+++ As FISKER inches closer to the financial abyss, prices for used Karmas have tumbled to less than $50,000 which is nearly half of what they originally sold for. The news is doubly painful for some Karma owners as a handful of them were early investors who poured millions of dollars into the company. As dealer Bill Michlin explained, some investors are dumping their cars because it reminds them they lost "a hell of a lot of money" by betting on Fisker. Even new Karmas are being discounted. +++ Shifting tariff regulations have upended the traditional automotive pecking order in Korea. Thanks to cheaper import taxes, foreign brands have seen market share jump from 28 percent to 41 percent over the last 2 years. BMW, Mercedes-Benz and Audi have all capitalized on the shift, with domestics like HYUNDAI and Kia suffering at the hands of their German rivals. Taxes on European imports have fallen from 8 percent in 2011 to just 3.2 percent today. Over the next few years, tariffs will all but be eliminated for most imports, and taxes on US-made vehicles are expected to fall to just 4 percent in 2014. By 2016, that number will be zero. Needless to say, Hyundai and Kia are concerned about the shift. Hyundai has seen profit fall by 15 percent last quarter, and the company says it is on pace to see the slowest sales growth since 2007. The company's shares have fallen by 12 percent. In order to stem the losses, Hyundai has discounted its midsize sedans and started working on diesel engine options. +++ INFINITI plans to add a new flagship nameplate above the Q70 sedan (formerly known as the M series) and new cross-overs in order to boost sales and build the brand. The plans were revealed by Infiniti CEO Johan de Nysschen. The new models are part of Infiniti’s target to cover 90 percent of all global premium segments by 2020, compared to just under 60 percent today. The executive added that the company has a sales target of 600,000 units by the end of the decade, a very ambitious one considering that Infiniti sold only 170,000 units in 2012. "We will also in the future, introduce models above where the Q70 stops today, the Q70 being the former M", De Nysschen said. "In our cross-over range, we can imagine significant additions to that lineup as well". These new models will be gradually introduced "through to the end of this decade". Other cars already under development include a new compact premium model that will be built at Nissan's Sunderland plant in the United Kingdom from 2015. There’s also speculation about a halo sports car that would be inspired by the 2009 Infiniti Essence concept car or the Emerg-E two-seat hybrid sports concept shown last year. However, de Nysschen did not mention such plans. The CEO also said his first priority is to make Infiniti a more desirable brand, as that is “more important than just hitting the sales numbers”. +++ Chrysler said that the production launch of the new JEEP Cherokee has been delayed for about one month, due to “a wide range of issues”. However, Chrysler assured dealers they will have sufficient inventory of the SUV by fall. “We did start with an initial scheduled plan of the third week in May, and now we are into mid-June”, said Mark Chernoby, Chrysler’s senior vice president of engineering. “That is just due to a wide range of issues”. He added that these issues are common when launching an all-new car or truck and that the automaker is ironing them out. The Cherokee is Jeep’s most important new model this year. It will be assembled at Chrysler’s Toledo North assembly plant. As Ford can testify, timing of new vehicles can have a strong impact. For instance, Chrysler’s first-quarter profit was down 65 percent from a year earlier partly because it is no longer producing or selling the current Cherokee. Manufacturing the 2014 Cherokee is more complex than most new models because it uses an underbody adapted from Fiat and it is also one of the first Chrysler vehicle to feature a 9-speed transmission developed with German supplier ZF Group. However, Chernoby said Chrysler has not encountered any unusual issues or delays. Among the common issues that are delaying the Cherokee, Chernoby listed the adjusting of both tooling and manual tasks along the assembly line and the calibration of the 9-speed transmission. “Barring any new issue that comes up, we will start framing these cars for retail customers in the middle of June”, Chernoby said. +++ LEXUS is hoping its new upper medium IS model will boost enthusiasm in the brand, according to British fleet boss Neil Broad. "The IS300h is massive news for Lexus. We've been overly rational on Lexus and Toyota; our rational benefits are true but we need to infuse more dynamism and excitement", he told. "We want to increase the 'I want one' demand rather than the 'I know I should have one'. If we get both we've cracked it!". The new IS will be the first premium upper medium car to crack 100 gram/km, coming in the lowest trim level at 99 gram. Broad said the new car "connects" the Lexus line-up in a way not seen before. "The CT has done great strides and the IS connects the CT to the GS for a three-car line-up, plus the RX, which is pulling its weight, and the LS", he explained. Lexus has also recently set up a division called Lexus International, aimed at developing the cars better for markets outside of North America. "If there has been a traditional criticism of Lexus it is that it's born for the US", said Broad. "Lexus International is designed to tailor cars for the rest of the world, to start looking seriously at European differences and where the brand needs to go". A result of that will be annual product refreshes and developments, rather than the new model being left alone until its mid-life refresh, as is currently the case. +++ The new MAZDA 3 hatchback is expected to be revealed in the summer and make its debut at the Frankfurt Motor Show 2013 in September. The showroom release date of the new 3 would be towards the end of 2013 or early in 2014. The next generation will get a front-end similar to the new Mazda6, featuring sharp headlights and a large ‘shield’ grille. Mazda is planning to continue with the same range structure as the current car, offering a 5-door hatchback and a 4-door sedan. The latter will compete with the forthcoming Audi A3 Sedan, while the hatchback will face stiff competition from the new Volkswagen Golf. Strong wheelarches and an upswept crease mark out the sides, while the rear gets floating tail-light clusters for a clean, uncluttered look. All of Mazda’s upcoming models are built with the firm’s SkyActiv technology, which aims to cut as much weight as possible, while also improving efficiency. Expect to see lots of high tensile steel and a range of new economical engines. A 1.6-litre diesel emitting under 87 gram/km is certainly on the cards, cars are likely to have engine stop-start and Mazda could be planning a future hot hatch version to replace the current Mazda 3 MPS. +++ MERCEDES-BENZ chief of R&D Thomas Weber has announced plans to launch a self-driving, autonomous car before the next-gen S-Class which is due in 2021. We assume it will be offered for the mid-cycle refresh of the S-Class programmed for 2017. Weber declared: "we can do it now, but there are rules in place that we have to accept". He added the new S-Class' adaptive cruise control system has "opened the door" to autonomous tech as it can automatically keep a distance between the car in front and it will also steer on its own to keep the car in lane, as long as the driver is touching the steering wheel. Weber says Mercedes-Benz already has "laboratory cars" testing autonomous technology and a production model will arrive "earlier than 8 years". +++