The Demo Site

Now the financial crisis, bankruptcies, and the 2016 CAFE has put the kibosh on that. Or has it? Here's how RWD will survive the decade.

For those of us enthusiasts who reached driving age during the first oil crises, the 2010s are looking a lot like the 1970s. The V-8 as affordable, mainstream performance already is dead. That's okay, given the increase of direct injection and turbocharging.

Photo Gallery: Rear Wheel Drive Car future - RWD Does Not Have To Die - Motor Trend

Whether you are a business professional, a student, or just someone who likes to stay connected, accessing the Internet and e-mail servers while away from your home or office is becoming more and more popular. While you can purchase an Internet card from your cellular provider or hook up at a pay-for-time hot spot, another solution on the market is the Autonet, a wireless Internet hub designed for use in your car, truck, or SUV.

Chrysler was one of the first manufacturers to offer wireless Internet as an option with its UConnect product, currently offered as an option on many vehicles. The same device is also available for use in any vehicle as the Autonet.

The Autonet Internet hub can be placed under a seat or in a cargo bin.

(Credit: Al & Ed's Autosound)

We installed the Autonet in a Honda belonging to our outside sales rep, but it can go into any car. It's a two-wire hook-up (power/ground), and can be placed under a seat or in a storage compartment. Once powered up, multiple users can surf the Net, check e-mail, download files, or do whatever they need to do online. It has a range of about 100 feet, so it can provide a wireless network away from the vehicle, too. It can be set up as a secured or unsecured network. You could also wire the unit up to a cigarette lighter-type plug and use it in multiple vehicles by plugging in to a 12v power supply.

The system works pretty well. It takes about 30 seconds to boot up and access the network. During this time, you see a flashing blue indicator light, which goes solid blue once an Internet connection is established. Then, you simply log on the way you would to any available wireless network.

The Panthera Leo can cut grass for 2 hours before needing a recharge.

(Credit: Husqvarna)

The Hank Hills of the world won't be impressed, but Husqvarna revealed a concept riding lawn mower that runs on electricity. The Panthera Leo's lithium phosphate battery can power the mower's five ...

This Bentley competed in the very first Le Mans race, setting the inaugural lap record and finishing fourth overall.

(Credit: Peter and Robin Briggs)

Any true James Bond fan will want to be at the Pebble Beach Concours d'Elegance on August 16, as four Birkin Blowers go on display ...

The Alpine iDA-X305 is a good example of a car stereo that can be found for significantly less than MSRP.

(Credit: Corinne Schulze/CNET)

Looking to save a few bucks on that portable navigation device or epic stereo system for your car? Well, we have a few tips to help ...

(Credit: Corinne Schulze/CNET)

We were expecting a lot from the Mercury Milan Hybrid. After having briefly driven the Ford Fusion Hybrid, we had an idea what to expect from the powertrain, and we've also seen Ford's killer combination of Sync and Sirius Travel Link in a few ...

As the movie Hoosiers amply demonstrated, Indiana natives don't quit. That's also true for three Indiana state pension funds who have fought Chrysler's bankruptcy all the way to the federal appeals court in New York and, having lost their case there, are filing papers with the Supreme Court today.
The central issue is that the funds feel Chrysler's post-bankruptcy remuneration plans have unfairly cost the funds a great deal of value by putting unsecured debtors such as the UAW ahead of the funds' claims. They are fighting the bankruptcy by alleging that the government's TARP disbursal to Chrysler was unconstitutional and that the subsequent events amount to a covert reorganization, not Chapter 11.
Yet when asked whether a Chrysler liquidation would be better for the pension funds than the Fiat deal, the funds' lawyer replied that he was looking for more remuneration for secured debtors. The filing will go to Justice Ginsburg who will decide whether to accept it at all, to handle it alone or to refer to the full court for hearing. Chrysler has until June 15 to emerge free and clear, else Fiat can walk away. And if that happens, Chrysler might owe Fiat $35 million -- which is just $7 million short of what the three Indiana funds together have invested in the Pentastar. Thanks for the tip, MM!
[Source: Automotive News, sub. req'd]

2009 Turkish Grand Prix -

With the established teams still threatening to walk and new teams lining up by the dozen, nothing could have better characterized Formula One's transition from old to new better than the move from the Monaco Grand Prix two weeks ago to the Turkish Grand Prix this weekend. While the Monaco race - held on the streets of Monte Carlo, with its close proximities and timeless seaside city-scape - remains one of the sport's oldest venues, the race in Turkey - at the new-school Istanbul Park Circuit, characterized by wide run-offs and state-of-the-art accommodations - is one of its youngest.
First held in 2005, the Turkish Grand Prix has been won the past three years running by the same driver: Ferrari's Felipe Massa, the young Brazilian who narrowly lost out on the driver's crown last year to Lewis Hamilton. Surely Ferrari's golden boy was eager to extend his domination at the Ottoman autodrom, but would he and his Maranello squad be able to translate the marked improvement which they displayed in Monte Carlo just a fortnight ago into a return to winning form in Istanbul?

General Motors said today that it will stop building medium-duty trucks at its Flint Assembly plant by July 31.

GEM CEO Fritz Henderson said that the automaker was unable to find a buyer for the operation. It had been searching for a buyer for the last four years.

The Flint factory employs some 2,100 people, of which 525 made medium-duty trucks for GM and Isuzu. The plant also builds the Chevrolet Silverado and the GMC Sierra.

