new millennium motoring

A rough road ahead for Chrysler's union with Fiat

noreply@blogger.com (David Moll) — Thu, 30 Apr 2009 18:23:00 +0000

Moments ago, President Obama announced that Chrysler will file for bankruptcy today in a New York federal court, then move toward a speedy union with Fiat. But in the rush for a shotgun marriage, there are plenty of hurdles Chrysler has to clear.

The Feds are hoping that in a month or two, Chrysler will re-emerge, tarnished and tattered, under Fiat’s leadership and about $3.6 billion of “debtor-in-possession” financing -- which would keep the doors open while Chrysler sheds its contracts with suppliers, dealers and unions.

In this scenario, dealer contracts will be shed quickly and suppliers may not fare much better. The UAW has already agreed to cuts in their 1997 contract, which was inked when Daimler AG was Chrysler’s new sugar daddy and there was much more wealth to spread around.

But this less-than-apocalyptic scenario of a surgical resurrection can be stopped dead in its tracks if any one stakeholder decides to stall the process in the interest of a better deal.

The federal bankruptcy code only requires that a simple majority of creditors — defined as a group who holds two-thirds of the dollar amount of debt — reach an agreement before they can force settlement terms upon holdouts. Depending on which way the wind blows, Cerberus could find themselves stuck with a bigger bill than they’ve planned -- or at least a lot less room to maneuver.

While today’s news was a long time coming, the repercussions will be felt for some time to come.

Image: Bill Pugliano/Getty

Ford, UAW cut deal on retiree health benefits

noreply@blogger.com (David Moll) — Tue, 10 Mar 2009 23:17:00 +0000

Ford has hit a home run in negotiations with the UAW, setting a precedent for GM and Chrysler and freeing up the cash it needs to stay out of the government bailout cookie jar.

Under the newly amended contract, Ford will now fund half of its retiree health care benefit fund using common stock instead of cash. The change in funding will free up millions of dollars, which will be put to use for retooling and product planning.

Nearly 60 percent of UAW members voted in favor of the amendments to their existing contract with Ford; It is likely that General Motors and Chrysler will negotiate similar concessions in the coming weeks.

“We are facing an unprecedented loss of sales and revenue at Ford,” said UAW Vice President Bob King, who directs the union’s Ford department. “Our bargaining committee made an extraordinary effort to negotiate changes in a responsible way that will help Ford be competitive, while still protecting our active and retired members."

“The voting results show that our members are prepared to make painful sacrifices in order to be part of the solution to the problems facing Ford and the U.S. auto industry," said King, speaking with Automotive News.

(AN | Photo Credit: AP via Buffalo News)

Punditry: The top five Fiats that Chrysler needs now

noreply@blogger.com (David Moll) — Fri, 06 Mar 2009 05:22:00 +0000

Fiat's recent offer to link up with Chrysler could be silver lining within the Carpocalypse's clouds of doom.

Under the proposed deal, Chrysler gets its cash-starved mitts on Fiat's la bella machinas. And Fiat grabs a minority stake in Chrysler and dibs on Chrysler's distributors and dealerships.

We would get a heaping helping of la dolce automobili, but which cars would head stateside? Presuming all goes well, here's my list of the five Fiats that would save Chrysler's bacon.

#5: Fiat Croma
When Dodge canned the Magnum wagon only to carry on with the overweight and overwrought Nitro SUV, they walked out on a market that has been almost completely neglected since the Camry Wagon was discontinued in 1996.

In the Fiat Croma, Dodge has a laser-focused competitor to the Jetta and Passat wagons. With a five-star crash test rating, leather interior, navigation and a smooth, torquey diesel four-cylinder, the Croma nails all the Jetta's selling points.

As the inevitable surge in gas prices returns, the best days for medium-size wagons lie ahead. The Croma can put Dodge back out at the head of the pack.

#4: Fiat Panda 1.3
Back in 2000, Chrysler hit a grand slam with the PT Cruiser. Decent space and decent pace in a package that looked like it drove right out of the Woodward Dream Cruise.

But as time passed, Chrysler neglected their sales champ, timidly futzing with the car's grille and trim and leaving the rest of the car to age as competitors became faster, more efficient and most importantly, a better car to drive.

The Panda 1.3, with its irrepressible pizzazz, is where the PT should be now. Compact, hip, nimble and thrifty -- all fit the 100-hp Panda 1.3 to a tee. Even with 100 horsepower, the Panda can hustle quite well; Fiat runs the Panda Rally Cup as a starter series for aspiring rally drivers.

More realistically, it can reclaim the market for fuel-thrifty people moving vacated by the equally funky first-gen Scion xB. Horsepower has taken a back seat for a large part of the Gen-Y driving demographic, leaving the Panda with a lot to offer.

#3: Fiat Linea
With lines that rival Audi for Teutonic simplicity, the Linea packs the right set of features and the right engine choices (gas and diesel fours) in a modern sedan with a smooth, quiet ride and a bright, inviting interior.

It's everything the 2007 Chrysler Sebring should have been.

#2: Fiat 500 Abarth Esse Esse
In 1957, the original Fiat Cinquecento was the icon of post-war Italian motoring. With a 13-horsepower straight-twin in the back, it took the work of a young Carlo Abarth to turn the frugal microcar into an ankle-biting demon-slayer on the back roads.

Fast-forward sixty years and the new, front-drive 500 has received heaps of praise -- for its thrift, it's charm and the same nimble nature that made the original so memorable.

Sounds a lot like the Mini Cooper, right?

The 500 Abarth Esse Esse is a special order package for the top of the line 500 1.4, much like the John Cooper Works-tuned Mini Cooper S. With a 160-hp turbo 1.4 four banger, bigger brakes and sport suspension, the Abarth Esse Esse could give drivers a cure for the common Cooper.

#1: Fiat 500C
Fresh off its debut at the Geneva Motor Show, Fiat will launch a drop-top version of the 500 this year as an early 2010 model. It's cuter than the proverbial bug's ear and with the right marketing pitch, it could be the next gotta-have-it cruiser, much like the rag-top Cooper was five years ago.

Rather than shuffle off its mortal coil as a maker of steerage-class sedans, Chrysler has a real chance at enduring glory in this torrid romance with Fiat.

It would be ridiculous to claim that I alone could solve Chrysler's woes, but one thing seem certain: these cars would excel at putting asses in seats. That plays a big role in deciding who survives in the car business.

--
[NYT]

Swedish customs halts Saab production, citing unpaid taxes

noreply@blogger.com (David Moll) — Thu, 26 Feb 2009 00:00:00 +0000

Reuters is reporting that the Swedish customs authority has effectively shut down Saab's Trollhättan factory, citing a "considerable" sum of import duties that have been left unpaid.

