From our colleagues at Formula One blog:

Not Indianapolis, not New York, not Las Vegas but Austin, Tex., will host the return of Formula One to the United States, the Formula One rights holder announced today.

After the Indianapolis deal ended in 2007, there have been many rumors about efforts to get Formula One back to the United States. Now it’s done, and the deal covers 2012 to 2021, according the statement by Formula One World Championship Limited, Formula One Administration Limited (together, the F1 Commercial Rights Holder) and Full Throttle Productions,  the promoter of the Formula One United States Grand Prix.

“We are extremely honored and proud to reach an agreement with the F1 Commercial Rights Holder,” said Tavo Hellmund, of Full Throttle Productions. “We have been diligently working together for several years to bring this great event to Austin, the state of Texas and back to the United States. All parties involved have a great amount of trust and confidence in each other and are committed to establishing the Formula 1 United States Grand Prix in Austin, Tex., as a prestigious global event.”

What is more interesting is that Bernie Ecclestone is also announcing that there will be a “world-class facility purpose-built” to host the event. With all the futuristic Hermann Tilke monolithic tracks cropping up around the world — in Bahrain, China, Malaysia, etc. — this must mean something special.

Source (article): NYTIMES

Source (picture): IMAGES.BUSINESSWEEK

The Detroit auto show has dodged a bullet. For now.

Executives from BMW, Mercedes-Benz and Volkswagen — German automakers that take up large swaths of the Cobo Center floor at the event — considered shifting the companies’ emphasis to the Los Angeles show in a meeting in Detroit on Jan. 11, just as the news media preview for the North American International Auto Show began.

They decided to keep Detroit as their main venue for at least the next year, though they expressed dissatisfaction with the costs, size and quality of Cobo Center, which is smaller, older and dumpier than the Staples Center in downtown Los Angeles.

“We were delighted by the interest shown in BMW and the German auto industry collectively at media days” during the NAIAS, said Tom Kowaleski, BMW North America vice president for communications.

The German automakers are among the Detroit show’s big spenders. In addition to building elaborate displays in Cobo Center, they bring large numbers of executives and journalists to the city for several days. They and other automakers fill local hotels and stage events at venues ranging from the new Westin Book Cadillac hotel to the venerable Detroit Institute of Arts.

In addition, building displays for the show employs hundreds of construction workers for weeks before the show. A single two-level stand of the type many automakers have can require 40 skilled workers — often on two shifts — for six or seven weeks, said Larry Vallee, president of George P. Johnson, an Auburn Hills company that designs and builds displays.

“These events are critical for the city and for our business,” said John Forte, president of Forte Belanger, a Troy catering company that provided white-truffle popcorn, local beers and high-end snacks for a movie premiere Audi held at the Music Hall Center in Detroit. Forte Belanger’s auto show business was down about 60% from 2008, and most of its work this year was with foreign automakers as GM, Ford and Chrysler scaled back, Forte said. Forte Belanger also catered an event Toyota held at the Max M. Fisher Music Center in Detroit.

“The show is a great benefit to Detroit,” cochairman Joe Serra said. “The economic impact is huge, and Detroit is the focal point of news around the world in a positive way.”

While BMW, Daimler and VW’s decision is good news for Detroit for now, all automakers are rethinking their auto show strategies in the light of financial pressure and the emergence of new markets.

The rising importance of sales in growing markets like India, Russia and Brazil means the auto companies may increase their presence in auto shows in those countries, giving new competition for the existing A-level shows in places like Detroit; Geneva, Switzerland; Frankfurt, Germany; Paris; Shanghai, China, and Beijing.

Tokyo’s auto show was a must-see for years, but it has declined as foreign automakers gave up on selling many vehicles in Japan and focused their Asian efforts on China’s booming market. Japanese reports say this year’s Tokyo auto show may be canceled. Detroit’s three automakers have decided to drop out of the Tokyo show to cut costs.

In addition, all automakers could seriously cut back on auto show expenses because of the worldwide recession.

Automakers generally agree that the big shows remain their most cost-effective tool for marketing and unveiling vehicles, however.

While automakers hope to sell vehicles to customers at all shows, major international events like the NAIAS are driven by the number of journalists who attend and the amount of news media coverage automakers’ receive. Journalists, in turn, decide which shows to attend based on where automakers will show new vehicles and make news.

The Detroit and Frankfurt auto shows dominate news reporting in comparisons of international auto shows. News media reports from the Detroit auto show traditionally have outstripped Los Angeles by a wide margin.

This month’s Detroit show generated more than twice the news media coverage of November’s L.A. show, according to an independent analysis.

The German automakers meet to assess their plans at each of the major shows. The next meeting will take place at the Geneva auto show in March.

In addition to lower costs and a more attractive venue, the Los Angeles auto show benefits from the city’s climate, which offers more options for event-planning than January in Detroit.

The organizers of the Detroit auto show are working to reduce costs. “There will be changes next year,” to make it more affordable, executive director Rod Alberts said without specifying them.

The organizers also hope long-delayed improvements to Cobo Center will strengthen their competitive position versus other auto shows.

