GM bankruptcy will be much more complex than Chrysler’s

It’s almost becoming inevitable the General Motors will be filing for Chapter 11 bankruptcy as the clock ticks down to the government-imposed June 1 deadline for the company restructure or face a fate similar to the one Chrysler did earlier this month.

Many analysts and industry experts are saying that a GM bankruptcy will be much more complex, costly and painful when compared to Chrysler’s filing a few weeks ago.

“The biggest difference is scale: GM is a much larger company,” Stephanie Brinley, senior manager of product analysis for the consultancy AutoPacific,” told MSNBC.com.

There is no doubt that GM has more plants than its rival Chrysler, nearly 5 times as many employees and twice as many dealers. As such, we don’t expect that the 30 to 60 days of “surgical bankruptcy” Chrysler is undergoing, will be anywhere close to how long GM will remain in court. Not to mention, GM has a broad network of international operations, including Saab and Opel, in which bankruptcy would cause an “international ripple effect.”

Oh and of course, no one is there to hold the General’s hand after it comes out of bankruptcy, as was the case with Chrysler with Fiat taking majority control in the long-term. While some may look at that as a negative, Brinley says that it could work in GM’s advantage.

“I think that’s an advantage. GM, in one way or another, is in a little bit more control of their own destiny,” Brinley said.

We’ll find out soon enough.

Prius vs. Insight: A clash of corporate cultures

TOKYO--Few cars better embody the wide divergence in the corporate cultures of Toyota and Honda than these two hybrids.

In one corner is the Honda Insight--a case study in utilitarian expedience. It's powered by a simplified four-banger with an electric motor adding just enough oomph to cut down on trips to the pump. It sports a plasticy, no-frills interior and poaches parts from sister models.

In the other corner is the redesigned Toyota Prius--a paragon of engineering excellence. It pushes the envelope with an ingenious planetary gear transmission, outstanding fuel economy and snazzy options such as solar panels. The car that made hybrids famous carries a first-class sticker price to match.

For better and worse, the redesigned Prius and Insight exude the distinct corporate identities that gave them birth. The result is as much a battle of the automakers' business philosophies as a two-car rivalry.

Faultless Toyota Motors reached new technological heights but drifted into cost creep, a risky trend in a recession. Penny-pinching Honda Motors did a lot with a little, churning out a low-budget hybrid that can't match its rival's specifications.

Ford to make little cuts in dealer network, expects to benefit from GM and Chrysler dealer closures

While Chrysler plans to shutdown nearly 800 dealers by next month and GM plans to get rid of 1,100 dealers by next year, Ford said that its cuts will be much smaller when compared to those made by its rivals. Director of North American sales, James D. Farley, said that Ford expects to benefit from the closure of nearly 2,000 competing showrooms.

Farley said that Ford has already reduced its dealer network by 700 since 2005, which has left the Dearborn automaker with a total of 3,700 dealers nationwide.

Ford, which has not received any government loans, is taking ever opportunity to shine light on the differences between it and GM and Chrysler. Farley told the Detroit news that the plant closures by Chrysler would affect millions of consumer with little warning and some of those consumers, especially those in rural areas, will migrate to Ford dealerships.

“It really depends on how GM and Chrysler handle these orphan owners,” he said. “If they don’t give them a lot of attention, it will result in consumers going to other brands.”

- By: Omar Rana

Source: Detroit News

MWDesign Project BMW E92 M3 “Darth Maul”

If you haven’t noticed yet, today is a day where we focus on some tuned up BMWs or race cars, and what could be better than to finish on a similar note. The talented fellows at MWDesign, a tuning company based out of Vancouver, Canada, have just unveiled their latest project, codename, “Darth Maul”.

The center of this project is the always beautiful and classy, BMW M3 Coupe(E92), one of the BMW most used vehicles by the tuning companies. The MWDesign E92 M3 is sporting an Jerez Black exterior together with a gorgeous Fox Red interior trim.

Since we know you’re anxious to find out what parts have been used on this car, here are some of them:

• Amuse Ericsson Front Bumper with custom Orange highlights
• Amuse Ericsson Trunk
• CF Rear Diffuser with custom Orange highlights
• CF Side Vents with custom Orange highlights
• CF Side Mirrors
• Modulare M6 20×9 F 20×10.5 R - Matte Black Centers/Gloss Black Lips + Custom Matte Black Center Caps with Orange Accents
• Falken tires FK452 245/30/20 F 285/25/20 R
• H&R Sports Springs

The guys at MWDesign also mentioned that is only stage 1 of the “Darth Maul” project and we can barely wait to see what Stage 2 will bring us. So far, we like what we see and yes….the photomodel used by them complements the design.

