The only major market that may be faring more poorly than automotive during this economic recession is housing. While cars just aren't selling, homes aren't selling and they're dropping in value by 30% or more. Unlike the auto industry, though, home sales actually increased by 6.3% versus December.
The reason for the sales spike has a lot to do with the amount of foreclosures on the market right now, with over 20% of all homes selling for $100,000 or less. Many homes have dropped so far in value that they're now worth $20,000 or less. We're not necessarily talking dilapidated goods, either. In some cases, a brick, 1,100 sq. ft. home in the Midwest with three bedrooms and two bathrooms can be had for the price of a meagerly equipped Toyota Camry. About five years ago, that same home could have cost more than a Aston Martin V8 Vantage. It seems like just yesterday when people were offering up free cars as an incentive to buy a home. Soon it will be the other way 'round! Thanks for the tip, Pete.
[Source: ABC News | Image: MSN]
5/10/09
Today's Buyer's Dilemma: Buy a new home or a new car?
Handling Evolved: Ferrari 599 GTB Fiorano to gain new HGTE package?
Ageing can be a tedious affair, especially for Italian beauty queens. So when Ferrari GTs begin to show their age, Maranello typically treats them to a spa vacation, re-emerging more youthful and exuberant than before. The 575M got a GTC handling package as it approached retirement, the 612 Scaglietti got the HGT-S package a couple of years ago, and the next guest booked for treatment, according to sources, is the 599 GTB Fiorano.
However, the Fiorano's nowhere near the end. It was only introduced three years ago; both the 612 and the F430 are due for replacement before the 599 is sent off to play mahjong and shuffle-board. But reports suggest that the 599 is to gain from a new HGTE package - the H standing for "handling", GT for "gran turismo" and E for "evoluzione", telling us that this package, tipped to debut at the upcoming Geneva Motor Show, promises more than those installed on its sisters. Sources suggest that $25k over the $300k sticker price will get you 20-inch modular wheels wrapped in fresh rubber, a retuned exhaust, new front grille, upgraded spring rates, revised anti-roll bars, and some more carbon fiber bits in the cabin. Strictly necessary? Hardly. But if Maranello wants to make the 599 GTB even sharper, who's going to complain?
REPORT: Nissan projects $2.9B loss, announces 20,000 job cuts
Nissan hasn't posted an annual loss in nine years, but the automaker is poised to take a big hit on its 2008 earnings, and like the rest of the industry, it is scrambling to restructure. The Japanese carmaker is expected to report a $2.9 billion shortfall, prompting Carlos Ghosn and his team to chop 20,000 jobs - fully 8.5 percent of its employees worldwide. Some of the job losses will be arrived at through early retirement packages and the ending of temporary worker contracts, but most will be out-and-out layoffs. The personnel cuts will leave Nissan with 215,000 workers globally and take place now through March of 2010.
Nissan's planned cuts are markedly more aggressive than those employed by other Japanese automakers, suggesting that Japan's third-largest automaker is even more pessimistic about the potential for near-term economic gains. That appears to be particularly true in its domestic market, where the strong Yen and other factors have conspired to result in 12,000 of the planned job losses. Thanks for the tip, Karen!
[Source: Associated Press via ClockOnDetroit | Image: Akihiro I/Getty
Chevy Camaro Daytona 500 Pace Car unveiled
The Daytona 500 has been paced by Corvettes the last two years in a row, but there's a new breed of performance car in the bowtie barn; thy name is Camaro. This past weekend Chevy's modern muscle car was officially announced as the pace vehicle for the 51st running of the famous Daytona 500, replacing its big bro' and becoming the first Camaro to earn the honor since 1969 and only the third overall. The pace car will be an SS model brandishing a 426-hp 6.2L V8 and special Cyber Grey (and Orange) paint scheme developed by PPG. It will also be outfitted with a fully integrated strobe system to help light the way for dozens of NASCAR cars that will be following its every left turn. Thanks for the tip, Tim!
Bob Lutz moves to senior advisor role, will retire at end of '09
Shucks, things are bound to be a heck of a lot less interesting without Bob Lutz around. According to General Motors, the automaker's own Car Czar will transition from his current role as Vice Chairman - Global Product Development to the position of Vice Chairman and Senior Advisor on April 1 and officially retire at the end of the year. The automotive world is sure to be a quieter place.
Lutz's absence means that there will be some very big shoes to fill in GM's executive ranks, and GM's Board of Directors has responded by promoting Thomas G. Stephens to Lutz's vacated role, again effective in early April. Past vehicles brought to market under Lutz's watch at GM include the 2004 Pontiac GTO, the Pontiac Solstice and Saturn Sky duo and, most recently, the Pontiac G8 sports sedan.
One major project that won't quite be completed when Lutz leaves is the Chevy Volt, a vehicle championed by Lutz since its debut as a concept back in 2007. GM's product line may change somewhat as a result of Lutz's retirement, but we'll all surely miss his eminent quotability just as much.
[Source: General Motors | Photo by JEFF HAYNES/AFP/Getty]
Geneva Preview: Hyundai HED-6 to presage future Hyundai crossovers
Click above for a high-res image of the Hyundai HED-6 official rendering
Hyundai's first post-Joel Piaskowski concept will be unveiled at the Geneva Motor Show next month. And while the HED-6 compact crossover concept was likely fully realized before the designer bolted for Mercedes-Benz, the HED-6 was actually penned in the company's European Design headquarters in Rüsselsheim, Germany.
In any case, the HED-6 (you remember last year's HED-5 concept from Geneva, don't you?) is expected to preview future compact crossover designs for the Korean automaker, and it features pulled-back headlamps bookending a hexagonal grille, a "three-dimensional" sculpted backlight made from Lexan, LED daytime running lamps, and a surprisingly modest set of 21-inch alloy wheels (modest for a showcar, at any rate).
Hyundai promises to reveal more details at next month's show, but for now, we know that the HED-6 is motivated by a 175-horsepower 1.6-liter GDi turbocharged engine, suggesting a more frugal, direct-injection future for future Hyundai softroaders.
The HED-6 will take to the stand alongside Hyundai's new three-door i20 hatchback and the automaker's i30 blue, which is poised to get the company's first stop-start technology application. Press release after the jump.
[Source: Hyundai]
What if the Dodge Viper were around in 1967?
It's always a fun exercise to think about what might have been. Who doesn't daydream about how your favorite brand may have looked if only for one simple change. Designer Rafael Reston has turned his imagination toward Chrysler of the 1960s, pondering what a Viper may have looked like in 1967. Far be it from us to criticize the effort, but we're hard pressed to see Chrysler cues in the handsome renderings. Reston did take pains to research the vehicles and construction methods of the day, and he did do renderings of a stripped down framework of the vehicle, which shows a preponderance of Corvette influence. The chassis also looks like it would have been prohibitively expensive to produce, and let's not talk about the S-curves coming off the exhaust manifolds, which are chrome -- none of which would see the light of day in a production car.
The car certainly looks good, reminding us of an Iso Grifo or a C2 Corvette, but it's not what would likely have rolled out of Elwood Engel's styling department. We see a lot of C2 in Reston's renderings, in the interior, too, but that just means that it looks darn good, if disconnected from reality. We'd be down with a car that looked like this, no matter the era. Thanks for the tip, Julio!
Gallery: 1967 Viper Renderings
MINI E delayed due to overwhelming demand
Click above for high-res gallery of the MINI E
BMW is facing the unenviable task of telling over a thousand applicants that they will not be receiving a new electric MINI E. Apparently, the German automaker has taken applications from around 1,800 people that would like to drive home in one of 450 available vehicles. Of course, that means that the majority of those wanting a MINI E won't get one.
Just to be considered for the program, a potential driver must live near Los Angeles, New York or New Jersey and must not require a range longer than the battery-powered MINI can provide. Other requirements include a lockable garage that can accept a built-in charger and a willingness to shell out $850 per month for a one-year lease.