Saab imports the majority of its components from third-party suppliers and GM-owned factories outside the European Union. With that supply chain broken by Swedish authorities, Saab ran out of parts and has been forced to shut down production.

Saab spokesman Eric Geers said that the problem began with an overseas supplier and that the problem had been resolved, without giving specifics.

A Swedish customs official said that after filing for protection from creditors last week, Saab lost its 30-day line of credit with Swedish customs, leaving the unpaid duties on a warehouse full of inventory and spare parts due in full.

No matter where the fiscal trouble started, today's news is another sign of cashflow woes within the ailing Swedish automaker.

[RTS]

Saab set to sink as GM steps aside

noreply@blogger.com (David Moll) — Wed, 25 Feb 2009 01:46:00 +0000

"Nej tack nu går bort!" (No thanks, now go away!)

Such was the response from the Swedish Industry Ministry, when approached by the General to purchase a majority stake in the ailing automaker.

Now, Saab is mounting its last stand against mounting debts and a critical lack of suitors interested in the struggling automaker.

Last week, General Motors announced plans to shutter or sell off its oh-so-Swedish subsidiary by the end of this year. The announcement came after repeated efforts to coax the Swedish government into purchasing a majority stake in the automaker failed.

Yesterday, the Swedish court granted Saab a 60-day protection order against its creditors, who are owed $127 million for parts shipped since January 1. The automaker lost about $340 million in 2008, according to documents filed with the court; Saab expects a similar loss this year, due to high costs, weak sales and an aging product line.

Yesterday, the Swedish daily Dagens Industri reported that GM was ready to invest $400 million into Saab if the Swedish state would guarantee a loan of $590 million.

The package would set a target of 120,000-130,000 vehicles sold worldwide and a return to profit in 2011 or 2012, the newspaper said, quoting unnamed sources. Saab sold just over 93,000 cars in 2008 — 21,368 of those in the United States. It was the company's worst year in the US since 1994.

A weak product line has been Saab's weakness since GM took full control of the automaker in 2000.

First came the 9-2x, a cheaply disguised version of then-corporate partner Subaru's Impreza wagon. Lacking the charismatic burble of its discount Japanese cousin along with the sophistication of its mainstream Euro competitors, the 9-2X languished on the lots while the A4 and 328i set sales records.

The utterly irredeemable 9-7X SUV was even worse. At the time, every other luxury brand had a chic sport-ute; Saab dealers were left out in the cold. GM responded with a badge engineered version of the decrepit Chevrolet Trailblazer.

The 9-7X was doomed from the start. Despite feeble attempts to Saab-ify the 'Blazer, It drove like the $30,000 body-on-frame truck from whence it came, without the pot-hole smothering suppleness of the Lexus RX or the Teutonic precision of the X5.

Recently, GM has pumped a bit of marketing cashflow into new concepts; a hybrid version of the 9-3 sedan, for instance. Yet it's all coming a day late and a dollar short.

The lack of a consistent theme has left Saab stranded. If the automaker cannot sell its current inventory and thereby finance its short-term operations, the story of Swedish car building is over. In addition to a new owner, Saab has 60 days to find $1 billion in new credit. Both will be hard to come by; neither guarantees survival.

Brabus builds a brazen, ballistic G-Wagen

noreply@blogger.com (David Moll) — Fri, 20 Feb 2009 02:52:00 +0000

The Gelandewagen has a long history as a world-conquering off-roader. Now in its 30th year of production, the two ton Benz-built bruiser has conquered the Sahara, straddled the Alps and set dozens of records for going places lesser trucks could not.

But now Brabus has written another record for the G-Wagen: the most powerful production off-roader ever built.

In the Brabus-tuned G V12S, 690 horsepower and 973 pound-feet of torque will provide a 0-to-60 trip that will stay door-to-door with a Ferrari F430. And if that isn't sufficiently self-indulgent, the Brabus-tuned G will thunder onward to a limited top speed of 150 miles per hour. If the G's 295/45 R 21 tires could tolerate the abuse, the G V12 has enough fury to hit a terminal velocity of 170 miles per hour. Not bad for a truck with the aerodynamics of a bank vault.

All this lunacy comes courtesy of the tuner's tried-and-true 6.3-liter twin turbo V-12. Itself a bored and stroked version of the 5.5-liter twin-turbo V-12 found under the hood of the S600, Brabus has shoehorned this leviathan motor into the CLS and C-class sedans, producing ludicrously expensive and lust-worthy supercars in the process.

For its starring role in the G-Wagen, the motor receives ported cylinder heads, larger turbos and a full custom exhaust, along with extensive modifications to the transmission and four-wheel-drive system. Upgraded brakes and 21-inch alloys wearing 295/45 R21 tires at all four corners supply the requisite whoa on demand.

But despite all the lust-worthy stats and opulence, it's hard to shake the feeling that the timing's been botched. The world is running out of the lead-footed bourgeoisie who can afford to drop 400,000 euros on a balls-out SUV. And in an era of politically-mandated hand-wringing over how to tame the environmental menace that is the gas-guzzler, the standard issue G-Wagen may itself be living on borrowed time.

But as apex predators go, none come quite as fierce as this one.

GM seeks $16 billion; dire future looms for Saturn, Saab

noreply@blogger.com (David Moll) — Wed, 18 Feb 2009 01:33:00 +0000

Today was the due date for GM and Chrysler to turn in their homework -- a plan defining each automaker's long-term viability. And in defining the way forward, General Motors has put the hangman's noose around Saab and Saturn.

And that's just the start.

Saab will file for bankruptcy at the end of February unless someone else comes to the rescue. The entire Saturn line will die out in 2011 if no one has stepped forward to buy the brand. Pontiac will become a niche brand catering to enthusiasts with high-performance vehicles, while GM focuses on four core brands: Chevrolet, Cadillac, Buick and GMC.

As for the HUMMER brand, the fire sale continues with no suitors in sight. By March 31 — according to GM's plan — the board of directors will decide whether to hold out for a sale or phase out the brand altogether.

All of this comes on the day GM receives the balance of $13.4 billion in taxpayer loans granted last December. In the plan, GM is asking for $16 billion more; $4.6 billion to repay existing lines of credit and a new $7.6 billion line of credit as a hedge against poor sales between now and 2011.

If they get their wish, GM will receive a total of $30 billion in taxpayer money. Assuming everything goes to plan, GM expects to start repaying these loans in 2012. When the loans would be repaid in full is anyone's guess.