GM had negotiated a deal with Isuzu to keep production going through 2014 of the Chevrolet Kodiak and the GMC Topkick. It failed to close a deal with Navistar International Corp., a move that would have relocated jobs to another facility.

Who knows what Ironhide is going to do?

As GM prepares to sell its Swedish and German brand, Opel and Saab, the bankrupt automaker’s Australian brand is safe. After its surgical bankruptcy, the ‘New GM’ will consist of just four core brands including Chevrolet, Cadillac, GMC and Buick.

However, managing director of GM Holden, Mark Reuss, says that the Australian brand will not be sold.

“I can’t say forever because some day when I’m not here, and more perhaps when someone may have that idea, but we have not been approached, nor have we been offered, nor are we pursuing any sale of Holden,” Reuss said.

“This is one of the iconic brands in Australia, and I think it always will be as long as we take care of it and feed it with the products and the different dealer services that we do today, which are very good.”

As GM files for one of the biggest bankruptcies in U.S. history, Reuss said that Holden will remain unchanged and will join the ‘New GM.’

Reuss said that company is now focused on improving the Commodore lineup and launching the Holden Cruze and Volt models.

Source: Drive

Park Lane Rolls Royce MINI

People love to imagine bigger and better things for the long-running MINI. Whether it's a new Speedster version or a revived MINI Moke, the platform inspires daydreaming. Apparently, it aspires, too, to a more pimped-out existence. Rumors of a Rolls Royce-branded MINI have been floating around recently, stoked most recently by a series of pictures taken recently at London's famous Park Lane MINI dealership. Sadly, this is not a production Rolls-Royce MINI. Instead, this is a MINI made for "a recent dealer event," and a MINI spokesperson told theSwitchback that a MINI Rolls has not yet been approved for production. Sorry. Still, anyone who's going to do any speculation about the MINI/Rolls-Royce collaboration could use this car as inspiration: it's got magnolia-colored leather practically everywhere, including the roof lining and the air vent bezels. Everything else is covered in walnut wood and glossy piano-black trim. It may not be a production preview, but it sure is a pretty MINI.

Austrian motorcycle maker KTM stakes its reputation on the ability of its off-road motorcycles to tackle the toughest terrain on earth, and it's made a habit of proving these capabilities with both a factory team and a far-reaching privateer support program in the Dakar Rally each year. Up through 2009, that is - KTM has just announced that it's pulling out of next year's event.
The reason cited for the shocking decision is the French ASO's ruling that all motorcycles taking part in the Dakar race in 2010 must use engines displacing 450cc or smaller. KTM's entries all use engines displacing a little over 650cc and will therefore not qualify. Instead of waiting for next year to react, KTM "has decided to immediately accept the consequences and announces its withdrawal from the Dakar."
Whether this is nothing more than a case of sour grapes or an intentional move to limit KTM's chances of winning a ninth-consecutive victory at the Dakar Rally, it's disappointing to a whole bunch of fans with orange-colored blood running through their veins. For what it's worth, KTM says it will continue racing, just not in the Dakar. Make the jump to read KTM's official press release.

Currently the 2010 Volvo X60 is available with a 3.0L turbocharged T6 engine making 281-hp with a maximum torque of 295 lb-ft. Volvo announced today that it is adding a new version of the compact SUV, the 2010 Volvo X60 3.2.

Power comes from the same 3.2L engine that powers the base S80 sedan. Mated to a 6-speed automatic transmission, the 2010 X60 3.2 makes 235-hp and peak torque of 236 lb-ft. Fuel-economy is estimated at 27 mpg on the highway and 18 mpg in the city.

Pricing for the 2010 Volvo X60 3.2 starts at $33,245 for the front-wheel-drive model and $35,245 for the AWD model (prices include $850 destination charge).

Press Release:

Volvo announces pricing for the value laden 2010 XC60 3.2

Irvine, CA (June 5, 2009) - Volvo Cars of North America, LLC (VCNA) announced pricing today of its newest version of its acclaimed small premium utility the XC60. The 2010 XC60 3.2 will be offered with either front-wheel drive or all-wheel drive when the vehicle goes on sale this summer. A front-wheel drive XC60 is value priced at 32,395*. The new 3.2-liter with AWD is aggressively priced at $34,395*.

The XC60’s normally aspirated 3.2 is the same engine that powers the base S80 flagship sedan introduced in 2008 and comes standard with a six-speed automatic transmission. The inline 6-cylinder produces an energetic 235 horsepower and 236 pound-feet of torque across a wide power band that provides for the XC60’s quick, fluid acceleration.

Fuel economy for the 3.2-liter is nothing short of excellent with an estimated 27 miles per gallon on the highway and an estimated 18 miles per gallon in the city. Additionally, Volvo - a perennial leader in emissions control - offers two version of the 3.2 with either ULEV-II (ultra low emissions) or PZEV (partial zero emissions) systems.

This latest edition of what might be termed the world’s safest passenger vehicle incorporates more than 80 years of safety innovation including the Volvo invented 3-point seatbelt more than 50-years ago to the introduction of standard City Safety, a low-speed collision avoidance system, launched with the 2010 XC60 T6 AWD earlier this year.

Other safety features include Roll Stability Control (RSC), pretensioned seatbelts in all seating positions, an inflatable side curtain for front and rear passengers and a high-strength Boron steel roof structure, the XC60 combines both active and passive safety systems in one stunningly designed package. Additional standard safety features include Dynamic Stability Traction Control (DSTC), anti-lock brakes, WHIPS, Volvo’s whiplash protection seats, and the SIPS side-impact protection system.