BMW 1 Series Racecar by Rem-Power

We don’t believe we have seen yet any photos of a BMW 1 Series Coupe racecar, so coming across the photos below was quite a surprise to us. Initially we thought we’re looking at an official BMW Motorsport car, similar to the BMW M3 ALMS that we’ve seen in the LeMans races here on U.S. soil, but it turns out the car belongs to a private race team, Rem Power.

In our opinion, the car looks fantastic, despite the running boards being a bit odd, and the best out of all of this, it is a BMW 1 Series Coupe racecar powered by a diesel engine, more exactly, a 135d which outputs 408 horsepower and 800 Nm of torque.

No other details are available to us at this moment, but we’re working on getting more information for you. In the mean time, enjoy the great photos and as a recommendation, despite our differences with the company that took over the site, 1Addicts.com is a good place to connect with more 1 Series fans.

Rolls-Royce Ghost undisguised

The “Ghost” is not a ghost anymore and made its first public appearance. What we’re still unclear is that if this is the final production model or simply the 200EX Concept officially unveiled at the Geneva Auto Show in March. The new Rolls which is built atop the most recent BMW 7 series platform, will be manufactured at the Goodwood plant and it will share some interior and exterior materials with the Phantom and Drophead Coupe, but fit into a shorter wheelbase. At the same time, RR Ghost has a very modern and round design giving the impression of a smaller and sportier luxury vehicle.

Rolls Royce Ghost measures 212.6 inches long, 83 inches wide and 61 inches tall, all of this sitting on seven-spoke 20 inch wheels wrapped in 285/40 and 255/45 tires. The engine used in the new “baby Rolls” is an all-new 6.6-liter V12 producing 507 horsepower.

According to sources close to BMW, first years production units have been been sold despite the fact that production will start in the fall. The first Rolls-Royce Ghost in a final production form will be introduced at the IAA Frankfurt Show in September.

As far as the competition, BMW introduces the RR Ghost as a response to the Bentley Continental Flying Spur.

[Photos courtesy of Autojunk.nl ]

2010 Lincoln MKT With EcoBoost - First Drive Review

Ford has been touting its EcoBoost engine technology for more than two years now. The buildup began when the Lincoln MKR concept debuted at the 2007 Detroit show, hinting at the automaker’s plan to employ smaller engines equipped with turbochargers and direct fuel injection. In the same timeframe, early adopters such as Audi, BMW, and Porsche have been much praised for how the technologies have improved the power delivery, fuel economy, and emissions of many of their vehicles.

Fast forward to today, and Ford has officially—and finally—joined the party, with Lincoln taking the lead: the 2010 MKT crossover and 2010 MKS sedan are the first models to go on sale with available EcoBoost powertrains. Ford recently invited the media out to its Michigan proving grounds to get acquainted with the new cars—and engines. Here, we concern ourselves with the surprisingly good MKT.

We Don’t Need No Stinking V-8

Based on the Ford Flex—itself based on a stretched Taurus X platform— the MKT is a unique three-row crossover that the brand expects to compete with the likes of the Audi Q7 and Acura MDX. The MKT makes the boldest statement yet about Lincoln’s styling direction, specifically in the huge, split-waterfall grille. We don’t think the look quite works when the grille is this enormous, but perhaps it will grow on us in time. Ford says people who are fond of the box-tacular Flex don’t always connect with the MKT’s softer lines and boat-tail butt, but that the Lincoln is meant to make a statement about the brand rather than appeal to everyone.

Instrumented testing and real-world impressions will have to wait until our next rendezvous with the big Lincoln (it’s a half-foot longer than the Flex), but on Ford’s undulating ride-and-handling course and five-mile banked oval, it exhibited reassuring composure and had more than enough grunt to outrun the V-8–powered Audi Q7 on hand for comparison. Thanks to a pair of quick-spinning, grapefruit-sized turbochargers, the 3.5-liter EcoBoost V-6 pushes out a stout 355 hp and 350 lb-ft of torque—on regular unleaded—all of which is available from as low as 1500 rpm. Mated to a fortified six-speed automatic transmission with paddle shifters and well-spaced ratios, the engine moves the 5200-lb MKT off the line quickly and with little effort. Upshifts—whether initiated in automatic mode or by pulling back on either paddle—barely interrupt thrust, which stops only when the electronic limiter kicks in at 120 mph to protect the 255/45-20 Goodyear Eagle RS-A tires. (Non-EcoBoost MKTs get 19-inch wheels and tires as standard.) All the torque makes passing maneuvers at highway speeds a snap. Engine noise is more noticeable than in the MKS, but is still hushed and pleasant in tone.