The backlog of applications has caused a delay in getting the cars out to dealers. Originally, the EV MINIs were scheduled for delivery around the beginning of the year, but now the cars aren't expected to arrive in driveways until April.
Officially Official: 2010 Mitsubishi Lancer Sportback on sale in U.S. this summer
Mitsubishi finally announced what we've known all along: the five-door Lancer Sportback is coming to the States for the 2010 model year and sales will begin this summer.
The 2010 Mitsubishi Lancer Sportback builds on the already competent Lancer sedan, although the overall length is slightly longer to accommodate the new hatch. One-touch auto-folding rear seats split 60:40 to make room for "active lifestyle" parcels and Mitsubishi dropped the rear cargo area floor by three inches to create 52.7 cubic-feet of space when the rear thrones are folded flat.
The Sportback will be available in two trims, beginning in GTS form and equipped with Mitsubishi's 168 hp, 2.4-liter inline four mated to either a five-speed manual or CVT with six "virtual" ratios. More importantly, the Sportback will be offered in Ralliart guise, with the detuned Evolution X's turbocharged 4B11 2.0-liter four putting out 237 hp and 253 lb.-ft. of torque. Power will be doled out to all four wheels through Mitsubishi's All-Wheel Control (AWC) system with Active Center Differential (ACD), and buyers can opt for either the six-speed Twin Clutch-Sportronic Shift transmission (TC-SST) or CVT gearbox, both of which are manipulated by a set of magnesium-alloy paddle shifters.
n2a Motors now taking orders for Anteros Roadster and Coupe
While the Anteros Roadster made its debut a few years at SEMA, we got our first look at the coupe just a few months ago. Now, n2a Motors, which builds the Corvette-based sportscars has announced that it is taking orders for both the coupe and convertible, priced at $149,500 and $154,500, respectively.
Based on the chassis and running gear of a 2009 Chevrolet Corvette, each car features a carbon composite body, hand-stitched leather interior, three-piece aluminum wheels, and a custom exhaust. Under the hood is the Corvette's LS3 V8 putting out 430 horsepower and 424 lb-ft torque, complete with Chevrolet's 100,000 mile powertrain warranty intact. Customers can also choose to have the Z06 used as a base vehicle, and upgrades between 525 and 1000 horsepower are available at additional cost.
The transformation from Corvette to Anteros takes approximately 800 hours, and no two cars will be alike (hence the name n2a). Along with the press release that can be seen after the jump, n2a Motors has also released dozens of new photos of both the coupe and convertible that can be viewed in high resolution in the gallery below.
[Source: n2a Motors]
Test Drive: 2009 Land Rover LR3 SE V8
Never one for pop psychobabble, I can’t say I really bought that whole reptilian brain-SUV association a French deep thinker advanced a few years back.
The one about there being something distinctly reptilian about driver’s who covet big hulking SUVs for everyday suburban existence. What exactly being ‘reptilian’ really means was never made clear, but one has to assume it speaks to a cold-blooded, survival of the fittest ethos. For my money, it could just as well refer to the shoe material luxury SUV owners prefer.
Still, like many half-baked ideas, there is a bit of proof in the Frenchman’s pudding.
I was reminded of all this as I did my daily duty of kid drop-off/pick-up at the elementary school as I was testing the 2009 Land Rover LR3.
Without fail, Lululemon-adorned moms would gaze lustfully at the hulky beast as I cruised slowly through the school zone. A few would even break into a big toothy grin and little wave to me, who if testing a new Kia wouldn’t get a sideways glance. Volvo station wagons seem to garner close to the approval and accolades of the soccer set, but a Land Rover or Range Rover will always give them pause.
But why?
The LR3’s ancestral heritage is right out of the Serengeti — quite literally — and apart from the fact the Queen rattles around her endless acreage in one, there is little romantic about a Land Rover. Surely a Mercedes, BMW, Lexus or even Cadillac SUV should be the darling of this social set, where style often takes a backseat to substance?
Perhaps deep down in those, umm, brains (nearly said reptilian there), there is an innate understanding that despite having the wind-tunnel physique as a loaf of bread, the Land Rover LR3 is actually a very special kind of SUV.
Namely, one that has the technical sophistication and design features to let you take on off-road situations that would leave the German and Japanese competitors in the muck, but also the kind of comfort amenities and ergonomic engineering found in luxury sedans.
It truly is the best of both worlds.
The LR3 came into the world in 2005, as the third generation Discovery, a revolutionary market segment vehicle launched way back in 1989 in what proved to be a shrewd move by then owner Rover. Essentially a less-expensive Range Rover, the Discovery I was on the leading edge of the so-called “lifestyle accessory” concept of the latter part of the 20th Century.
By the time BMW — which bought the brand in 1994 — got around to producing the Discovery II in 1999, the rugged Land Rover saw stiff competition from every luxury carmaker in the world. Ford would buy Rover the next year, and when they got around to update the Discovery in 2005, they corrected issues with a model that had seen the competition pass it by.
With suspensions bits and chassis design virtually unchanged since 1989, the Discovery II could no longer claim off-road supremacy and was bleeding market share to strong machines from Japan and Germany.
Ford returned the Land Rover to the top of the heap with an all-new construction (Integrated Body Frame), a full independent suspension and the award winning Terrain Response System. Popular Science honoured the innovative off-roading driver aid with one of its coveted awards in 2005. In fact, the LR3’s 97 international awards are a world record for a production 4X4.
Is this why the moms love it?
For 2009 and now under the guidance of newest owner TATA, the LR3 gets a bit of a facelift, with a tweak here and a pull over there. Likewise, a number of what Land Rover calls new “standard features” have been added. These include:
- Body color painted wheel arches, front and rear bumper, lower tailgate appliqué and tailgate lift handle provide a unique, fresh appearance to the LR3.
- Straight Grained Walnut Wood at the centre console uprights and end caps. Or the choice of Grand Black Lacquer wood, as a no cost option.
- Standard 19-inch aluminum alloy wheels
- Clear side repeater lenses
- Exterior door handles with Tungsten finish, (replaces the previous model years black finish)
- New Interior Leather Trim
- Almond leather with Nutmeg carpet (replaces Alpaca Beige leather and carpet)
- New Exterior Paint: Galway Green (dark green color; replaces Tonga Green)
- The 3rd row seat and 2nd and 3rd row climate control become a value priced stand-alone option package.
Available as a base SE V6 or SE V8 model, the LR3 can be upgraded with HSE or HSE LUX trim level option packages. A seven-seat comfort package, which features third-row seating and rear climate control, is a stand-alone option package for 2009.
The base LR3
The HSE upgrade includes a Premium DVD-based satellite Navigation System with a 7-inch touch screen and voice activation and 4×4 driver information center, personal telephone integration system with Bluetooth connectivity, power tilt-telescope steering column, front park distance control, cold climate package, SIRIUS satellite radio, and HSE exterior identification badging. The LR3 and LR3 with the HSE Package feature standard 19-inch six-spoke alloy wheels, however all new 19-inch slotted seven-spoke alloy wheels are available as a no cost option.
The HSE LUX package adds premium leather seats, the seven-spoke wheels, memory settings for the driver’s seat, steering column, and mirrors, a 550-watt harman/kardon premium audio system with 14 speakers, Bi-Xenon headlamps and adaptive front-lighting, and a center console cooler box.
LR3 SE models are powered by a 216-horsepower 4.0-litre V6 engine mated to a six-speed ZF automatic transmission or by an optional 300-horsepower 4.4-litre V8.
Driving Impressions
Apart from receiving approving looks from my neighbours, the LR3 proves a capable, though somewhat underpowered performer.
Three hundred ponies may seem plenty for a vehicle of this sort, but due to its heavy weight and almost anti-aerodynamic design, a fully loaded LR3 can’t compete with the muscular competition in terms of passing acceleration. It’s not often an issue, but one that those preferring a sport aspect to an SUV should keep in mind.
Other than that, the LR3 is a very solid machine.