Standard equipment on the XC60 3.2 includes: 17-inch alloy wheels; auto-dimming inside rearview mirror, Bluetooth with hands free capability, dual zone Electronic Climate Control, front fog lamps, HD Radio, high performance audio system with 8-speakers, a 4×40 amplifier, CD player with MP3 capability, cargo area load cover, power driver’s seat with memory function including the outside mirrors, Sirius Satellite Radio including a 6-month complimentary subscription and USB and auxiliary inputs.

The XC60 3.2 is also included in Volvo’s excellent Complimentary Factory Scheduled Maintenance program, which covers the first three years or 36,000 miles (whichever comes first). Complimentary Factory Scheduled Maintenance helps reduce the cost of ownership by providing customers the first four maintenance visits to their Volvo retailer as complimentary. A wide range of services are covered by the program, including oil and filter changes, cabin filter replacement, complete fluid level top-offs and a check of the vehicle’s on-board diagnostic system.

Just yesterday, we reported that the Volkswagen BlueSport Concept is ready to take the giant leap into production. It was reported that the BlueSport could carry a starting price-tag of about $30,000 when it hits showrooms.

According to AutoCar, the BlueSport may not be sold as V-Dub. Apparently the big bosses at Audi don’t believe that someone would cash out $30,000 for a Volkswagen badged roadster. In order to make the two-seater more cost-effective, they may sell it as an Audi or Seat.

Yesterday, we told you that project leader Marco Fabiano, said that the 265-hp 2.0L turbocharged engine from the Volkswagen Scirocco R is also being considered besides the 180-hp 4-cylinder diesel. Well, he also told the AutoCar folks that the BlueSport is capable of taking a 6-cylinder engine as well.

Sources say that Porsche is unlikely to get a version of the car. Rumors that Porsche may use the BlueSport to revive the 914 have been refuted by Volkswagen insiders.

Around here, we are all big fans of the Acura TSX—the lean, frisky, three-time-10Best-winning, first-generation version, anyway. With respect to the larger, more substantial second-gen 2009 TSX introduced just last year, our camp is split. Some of us believe that even despite the car’s newer and larger (but just 130-pound-heavier) body, the high-revving 201-hp, 2.4-liter four-cylinder carried over is still a great match, offering an excellent blend of power and prudence, especially with the available six-speed manual. The rest believe that along with the newfound size and substance, Acura should have added a heap of horsepower—and rear- or all-wheel drive.

In regards to the former group, nothing has changed on the four-cylinder TSX for 2010: it’s still the happy, front-drive, near-luxe sedan it’s always been. For the power-hungry bunch, the 2010 TSX V-6 will alleviate the horsepower deficit when it goes on sale in July. By slipping in the same, 3.5-liter V-6 from the base TL—tuned in the TSX to 280 hp and 254 lb-ft of torque—Acura turns its smallest four-door into a very quick sports sedan, even if it comes only with a paddle-shifted, five-speed automatic transmission.

Keep Reading: 2010 Acura TSX V-6 - First Drive Review

We'll start off by saying that this spoof on General Motors' Re:invention commercial is not exactly fair and not exactly accurate... but it is funny. It comes from an Onion-esque type website with a decidedly sharp take on GM's situation, with story headlines like "GM Kicks Dog, Takes Candy from Baby" and "GM Kills Electric Car, Five Others in Shooting Spree." You can watch the original commercial and the spoof after the jump. Make sure you have your sense of humor switched on.
[Source: GM Retardation]

On Wednesday, we brought you the first pictures of Hyundai's new Transform, a Korean market derivative of the Verna hatchback that is a close relative of our stateside Accent, the automaker's lowest-cost offering. For 2010, the KDM Verna Transform model incorporates a unique front fascia and a controversial looking grille among other changes. The big question we had on our mind after seeing it was: Is this model bound for the U.S. - or was it simply another foreign Accent?
Well, we put exactly that question to Hyundai P.R. manager Dan Bedore, and he indicates that the Verna Transform is not representative of what we will see in the U.S. - on the contrary, our Accent successor "...will have a distinct, exciting new look of its own when it is introduced. The Verna Transform pictured here is a sport package for the KDM model Verna only."
Bedore went on to confirm that the next U.S. Accent is part of the company's 24/7 plan (which will see seven new model introductions over a 24 month period that began with the rollout of the Genesis Coupe). While we're not privy to the salacious specifics of Hyundai's product calendar, we expect to see the new Tucson crossover join the family next, followed either by the aforementioned Accent replacement or the Veloster-based 2+2 sporty coupe.