Keep Reading: 2010 Lincoln MKT With EcoBoost - First Drive Review

Seat’s Sporty Supermini Celebrates 25 Years

It was back at the 1984 Paris Motor Show that the world caught its first glimpse of a Spanish supermini that would shake up the small car class for good, bringing much-needed style and excitement to the sector and establishing SEAT as a key component of the Volkswagen Group. The public unveiling 25 years ago of [...]

2010 Saab 9-5 - Spied

General Motors is still in dire financial straits, but product certainly is not a main cause, and this upcoming Saab 9-5 is an example of the potential that lies within GM's platform strategy, even though Saab is expected to be forced out of the conglomerate shortly.

Most 9-5 prototypes still wear heavy front-end camouflage, but the stylistic genes are hard to hide. The wraparound windshield flows into the side windows and the window sills make a characteristic upswing into the C-pillar. We caught the rear end uncamouflaged, and the shots reveal a rakish, semi-fastback look—the car’s look is unmistakably Saab. The lower rear light units hold LEDs, while a dark glass strip stretches over the entire rear end. Other shots reveal a rear fog light stretching halfway across the rear bumper, but this futuristic styling element likely won't make it to the U.S. market, where rear fogs aren’t mandated as they are in Europe.

Finally: A New 9-5

The next 9-5 will replace one of the oldest cars on the market, as the current 9-5 was launched in 1997, albeit a few makeovers have attempted to keep the car somewhat fresh. The 9-5’s latest refresh modernized the exterior with an attractive look, but the car as a whole won't be missed when the new model is launched.

Keep Reading: 2010 Saab 9-5 - Spied

Chrysler Rejects 789 Dealers Leaving Only 2,392 to Continue On

Chrysler has announced plans to reject 789 of its current dealers. The 789 dealers were sent overnight letters informing them that they have until June 9th to close their doors.

Chrysler officially filed a motion with the U.S. Bankruptcy Court to reject certain Chrysler, Dodge or Jeep dealers. 2,392 dealers will continue to sell vehicles under the new company in a global alliance with Fiat. Chrysler plans on continuing "business as usual" with all of its dealers and intends to honor warranty and incentive payments during the period that "rejected" dealers remain open.

GM Announces Plans to Close 1,100 Dealers

Just like Chrysler did yesterday, GM has announced plans to close 1,100 of its "underperforming" dealers.

Although GM has identified the 1,100 dealers that will be closed, the automaker is not closing any dealerships today. GM will be working with the dealerships over the next few weeks to come up with a long term plan. It is expected that their will be a wind-down of the affected dealers over the next year. This is in contrast to Chrysler's plans to close its affected dealers by June 9th.

GM likely to announce more dealer cuts in the future since the automaker wants to pare down its network from 5,969 stores to approximately 3,600 by the end of 2010.

2010 Lincoln MKS with the 355HP EcoBoost Engine Starts at $47,760

Ford has officially announced the debut of the 2010 Lincoln MKS with the new 3.5L EcoBoost V6 engine.

The 3.5L EcoBoost V6 puts out 355 horsepower and 350 lb-ft. of torque thanks to direct-injection and twin turbochargers. The EcoBoost V6 gives the Lincoln MKS the power of a normally aspirated 4.6L V8, but without sacrificing fuel economy. The MKS with EcoBoost will get at least 17 mpg in the city and 24 mpg on the highway.

The 2010 MKS with EcoBoost has standard 19-inch wheels, steering-wheel paddle shifters, all-wheel-drive and adaptive HID headlights. Also included are rain-sensing wipers and a rear-window power shade.

For even more distinction there is the Appearance Package which includes, luxury seats in Sienna with Charcoal Black Tuxedo Seam, illuminated MKS sill plates and upgraded floormats. Outide the package gives you a distinctive grille, front lip spoiler rear fascia lower, side rockers and door cladding, decklid lip spoiler with chrome insert and modified MKS decklid badge ("S" in red).