Gear changes are smooth and subtle; the ride comfort is comparable to most luxury sedans; and the ergonomics are ideal. Most if not all luxury SUVs of this ilk come equipped with a back-up camera, but with its well laid out cabin minimizing blind spots, the LR3 doesn’t need one.
My tester was outfitted with the three-sunroof option, and the extra light coming in dark winter days provided welcome relief.
Stopping power is good on-road and off-road, as Land Rover’s four-wheel all-terrain ABS is calibrated to avoid wheel look on all kinds of terrain. In addition, the Hill Descent Control automatically limits forward speed to 3.5 km-h (2.2 mph) in low range and 6 km-h (3.7 mph) in high range.
All of which means a novice off-roader can drive with the confidence required to master the art of keeping three wheels on the ground at all time.
In terms of passenger comfort and safety, the LR3 offers the usual laundry list of innovative and technically advanced systems, be they airbags, child safety seats or audio/video equipment.
All of which leads back to the beginning and the nagging question of what makes the Land Rover LR3 such a mummy-mobile?
[source: CanadianDriver]
Geneva Motor Show 2009 Preview: Updated Renault Clio
With Europe's other major international car show alternating to Frankfurt in 2009, the upcoming Geneva Motor Show is as close to home turf as the French automakers will get this year. Along with the new concept its Romanian budget brand Dacia is tipped to unveil at the show, Renault will be descending on the lakeside Swiss city with an updated version of its bread-and-butter Clio. The modest facelift draws on cues from the larger and newer Megane and Laguna models, with a small air inlet on the nose and a larger one integrated into the front bumper. The rear bumper as also bee mildly revised, while the updated cabin features a new sat-nav unit which Renault has developed together with TomTom to offer the cost-effective and web-upgradeable benefits of a standalone aftermarket GPS with the integration of a factory nav unit.
The updated Clio will debut with a new GT trim level that slots in below the hot Renaultsport version, with some of the aggressive cues but without the go-fast bits that make Renault's hot hatches the king of the hill.
[Source: Renault]
NEW RENAULT CLIO
THE NEW BENCHMARK
* New Renault Clio opens a new chapter in the Clio saga which began in 1990 and which has since seen the model go from strength to strength.
* New Renault Clio stands out as a versatile, balanced package which carries over the same qualities that saw Clio III take the 'Car of the Year ' award in 2006, namely benchmark cabin space, safety, comfort and roadholding, as well as the same rigorous build quality that has made it one of its segment's most reliable models.
* Renault's new compact hatchback features:
o renewed styling which incorporates the same dynamic cues as those which have become the hallmarks of New Renault Mégane's front end,
o a new GT version, enabling Renault Clio customers to sample the world of sporty motoring. New Renault Clio GT boasts racy looks and 'fun to drive' handling.
o Carminat TomTom, the first fully integrated and affordable GPS navigation solution. Renault's latest navigation solution has been co-developed with TomTom and will be dual branded. The navigation solution, easily updateable on the internet, has a large colour screen, and will include traffic and speed limit information, as well as safety camera locations, at a price of less than €500.
* The motoring public will get a chance to take a closer look at New Renault Clio at the forthcoming Geneva Motor Show.
A compact hatchback which reinforces Clio's family ties with New Renault Mégane
New Renault Clio sits squarely on the road and boasts more streamlined styling, with the lines of the headlamp modules now extending down to the lateral upturns of the front air intake. Indeed, the broad air intake in the lower part of the front bumper sets off the dynamic frontal styling which are also suggested by the presence of gloss black protective mouldings. The revised design of the rear lights prolongs the waist line across the hatch, while the uncluttered approach to the design of the central part of the rear bumper further emphasizes New Renault Clio's dynamic stance. The reversing lights and foglamps are positioned low down and to the extreme right and left of the bumper.
The choice of the new interior trims and equipment was guided by a desire to produce a sense of well-being and perceived quality, and the screen of the Carminat TomTom GPS navigation system is perfectly integrated into the upper part of the centre console.
New Renault Clio GT: an unprecedented version with genuine character
As with other Renault models, a GT version forms part of the New Renault Clio range. The compact and racy New Renault Clio GT hatchback features an exclusive body colour, Malta Blue. Its frontal styling is more aggressive and includes a gloss black grille, while the side sills hint at the performance of the GT version's specific suspension. New Renault Clio GT is easily recognizable from the rear thanks to its twin exhaust tailpipes and lip spoiler.
There are eye-catching sporty details inside the car, too, including drilled aluminium pedal covers and extra side support for the seats, plus GT-badging for the front seats.
Carminat TomTom: the first fully integrated, updatable and affordable navigation solution
Renault's latest GPS navigation solution, Carminat TomTom, is the fruit of the carmaker's partnership with TomTom to bring affordable integrated navigation solutions to Renault customers. Ready to start working from the moment you start the car and particularly easy to use, the solution will give Clio drivers a safe and stress-free driving experience.
Some of the features the Carminat TomTom will have are:
* an easy-to-read 5.8 inch (14.7cm) colour screen (larger than that of removable systems) for the display of detailed birds-eye view maps,
* reliable, updateable navigation complete with traffic, safety camera locations and speed limit information,
* at a price of less than €500.
All the fundamentals of Clio III
New Renault Clio boasts the same qualities that saw Clio III earn the 'Car of the Year ' award in 2006, namely:
* benchmark interior space and comfort,
* acclaimed ride comfort,
* a wide choice of responsive, environmentally friendly engines,
* a range of equipment from the next segment up, including a hands-free card and cruise control with speed limiter,
* outstanding safety credentials,
* the same rigorous build quality that has made it one of the most reliable cars of its segment.
Hyundai’s new i models have been designed with European customers in mind
Designed at Hyundai’s European headquarters in Russelsheim, Germany there’s more than a hint of Corsa about the i20’s lines. Its looks aren’t groundbreaking, but the styling is inoffensive. The entry-level Classic gets painted bumpers, while Comfort and Style trims add alloy wheels, together with colour coded door handles and mirrors. But compared to rivals the i20 lacks character.
Interior/Practicality
The i20 has the best interior we have seen in a small Hyundai and passenger space is on par with class leaders. There’s enough legroom in the back for adults, while the load bay will accommodate 295-litres of luggage. The driving position is good and dash layout is simple. Sadly, some of the plastics still feel a little cheap, although overall quality is much improved over previous Hyundai efforts. All models come with air conditioning, remote locking and a CD player with AUX in socket. Comfort models get coloured upholstery panels and multifunction wheel, while the range topping Style adds leather seats and metallic finish trim for the dashboard.
Engine/Performance
At present i20 buyers have a choice of three engines. Petrol fans can pick either the all-new 77bhp 1.2-litre unit or a 99bhp 1.4-litre borrowed from the larger i30. The smaller powerplant emits 124g/km of CO2, while the larger motor can be specified with a four-speed automatic gearbox. For owners wanting to cut fuel costs there’s a 1.4-litre oil-burner, which is available in 74bhp and 88bhp states of tune. The lower model will return 64.2mpg and produces 116g/km of CO2.
Driving Experience
On the move, the i20 is hard to fault but easy to forget. Driving it presents no challenge, but the experience isn’t as involving as a Ford Fiesta. The steering is let down by an artificial feel either side of the straight-ahead, which adds a vagueness to the i20’s responses. To make matters worse, the action of five-speed manual gearbox lacks the mechanical robustness of class leading rivals. At least the i20 has ample grip and body roll is well controlled. It also feels comfortable at motorway speeds and the engines offer decent urge.
Ownership Costs
When it comes to ownership costs the i20 is a very attractive proposition. Low emissions drop the car into affordable tax disc groups, while good fuel economy means fewer trips to the filling station. With competitive pricing and generous standard equipment the cars should have reasonable residuals – especially as Hyundai’s excellent five-year unlimited mileage warranty can be passed on when the car is sold.