On a recent episode of The Chrysler Files, customers who purchased Chrysler vehicles that were later officially certified as lemons were being reimbursed by the company with checks... that bounced. The snafu stemmed from the fact that while said claims were made before Chrysler's bankruptcy, after the automaker's Chapter 11 filing, the judge had to clear the funds to be paid from Chrysler's account. Since the judge hadn't cleared the funds, the checks were worth precisely zero dollars.
Those owners will be happy to know that the judge has finally approved Fiat and Chyrsler honoring "all warranty and lemon law obligations" for cars purchased up to five years before April 30. With the ruling, those affected will also be eligible for additional costs and attorney's fees. Of course, that news still doesn't detail when you stranded motorists can expect a check to arrive -- or when they can cash the ones they already have -- but help is on the way.
[Source: Automotive News, sub req'd]

In addition to the turbocharged 3.0-liter T6 model, Volvo has introduced a new, less expensive 3.2-liter variant of the 2010 XC60, with pricing starting at $32,395 for the front-wheel drive model and $34,395 for the AWD version (*plus $850 in destination charges). The inline six is the same mill that motivates the S80, putting out 235 hp and 236 lb-ft through a six-speed automatic gearbox, and returning a claimed 18 mpg in the city and 27 mpg on the highway.
Standard features include 17-inch alloy wheels, fog lamps, auto-dimming rear-view mirror, Bluetooth integration, dual-zone climate control, eight speaker stereo, HD radio and a six month subscription to Sirius. Billed as the safest Volvo ever to roll out of Sweden, the XC60 is available equipped with "City Safety" automatic braking, anti-rollover control and a host of other features. All of the options are posted below the fold broken down by price and equipment along with Volvo's press release.

Mitsubishi has launched series production of its iMiEV electric car at its Okayama, Japan factory. That makes the tri-diamond brand the first major automaker to kick off full scale production of a new EV, though it will be followed by many other automakers over the next two years. The automaker plans to build about 2,000 units through the remainder of this fiscal year and then crank that up to 5,000 next year. The first cars are going to corporate fleet customers but retail sales are expected to start later in the year.
The iMiEV has a range of about 100 miles from its lithium ion battery pack. The batteries are the result of a joint venture between Mitsubishi and GS Yuasa. Factoring government incentives available in Japan, the $45,660 iMiEV will end up costing about $31,300 at current exchange rates, which is a bit higher than the $27,000 price previously rumored. No decision has been made yet on when the car will be offered in the U.S. market, but we do know it will make its way here sometime. First, Mitsubishi needs to develop a production left-hand drive version.

According to a report from Bloomberg, state-owned Chinese news agency Shanghai Securities News is predicting that it is unlikely the Chinese government will approve the purchase of Hummer from General Motors by Sichuan Tengzhong Heavy Industrial Machinery Co. Why? Apparently, China actually wants to reduce the number of automakers operating within its borders and favors keeping manufacturers with an eye towards fuel efficiency. Of all the labels people have put on the Hummer brand, fuel efficient hasn't exactly been one of them. According to Tim Payne, a spokesman for Tengzhong:

"Some people may have views and speculation but the Chinese government has a process that we respect. We have only just signed an MOU but as we develop our proposals with GM and Hummer we will continue to work with the appropriate authorities."

In other words, it's too early to draw conclusions about whether or not China will approve of the purchase of Hummer. However, it does seem unlikely that Tengzhong would enter into the deal with the belief that the Chinese government would squash it, no?
[Source: Bloomberg]

Confirming a report we posted on earlier today, General Motors has reached a preliminary agreement to handover the Saturn marque to the Penske Automotive Group. In GM's official statement after the jump, the automaker says that the memorandum of understanding would entitle Penske to the brand's 350+ dealerships, the rights to the name and its associated iconography, as well as continued production of the Aura, Vue, and Outlook on a contract basis. As expected, the dormant Astra hatchback and the rakish Sky roadster will apparently not make the transition. No financial terms of the deal have been released.

As reported earlier today by The New York Times, that abbreviated Saturn lineup will likely be joined by vehicles procured from other overseas automakers, potentially Renault's Samsung Motors division in Korea. It is not immediately clear if Penske will use the opportunity to pair existing Saturn stores with the company's other automotive distribution channel, Smart.
According to GM, the agreement is expected to be consummated in the third quarter of this year, pending the necessary paperwork shuffling between the two companies and the federal government. Check out the official press release after the jump
[Source: General Motors]

Less than a week after officially filing for chapter 11 bankruptcy, General Motors has announced the pending sale of the Saturn brand to Penske Automotive. The transaction, if completed, would shift the rights of Saturn to Penske, and would continue the sale of the Aura, Vue, and Outlook vehicles under a contract basis with GM.

Although the deal could save more than 350 dealerships and 13,000 jobs, according to GM, it won’t save the slow-selling Saturn Astra hatchback or low-volume Sky roadster. Penske does intend to preserve the customer-focused mentality upon which Saturn was founded in 1990. “Saturn has a passionate customer base and outstanding dealer network,” said Roger Penske, chairman of Penske Automotive Group. “For nearly 20 years, Saturn has focused on treating the customer right. We share that philosophy, and we want to build on those strengths.”

Keep Reading: Saturn to be Purchased by Penske Automotive - Car News

Lincoln is in the midst of a styling renaissance, of which the Ford Edge–based Lincoln MKX was one of the forefathers. Now that Lincoln’s corporate style is galvanizing around the split-waterfall grille, our spy photographers have captured evidence that the company will wrap the MKX’s nose with the now-familiar look for 2010.

While the family schnoz is the most immediately recognizable element of the redesigned MKX, perhaps the more important updates will take place inside, where the Lincoln’s somewhat stodgy interior gets a needed injection of pizzazz. As Ford and Lincoln try to spin themselves as technology leaders (witness the equipment list available on the new MKS and MKT), both the style and substance of their technologically advanced offerings become increasingly important.

Keep Reading: 2010 Lincoln MKX - Spied

What you’re looking at is the 2010 Volvo C70 hardtop convertible at a photo shoot. Based on the S60 Concept, the 2010 C70 is expected to carry over the same 227-hp turbocharged 5-cylinder engine from the current model.

