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Thursday, October 9, 2008

Gm and Ford cut production in Europe

In recent months, even as the American economy has slowed, high gas prices have driven consumers out of trucks and SUVs, and the weakening dollar has eaten into automakers' profits, one saving grace for Ford and GM has been their impressive performance in Europe. Despite suffering huge losses at home, the General's sales continued to grow in the Old World, while Dearborn's European division was on pace for a record year. Now, however, it looks like the credit crisis that's spread from Wall Street to Main Street is beginning to reach the Piazzas and Strassen, too, as both companies are cutting Euro production to cope with a sudden slump in demand.

Despite unveiling a slew of products such as the Ka, Kuga, and new Fiesta over the past year, Ford of Europe has begun to see its sales slip and production outpace demand. This is particularly true in Germany, and today the company is moving to cut output at its Saarlouis manufacturing plant and lay off 204 part-time workers. Saarlouis currently employs approximately 6500 workers and builds the Focus, C-Max, and Cougar, but the Blue Oval isn't saying exactly how many vehicles will be cut by the move. The automaker's Cologne plant, which makes the new Fiesta and was recently dubbed "The Love Factory" in an advertising campaign, will continue to run at full capacity.

While Dearborn's move is relatively small, GM is taking more drastic measures to avoid creating a glut in the market. With sales in Western Europe down 9.2% across the industry, the automaker will halt production at all but one of its Old World plants for at least two weeks. Opel spokesman Andreas Kroemer explains that the company is "feeling the effects of the financial crisis" because "people are holding onto their money and not ordering cars." So rather than stockpile unwanted vehicles and lower their residual values (a problem plaguing the company's American division), by shutting down, the General will build 40,000 fewer European vehicles this year. The only factory remaining open during this period is the Russelsheim plant near Frankfurt, which builds the brand-new Opel/Vauxhall Insignia.

Though the shuttered plants are set to go back online in the coming weeks, GM also plans to push for more sales in eastern Europe, and in particular Russia, which has become the number-one car market on the Continent. Despite a strong euro versus the dollar, even luxury automakers like Daimler are cutting production in their home market due to falling demand. Clearly if the current economic slowdown continues to spread, it won't be just American showrooms that are hurting for customers.

What is the difference between Sedan and Coupe

Actually there are four-door coupes, and two-door sedans, so the differences between a coupe and a sedan automobile may not always be quite clear.

In reality, a coupe is strictly defined by its interior volume or space. Distinctions between a coupe and a sedan has little to do with doors and are made clear by the Society of Automotive Engineers (SAE), which standardizes definitions of the different types of cars on the market. Measurements of a coupe and a sedan are as follows:

Coupe equals less than 33 cubic feet (.934 cubic m).
Sedan is equal to or greater than 33 cubic feet.


Thus a coupe and sedan can be determined by volume alone rather than being determined by number of doors. A two-door car with a larger than 33 cubic foot volume or interior space is essentially a two-door sedan. Likewise, a four-door car with less than a 33 cubic foot volume is a four-door coupe.

Nevertheless, many manufacturers call a car a coupe when they want to evoke a sportier concept for the car. They may include the name coupe in the car, though technically what you are really buying is a sedan. The Cadillac Coupe de Ville is a classic example of what is really a two-door sedan. So it can get difficult to determine the differences between a coupe and a sedan when the word coupe is added to the name of the car.

Some people mistakenly think a coupe and a sedan are differentiated by whether the car has a hatchback rear. While it is true that many coupes have a hatchback opening, usually called a three-door car, not all do. Some have the traditional trunk. Further, there are four-door coupes with a hatchback, but additionally there are four-door sedans with a hatchback, which are more properly called station wagons or simply wagons.

It is untrue that the difference between a coupe and a sedan can be made by counting the number of seats. Some define coupes as having merely front seats, and possibly a removable back seat. Actually coupes can have two rows of seats or one. In contrast, the sedan always has two rows of seats, but the distinction between a coupe and a sedan can’t be made here because of the variation of rows of seats in the coupe.

The best bet is to stick with the car’s interior volume, when differentiating between a coupe and a sedan, rather than worrying about what the car is named. When choosing a car it may matter little what it is called. Usually what does matter is the car’s performance, space for passengers, and ease of use, rather than whether a car is a coupe or a sedan.