This is a bitter pill to swallow, but then again, denying there's a problem often leads to complications. Mixed metaphors aside, the grim future facing all three brands is one with very dire consequences for those who work on the line.

No word yet as to the number of jobs in peril, but we would like to hear your stories of working for a brand with an uncertain fate. The tipline is open at tips@nmm-cars.com

For more information, download the full text of the GM VIability Plan here

[Photo by Bill Pugliano/Getty]

Just how safe is your pickup truck?

noreply@blogger.com (David Moll) — Tue, 17 Feb 2009 01:31:00 +0000

Bigger is better, when it comes to crashes. A basic tenet of physics that for years has sold big, burly pickups as the "safer" alternative to mid-size sedans. But, as the Insurance Institute for Highway Safety discovered, many of today's full-size pickups flunk the side impact crash test, a feat those wimpy sedans manage with ease.

So just how safe is yours?

The Chevy Silverado 1500, GMC Sierra 1500, Dodge Ram 1500 and Nissan Titan all received a whooping in the latest round IIHS test, earning a "poor" rating for side impact crashes and only an "acceptable" rating for rear impacts. Even when equipped with their optional side-impact airbags, the Chevy, GMC, Dodge and Nissan earned a "marginal" rating, despite having a weight and height advantage over mid-size sedans.

Weak cab design and the lack of torso protection were common problems for all four models. The Silverado and Sierra fared worst of all; without side torso airbags, the crash dummies registered enough force at the chest level to fracture ribs and traumatize internal organs in a real-world crash. Both trucks were redesigned in 2007, the new IIHS rating applies to GMC Sierra 1500 and Chevy Silverado 1500 models produced since 2007.

It's not all bad news however; the Honda Ridgeline, Ford F-150 and Toyota Tundras did very well, earning top marks in front, rear and side-impact tests. All three offer standard side airbags with torso and head protection and crashworthy cab structures.

For more information:

http://www.iihs.org/news/rss/pr021109.html
http://www.iihs.org/video.aspx?f=releases/pr021109

Geneva Motor Show Preview: 2011 Fisker Karma

noreply@blogger.com (David Moll) — Sat, 14 Feb 2009 03:39:00 +0000

Mere weeks after stealing the spotlight at the Detroit Motor Show with the voluptuous Karma S convertible, Henrik Fisker and his eponymous carrosserie have announced pricing and specs for the Fisker Karma hybrid luxury sedan, due to hit the road in early 2011.

Under the skin, the Fisker Karma uses a gas-electric drivetrain, which Fisker calls Q-Drive, developed with help from Quantum Technologies. The Karma relies on two electric motors and a 22.6-kilowatt-hour lithium-ion battery to drive the car's wheels.

Fully charged, the Karma delivers 50 miles of all-electric range before a 2.0-liter turbocharged four kicks in to drive a on-board generator. A 130-watt rooftop solar panel also helps charge the battery and, when the car is parked, keep the interior cool.

All of this is wrapped in an aluminum spaceframe and draped with a svelte composite and aluminum body guaranteed to leave valets and fellow drivers slack-jawed. And despite weighing the better part of two tons, Fisker claims the Karma's 300 kilowatt drive motors will hurl the car from zero to 60 in 5.8 seconds and on to a limited top speed of 125 mph.

While the $87,900 MSRP isn't a paltry sum, Henrik Fisker expects to sell 15,000 units in the Karma's first year of production. Given the state of the world economy lately, one wonders where all these well-heeled eco-conscious drivers will come from in the next three years.

Mild skepticism and global economic meltdowns notwithstanding, we will learn more about ordering and delivery dates when the Karma makes its European debut at the Geneva Motor Show next month.

In the mean time, feel free to salivate over the newest photos. New wallpaper, anyone?

[Fisker Automotive]

2009 Nissan Cube Krom - Pics, Specs & Prices

noreply@blogger.com (David Moll) — Fri, 13 Feb 2009 04:36:00 +0000

Hoping to build on the same Gen-Y mojo that has made the Scion xB a sales smash, Nissan has priced the 2009 Cube to move.

Starting this May, $13,990 will get you a Cube 1.8 with a 5-speed manual. With 122 horsepower, the Cube's 1.8 liter DOHC inline four-cylinder won't pin you to the seat, but it will deliver 30 mpg on the highway and haul four friends in reasonable comfort.

1.8 S and 1.8 SL models will offer Nissan's Xtronic CVT automatic for the shiftless lot who would rather stomp and steer.

At the top of the heap lies the Cube Krom. Conceived in-house by Nissan's Specialty Vehicles Group, the Cube Krom comes from the men who crafter the fire breathing NISMO 350Z.

A limited-edition model based off the JDM Nissan Cube Rider, the Cube Krom features a chrome grille, front bumper, side sills and spoiler, along with 16-inch aluminum wheels which are — you guessed it — chromed.

But lest all this chrome craft the image of a Pep-Boys gilded econobox, the Cube Krom delivers a top-tier interior as well. The Cube Krom comes standard with a leather-wrapped steering wheel, iPod interface, Bluetooth, automatic climate control and various aluminum bits and baubles as well a six speaker stereo with a Rockford Fosgate-designed integrated subwoofer in the Krom's swing-out tailgate.

Those who opt for one of the lesser Cube models can choose from over 40 individual accessories, including a factory body kit, various styles of alloy wheels and a number of interior add-ons.

Stay tuned, as we'll have full pricing details for the mid-level Cubes as well as the popular option packages towards the end of the month. In the interim, head on over to the Cube microsite to learn more.

2010 Genesis Coupe priced below $23K

noreply@blogger.com (David Moll) — Wed, 11 Feb 2009 18:40:00 +0000

While the svelte Korean coupe will make its official debut a few days from now at the Chicago Motor Show, Hyundai has released full price details for US-bound models.

The base model is powered by a 210-horsepower, 2.0-liter turbocharged four mated to either a six-speed manual or five-speed automatic transmission. The four-cylinder coupes will start at $22,750 for the base model and top out at $24,500 for the well-equipped R-Spec version due later this year.

The V-6 powered coupes belt out 306-horsepower from a naturally-aspirated 3.8-liter motor. $25,750 will get you the base V-6 with six-speed manual. The fully-loaded Track model with a ZF-built six-speed Shiftronic transmission will sell for $31,750. All prices include a $750 destination charge.
[IL]

MINI mulling diesel option for future US models

noreply@blogger.com (David Moll) — Wed, 11 Feb 2009 03:05:00 +0000

In the pantheon of automotive journalism, USA Today rarely comes to mind. Yet today, MINI vice president Jim McDowell confirmed to the perennial paper that parent company BMW is actively considering adding a diesel engine for US - bound Coopers and Clubmans.