The initial suggestion to make L.A. the German’s primary North American auto show came several years ago from former Chrysler Chief Operating Officer Wolfgang Bernhard, sources familiar with the matter said. Bernhard was then a top executive at the Volkswagen Group. He has since left VW. He worked with Cerberus during its acquisition of Chrysler and recently became an adviser to Canadian supplier Magna.

The German automakers have an arrangement that they will agree on which show they concentrate on in each region, sources said. Once they choose a show, it takes a unanimous decision by BMW, Daimler and VW to make a change.

SOURCE: FREEP.COM

Everyone, including this year’s presidential candidates, agrees that America needs to wean itself off foreign oil. No one agrees, however, just how to do it.

When it comes to cars, hybrids, electric plug-ins and natural-gas cars all are seen as steps in the right direction. And much has been made in the media about the potential for diesel-powered cars, already popular in Europe. But are they right for American drivers?

Nobody knows for sure, but we’ll find out soon enough. A fresh new group of clean diesel-powered cars will arrive in dealer showrooms as early as this fall.

In Depth: 10 Diesel Cars We’ll Soon Be Driving

BMW is already gearing up to launch its clean-diesel-powered versions of the 335d sedan series and X5 SUV later this fall. The 335d and X5 will make their North American debut at the Los Angeles Auto Show in November and probably will go on sale sometime thereafter. In January 2009, the diesel-powered Audi Q7 luxury SUV also will go on sale.

And there is much more in the pipeline. Between now and 2011, Acura, Nissan, Hyundai and Kia all plan to launch clean-diesel cars of their own.

“This is the perfect storm for clean diesel-powered cars,” says Allen Schaeffer, executive director of Diesel Technology Forum, an advocate for diesel technology. “Diesel engines are a proven technology that never took off. We are now in a climate where people are focused on energy, and diesel is energy-efficient. This is the perfect time to bring out diesel.”

Diesel’s Departure–And Return
Diesel isn’t new. The technology has existed since the dawn of the automobile and remains widely popular in Europe. Auto experts say 50% to 60% of all vehicles sold in Europe are powered with a diesel engine.

Americans also drove diesel cars until 30 years ago, when air pollution concerns mounted. The smelly, smoky diesel cars on the road then were partly to blame for city smog. Most of what remains of diesel engines in America since then are those used to power buses and big commercial trucks. A turning point came in 2006, however, when the Environmental Protection Agency required the introduction of ultra-low-sulfur diesel, meaning the major polluting component of diesel fuel was removed.Now auto experts believe that diesel-powered cars, which can get 25% to 40% better mileage than gasoline-powered cars, may appeal to American drivers.

Right for Everyone?
Before even considering making the switch to a diesel, a car buyer needs to think about the type of driving he or she does. The new clean-diesel vehicles on their way to the American market probably will get better mileage on the highway than hybrids, which do better in stop-and-go city traffic (the battery recharges when the car is idle).

Unfortunately, other details on the clean diesel-powered cars in the pipeline are scarce. Typically, automakers don’t release pricing and other information until closer to the time when the vehicle actually becomes available to the public. Porsche (other-otc: PSEPF.PK - news - people ) has yet to make an official announcement that it is considering bringing a diesel-powered Cayenne to the U.S. next spring, with a Porsche spokesman saying only, “We have not ruled it out.”

Similarly, an Acura spokesman said the company will introduce a diesel in 2009 with an engine called i-DTEC, but would not confirm which model of car will get the upgrade.

Some diesels have already arrived in the U.S. as 2009 models, however. The 2009 VW Jetta sedan and sport wagon went on sale this spring, and this month the 2009 Mercedes-Benz trio of crossover SUVs (GL320, ML320 and R320 Bluetec) will go on sale. All the cars meet emissions standards in all 50 states.

Promise of Popularity
“We expect diesel in the U.S. to increase from 3.2% of the market in 2007 to 3.6% this year and reach 10% market share by 2015,” says Mike Omotoso, senior manager of powertrain forecasting at auto industry analyst J.D. Power and Associates.

“Despite all of the publicity surrounding hybrid vehicles, diesels have outsold hybrids in the U.S. by a large margin,” says Omotoso, as hybrids, popular as they are, still make up only a small part of the total auto market. “We expect that to continue as the European manufacturers introduce more diesels in the U.S. market.”

The advantage to consumers is that, while the diesel models will cost $500 to $2,000 more, much or all of that additional cost can be offset by a federal tax credit of up to $1,300 that is available on certain diesel vehicles. The credit applies to vehicles purchased before the end of 2010.

The rest can come in savings on fuel. While diesel currently averages $3.96 nationwide (regular gas is $3.40), highway drivers gaining extra mileage on diesel can rack up savings quickly. A drop in the price of diesel could fuel the cars’ popularity even more.

The future success is still a question mark, but no matter what, the diesels are coming, says Schaeffer, because the driving habits of fuel-conscious consumers are as different as the cars they drive.

“This is not a one-size fits all market anymore,” he says.

SOURCE: Jacqueline Mitchell@FORBES