Honestly, to be a little opinionated, the car looks very, very sleek. The front fascia seems to be carried over directly from the S60 Concept with minor changes to the back of the car.

We can’t wait to see more pictures and take a peek on the inside of the 2010 C70

Even though the ‘New GM’ will be forced to focus on producing fuel-efficient vehicles, it won’t abandon efforts to give its Corvette enthusiasts the much loved rear-wheel-drive, V8 power they have come to love.

“My wonderful baby is my 2005 Corvette coupe,” CEO Fritz Henderson said in his first online chat after filing GM’s Chapter 11 bankruptcy filing. “We have more in store for the future and this iconic brand will retain its powerful place within the new GM.”

Nonetheless, GM’s plans to offer fuel-efficient vehicles puts some hope back into the future of American cars competing with Toyotas and Hondas. Henderson confirmed that a 4-cylinder turbo for the new 2010 Buick LaCrosse will be offered shortly after the start of production.

The 2010 Buick LaCrosse (which is the third most anticipated future GM vehicle according to you guys), will go on sale later this summer with a 255-hp 3.0L V6 and an optional 280-hp 3.6L V6. Henderson said that GM has plans to introduce a “performance 4-cylinder Ecotec” shortly after the 2010 LaCrosse enters production.

The Buick Invicta concept, which is the basis for the new LaCrosse, was powered by Buick’s first direct-injection turbocharged 4-cylinder engine that makes 250-hp and 220 lb-ft of torque. It is mated to a 6-speed automatic transmission.

That 4-cylinder turbo is expected to compete with Ford’s line of EcoBoost V6 engines, which are offered as V8 alternatives. GM’s 1.4L turbo 4-cylinder salted for the 2011 Chevrolet Cruze is expected to be pillar of GM’s fuel-economy plans.

As for the 2009 Pontiac G8 GXP (which I’m driving this week), Henderson simply said that the model will not live on as a Chevrolet or as an entry-level Cadillac. There is no room for the car in the Buick lineup as well.

Source: Motor Trend

GM’s financial adviser, Evercore Partners released projections saying that it expects the bankrupt automaker to return to annual profits by 2011. It estimates that the stock in the ‘New GM’ will be worth anywhere from $38 billion to $48 billion.

It estimates that the ‘New GM’ will hope to rebound its U.S. vehicle sales to about 16 million a year by 2012 to push it back into profitability while increasing output from the current 3.8 million vehicles worldwide to 6 million by 2014.

Until than, Evercore Partners forecasts that GM will lose $17.5 billion this year before hitting a profit of $3 billion by 2011 before taxes. It estimates profitability rising to $7.8 billion by 2014.

The numbers say that the Obama administration’s 60.7 percent stake in GM would be work up to $29 billion after bankruptcy. Even then, combined with $8.8 billion in debt, the government would still be $12 billion short of the $50 billion federal aid its pledged to GM. The government expects to write off $19.4 billion of that loan.

Evercore estimates GM’s revenue per vehicle will actually decline slightly through 2014. It says that GM will still be profitable even if U.S. market share fell to 17 percent.

So should you by GM stock? All we can say is make sure you do your research.

Hyundai has updated its Verna (known as the Accent on the stateside) for its home market. Known as the Hyundai Verna Transform, the new model gets a completely redesigned exterior with minor interior upgrades.

The model is available with a 1.6L 4-cylinder engine, which now provides better fuel-economy. Taking a page from the new Ford Fusion hybrid and the Honda Insight, the Hyundai Verna Transform features an eco lamp on the dashboard that tells you how efficiently you’re driving.

The new 2010 Hyundai Verna will go on sale in Korea starting mid June. It should arrive on the stateside by the end of this year.

A source familiar with the negotiations has told Bloomberg that General Motors will sell its Saturn brand to Penske Automotive Group. A final deal may be announced later today.

The source said that Penske will pay $100 million to $200 million for Saturn, winning over another bid by a group led by Oklahoma City-based private equity firm Black Oak Partners - so far known as Telesto Ventures.

Penske so far has two options after GM ends a contract to build Saturn models through 2011. The first is to provide the Saturn dealer network with Mitsubishi based vehicles. Secondly, Penske had recently been reported to be talking to Renault Samsung Motors. Co in South Korea, which is owned 80.1 percent by Renault. 

No final say on if Penske plans on using Renault Samsung’s current models or plans to use Renault’s platforms to build new ones.

Source: Bloomberg

It was reported earlier this morning that GM has agreed to sell Saturn to Penske Automotive Group. GM has now confirmed the details of the proposed transaction in which Penske would acquire the Saturn brand, saving more than 350 dealerships and 13,000 jobs.

GM said that under the terms in the MOU, “Penske would obtain the rights to the brand as well as certain other Saturn assets. GM would continue production, on a contract basis, of the Saturn Aura, Vue and Outlook.”

The transaction is expected to be completed in the third-quarter of 2009.

Click through for the press release for more details.

Press Release:

Transaction would save more than 13,000 jobs; preserves renowned brand and retail network

General Motors, Penske outline proposed deal for purchase of Saturn

Detroit — General Motors Corp. and Penske Automotive Group today confirmed details of a proposed transaction under which Penske would acquire the Saturn brand. If completed, the deal would save more than 350 dealerships and 13,000 jobs at Saturn and its retailers in the United States, and would preserve the customer-focused Saturn brand.