MINI already offers a diesel option for the Mini Cooper in Europe, but the current diesel engines do not meet EPA emissions. Hence any US-bound diesel MINI will be based on a new generation motor rather than a retrofit of the current European model, said McDowell.

As reported last fall, BMW has begun selling diesel versions of the 3-series sports sedan as well as the X5-series sport utility vehicle. Both vehicles use an ammonia-reduction catalyst to cut down on harmful nitrogen emissions.

Ultimately, it's a question of cost versus buyer-perceived benefit. The gasoline-powered Mini Cooper and Mini Cooper S are gas-sippers. The 2009 Mini Cooper delivers 28 mpg in the city and 37 mpg on the highway. "If we add a diesel," McDowell said, "it has to really get high mileage ratings to appeal to buyers."

German automotive supplier Bosch AG has been spotted testing a modified Mini Cooper D in the United States. Leaked reports of its 60-plus miles per gallon fuel economy have whetted appetites, but they may have also lead to unrealistic buyer expectations.

Not all car-makers have found success with diesel models. Mercedes-Benz and VW have successfully sold diesels here for years. But Honda made an abrupt about-face in December when CEO Takeo Fukui announced the company would drop their plans to build a diesel motor for the US market.

The bottom line:
As car sales go, 2008 was one of America's worst years on record. The smart money would lead most to cut their costs and focus on sales. But if BMW plays their cards right, a diesel MINI Cooper would knock the eco-weenie Prius off its smug-shrouded perch.

BREAKING: More Porsche Panamera Pics and Specs

noreply@blogger.com (David Moll) — Sat, 22 Nov 2008 20:58:00 +0000

A tip of the hat to supercars.net is in order this Saturday. Thanks to them, three new pictures of Porsche's Panamera super-sedan have hit the web ahead of its official Monday reveal.

Dutch auto mag AutoTelegraaf has already broken the press embargo, so we're joining the herd a couple days early.

The Panamera is a large car by any means; 16.3 feet long, 6.3 feet wide and 4.66 feet tall, with a wheelbase of 9.6 feet. Weight hasn't been disclosed, but somewhere near 3800 pounds for the V8 model seems likely.

With today's leak comes new design revelations. Heat extracting vents in the front fenders are flanked by deep scallops reminscent of the Carrera GT, breaking up an otherwise bulbous form. The jury is still out on the Panamera's bulbous back end; as yet, I'm not a fan. Design quibbles aside, it's hard to argue with a 0.29 coefficient of drag.

Back in September, we covered the basic tech specifications. A 3.6-liter V6 and 4.8-liter V8 engines with be available, with a 500+ hp twin-turbo V-8 reserved for the top of the line Panamera Turbo.

Porsche's dopple-kupplung dual-clutch gearbox will be available on all models. A V-6 hybrid variant with 350 hp is expected by 2011.

All-wheel drive will be standard on the Panamera Turbo, along with an electronically controlled air suspension system. Whether rear or all-wheel drive, all Panameras will include a helical limited-slip diff as well.

A brief programming note: Next week's news coverage will be punctuated with a few gaps as the Thanksgiving holiday nears. But stay tuned for our reviews of Mitsubishi's i MiEV electric city car and VW's new Jetta TDi clean diesel sedan.

Embargo be damned! 2010 Mustang pics & specs leaked before LA debut

noreply@blogger.com (David Moll) — Wed, 19 Nov 2008 02:55:00 +0000

The cat... or rather... the colt is out of the bag on this one.

We were just a day and a half away from the new Mustang's official debut at the LA Auto Show, but thanks to a bit of file mismanagement on Ford's side, the dam has burst. Since everyone else is doing it, here's the scoop on Ford's new steed.

Technically, the 2010 Mustang is a mid-model refresh of the SW195 platform that debuted in 2005 to immediate acclaim. But with the exception of the roofline, all exterior sheetmetal is new for 2010.

The remade Mustang starts with an aggressively raked grille which features the first new Mustang emblem since the car's introduction in 1964. Both the V-6 and V-8 GT wear front bumpers unique to each model. The headlamps and turn signals are now integrated into one unit, drawing inspiration from the 1970 Mustang Boss series.

On the V-6 models, the fog lamps are located on the lower fascia, while on the GT, the fog lamps are again located in the upper grille – a pattern similar to the original lamps of the 1967-68 Mustang. The new headlamps, lower fascias, fenders and grille are capped by a powerdome hood that adds to the muscular appearance while allowing greater air circulation underneath.

"We understand Mustang's heritage and iconic status it has in the world and as a symbol of Americana," said Peter Horbury, executive director of US design. "We wanted to create a face that is more muscular but unquestionably, unequivocally Mustang and carry that spirit through to the entire car."
Along the new Mustang's flanks, both the front and rear fenders are tautly flared at each wheel arch. Taking inspiration from the 2006 Guigiaro Mustang Concept, the new Stang's rear fenders now swell to a pronounced flare just below the rear quarter window. "It helps give the car aggressive, forward direction, like it's ready to jump," said Doug Gaffka, Mustang chief designer.

Out back, new LED tailights debut along with a revised trunklid and rear bumper. Firing sequentially from the inside cornet, the three red LED lamps mimic the sequential turn signal unique to the Mustangs of the late '60s. The reverse lamps are tucked in vertically between each red lamp, creating a modern version of the classic Ford three-lens taillamp.

Under the hood and on the road, improvements abound
The 2010 Mustang 4.6-liter V-8 benefits from the cold air induction system, taller final drive and re-calibrated ECU which debuted on the 2007 Mustang Bullitt.

Now producing 315 horsepower, the GT's ECU will now advance engine timing and richen fuel trim when premium unleaded is used, rewarding drivers with a deeper well of midrange torque. The 4.0-liter V-6 carries on unchanged, with 210 horsepower.

Suspension-wise, wheel and tire combinations are an inch bigger across the board, ranging from 17 to 19 inches, depending on the model. The shocks have been retuned on all models as well.

"We adjusted the springs, stabilizer bars and shocks to better balance the ride, steering and handling for all models, which results in a more engaging driving experience," adds Mustang Vehicle Engineering manager Tom Barnes. "The 2010 Mustangs feel more controlled for steering and handling, yet retain a good ride balance."

There's new safety gear on hand as well. Electronic Stability Control (ESC) is now standard for 2010, complementing Mustang's all-speed traction control and anti-lock braking system (ABS). Dual front and front seat mounted side airbags are standard equipment on every 2010 Mustang.