Safety/Environment
All i20s come with six airbags, active head restraints and ISOFIX seats as standard. Stability control is an option across the range – and is well worth considering at £250. Eco-friendly buyers are spoilt for choice, with every model apart from the automatic 1.4-litre petrol producing less than 140g/km of CO2.
Bloodhound SSC may break land speed record in Australia
Late last year we saw Britain’s Bloodhound Project announce plans to smash their current land speed record of 763mph (1,227km/h) with their new SSC speedster, which they claim is capable of reaching a top speed of 1,050mph (1,690km/h) under a combination of rocket, jet and piston power. Having already acquired financial backing for the project, the team is now in need of a suitable location to complete their high speed run. Two locations that are quickly gaining favor are Australia’s Lake Eyre and Lake Gairdner in the state of South Australia.
Bloodhound Project Supersonic car
Wald Lexus IS-F 'Black Bison' detail photos released
Japanese tuning house Wald International has a wide range of styling and performance kits for nearly every Japanese-made car on the market. It's no surprise, then, the company has turned its hand to one of the most recent high-performance sedans to issue from Lexus, and the resulting restyle shows some characteristic Wald touches along with a flair unique to the IS-F. The IS-F kit offers a significantly more aggressive look for the IS-F owner not satisfied with the reserved yet muscular look Lexus imbued the car with at the factory, while the Black Bison kit goes one step further and adds even more aggression plus carbon-fiber finishes.
Wald designed Lexus IS-F
2010 Volkswagen Polo expected to debut in Geneva
Earlier this month Volkswagen development chief Ulrich Hackenburg explained to reporters at the Detroit Auto Show that the small car segment in the United States is likely to surge in the coming years, and that his company was intent on taking advantage of that growth. Already confirmed is the Mark VI Golf, which will make its way Stateside this September, but Hackenburg was hinting at bringing over an even smaller model. The car in question is the next-generation Polo, a compact hatch positioned below the Golf and reported by AutoWeek to be making its world debut at March’s Geneva Motor Show.
2010 Volkswagen Polo renderings
UK Government promises up to £2.3 billion for car industry
The weak economy knows no borders, rampaging across the globe taking its toll in lost jobs and bankruptcies. The car industry in particular is no stranger to this strife, and some might say Great Britain's carmakers most of all, considering their rocky history. Today UK Business Secretary Lord Mandelson announced the government will offer loans totaling up to £1.3 billion with another £1 billion in guarantees to the struggling industry (£2.3 billion, or $3.25 billion in total). Far from a bailout, and coming up well short of the $17.4 billion already promised to U.S.
Goodyear to cut 5,000 jobs in 2009
Goodyear Tire & Rubber Co., announced today that it plans to cut 5,000 jobs by the end of this year after a fourth-quarter loss of $330 million and a 21 percent drop in sales. Goodyear is the biggest U.S. tire maker.
The cuts, which equal almost 7 percent of its Ohio based work force, follow the 4,000 jobs that Goodyear eliminated in the second half of 2008. Sales have dipped to $4.1 billion from $5.2 billion during the same period last.
Seems like Goodyear is having a very bad year (sorry we couldn’t help it).
Source: MSNBC
Alfa Romeo Milano, Giulia, Crossover details revealed in Chrysler’s viability plan
As we keep digging through Chrysler’s Restructuring Plan for Long-Term Viability Plan submitted to the U.S. Treasury yesterday, we keep finding some interesting new product information. On page 113 of the viability plan, Chrysler displays a graph on how it will improve fuel-economy of its lineup by sharing powertrain and products with Fiat. There on the chart sit three, future Alfa Romeo models.
One of the three models will be a sedan called the Milano. The Milano will replace the 147 entry-premium car and is due in Europe around 2010. The second model, known as the Giulia, will replace the 159 medium-premium sedan and will arrive in Europe in late 2011.
Also detailed in the chart are plans for an Alfa Romeo CUV (or crossover).
Chrysler said that Fiat will share its small platforms, small gasoline and diesel engines and light duty dual-clutch transmissions, eliminating Chrysler’s need to develop these components.
In return Chrysler will hand over its 4-cylinder World Gas Engine and Phoenix V6 powertrains that will make it into the future Fiat product line extension.
2010 Jaguar XFR pricing starts $80,000, 2010 XKR starts at $96,000
The 2010 Jaguar XFR is officially more powerful and cheaper than its rivals. Jaguar today announced the pricing on the 2010 XFR with a starting MSRP of $80,000. As you already know, power comes from a 5.4L AJ-V8 GEN III V8 making 510-hp and 461 lb-ft of torque.
That makes the XFR more powerful than the BMW M5 and the Mercedes-Benz E63 AMG which start at $85,500 and $87,700 respectively.
Jaguar also announced pricing for the 2010 XKR which retails for $96,000 for the coupe and $102,000 for the Convertible.
Hyundai lays off 46 employees in the U.S.
While Hyundai continues to cater to laid off Americans with its Assurance Program, the company laid off 46 employees of its 550 employees in the U.S. According to Hyundai employees, CEO John Krafcik cited the tough economy as its decision, reports Automotive News.
Krafcik said that most of the 46 employees being laid off were in sales and marketing at its headquarters and regional offices. We’re wondering if those 46 employees will take advantage of the Hyundai Assurance program.
Hyundai sales were up 14.3 percent to 24,512 units in January. Some employees said that they were told the layoffs could have been worse if the company didn’t report a positive sales increase.
2009 Lamborghini Academy Program details announced
Lamborghini has announced the dates for the 2009 Lamborghini Academy Program. The courses will be open to all sports enthusiasts and Lamborghini owners providing them with an opportunity to experience Lamborghini cars with professional Lamborghini instructors.
The course will be held at various European race tracks starting Spring 2009. The new Lamborghini Gallardo LP 560-4 and the Murcielago LP 640 will be the star of the program. The Advanced Academy will be the top level of the program for experienced drivers.
Lamborghini Academy courses start at 3,900 euro ($5,001 USD), including accommodation, cars at the race track and all driving instruction. Check out www.lamborghiniacademy.com for full details.
Obama’s auto task force held first meeting today, will offer recommendations at next meeting
The auto task force held its first meeting today at the U.S. Treasury department to discuss the survival of General Motors and Chrysler LLC. The U.S. Treasury department released a statement saying that task force members today “presented their initial analyses of the auto companies’ restructuring plans. Participants discussed issues including financial and operational restructuring, improving competitiveness of wage and benefit structures, and progress toward creating clean, competitive cars of the future.”
According to Automotive News, the auto task force will make its initial recommendation at its next meeting which could be as early as next week.
President Barack Obama was not present today but White House Press Secretary Robert Gibbs said he is likely to attend future meetings. The task force has to decide by March 31st whether the restructuring plans submitted by GM and Chrysler can ensure long-term viability through tough economic times.
Both automakers have asked for an additional $21.6 billion and have already received a total $17.4 billion in bail out.
Giugiaro bringing the fastest hybrid in the world to Geneva
Italdesign-Giugiaro S.p.A, an automobile design and engineering company in Turin, Italy, is most popular for their Ford Giugiaro Mustang Concept. Last year they unveiled Giugiaro Quaranta, a 4WD super sports-car that used a mid-mounted engine coupled with a hybrid system.
Well Giugiaro has something up its sleeve for the 2009 Geneva Motor Show and they are calling it the “fastest hybrid in the world.” Italdesign Giugiaro says that its unnamed concept car will run from 0 to 62 mph in just 4 seconds with a top speed of 186 mph. The Italdesign-Giugiaro fastest hybrid in the world will return an outstanding 124 mpg.
No powertrain info has been provided but the Giugiaro Quaranta was powered by a Toyota 3.3L V6 engine with Hybrid Synergy Drive from the Lexus RX. Stay tuned for more details from Geneva early next month.
Giugiaro Quaranta:
Hyundai to run eight ad spots during the Oscars
After a successful Super Bowl XLIII campaign, Hyundai Motor America plans to take over the Oscars tomorrow. The Korean automaker has purchased eight spots during Sunday’s Academy Awards including a new ad for the 2010 Hyundai Genesis Coupe.