The proposed transaction is part of GM’s rebuilding efforts outlined in the viability plan that was submitted to the U.S. government earlier this year. Under the terms in the memorandum of understanding, Penske would obtain the rights to the brand as well as certain other Saturn assets. GM would continue production, on a contract basis, of the Saturn Aura, Vue and Outlook.

“This is the combination of two iconic teams: Saturn and Penske,” said Saturn general manager Jill Lajdziak. “GM had the vision to create Saturn and has the desire to see it succeed in the future.”

“Saturn has a passionate customer base and outstanding dealer network,” said Roger Penske, chairman of Penske Automotive Group. “For nearly 20 years Saturn has focused on treating the customer right. We share that philosophy, and we want to build on those strengths.”

Saturn began selling cars in 1990 and has sold more than 4 million vehicles. More than 80 percent of those vehicles are still in operation, according to data from R.L. Polk. Saturn has regularly scored among the industry leaders for non-luxury brands in customer satisfaction surveys.

“There has been a groundswell of support for Saturn, with our retailers and owners urging us to save the brand,” said Lajdziak. “We heard their call loud and clear, and it inspired us as we worked to secure Saturn’s future.”

The transaction is expected to close in the third quarter of this year and is subject to customary closing conditions and regulatory approvals. Financial terms of the agreement will not be disclosed at this time.

Holden’s Commodore is expected to get its smallest engine in more than 20 years as Holden looks to fill demands fore more fuel-efficient cars.

According to a report by Drive, the Commodore is expected to get a new 3.0L V6 later this September. The smaller capacity V6 will get an advanced direct-injection fuel-system to further improve efficiency and most likely be mated to a 6-speed automatic transmission.

The current 3.6L V6 in the Commodore gets an average fuel-economy of 22 mpg. The new 3.0L V6 is expected to average closer to 25 mpg.

Holden refused to comment on upcoming Commodore update saying: ”We don’t talk about future products.”

Source: Drive

So now that HUMMER is going to be owned by a Chinese company, Sichuan Tengzhong Heavy Industrial Machinery Co., what type of vehicles are we going to see in the future? The folks over at The Detroit Bureau recently sat down with Hummer’s boss Jim Taylor to discuss just that and much more.

According to Taylor, Hummer is going to head towards CAFE compliance, meaning you’re going to see smaller and more fuel-efficient vehicles from the gas-guzzling brand.

“Think of the smaller H4 we were showing at the auto show and it could safely conjectured we would enter into that space,” Taylor said.

When asked about Hummer’s hybrid future and the recent 100 mpg Hummer plug-on prototype built by a supplier, Taylor said: “It’s a big number to take on, a ground-up hybrid or electric vehicle, but it’d make a lot of sense for the Hummer brand.”

Given about 5 years, Hummer plans on incorporating various forms of alternative propulsion including diesels, hybrids and plug-in hybrids.

“It’s a little-known fact we’re just launching a diesel in the H3 in South Africa,” said Taylor. “When we bring it back to Shreveport, our intent is to make a version for the U.S., but right now, it’s not (emission law) compliant and we have to decide whether to invest the money.”

As for the H2, Taylor said that the model will live one since it sets a strong brand image in Russia and China.

He said that Tengzhong’s control over where Hummer will be very hands-off. Hummer is expected to continue its ties with GM and will continue to contract manufacturing and other services from GM until a scheduled time period.

“They aren’t in the car business, so they won’t come and pretend they’re smarter than us, which is the risk when you’re acquired by another car company.”

You can read more if Taylor’s interview over at The Detroit Bureau.

Source: The Detroit Bureau

We’re about a month away from July 9th when Jaguar will unveil the much-anticipated Jaguar XJ for the very first time. So far, we’ve seen a teaser image that doesn’t reveal much and a boring video from Jaguar’s design head, Ian Callum.

The folks at Car Magazine now bring is some more details on the XJ and a couple of renderings on how the 2010 XJ will look like.

Known internally at Jaguar as the X351, the new XJ is out to set a new stylistic benchmark for Jaguar. In fact, the only thing we can remember Callum saying from his one-minute video is: “It certainly meets the expectations of people who understand design with a capital D,” says Callum.

Sources say that along with its good looks, the new XJ is all about performance, handling and economy. The new diesel spec models, which will be powered by a 237-hp and the 275-hp AJ-V6D found in the XF Diesel, will help the XJ achieve the lowest CO2 of any luxury sedan - including the Lexus LS600h hybrid.

While the XJ will be launched with a line of gasoline and diesel units, Jaguar is set to develop a hybrid powertrain of its own alongside Land Rover. Of course, you can expect Jaguar will be taking on the luxury hybrid sedans with its own ‘green’ models.

Source: CAR

So Hummer is going to China and Saturn allegedly has 16 interested buyers - but what about Saab? According to two top executives at the Swedish brand, GM has narrowed down talks with potential buyers of the brand to two.

“Now we are negotiating with just two parties,” Saab’s CEO, Jan-Ake Jonsson, said in an interview with Dagens Industri.

He said that final negotiations with either one of the two potential buyers could start as early as this week.

“This can go fast now and should absolutely be wrapped up in a maximum of two weeks,” said Jonsson.

So far, we have seen interest in Saab from Fiat, Koenigsegg and a U.S. financier, Ira Rennert and his Renco Group. Geely has denied reports of it bidding for the Swedish brand. How will win Saab at the end of this battle? Stay tuned to find out.