Inside, a one-piece instrument panel design is new for 2010. Crafted in seamless soft-touch TPO (Thermoplastic Olefin) resin, the new assembly offers fewer places for squeaks to develop, a goal Ford engineers sought out with the new Mustang.

"That's the difference between good enough and exceptional," said Gary Morales, Interior Design manager. "We wouldn't accept anything less than leadership design and world-class craftsmanship."

The 2010 Mustang will offer the latest version of Ford SYNC bluetooth and multimedia integration system, which now includes 911 Assist and Vehicle Health Report. The somewhat frivolous My Color™ system returns for 2010, which allows drivers to customize the car's gauge lighting from a range of 125 colors.

To see more of the 2010 Mustang, visit Ford's mini-site here:
http://www.fordvehicles.com/the2010mustang/

GM to Washington: Loan $25B now or lose $150B later

noreply@blogger.com (David Moll) — Tue, 18 Nov 2008 02:05:00 +0000

If General Motors fails, nearly three million jobs could be lost in 2009 as part of a cascading collapse of suppliers, shipping companies and ultimately dealers. So argues General Motors in a video released as the embattled automaker campaigns for immediate federal aid in the wake of a cash-flow crisis.

Released on Sunday, GM's four-minute video highlights the fact that American auto industry is one of the largest economic multipliers in the U.S. economy. GM employs more than 1.7 million people, either directly or through parts suppliers, subcontractors and dealers.

The key argument is that if either GM, Ford or Chrysler fails, the industry would be faced with an imminent collapse due to the impact on suppliers and the cascading effects of production lines being halted and workers laid off at every level of production.

All told, as many as three million jobs could be lost if one or more the Big Three automakers fail. GM argues that in such a scenario, with no cars being made or sold, as much as $156 billion in tax revenue would be lost between 2009 and 2011.

And the economic catastrophe wouldn't stop there.

Add in the cost of supporting 775,000 retirees currently drawing a GM pension. And the health care costs of 2 million people who would find themselves uninsured if GM were to fail.

A collapse of the U.S. auto industry would reduce personal incomes by $150.7 billion, the automaker warns. Over three years, the cost could grow to $398 billion in unemployment assistance, as people struggle to find new work.

By every measure, the damage from a collapsing US auto industry will reach far beyond the industry itself.

The nation's auto industry is a major contributor to our gross domestic product -- nearly four percent in total. According to the Center for Automotive Research, our current recession was fueled by three-tenths of a percent decline in GDP. If GM alone is left to fail, a sudden one percent loss in GDP could easily trigger panic, turning a recession into a depression.

[GM]

NMM at the Movies: The cars of Quantum of Solace

noreply@blogger.com (David Moll) — Sat, 15 Nov 2008 01:45:00 +0000

Confession time: In addition to being a car nut, I'm also an ardent fan of Ian Fleming's James Bond 007.

And so tonight, as the first US screenings of Quantum of Solace get underway, we have a feature on the cars appearing in the latest Bond film.

Daniel Craig returns to his role as the famed British secret agent, taking the wheel of the heart-achingly gorgeous Aston Martin DBS in the process.

Even before Q works his armored wizardry, the Aston is a force to be reckoned with, packing a 6.0-liter V-12 good for 510 horsepower and 420 pound-feet of torque.

Olga Kurylenko makes her Bond film debut as Camille Montes. As in Die Another Day, Ford has once again signed a deal to get their cars on screen; Kurylenko drives the plebeian but Euro-chic 2009 Ford Ka subcompact.

With a meager 1.2-liter four, the Ka is more adept at being miserly with fuel than outrunning henchmen, but nonetheless, it's appearance is more so a feature of Madison Avenue than of Fleming himself.

As for the aforementioned henchmen, the Alfa Romeo 159 is their car of choice in Quantum of Solace.

On paper, the 253-horsepower V-6 powered Alfas should be utterly humiliated by the Aston Martin, but toss in a dusty, switchback laden road conspicuous for it's lack of guard rails and the vehicular drama and mayhem nearly writes itself.

Speaking of mayhem, it's worth noting that one of seven Bond-spec Astons drew its dying breath in a plunge into Lake Garda in the Italian Alps while on the way to shooting a chase scene nearby. While driver Fraser Dunn suffered only minor injuries, the $266,000 Aston was declared a total loss.

For more on Quantum of Solace and James Bond's creator, Ian Fleming:

* Quantum Of Solace - Official Movie Site
* Quantum Of Solace on IMdB
* A brief biography of Ian Fleming

LA Auto Show Preview: 2010 Bentley Azure T

noreply@blogger.com (David Moll) — Fri, 14 Nov 2008 05:21:00 +0000

Li fe is often divided into questions of nuance. No matter the subject, clear cut answers are hard to come by. For instance, when is enough enough? When does indulgence become decadence?

Bentley, an automaker well acquainted with indulgence, will release their newest convertible at the LA Auto Show next week. We've got an early preview.

With lines that recall the first post-war Bentleys, the Azure received an enthusiastic reception as a concept car at the 2005 Los Angeles Show. The production version retains much of the concept car's character and is instantly recognizable as a successor to the 1946 Mk.6 drophead coupe.

Significant time and effort has gone into making the Azure T’s folding roof attractive as well as highly functional. Operated hydraulically at the touch of a switch, the Azure T's three-layer canvas roof is elegantly stowed beneath the rear parcel shelf in a matter of 25 seconds. Because the roof is held in a separate well area, there is no impact on the generous trunk space which was designed to hold two sets of golf clubs and hand luggage.

As impressive as its stately dimensions is the Azure T's immense power. 500 horsepower and 738 pound feet of torque are on tap, courtesy of a 6.75-liter twin-turbocharged V8 mated to a six-speed ZF automatic transmission. Each engine is assembled by hand at the factory in Crewe; the signature of the build team leader is engraved into a plaque fixed to the intake manifold.

With 90 percent of peak torque available from 1800 rpm to 3800 rpm, the Azure vaults toward the horizon with zeal. 60 miles per hour is accomplished in a mere 5.2 seconds, whilst on the way to a top speed of 179 mph.

Keeping the powerful and weighty Azure T composed are a set of computer-controlled, adaptive electro-hydraulic dampers with automatic ride height control and load compensation. In addition to countering acceleration squat and brake dive, the Azure T's dampers will counteract body roll, delivering impressive control in all driving conditions.