Along with its Genesis Sedan 2009 North American Car of the Year ad, Hyundai will debut a new Hyundai Assurance Plus spot. The company will run a total of seven 30-second spots and one 60-second spot during the Oscars.
The Hyundai Genesis Coupe ad is expected to feature score by Yo-Yo Ma and his solo of “Gigue” from Bach’s Suite No. 3 in C Major.
2010 Hyundai Genesis Coupe:
Bankruptcy funding being sought for GM and Chrysler
Outside advisers to the U.S. Treasury have started lining up what is said to be the largest bankruptcy loan ever. According to a report by the Wall Street Journal, the advisers are looking to banks and other lenders for at least $40 billion in financing for GM and Chrysler.
The administration officials and the auto task force said that they are trying to find a way to save the two companies without reporting to bankruptcy. They said that the latest efforts were just “due diligence” on part of the advisers to the U.S. treasury and that bankruptcy financing may not be necessary.
Nonetheless, sources familiar with the matter said that Obama’s administration believes that Chapter 11 filings by GM and Chrysler should be seriously considered.
A personal involved with the matter told the Wall Street Journal that “everything is on the table right now.” The person said that Obama doesn’t want to see huge job losses in the auto industry.
It is reported that the advisers are also looking for ways that the Treasury could “prime” other banks making DIP loans so the government could be paid back before others.
Source: WSJ
Cadillac to offer more model derivatives, small Caddy coming shortly
According to Mark McNabb, vice president of Cadillac-Hummer-Saab sales channel, the new Cadillac CTS family shows what Cadillac wants to do with its car line - offer more derivatives of each model.
“Look at a CTS and I think you can start understanding where we are going. Look at a CTS [sedan], CTS wagon, CTS coupe — obviously, derivatives off of a platform make a lot of sense from a financial perspective,” McNabb told Automotive News.
The 2010 Cadillac CTS Sport Wagon is on its way for this fall while the CTS Coupe is due out in the fall of 2010.
McNaab said that Cadillac will redesign the STS early next decade and will also offer a small car positioned below the CTS. He said that the move of offering more derivatives will help Cadillac “compete in a greater portion of the marketplace.”
Sweden: Saab needs new owner to get government help
According to U.S. Saab dealers, General Motors executives were surprised by the speed at which Swedish brand Saab filed for bankruptcy last week. Dealers said that GM had few answers for dealers including questions on buying back inventory.
Separately, Industry Minister Maud Olofsson said that the Swedish government is not willing to consider loan guarantees to Saab unless the automaker can find a private investor to help turnaround its business.
“We need to know there is a secure ownership which takes responsibility for the business plan so that it (Saab) can show a profit in 2012, 2013,” Olofsson said.
Saab’s CEO Jan-Ake Jonsson has recently said that the Swedish automaker has seen interest from many potential investors and other automakers. Saab was granted protection from creditors by the Swedish government on Feb. 20.
Source: Reuters
BREAKING: GM reports a $30.9 billion loss for 2008
General Motors announced today that it had a $9.6 billion net loss in the fourth quarter. The Detroit automaker, which is seeking an additional $16.6 billion after already receiving $13.4 billion in government loans, said that it burned through $5.2 billion in cash during the last three months of 2008. It said that it ended the quarter with cash of $14 billion (would have been $11 billion without government aid).
GM raised concerns that its auditors will issue a statement questioning the company’s viability. It said that the statement will be important to its investors and Obama’s auto task force which executives from General Motors plan on meeting later today.
If the U.S. Treasury and the White House National Economic Council decide GM is not viable, the will immediately call back the loans.
GM said that overall revenue was down 34 percent to $30.8 billion. For all of 2008, GM reported a net loss of $30.9 billion
Press Release:
GM Reports Preliminary Fourth Quarter and Calendar Year 2008 Financial Results
- Results reflect global economic crisis and industry-wide collapse in vehicle demand
- Fourth quarter adjusted net loss of $5.9 billion, reported net loss of $9.6 billion
- 2008 adjusted net loss of $16.8 billion, reported net loss of $30.9 billion
- Structural cost improvement in North America of $3.0 billion in 2008
| Calendar Year | |||
| 2008 | 2007* | ’08 O/(U) ’07 | |
| Revenue (bils.): | $149 | $180 | $(31) |
| Adjusted automotive earnings before tax (bils.): | $(10.4) | $0.6 | $(11.0) |
| Reported automotive earnings before tax (bils.): | $(16.3) | $(1.9) | $(14.4) |
| Adjusted net income (bils.): | $(16.8) | $(0.3) | $(16.5) |
| Reported net income (bils.): | $(30.9) | $(43.3) | $12.4 |
| Reported earnings per share (diluted): | $(53.32) | $(76.52) | $23.20 |
| Adjusted operating cash flow (bils): | $(19.2) | $(2.4) | $(16.8) |
| * 2007 figures reflect continuing operations |
DETROIT – General M otors Corp. (NYSE: GM) today announced its fourth quarter and calendar year 2008 financial results, which were affected by the dramatic deterioration in global economic and market conditions during the year, declining consumer confidence and a 50-year low in per-capita auto sales in the United States.
For the 2008 calendar year, GM reported an adjusted net loss, excluding special items, of $16.8 billion, or $29.00 per diluted share. This compares to an adjusted net loss of $279 million, or $0.49 per diluted share in 2007. The 2008 results were driven by the impact of the U.S. recession and subsequent global contagion. Including special items, the company reported a loss of $30.9 billion, or $53.32 per diluted share, compared to a reported loss of $43.3 billion, or $76.52 per diluted share in 2007, which included a non-cash special charge of $38.3 billion in the third quarter related to the valuation allowance against deferred tax assets.
“2008 was an extremely difficult year for the U.S. and global auto markets, especially the second half, ” Chairman and CEO Rick Wagoner said.“ These conditions created a very challenging environment for GM and other automakers, and led us to take further aggressive and difficult measures to restructure our business.
“We expect these challenging conditions will continue through 2009, and so we are accelerating our restructuring actions. At the same time, we are continuing our commitment to exciting, fuel-efficient cars and trucks, and the leadership in advanced propulsion technology .”
GM total revenue in 2008 was $149 billion, compared with $180 billion in 2007. GM’s core automotive business generated revenue of $148 billion in 2008, down from $178 billion in 2007. The revenue decline was predominantly due to the precipitous drop in sales amid record low consumer confidence in the U.S. and sharply lower sales across all of GM’s operating regions due to economic turmoil in the global markets. Global industry sales in 2008 were down 5 percent, or 3.6 million vehicles, versus 2007 levels, and U.S. industry sales fell by 18 percent, or nearly 3 million units.
| Fourth Quarter | |||
| 2008 | 2007* | ’08 O/(U) ’07 | |
| Revenue (bils.): | $30.8 | $46.8 | $(16.0) |
| Adjusted automotive earnings before tax (bils.): | $(4.0) | $(0.8) | $(3.2) |
| Reported automotive earnings before tax (bils.): | $(6.4) | $(1.2) | $(5.2) |
| Adjusted net income (bils.): | $(5.9) | $0.05 | $(5.9) |
| Reported net income (bils.): | $(9.6) | $(1.5) | $(8.1) |
| Reported earnings per share (diluted): | $(15.71) | $(2.70) | $(13.01) |
| Adjusted operating cash flow (bils): | $(5.2) | $(1.3) | $(3.9) |
| * 2007 figures reflect continuing operations |
In the fourth quarter 2008, GM posted an adjusted net loss of $5.9 billion or $9.65 per diluted share, compared to adjusted net income of $46 million, or $0.08 per diluted share in the year-ago period. Including special items, the company reported a net loss of $9.6 billion, or $15.71 per diluted share in the fourth quarter 2008, compared to a net loss of $1.5 billion, or $2.70 per diluted share in the year-ago period.