Source: Reuters

The state of Indiana has a big problem with Chrysler's bankruptcy proceedings. Indiana state treasurer Richard Mourdock explained that "Indiana retirees and Indiana taxpayers have suffered losses because of unprecedented and illegal acts of the federal government." The home of the Indianapolis 500 has $42 million worth of retirement funds invested in the Pentastar; less than 1% of the $6.9 billion in secured debt owed by Chrysler. Indiana's appeal of the Fiat sale officially puts any deal with the Italian automaker on hold until a resolution has been made.
Veteran bankruptcy judge Arthur Gonzalez couldn't disagree with Mr. Mourdock more, saying ""the Court finds that all relevant standards have been established to grant the relief requested." By "relief," Judge Gonzalez is likely talking about Fiat and its ability to take ownership of Chrysler.
Though $42 million doesn't buy a lot these days, the state has the right to fight the bankruptcy. Whether the midwestern state wins its case is another matter all together.The New York Court of Appeals hearing of the state of Indiana's objection to the Chrysler bankruptcy hearing is widely viewed as little more than a formality. Chrysler's bankruptcy has gone very smoothly thus far, and with the backing of plenty of rock-solid legal types in the White House, it is now looking more and more likely that Chrysler will indeed exit bankruptcy in around 60 days.
[Source: The Detroit Bureau]

PSA/Peugeot-Citroen incoming CEO Philippe Varin (left) and chairman Thierry Peugeot (right)

It's buddy-up time in the European auto industry, and French automaker PSA/Peugeot-Citroen does not want to be left all by itself. With Fiat gobbling up automakers large and small, and General Motors poised to sell off its European assets, the Peugeot family, which owns a controlling interest in parent company PSA, wants to pursue a merger. And towards that end, the family has stated its willingness to dilute its own interest in Europe's second-largest automaker.
Currently, the Peugeot family - headed by the normally reclusive Thierry Peugeot (above, right), chairman of the company's supervisory board - holds 30% of PSA's shares, and controls 45% of its voting rights. The Peugeots would be willing to give up some of its shares, as long as it remained the largest shareholder. The announcement came the day before the company's annual shareholders meeting, at which Philippe Varin (above, left) was presented as PSA's new chief executive to replace the ousted Christian Streiff.
[Source: Automotive News Europe - Sub. Req.]

Maybe this image is exciting in France?

While the French are best known for their valiant defense of their homeland and their love of high-brow American comedians like Jerry Lewis, did you know that they also make the most exciting minivans in the world? Move over, Zafira and Mazda 5, here comes the 5008 (those extra “0s” come at no extra charge). To generate “interest” in advance of the Frankfurt Auto Show, Peugeot has released a stunning series of shots of the 5008 in action! (If you’re wondering if it’s a slow news day, don’t even ask!)

Peugeot's official photos of bored children in a 5008.

Even the 5008 has bags under its eyes, probably from boring itself to sleep in the development process. That being said, it seems like a useful vehicle and perfect for the Euro-mommy set. Thankfully for us non-Euro mommies, we won’t have to see this things at Pop Warner football anytime soon.

The dog looks happy because it's been drugged.

[Source: Autoblog]

Holden’s chairman and managing director Mark Reuss has confirmed that GM’s Australian division is working on a new compact hatch for global markets. Reuss said that the hatch will be built alongside the Holden Cruze sedan at the company’s Elizabeth plant in South Australia in the third-quarter of 2010.

The Cruze-based hatch will be designed and engineered entirely in Europe. Sharing the same underpinning as the Cruze, the hatch will get steering and suspension input from Holden engineers for a more European feel. Styling cues are expected to come close to Holden’s flagship Commodore model.

It is said that the hatch will be positioned as a more upmarket model than the Cruze sedan when it hits showrooms.

Insiders say that Holden’s new hatch could get Opel’s new 140-hp 1.4L turbocharged engine. Holden’s energy and environment director Richard Marshall says that some engine options from the Cruze sedan that have “best-in-class” fuel-consumption could also be considered.

So now that you’re all excited about this new Holden hatchback, you’re probably wondering if it will ever come to the United States. So far, the answer to that question is - yes. But keep your fingers crossed because you never know with General Motors.

Apparently the car is being produced for global markets and chairman Reuss says that Holden has been “aggressively pursuing” a deal to replace the $1 billion U.S. Commodore, aka Pontiac G8, export program that was recently canned by GM.

Usually when we’re fed up with the problems with our cars, we turn to car forums on the internet to vent our anger over the brand we bought and the issues we face with our dealership in getting those problems fixed.

Well, not this individual. An anonymous driver parked and left a Land Rover Range Rover Sport HSE after customizing it with lettering that lists the faults with the SUV on the side window.

On top, the disgruntled owner of the Range Rover wrote: ”Problems with… 6 front ball joints, 4 front arm bushes, new seat base, front and rear n/s struts, full n/s suspension unit, anti-roll bar bushes, air con.”

Below the list of problems in large yellow letters, the Range Rover Sport reads: “If you want trouble free motoring do not buy one of these!!!”

Of course, it’s not the best piece of advertising to have outside your dealership but the Colchester, Essex dealership has no power to move the car since it is parked legally on a public road outside the showroom.

Jaguar Land Rover’s corporate communications manage Mark Foster said: ”Land Rover operates a comprehensive warranty programme with, where appropriate, a strong goodwill policy. All necessary repairs to this vehicle over 42,000 miles have been carried out under warranty. However, we are disappointed this customer’s ownership experience has been unfortunate and as such we have made a goodwill offer towards helping him into a new vehicle.”