Twenty-inch alloy wheels with 255/40 ZR20 Pirelli P Zero tires further improve handling and road holding. When equipped with the optional brake upgrade, each wheel houses the largest set of brake discs available on any production car in the world.

Measuring 420 by 40 mm in front and 356 by 28 mm in the rear, these massive carbon-composite discs are clamped by eight-piston calipers front and rear. In addition to 16 pounds of weight savings, the carbon discs are designed to last the lifetime of the car while offering nearly fade-free performance.

Building a Bentley is an intensely personal affair. To suit, the British automaker offers 42 exterior paint colors, eight different wood veneers and 25 different leathers to furnish a customer's Azure.

Befitting its role as Bentley's new flagship convertible, the Azure T embodies a range of new standard features. The seats and door panels are covered in diamond quilted leather. The dashboard features an ‘engine-turned’ aluminum finish reminiscent of 1920s racing Bentleys, and the instrument faces are finished in black rather than parchment.

Yet beneath the traditional Bentley cues lies a raft of modern technology.

The Azure T's stereo head unit now reads audio files stores on an SD memory card rather than from a compact disk. As an option, Azure T buyers can specify a premium audio system designed by Naim Audio, a UK-based high end hi-fi manufacturer. The upgraded audio system features 10 speakers, a dual-channel subwoofer and an 1100 watt amplifier, plus eight individual equalizer modes to reproduce a ‘live’ concert-like experience.

Like the Continental T and Arnage T before it, the Azure T carries on the tradition of modern sporting Bentleys, cars known for their sybaritic luxury, sporting character and titanic performance.

Which leads back to one of those precious clear-cut answers.

Enough is never enough.

[Bentley]

BMW ships, prices first US-market diesels in 20 years

noreply@blogger.com (David Moll) — Wed, 12 Nov 2008 20:47:00 +0000

It's been a long while since BMW sold a diesel car in the US market.

Since 1988, when the 524d and 524td sedans left our shores in a cloud of their own soot, the Soviet Union fell apart and Germany reunified. We've had two Bushes and a Clinton in the White House and watched oil prices surge to dizzying heights.

Now, even as crude oil prices continue to fall in the dour economy, BMW has returned with a pair of oil-burners. Starting next year, the German automaker will offer the 335d, a diesel version of the 3-series sedan and the X5 xDrive35d, a diesel variant of the popular X5 SUV.

Both are powered by 3-liter, twin-turbocharged diesel inline-six rated at 265 horsepower and a tarmac-wrinkling 425 pound feet of torque. A six-speed automatic transmission is the only option for both models. BMW has yet to develop a manual gearbox that can handle the immense torque output, so neither US or European customers will be able to row the gears themselves.

Like the new Mercedes-Benz diesels, the oil-burning BMWs will use a particulate filter and urea injection to eliminate soot and reduce emissions. The urea solution - called AdBlue - is carried in a 5.5 gallon tank on both the 335d and X5 diesel. BMW expects a tankful of AdBlue to last for about 15,000 miles.

As a part of the automaker's five-year / 40,000 mile complimentary maintenance program, BMW will refill each car's AdBlue tank at no extra cost at 10,000 miles.

At the pump, the 335d is rated at 23 mpg city and 36 mpg on the highway, with a range of about 560 miles. The X5 diesel carries a 22 gallon tank which translates to 585 miles with a 19 mpg city and 26 mpg highway EPA rating.

The 335d will sell for $44,725 and the X5 xDrive35d will go for MSRP of $52,025, including destination and handling.

Both will be eligible for a federal tax credit. The IRS will kick back $900 for each 335d, while X5 xDrive35d customers will qualify for the maximum federal tax credit of $1,550.

[BMW]

Rare fungus munches cellulose, pees diesel, solves energy crisis?

noreply@blogger.com (David Moll) — Tue, 11 Nov 2008 22:33:00 +0000

I know what you're thinking. What the hell is a fungus-flocked petri dish doing being featured a car blog?

Gilocladium roseum is its name. Dr. Gary Strobel discovered it in the rainforests of Patagonia. What he's found could be the solution to our energy needs for the next century and beyond.

How? Because it removes a very energy-intensive and wasteful step in producing biofuels.

Let's use corn-based ethanol as an example. In order to turn corn into a usable fuel, the cellulose fibers and sugars have to be fermented to unlock the carbon molecules trapped within. Those carbon molecules then have to be synthesized into complex hydrocarbons. In order for this to happen on an industrial scale, both steps require a lot of heat and a lot of pressure.

And the microbes used in fermentation are very picky eaters. They'll happily gorge themselves on simple sugars like those in an ear of corn. But throw a corn stalk into the mix and they just turn up their little noses. At most ethanol distilleries, the stalks are simply tossed out.

So a lot of the plant gets wasted and what is used takes a lot of energy to process.

Gilocladium roseum can solve both of these problems. Strobel discovered that the fungus consumes wood and synthesizes it into the same kinds of hydrocarbons found in diesel fuel. Strobel has dubbed the secretions "myco-diesel."

"A step in the production process could be skipped," Strobel said in a press release.
That said, Strobel admits that industrial production is a long way off.

"This report presents no information on the cost-effectiveness or other details to make G. roseum an alternative fuel source," Strobel and his team wrote of their discovery. "Its ultimate value may reside in the genes/enzymes that control hydrocarbon production, and our paper is a necessary first step that may lead to development programs to make this a commercial venture."

The next step involves researching the fungus' genome. Work has already begun under the direction of Dr. Strobel's son Scott, who chairs the department of molecular biophysics and biochemistry at Yale University. Montana State University now holds a patent on G.roseum and the myco-diesel process.

With enough money and time, our future fill-ups might come not from the ground, but from the fungus among us.

Learn more:

Read Dr. Strobel's paper here. [PDF]

A podcast of Dr. Strobel talking about myco-diesel is available here.

[Photo Credit: Montana State University/ Gary Strobel]

Five Axis injects 60's racecar cool into.... a Yaris?

noreply@blogger.com (David Moll) — Tue, 11 Nov 2008 02:02:00 +0000

Since Troy Sumitomo founded Five Axis Design in 2002, his Toyota-centric carrozzerria has always been known for unconventional designs executed with great skill. Well, this year's SEMA project car was no exception.

Who else but Troy could look at the plain-jane, commuter car lines of a Yaris hatchback and think of building a 60's-inspired roofless racer?

With the idea of paying homage to the Toyota 7 — one of many legendary Japanese race cars — in mind, Sumitomo set out to build a stripped-down, no-nonsense driver's car.