The fourth quarter 2008 results reflect special items totaling $3.7 billion. Special charges include :
- $1.1 billion impairment charge primarily relating to actions being taken regarding the Hummer and Saab brands
- $1.0 billion charge relating to adjustments to the value of deferred tax assets in various countries outside of the U.S.
- $900 million of restructuring and capacity-related costs
- $660 million increase to the Delphi reserve relating to the valuation of future pension obligations
- $610 million of gross goodwill impairments in Europe and North America
- $533 million net gain relating to GM’s portion of the GMAC bond exchange gain, net of an impairment taken on GM’s holdings in GMAC
Details on all special items are included in the “Highlights” section of this news release.
Effective Oct. 1, 2008, GM discontinued the use of hedge accounting treatment, on a prospective basis, to comply with SFAS 133. This resulted in a positive net effect on fourth quarter earnings of $436 million.
In accordance with SFAS 157, GM incorporates its credit risk when measuring the fair value of its derivative liabilities. As a result of GM’s increasing credit risk, the fair value of its derivative liabilities declined in the fourth quarter, resulting in a net gain of $1.4 billion.
GM reported revenue of $30.8 billion in the fourth quarter 2008, down from $46.8 billion in the fourth quarter 2007. Revenue from automotive operations totaled $30.6 billion in the quarter, compared to $46.5 billion from the prior year, largely driven by the sharp decline in global industry volume.
GM reports its automotive operations and regional results on a pre-tax basis, with taxes reported on a total corporate basis.
GM Automotive Operations
GM’s global automotive operations posted an adjusted loss before tax of $10.4 billion in 2008 (reported loss of $16.3 billion), compared to adjusted income before tax of $553 million in 2007 (reported loss of $1.9 billion). In the fourth quarter 2008, GM’s automotive operations had an adjusted loss before tax of $4.0 billion (reported loss of $6.4 billion), compared to an adjusted loss before tax of $803 million in the year-ago quarter (reported loss of $1.2 billion).
GM 2008 worldwide sales were 8.35 million vehicles, down 11 percent, or 1.01 million vehicles, driven by the industry-wide contraction in global vehicle sales. In 2008, 5.38 million vehicles, or 64 percent of GM’s global sales, were outside of the U.S., up from 59 percent a year ago. GM’s Asia Pacific (GMAP) and Latin America, Africa and Middle East (GMLAAM) regions each grew sales volume by nearly 3 percent, and more than 2 million vehicles were sold in Europe for the third consecutive year. Despite softer industry sales, GM continues to lead in emerging markets, posting market share growth in 14 of 26 of the emerging markets.
GMNA
| Fourth Quarter | |||
| 2008 | 2007 | ’08 O/(U) ’07 | |
| Revenue (bils.) | $19.3 | $28.1 | $(8.8) |
| Adjusted earnings before tax (bils.) | $(2.1) | $(1.1) | $(1.0) |
| Reported earnings before tax (bils.) | $(3.5) | $(1.3) | $(2.2) |
| GM market share | 21.0% | 22.7% | (1.7)p.p. |
GM North America (GMNA) posted an adjusted loss before tax of $2.1 billion in the fourth quarter 2008 (reported loss of $3.5 billion), compared to an adjusted loss before tax of $1.1 billion in the fourth quarter 2007 (reported loss of $1.3 billion). These results were impacted by significant declines in U.S. industry volume, leased vehicle residual adjustments, increased incentives and unfavorable product mix, partially offset by favorable cost performance, SFAS 157 adjustments and foreign exchange. For 2008, GMNA posted an adjusted loss before tax of $9.4 billion (reported loss of $14.1 billion), compared to an adjusted loss before tax of $1.5 billion in the year-ago period, excluding special items (reported loss of $3.3 billion).
As a result of GM’s ongoing restructuring initiatives to adapt to current economic conditions, significant actions have been taken to reduce its structural cost. In North America, GM reduced structural cost from $33.8 billion to $30.8 billion, or $3.0 billion, during 2008.
GME
| Fourth Quarter | |||
| 2008 | 2007 | ’08 O/(U) ’07 | |
| Revenue (bils.) | $6.4 | $10.7 | $(4.3) |
| Adjusted earnings before tax (mils.) | $(956) | $(215) | $(741) |
| Reported earnings before tax (mils.) | $(1,890) | $(445) | $(1,445) |
| GM market share | 9.1% | 9.2% | (0.1)p.p. |
For the fourth quarter 2008, GM Europe (GME) posted an adjusted loss before tax of $956 million (reported loss of $1.9 billion) versus an adjusted loss before tax of $215 million in the year-ago period (reported loss of $445 million). The decline in fourth quarter earnings was largely attributable to the lower industry volume across the region, unfavorable model mix and unfavorable foreign exchange and commodity hedging, partially offset by strong cost performance. For 2008, GME posted an adjusted loss before tax of $1.6 billion (reported loss of $2.8 billion), compared to adjusted income before tax of $55 million in the year-ago period, excluding special items (reported loss of $524 million).
GMLAAM
| Fourth Quarter | |||
| 2008 | 2007 | ’08 O/(U) ’07 | |
| Revenue (bils.) | $4.7 | $6.0 | $(1.3) |
| Adjusted earnings before tax (mils.) | $(154) | $424 | $(578) |
| Reported earnings before tax (mils.) | $(181) | $424 | $(605) |
| GM market share | 16.2% | 17.3% | (1.1)p.p. |
In the fourth quarter, GMLAAM posted an adjusted loss before tax of $154 million (reported loss of $181 million), down from adjusted income of $424 million in the fourth quarter of 2007 (reported income of $424 million). Fourth quarter results were impacted by lower industry volume in Brazil, Venezuela and other key markets, and unfavorable foreign exchange, offset by favorable model mix and pricing. For the year, GMLAAM posted adjusted earnings before tax of $1.3 billion (reported income of $1.3 billion), which was comparable to 2007 adjusted earnings of $1.3 billion (reported income of $1.3 billion). Despite a slowdown in the fourth quarter, GMLAAM achieved record revenue of $20.3 billion and sales volume of almost 1.3 million vehicles for the calendar year.
GMAP
| Fourth Quarter | |||
| 2008 | 2007 | ’08 O/(U) ’07 | |
| Revenue (bils.) | $2.6 | $5.3 | $(2.7) |
| Adjusted earnings before tax (mils.) | $(879) | $72 | $(951) |
| Reported earnings before tax (mils.) | $(917) | $72 | $(989) |
| GM market share | 7.2% | 7.3% | (0.1) p.p. |
GMAP posted an adjusted loss before tax of $879 million for the fourth quarter (reported loss of $917 million), compared to adjusted income of $72 million in the year-ago period (reported income of $72 million). GMAP fourth quarter earnings were impacted by lower industry volume, unfavorable pricing, unfavorable foreign exchange and commodity hedging, partially offset by favorable model and mix and continued favorable cost performance. For the year, GMAP posted an adjusted loss before tax of $664 million (reported loss of $800 million) compared to adjusted income of $744 million (reported income of $681 million) for 2007.
GMAC
In the fourth quarter, GMAC Financial Services (GMAC) reported net income of $7.5 billion, driven largely by the company’s December bond exchange, compared to a net loss of $724 million in the fourth quarter of 2007. Excluding the $11.4 billion gain on its bond exchange, GMAC’s results in the fourth quarter reflected a net loss of $4.0 billion, driven primarily by losses in North America automotive finance and continued losses at Residential Capital, LLC (ResCap). GMAC reported net income of $1.9 billion in 2008, compared with a net loss of $2.3 billion in 2007.
GM realized an adjusted loss of $4.7 billion attributable to GMAC, as a result of its 49 percent equity interest for the year, and an adjusted loss of $1.9 billion for the fourth quarter. This excludes a fourth quarter net gain of $533 million related to GM’s portion of GMAC’s bond exchange gain that was largely offset by an impairment of GM’s investment in GMAC.
