Market Snapshot

According to a story published by ForbesAuto.com, there are 10 styling trends that are dominating the future of vehicle design. It doesn’t take much thought to realize that many of these styling trends are the result of innovations spawned in the performance parts and accessories industry.

1. Higher Beltlines

According to The Car Connection, Volkswagen has confirmed that the new Jetta sedan will be the first of the company’s vehicles to get the new clean diesel engine in 2008. Production for the clean-diesel Jetta TDI is expected to begin in January of 2008 and will go on sale in late spring. The new diesel will be 50-state complaint and will be badged as a TDI.

We saw it a few years ago: young car buyers were accessorizing their rides primarily with "dress-up" parts, such as big wings, race-inspired body kits and a host of dress-up modifications. This may sound like the sport-compact market of yesterday, but that market as we know it today has shifted more toward performance, with appearance almost becoming secondary. So what has happened to that consumer who wants his or her car to look cool and is less concerned with performance? The answer may lie in what is known as the urban-lifestyle market.

An unlikely new player has entered the biofuel arena. Tyson Foods, the world’s largest processor and marketer of chicken, beef and pork, and Syntroleum Companies recently announced the formation of Dynamic Fuels LLC to build the first commercial synthetic fuels plant in the United States. The plant will target the renewable diesel, jet and military fuel markets.

As Dan Carney of MSNBC.com points out, Americans have had a tendency to supersize everything, from their food to the vehicles they drive.  However, with the rising prices of gasoline, more Americans have decided to downsize their vehicles.  And the sales of smaller vehicles reflect this change.  Honda, for example, reported the most Civic sales ever during the month of May.  But for some Americans, the thought of going to a smaller car is an uncomfortable feeling, fearing they are giving up safety for better fuel economy.

Pricing for the 2008 Nissan Versa, Toyota Highlander and Audi RS4 Cabriolet have been announced.

*Sales for the early-model Audi RS4 Convertible are unavailable

According to WardsAuto, American Honda Motor Co. Inc. wants to “boost sales of its Accord midsize sedan to a level not seen since 2001.” In recent year’s, Toyota Motor Sales U.S.A. Inc.’s Camry has surpassed the Accord in sales, and Honda wants to take back some of the market share.

BMW has denied any concrete plan to build an M version of the entry-level 1 Series. But according to AutoWeek, the versions of the 1 Series that will be available resurrect the spirit of the original M3. The 1 Series is expected to debut at September’s Frankfurt motor show.

General Motors has announced it will sell its Allison Transmission commercial and military business to the private equity firms Carlyle Group and Onex Corp. The selling price is expected to be around $5.6 billion. The agreement will include seven manufacturing operations in Indianapolis along with the worldwide distribution network and sales offices. However, GM will keep a plant in Baltimore, which produces the conventional and hybrid two-mode transmissions used in GM light trucks. Currently, the Allison Transmission is an option on the Silverado 2500 HD with the Duramax Diesel engine.

Electronics and software represent more than 20% of the cost of today’s vehicles. Analysts project growth to 35% or even 40% by 2010. So according to WardsAuto, so-called embedded computing is growing as well.