Off came the roof, then most of the windscreen followed by all of the interior. In it's place, a custom hard tonneau cover, turning the Yaris into a single seater with a fairing that frames the drivers headrest. The US-spec bumpers, headlights and taillights were all removed, to be replaced by their JDM counterparts, taken from the Vitz RS.

Under the hood, Sumitomo and his crew knew that the stock 105-hp 1.5-liter four banger wasn't going to do the job if left unmolested. So on went a TRD-designed Roots supercharger and custom cold air intake. Paired with a prototype exhaust header designed by DC Sports and backed up by a GReddy titanium exhaust, the combo added another 60 horsepower and more importantly, about 70 pound-feet of torque.

Countering the added go with whoa is a set of GReddy disc brakes, using 282 mm rotors clamped by six-piston calipers up front and two-piston calipers out back. The custom built brakes are framed by a set of Sumitomo's own rims. 17-inch diameter and 7.5 inches wide, the FIVE: AD S6 rims are powder-coated in a satin gunmetal color and wrapped in 225/45 R17 Yokohama tires sporting a custom tread carved by the designers at Five Axis.

Ensuring the Yaris Club lives up to its racing credo is a set of Tein Super Street coil-over dampers, with a TRD Yaris strut brace up front. To stiffen the Yaris' chassis and retain the structural strength lost by removing the roof, the interior is framed by a very stout perimeter cage, with a roll hoop integrated into the fairing behind the driver's seat.

As for the interior, there's not much left. A Sparco steering wheel, racing seat, shift knob and pedals replace the stock Yaris equipment. A TRD Vitz RS gauge cluster sits in a custom housing braced by a brushed aluminum frame. And smack dab in the middle of the dashboard is custom designed rear-view mirror that looks like it was plucked off the 7 itself.

The only bit of un-futzed-with Yaris interior I could find was the interior door lever on the driver's side. It's buried under the mass of the car's bright red roll cage; you really have to hunt for it.

Which brings us to the paint.

Some of you won't recognize the Toyota 7 in any context outside of Gran Turismo 4. But despite that, the 7 was a remarkable machine in its day. At a time when big block V-8s ran the table, the 7 took the opposite path, introducing the era of turbocharging, overhead cams and small-displacement, high-output motors that we all take for granted today.

So to see a Yaris wear the 7's searing crimson and white so perfectly is a little confusing, very satisfying and more than a bit frustrating.

Confusing, because a Yaris is best known as a commuter car.

Satisfying for memories it evokes -- a time when Toyota built sports cars for the common man.

Frustrating, because it takes a visionary like Troy Sumitomo to create a new one.

Toyota, are you listening? [Five Axis]

GM posts $4.2 billion Q3 loss; exits Chrysler merger talks

noreply@blogger.com (David Moll) — Sat, 08 Nov 2008 01:50:00 +0000

Over the last three months ending Sept 30, General Motors has lost $46 million each day.

Announcing its third quarter earnings today, General Motors posted a $4.2 billion dollar loss, its fifth straight losing quarter and in an amount far greater than analysts had expected. In response, GM shares fell 13 percent to close today at $4.16m amidst doubts about the company's cash reserves.

“The third quarter was especially challenging for the auto industry. Consumer spending, which represents close to 70 percent of the U.S. economy, fell dramatically, and the abrupt closure of credit markets created a downward spiral in vehicle sales,” said Rick Wagoner, GM Chairman and Chief Executive Officer in a statement.

Tight credit, rising unemployment, declining income, falling stock markets, and continuing deterioration in the housing market have all contributed to an abrupt halt in consumer spending. Many customers who still intended to buy or lease a car this summer were denied financing, or found the cost of financing prohibitive.

In response to today's earning report, the beleaguered automaker said it would cut white-collar jobs and slash next year's capital spending budget by $2.5 billion in attempt to cope with the troubled economy. Including job cuts made in July, more than 7,000 salaried and contract positions are being eliminated, trimming spending on salaries by $500 million.

This afternoon, Wagoner renewed his pleas for low-interest loans from the U.S. Treasury. “The U.S. government’s actions to help stabilize the credit markets and eventually ease the credit crunch are an essential first step to the economy’s and the auto industry’s recovery, but further strong action is required.”

The biggest problem confronting GM is a lack of cash to pay it's suppliers and operating costs. Most of the company's funds are tied up in factories or tooling; without an injection of capital, analysts predict that GM will run out of cash by the second quarter of 2009.

Finding new lenders will not be easy, either. In response to the $46 million per day cash burn, Standard & Poor's lowered GM's debt rating further into junk status, from B- down to CCC+. "We now believe GM will use much more cash this year than our previous estimate of as much as $16 billion in its global automotive operations," said Standard & Poor's credit analyst Robert Schulz in a statement.

The 'will-they, wont-they' romance is over: GM kills Chrysler merger talks
Without mentioning Chrysler verbatim, Wagoner confirmed the end of negotiations with Chrysler to Automotive News.

"We have recently explored the possibility of such an acquisition based on the analysis that it would strengthen our industry position in the long term," Wagoner said. "we are better off to put 100 percent of our efforts on the liquidity side. We've set aside such (acquisition) actions as a near term priority."

Chrysler issued its own statement separately, saying the company would continue to work on returning to profitability. "As an independent company we will continue to explore multiple strategic alliances or partnerships as we investigate growth opportunities around the world that would aid our return to profitability."

Majority shareholder, Cerberus Capital Management declined to comment.

So what's next for GM?
In short, a fire sale.

The automaker has already killed the next generation of its full-size sport-utes and is ramping up efforts to sell the ailing HUMMER brand. Today, GM said it would put its ACDelco aftermarket parts business up for sale, a move the company expects will raise another $2-$4 billion.

Wagoner reiterated today that bankruptcy is not an option and that the company "will take whatever actions we can to avoid it."

But Wagoner's pledge will be hard to uphold given the state of the economy. Ford Motor Co. posted a $3 billion after-tax operating loss for the third quarter today, and said it too would cut costs further to preserve cash.

Both automakers said that U.S. sales will worsen next year. GM forecast its 2009 U.S. sales at 11.7 million units; if true, next year will be the company's slowest since 1982. In 2010, GM predicts US sales will rise to 12.7 million unit -- over 4 million less than the automaker's 10-year average ending last year.

[GM,AN]

World's largest Lamborghini dealer shuts its doors

noreply@blogger.com (David Moll) — Fri, 07 Nov 2008 03:23:00 +0000

Last night — without explanation from either the dealer's owner or parent company Volkswagen — Lamborghini of Orange County, the world's largest Lamborghini dealer, abruptly closed its doors.

