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Rolls Phantom stretched convertible

MUNICH, Germany -- Rolls-Royce must sell more than 1,000 cars annually to be profitable, its former head says.

Last year the ultra brand sold 792 units globally of its only model, the Phantom sedan.

But Stefan Krause, BMW AG's board member in charge of finance, believes Rolls-Royce will become profitable in the long term, helped by two new models: a stretched Phantom and a convertible.

"We calculate the margins over the entire model cycle. If we miss the target in one year, we have to exceed it in the future," Krause said last month during a news conference at which the company announced its financial results. Last year "was still a year for developing the brand and the dealer network. Rolls-Royce is a long-term business," he said.

BMW acquired Rolls-Royce on Jan. 1, 2003.

Krause was interim head of Rolls-Royce from October until Feb. 1, when Ian Robertson, former head of BMW's South African operations, became CEO.

Krause had filled in after previous Rolls-Royce CEO Karl-Heinz Kalbfell left the company to head Alfa Romeo.

Rolls-Royce expects its new convertible, which probably will be called the Corniche, to account for 30 percent to 40 percent of the company's annual production. Sales are likely to start in the third quarter of 2006.

The convertible, which is based on the Phantom platform, will take styling cues from the 100EX concept shown at the 2004 Geneva auto show, including the eye-catching suicide doors that are hinged at the rear.

The stretched Phantom was unveiled at the Geneva auto show last month and goes on sale this year.

Rolls-Royce's rival Maybach, which is part of the Mercedes-Benz car group, reported sales of 500 units last year. Maybach's sale target also was 1,000 units. But Mercedes car group CEO Eckhard Cordes says the Maybach brand, launched three years ago, makes money.

2005 Cadillac Escalade

A few minor changes to trim and accessories lead 2005 news for Cadillac's truck-based SUVs. Escalade is a luxury spinoff of the large Chevrolet/GMC SUVs. It comes in three versions. The base Escalade and longer Escalade ESV are SUV wagons with three rows of seats. They have 7-passenger capacity with 2nd-row buckets, 8 with an optional 2nd-row bench. Escalade EXT is a 4-dr crew cab pickup truck. Like the similar Chevrolet Avalanche, it has a "midgate" wall between the cab and cargo bed; removing its rear window allows dropping the midgate to extend the bed from 5.3 ft to 8.1. EXT seats five, but just two with the midgate folded.

Escalades offer all-wheel drive and a 6.0-liter V8. The base wagon also comes as a 2WD model; Cadillac says the 6.0 V8 will replace its 5.3 V8 later in the model year. AWD Escalades lack low-range gearing. All models have automatic transmission, front side airbags, ABS, antiskid/traction control, tire-pressure monitor, and Cadillac's automatic-adjusting Road Sensing Suspension. Also standard: trailering package, power-adjustable gas and brake pedals, rear obstacle detection, and OnStar assistance. Changes for '05 involve a restyled gauge cluster, new interior trim, upgraded cooling system, and standard chrome exhaust tips. Also, the available navigation system replaces a joystick control with a touch screen. The ESV Platinum Edition includes navigation system, specific appearance touches, and 20-inch chrome alloy wheels in place of Escalade's standard 17-inch alloys.