wstevens

Sorry if this is a repost, here's the article:

AWD is the next big thing
Automakers rush to meet demand

By Lindsay Chappell and Rick Kranz and Jason Stein
Automotive News / February 14, 2005


The awd boom

The number of nameplates offering awd is up sharply from 1999.
1999 2004 2005
Cars 12 35 43
Trucks 10 38 40
Total 22 73 83
Source: Edmunds.com





All-wheel drive has become all the rage, but it's a phenomenon that seemed to sneak up on some automakers.

General Motors and Ford Motor Co. are among those scrambling to catch up as awd cars catch on.

At the Chicago Auto Show last week, Cadillac officials admitted they underestimated demand for awd STS V-8 models. And Ford has struggled to meet unexpectedly heavy demand for awd versions of its Ford Five Hundred sedan, Freestyle sport wagon and Mercury Montego sedan.

Ford executives might make awd standard on a new generation of Lincoln sedans that debut this decade. The automaker also might increase production plans for both the awd Mercury Milan and Lincoln Zephyr, which go on sale in about a year.

All-wheel drive is the industry's newest "gotta have it" equipment, and it is about to get hotter. CSM Worldwide in Farmington Hills, Mich., forecasts that North American automakers will build 1.96 million awd vehicles annually by the end of this decade. That's up from about 1.06 million units this year. And that doesn't include a separate wave of imported awd vehicles.

"It's big," says forecaster Paul Haelterman of CSM Worldwide in Farmington Hills, Mich. "It's more than just a trend. Every carmaker understands that if they're going to have a performance sedan, they're going to have to get all-wheel drive.

"By the end of this decade," Haelterman predicts, "all luxury or near-luxury cars will have awd as standard or option."

The number of awd-equipped nameplates, including cars and trucks, more than tripled between 1999 and 2004, rising from 22 nameplates to 73, according to the online automotive data base Edmunds.com. The number will hit 83 models this year.

American Honda Motor Co.'s Acura Division has created awd versions of both its RL and TL sedans. And Nissan North America Inc.'s Infiniti line is planning an awd version of its G35 sedan, as well as its new M35 flagship. Mercedes-Benz USA LLC in September began offering all-wheel drive as a free option on S-class sedans.

Weather-related

Jim Hall, vice president of the research firm AutoPacific Inc., says most of the awd sales growth is coming from consumers in bad-weather regions - the Northeast, the Rockies and the Pacific Northwest.

"There are dealers in those states that just don't order cars like the Lexus GS 300 during certain months of the year because nobody will buy them," Hall says. "People won't drive them in the snow."

But by adding awd to the GS 300, he says, Lexus has turned it into a year-round product. Lexus announced the plan last week in Chicago.

CSM's Haelterman believes all-wheel drive is also becoming more important as high-end cars get bigger engine output.

"The new bogey is a 250-hp V-6," Haelterman says. "But carmakers are talking about boosting that to 300 hp and higher. From a performance point of view, you need the all-wheel drive. If you don't send all that power out to all four wheels, you're going to have issues with slippage and handling."

As all-wheel drive sales take off, the winners among suppliers are makers of transfer cases and power takeoff units. That includes Dana Corp., GKN PLC, Haldex AB, ZF Group, BorgWarner Inc. and Magna International.

"The components come from all over the world," Haelterman said. "Capacity can be easily added."

Lincoln Mercury President Darryl Hazel said the automaker is reviewing the original awd forecast for the Milan and Zephyr with an eye to increasing it. Hazel did not disclose the awd projection.

"That is under very active consideration," he said. "It is pretty sad if you can't learn from your experience, so I would say that we are trying to understand what we are observing and see what we can learn from it."

Lincoln also plans to develop two sedans off the D3 platform that is shared with the Five Hundred, Freestyle and Montego. One car, expected to be the replacement for the LS, will debut in late 2007 while a larger sedan is expected in 2008. Hazel said those cars may be offered with all-wheel drive as a standard feature.

"The thought occurred to me 18 months ago. That is under active discussion," he said.

Cadillac admits it can't meet demand for all-wheel drive in V-8 versions of the STS sedan.

"Honestly, we missed it," Cadillac marketing director Jay Spenchian said at the Chicago Auto Show, adding that it must "be more broadly available. But we missed the shift to all-wheel drive."

Spenchian said 20 percent of STS demand has been for the awd-equipped, top-of-the-line G trim. The vehicle has a sticker price of $64,730 including destination. Cadillac has delivered on less than one-quarter of that demand, he said.

Within a month, Spenchian said, Cadillac will expand its awd option to the $58,785 F trim. Cadillac has told dealers it will add awd to its V-6 lineup by summer.

'Phenomenal' demand

"People are clamoring," Spenchian said. "To have 20 percent demand at launch for a $63,000 car is phenomenal. We would have never predicted that."

He said Cadillac wanted to have awd in most STS packages, but had to make engineering decisions early in development that affected the mix.

Some dealers aren't happy about the shortage. "We can't get them because they're not building enough of them," said Chuck Kohen, sales manager at Schepel Cadillac-Hummer in Merrillville, Ind., where Kohen has one awd STS customer waiting 60 days for delivery and another waiting 90 days. "They dropped the ball on this and if they can't build it into the G, how will they do the F?"

Spenchian said increasing availability won't be a problem at GM's Lansing, Mich., plant.

"When you look at the uplevel V-8s, it was a chink in the armor, and all-wheel drive is driving a lot of that," he said. "Frankly, it's higher than we expected, but we will adjust."

You may e-mail Lindsay Chappell at lchappell@crain.com

You may e-mail Rick Kranz at rkranz@crain.com

You may e-mail Jason Stein at jstein@crain.com

cM3go

was already posted my bunny eared friend

wstevens

sorry!!

rets

Obviously, the previous thread was MERGED into 2006 TL thread, therefore, it looks good here. IMO.

https://acurazine.com/forums/showthr...da#post1132987

rets

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