Cash and Liquidity
Cash, marketable securities and readily available assets of the Voluntary Employees Beneficiary Association (VEBA) trust totaled $14.0 billion as of Dec. 31, 2008, down from $27.3 billion on Dec. 31, 2007. GM had adjusted automotive operating cash flow of negative $5.2 billion in the fourth quarter, and ended the 2008 calendar year with adjusted automotive operating cash flow of negative $19.2 billion, largely due to lower volume across GM’s global operations and negative working capital.
On Dec. 31, 2008, GM entered into a loan agreement with the U.S. Department of Treasury (UST) for funding of $13.4 billion, payable in three tranches. The initial installment of $4.0 billion was provided to GM on Dec. 31, 2008, followed by subsequent installments of $5.4 billion and $4.0 billion on Jan. 21, 2009 and Feb. 17, 2009, respectively.
In accordance with the terms of the loan, GM submitted to the UST on Feb. 17, 2009 a comprehensive global restructuring plan that demonstrates GM’s long-term viability. GM is working with its key stakeholders as the company implements the actions outlined in the plan, to create a revitalized, more cost competitive company, dedicated to developing world-class vehicles and leading advanced propulsion technologies.
As a result of year-end measurements of GM’s net pension obligations, it was determined that the U.S. hourly and salaried qualified pension plans are currently underfunded, on a combined basis, by approximately $12.4 billion. Several factors contributed to the underfunded status, including service and interest costs; lower asset returns; lower discount rates; changes in actuarial assumptions; various hourly initiatives including the UAW special attrition program, VEBA agreement, Delphi pension transfer and IUE contract; and salaried initiatives including the pension benefit changes relating to the elimination of post-65 retiree healthcare and the salaried retirement program. While no additional pension contributions are anticipated over the next three years, the funded status of the pension plan is subject to a number of variables. GM will continue to analyze its pension funding strategies going forward.
GM intends to take advantage of the extension of the time required to file its 2008 10-K, which the SEC rules allow by filing Form 12b-25. This provides GM with up to 15 additional days in which to file its 2008 10-K, without being considered “late” by the SEC. The company believes this is a prudent step to take at this critical time as it allows more time for thorough review of the extensive financial and other disclosures regarding the events that occurred at year-end 2008 and during early 2009. Additionally, as a result of the bond exchange, GM’s 2008 10-K will contain information regarding executive compensation, which would not normally be disclosed until the proxy statement is issued for GM’s annual stockholder meeting.
Finally, GM anticipates receiving a “going concern” opinion from its auditors in the 2008 10-K. GM and its auditors must determine whether there is substantial doubt about GM’s ability to continue as a going concern. GM’s Viability Plan filed with the UST on Feb. 17, 2009, included a request for additional funding from the UST, as well as support from other governments outside of the U.S. GM requires this funding in 2009 to continue operations until global automotive sales recover and its restructuring actions generate benefits, resulting in the company being able to fund its own operating requirements.
Source: CNNMoney
2010 Volvo S80 gets facelift, coming to the U.S. later this year
Volvo announced today that it has updated its S80 sedan. The 2010 Volvo S80 gets refreshed exterior styling, an upgraded interior and sharper chassis and an updated engine range.
“We are ready to give the competition a tough match. With the new S80, we’re placing the bar at the very highest level when it comes to exclusiveness, quality and driving properties,” says Volvo Cars President and CEO Stephen Odell.
In the U.S., the 2010 Volvo S80 will be offered with a 3.2L inline 6, the turbocharged T6 3.0L inline 6 and the top-of-the-range 311-hp 4.4L aluminum V8. The T6 and V8 models will come with Volvo’s Instant Traction AWD system as standard.
The 2010 S80 will make its world debut at the Geneva Motor Show next week with U.S. sales to start in the second half of 2009. Pricing details will be announced closer to launch.
AM General layoffs could spell end for Hummer H2
General Motors yesterday announced it would be laying off 2,000 workers and reducing production at 10 North American plants over the coming months. At the same time, AM General, producer of the Hummer H2, laid off 200 workers from its Mishawaka, Indiana plant. Now GM's extended production halts could combine with the layoffs to put H2 production on ice for the foreseeable future. Production wasn't expected to restart until March at the earliest, but with GM's announcement of a general slowdown or halt in output, plant officials and workers are fearing H2 production could be delayed even longer - and possibly permanently. In the mean time, AM General is trying to find places within the company for the laid off H2 workers, though company spokesman Craig MacNab also says, "Nobody knows what's going to happen with the H2 plant," according to Mishawaka local news outlet WSBT.
2009 Hummer Black Chrome H2
2009 World Car of the Year finalists revealed
Late last year the cars eligible for the 2009 Green World Car of the Year (WCOTY) award were announced, and this week the organization that hands out the awards has revealed the top 10 finalists in the overall Car of the Year and Performance Car of the Year categories. This year's finalists for the overall WCOTY title include a host of German and Japanese entries with just a single American carmaker on the list - but not for an American-market car. Ford's Fiesta hatchback will soon be coming to the U.S., however, indicating what a strong contender it will likely be.
Corvette ZR-1
Volvo C30 ‘Racer’ envisaged by Sweden’s Vizualtech
Vizualtech, a Swedish design firm that specializes in constructing virtual 3D models of cars and boats, has just released a new set of images of a race-inspired Volvo C30 hatch. The focus when designing the car was to create something that could compete in the DTM touring car series or possibly a Le Mans endurance race. Oversized side sills, a chunky rear diffuser and a huge rear spoiler all give the usually stylish but mundane Volvo C30 a very aggressive look. Large slats in the rear-wheel arches should help to cool the brakes down, while the front spoiler should improve downforce and give the car greatly improved handling if it were ever built. While Vizualtech is only a design firm, and not a manufacturer, the renderings hint at the possibilities that lay ahead for the C30.
Volvo C30 ‘Racer’ by Vizualtech
Texas considering $5,000 tax credit for plug-in hybrids on top of federal incentives
With all the talk of the Environmental Protection Agency (EPA) reconsidering allowing states to implement their own fuel-economy emissions and regulations, and the negative flow on effects this would have on carmakers that would be forced to tailor cars to meet varying standards across the country, lawmakers in Texas have offered a glimmer of hope. The state’s Governor, Rick Perry, has revealed that he’s considering implementing a tax break for plug-in hybrid vehicles. Late last year, the Bush administration signed a tax credit of up to $7,500 for plug-in hybrid and similar high-tech vehicles.
2011 Chevrolet Volt Production model
Spy shots: Renault Megane Sedan caught winter testing
Renault presented the first official images and details for its all-new 2009 Megane late last year but only information about the five-door Hatchback model and new Coupe was released. Also in the works are a new high-performance Coupe, Cabrio, ‘Grandtour’ or ‘Kombi’ wagon, and this latest Sedan, all of which are expected to arrive over the course of the year. We’ve already seen a preview of the high-performance coupe in the form of the 2008 Megane Coupe Concept from the Geneva Motor Show last year, and now we can have an early look at prototypes for the upcoming Sedan thanks to these latest spy shots.
Renault Megane Sedan and Kombi renderings
Wiesmann adds special edition GT MF4-S to lineup
Niche German sports carmaker, Wiesmann, recently celebrated its 20th birthday and to mark the anniversary the Dülmen-based manufacturer will be releasing a string of special '20th Anniversary Editions' models over the course of the year. The first of these special editions has just been revealed in the form of the GT MF4-S. The closed two-seater is still powered by a BMW-sourced 4.8L V8 engine but output has been lifted to 420hp (309kW) - the standard GT MF4 produces 367hp (270kW). Transmission options include a standard six-speed manual or a new dual-clutch unit.
