late been looking for a partner to help develop the next generation models to reduce the cost. BMW is planning new smaller electric vehicles, possibly with the revival of the Isetta brand. A range of vehicles, including an off-roader, could provide an interesting re-launch to the brand.


[Source: The Truth About Cars]

Although we aren't too fond of making an SUV SAV into a symbol of good fuel economy (and some people think that Mini has gone mad because of this announcement), plans for the new MINI Sports Activity Vehicle (SAV) are moving ahead. MINI announced that the SAV will be built by Magna Steyr Fahrzeugtechnik in Graz, Austria, whch has previously produced BMW's X3. This move allows MINI to increase the number of models without needing to build a new plant. The standard Mini, the convertible and the Clubman are currently built in a plant in Oxford, England, which will shortly reach production figures of 260,000 vehicles per year.

The press release remarks that BMW will be responsible for the brand and the concept, including the drivetrain and design of the supply contracts whereas Magna will be in charge developing the model and production, as well as any of call-offs. Full press release after the jump.

[Source: MINI]