Across the nation, dealers have closed on account of slow sales or the inability to extend credit lines. But last year, the Southern California dealer sold ten percent of all Lamborghinis world wide. Furthermore, most of the Italian automaker's production is custom-ordered and paid for in advance.

All of which makes the sudden closing rather puzzling.

The dealer's website is still up at this hour, but phone calls go unanswered. There are no directions for those who have made appointments for service or have a car on order through the Orange County dealer.

The Orange County Business Journal reported tonight that Lamborghini SpA is attempting to help the dealership reopen.

While the automaker declined to comment on specifics, Pietro Friegerio, chief operating officer for Lamborghini SpA told the Journal that the sudden closure was their first priority.

Vik, Nora, Sossi and Astrid Keuylian own and run Lamborghini Orange County.

Friegerio said the management at Lamborghini Orange County made a few "unfortunate business decisions, independent of the automaker, which have caused the current issues that they are trying to resolve now.”

For now, owners will have to turn to Lamborghini Beverly Hills or Lamborghini San Diego for service or repairs.

[OCBJ]

Nissan intros new budget-leader Versa 1.6; zero percent leases for five models

noreply@blogger.com (David Moll) — Thu, 06 Nov 2008 04:23:00 +0000

With automakers everywhere struggling to turn a profit, many are returning to the formula of budget-conscious cars to lure used car buyers into dealer showrooms.

For 2009, Nissan will lay claim to selling the cheapest new car on sale in America with the Nissan Versa 1.6 hatchback.

Priced at $9,990, the new trim Versa offers a smaller 1.6-liter DOHC four-cylinder engine good for 107 horsepower.

Paired with a standard 5-speed manual transmission or an optional 4-speed automatic transmission, the Versa 1.6 won't win any races, but it will save money at the pump.

Fuel economy is rated at 26 mpg city/34 mpg highway with the 5-speed manual and 26 mpg city/33 mpg highway with the 4-speed automatic.

For a sub-$10K car, the Versa 1.6 is still well-equipped. Power locks & windows, a decent 4-speaker AM/FM CD stereo and ABS brakes are all standard, as are dual front airbags.

Combined with the new-car warranty that no private-party used car can offer, the Versa 1.6 makes a convincing case for itself as a basic commuter car.

The Versa 1.6 will be in dealer showrooms starting Nov. 18.

Special lease offers on Versa, Sentra, Altima, Rogue and Murano

In other news, Nissan has also announced zero-percent financing for 36 months for five models:

That the Murano crossover and Rogue compact SUV qualify should come as no surprise. Both are relatively thirsty SUVs with combined EPA gas mileage in the mid-20s.

For sedan buyers on a budget, the Versa and Sentra compact sedans and the Altima mid-size sedan all qualify and are worth checking out. The down payment varies depending on the model and trim, but each lease is built upon a $199 monthly payment for 36 months.

The lease program started yesterday and will continue through the end of November.

[Nissan]

BMW cancels production version of Concept CS sedan

noreply@blogger.com (David Moll) — Wed, 05 Nov 2008 01:07:00 +0000

In a statement today, BMW CEO Norbert Riethofer said the company will not produce a production version of the Concept CS sedan concept first seen at the 2007 Geneva Motor Show.

"Difficult business conditions and the volatile climate on the market mean that it is as good as impossible from today's perspective to make a reliable prediction of the earnings outcome for 2008," CEO Norbert Reithofer said in a statement.

The production version of the Concept CS would have competed in a small and high-priced market. It's primary competitors would have been the Mercedes-Benz CLS, Porsche Panamera and Maserati Quattroporte.

Production would have been limited, and with sales tanking industry wide, the Concept CS failed to make a case for itself.

"At the moment we do not need that kind of brand shaper", said Reithofer.

The decision was made after a very grim third quarter sales report. The German automaker's return on sales fell below 1.3 percent, forcing the company to focus intently on maintaining a profitable model range.

BMW abandons 2008 profit target
Following today's announcement, the automaker said it could not guarantee its earlier 2008 profit forecast in light of the troubled auto sales market.

Earnings before interest and taxes fell to 387M euros in the third quarter, well below industry analyst's earlier estimate of 574M euros.

The company said it would make additional production cuts to maintain profitability, reducing output by at least another 40,000 units on top of the 25,000 the company cut earlier this year.

To date, the automaker has made a five percent cut in production compared to 2007.

[BMW, AN]

GM, Chrysler lead horrific month as October sales plunge

noreply@blogger.com (David Moll) — Tue, 04 Nov 2008 01:45:00 +0000

Falling gas prices and rising inventories weren't enough to offset a tight credit market, leading to another awful month of sales for all automakers.

On average, October sales were down 32 percent from a year ago, with General Motors hit the hardest. Not only did GM's HUMMER brand lead the industry with sales off by 64 percent, but the rest of the GM portfolio followed closely behind.

Cadillac and Saturn sales fell about 55 percent, GMC trucks were down 52 percent, followed by Pontiac, Buick and Chevrolet, which were all down by at least 40 percent.

The decline is largely due to tighter lending policies adopted by GMAC Auto Finance. With GM's in-house lending unit refusing loans to buyers with credit scores below 700, a large percentage of prospective customers were unable to qualify for a loan.

Possibly the worst month since World War II
"If you adjust for population growth, this is probably the worst industry sales month in the post-WWII era," said Mark LaNeve, GM's vice president for sales and marketing, speaking with Automotive News. "Until the credit markets open up and consumer confidence improves, the entire U.S. economy, and any industry like autos that relies on financing, will suffer."

To spur sales, GM said today it will start its annual Red Tag Sale early this year. The event - which normally runs from Thanksgiving weekend to January 5, will instead start tomorrow, with some GM vehicles carrying up to $7,250 in cash incentives.

Chrysler sales fell 50 percent, trailed by Jeep and Dodge, down 32 and 27 percent respectively. Ford sales were off 28 percent from a year ago.

So far only two automakers have reported monthly sales increases this year: Toyota in April and GM in January. This month, Toyota's decline was lead by its Lexus unit, down 35 percent. The Toyota brand retained its position as the nation's best-selling brand, ahead of Ford and Chevrolet.

MINI posts gain, Audi bucks the downward spiral
Among the few to post gains were BMW's MINI brand, up 56 percent. Audi, whose sales were up by less than one percent were weighed by parent company Volkswagen AG, whose sales fell by nearly 8 percent.

"This is the toughest economy we've seen in a long time," Mark Barnes, COO of VW Group of America, said in a statement.
[AN]

[Photo: Flickr.com; Original by Broken Wing Productions. Post-processing by David Moll.]