Wiesmann MF5
Hennessey debuts 705hp ZR700 Corvette
America's most powerful native supercar, the Corvette ZR1, has reigned for just a few months, and already the tuners are having at it, cranking up power to even more absurd levels. Hennessey's latest creation, dubbed the ZR700 for its 755hp (526kW) output, is a prime example. Blowing through the quarter mile in just 11.03 seconds at 136mph (219km/h) thanks to a 67hp (50kW) boost over the stock ZR1's 638hp (476kW), the ZR700's brawny 717lb-ft (970Nm) of torque also ensure the car has ample low-end bite.
Hennessey ZR700 Corvette ZR1
Next-gen Buick small sedan could be built by Opel
A next-generation Buick small sedan, headed for sale in the U.S. and China, could be built around the FWD Delta II platform in Opel's Russelsheim, Germany plant, according to sources inside Opel. The move would displace some Saab production, but the next-generation 9-3 is already expected to be built in Trollhattan, Sweden. News emerging from Opel sources in Germany today ties together a thread of production shifts and design rumors at General Motors dating back more than a year. A source within Opel told the Frankfurter Allgemeine Zeitung that GM has a proposal that could lead to a 'very great quantity' of Buicks being built in Germany.
Buick Riviera Concept
Report: Corvette GT-1 Edition package in the works
Earlier this week Corvette put a price to its new Competition Sport appearance package designed to appeal to hardcore Corvette racing fans. Now word of another similar package called the GT-1 Edition has emerged, though Chevrolet won't yet confirm if it's official. The key elements of the leaked GT-1 Edition Corvette package are a ZR1-style full-width rear spoiler, forged chrome wheels, a yellow and black color scheme (black with yellow racing stripe or vice-versa), unique race-inspired graphics including the driver's name on the roof, the 'Jake' racing mascot, and blacked-out headlights.
FAB Design Maybach 57 spotted in Monaco
Modifying an already highly customized and unique vehicle is often an exercise is excess, and while the FAB Design Maybach 57 certainly qualifies, it adds a distinct element of sport that seems oddly congruent with the car's inherent design. A wide-body treatment with enormous yet sculptured fender flares is the first thing the eye catches on with the FAB Design Maybach. While many find the stock Maybach's appearance objectionable to begin with, the FAB Design body kit draws out the car's Mercedes-Benz roots, accentuating the lines that make those cars so attractive. Nonetheless, it's still a heavily modified Maybach, and likely to inspire some polarizing viewpoints.
FAB Design Maybach 57
Production Mini crossover to debut at 2009 Frankfurt Motor Show
Mini unveiled a new crossover concept at last year’s Paris Motor Show and within just four weeks after its debut the vehicle was given the green light for production. Numerous prototypes have since been spotted testing across Europe, and despite the production version of the vehicle scheduled to make its debut at September’s Frankfurt Motor Show the new Mini crossover isn’t expected to reach showrooms until late next year. The information comes from the boss of Mini brand management, Wolfgang Armbrecht, who spoke recently with Edmunds.
2008 Mini Crossover Concept at the Paris Motor Show
U.S. Justice Department introduces national used vehicle database
A major problem in the used car industry is the illegal practice of ‘title washing,’ a process where salvaged wrecks are rebuilt and given new title information and then sold to unknowing buyers. Three consumer groups recently attempted to sue the federal government to force it to create a new national database of vehicle title information to prevent the practice from occurring, and now the U.S. Justice Department has finally reacted by introducing a nationwide electronic vehicle database. Laws for a national database were enacted back in 1992 and 1996 but only now has any serious action been taken.
Trio of customized Suzuki Equator pickups headed to Chicago Auto Show
At next month’s 2009 Chicago Auto Show Suzuki will unveil a trio of customized Equator pickup trucks co-developed with three different off-road and lifestyle magazines. The first vehicle from the lineup has already been revealed in the form of the Truckin' Equator, which has been fitted with a modified four-cylinder powertrain and a Suzuki GSX-R motorbike in its tray. Another version was developed together with 4-Wheel & Off-Road magazine and rounding out the trio is an Off-road magazine designed model.
Boeing demonstrates first successful Humvee-mounted laser gun
Testing last month at White Sands Missile Range in New Mexico confirmed that a prototype weapons system consisting of a laser mounted on the back of an Avenger ground combat vehicle is capable of shooting down UAVs. The first-ever successful demonstration of such a mobile laser weapon, which is dubbed the Laser Avenger, involved a 1kW laser system that's been adapted to track flying objects in complex situations. Shooting down UAVs will be increasingly important, as already the high-tech drones are becoming a serious threat on the modern battlefield.
Laser Avenger Humvee
Volvo announces 2010 XC60 T6 AWD pricing
Crossovers are the new wagons, according to popular wisdom, but at Volvo the heritage is clearly visible. Its wagon-like crossovers in the XC line have met with great success in the U.S., together with the various wagon lines accounting for about half of the company's sales in recent years. The 2010 XC60, revealed at last year's Geneva Motor Show, adds a smaller, sportier angle to the company's repertoire. Today, the company revealed the new XC60 will start from $37,200 in the U.S. The new model is claimed to be the safest Volvo ever, featuring a host of new safety technologies including the latest ‘City Safety’ automatic braking system as standard.
Volvo XC60 Crossover
FLIR PathFindIR offers in-car nightvision to the aftermarket
Infrared nightvision displays have up to now only been available as an option on the highest-end luxury vehicles, police helicopters and military devices. Now it's available for installation on any car or motorcycle thanks to FLIR's PathFindIR. Though the PathFindIR system may not be as cleverly integrated or as fully-featured as some Mercedes-Benz or BMW installations, it is in fact the same core hardware found in the Mercedes NightVision Assist system. Pricing of the system in a one-off aftermarket setting hasn't yet been announced, though some resellers are offering the PathFindIR unit without a display for about $4,000 - a hefty premium over the charge by most OEMs to install the system, complete with display and warning systems.
Pirelli joins forces with Magneti Marelli and Brembo on new "Cyber Tire"
Three famous Italian automotive firms have joined forces to bring a new “Cyber Tire” to the market. While tire pressure monitoring systems have become commonplace on all but the most entry-level cars, these companies are working on a self-powered microchip-based system that reports temperature, pressure and load wirelessly to the car's computer. Pirelli will work with Magneti Marelli on the electronic control systems and Brembo for the brakes on the new tire. The goal will be to develop a complete solution for car companies that will reduce their engineering costs and be easy to integrate into current product plans.
Chrysler: Please sir, we want some more
Less than a month after receiving the first $4 billion from the federal government’s bailout package for the auto industry, Chrysler has revealed that it needs an additional $3 billion to help close an alliance deal with Italy’s Fiat Group. Unlike General Motors, which has been allocated up to $9.4 billion in restructuring loans, Chrysler was only given $4 billion despite the claims that it needed at least $8 billion to completely reform its operations. The fact that the latest demand is to help facilitate an alliance with a foreign carmaker seeking to gain from the deal, lawmakers in Washington are wary to offer more money.
Britain’s Bee Automobiles reveals plans for BRM 700hp electric race car
Late last year Britain’s Bee Automobiles announced plans to revive the BRM brand after 60 years with the launch of a new all-electric race car. The BRM Bee Four was born, a four wheel race car with an electric motor in each wheel hub designed to compete in the Speed Hill Climbing Championships in the UK in 2010. The BRM brand was founded just after the Second World War by Raymond Mays, who had built several hill climb and road racing cars before the war, and Peter Berthon, a long-time associate.
BRM Bee Four electric race car
Bentley’s fastest & most powerful production car teased in new video
The pressure to show an interest in the ecological impact of driving is extending ever-upwards, so high that even Bentley is working on a biofuel model. Due to arrive at the Geneva Motor Show in March, Bentley yesterday released a teaser shot of the car. Interestingly, the “Extreme Bentley” won’t be just a one-off concept as the car has already been described by the carmaker as a “production” model and latest reports indicate it will hit showrooms late in the year. Today the company released a new teaser video for the car, shown below. Along with the teaser, Bentley released the statement: “On March 3, Bentley will reveal its fastest, most powerful production car ever.
Biofuel Bentley Continental GT teaser