Today General Motors CEO Fritz Henderson and Chrysler president Jim Press defended their decision to cut a total of almost 3,000 dealers. The two executives submitted their prepared remarks to the Senate Commerce Committee ahead of a hearing scheduled for this afternoon.

The “decision about which of the company’s 3,181 dealers would be brought forward to the new company was gut wrenching, but it was an absolutely necessary part of our effort to assure the long-term viability of the new Chrysler Group,” Chrysler’s Jim Press said.

Henderson said that GM could reduce 2,300 to 2,600 dealers leaving it with 3,500 to 3,800 dealers by the end of 2009.

“This is our last chance to get it right — to fix permanently those parts of the business that have diverted us from consistently building winning cars and trucks and the consumer experience to match. Because of today’s global, economic crisis we are out of time and money,” Henderson said in his testimony.

Nonetheless, Senators are looking more from GM and Chrysler.

“Nearly 2,000 dealerships are closing throughout America and over 100,000 jobs are at risk,” Rockefeller said. “We have to do better. We can save some of these jobs and help these communities,” said Senator Jay Rockefeller, D-W.Va., chairman of the Senate Commerce Committee.

Rockefeller said that the two automakers ”should not be allowed to take taxpayer funds for a bailout and then leave local dealers and their customers to fend for themselves with no real notice and no real help. That is just plain wrong.”

What are your thoughts?

Source: Detroit News

General Motors makes more than a few world-class automobiles. As true as that statement may be, that alone wasn't enough to stall the automaker's steady decline - fueled as it may have been by the global economic downturn - into Chapter 11 bankruptcy. To expedite GM's return to viability, the Obama Administration plans to split the giant automaker into two parts, a so-called "Good GM" made up of GM's best assets and "Bad GM," which is what we're examining in today's Top Ten list.
In case you're not aware, Bad GM happens to include the entire lines from HUMMER, Pontiac, Saab and Saturn. Instead of dwelling on the oft ignored, underdeveloped and stagnant vehicles in Bad GM's lineup, we're taking a look at the best that Bad GM has to offer. Try as we might to make this into a true Top Ten list, we were only able to come up with seven suitable vehicles to lament - which admittedly does tell us something. Some were obvious, a few not so much. That said, follow along as we pick the Top 7 Good Cars from Bad GM.

Lost in the bevy of numbers that is the Autoblog monthly sales report is the fact that Volvo just isn't selling very many cars in the U.S. any more. The Swedish automaker only sold 5577 units in May, and the downward trend started way before the automotive market hit the crapper. Given the sad state of Volvo of late, it's little wonder that Ford is desperately trying to sell the once profitable automaker.
Just because times are tough at Volvo doesn't mean it's time to give up. Volvo's new marketing initiative for the month of June addresses cost of ownership head-on. The Safe + Sound coverage plan is one of the most comprehensive warranty programs ever offered by any automaker. It includes 5 year/60,000 mile warranty coverage plus 5/60,000 free scheduled maintenance, 24/7 roadside assistance, and - get this - wear and tear coverage that includes everything from wipers to brakes and rotors. Hit the jump to view the details on Volvo's Safe + Sound plan.
[Source: Volvo]

The Hyundai Assurance program may well go down as the most innovative and perhaps successful marketing campaign of 2009. The program was so perfect for our economic times that General Motors and Ford eventually followed suit with very similar offers. But according to The New York Times, Hyundai's marketing magic may have worn out with the South Korean automaker's newest offer - an incentive that sounds great until you dig just beneath the surface.
The new Hyundai campaign promises to pay customers during the first six vehicle payments on any model purchased before June 30. As you likely already know, the payment paradigm usually works the other way around, and the new Hyundai plan sounds like a real winner for the customer. In fact, though, the payment basically takes the place of a lump sum cash incentive that would normally be due at signing. That's right, we're talking about the repackaging of existing customer rebates. In this case, you get six small payments (on a Visa card) spread out over six months instead of one big rebate that you would traditionally receive up front. When considering the fact that the standard lump sum rebate can often be used to lower your car payments - while also taking a bite out of interest payments through the life of the loan - we'll take our rebates the old fashioned way.
[Source: The New York Times via Kicking Tires]

If there is one thing we know for sure about us, the BMW fans and owners, is that we all come from different backgrounds, but we have one thing in common:  a passion for our bimmers. So when ABC World News went to interview Andrew Feuster, astronaut aboard the space shuttle Atlantis, and found him in his garage working on a BMW M3, we knew we had to bring this upfront.

Sure, there are no breaking news here nor any cool spy photos, but it is great to see that BMW fans can be found on all the social scales, even in the NASA world. Andrew is a car guy like many of us, but thanks to his M.S. in geophysics from Purdue University and the Ph.D from Queen’s University in Kingston, Ontario, he managed to fulfil his dream.

Beside all the geeky organizations he’s part of, Andrew also is a proud member of the BMW Car Club of America. As an interesting fact, in his youth, Andrew paid his way through college by restoring old cars.

Great to see that his passion for the BMW M Power engine has not faded away, despite the high-tech things he gets to play with in the space. Watch his interview on ABC News

[Source: ABC World News ]

Car and Driver has once again come up with an interesting review of some of the …let’s say, not very often compared vehicles. Most of the BMW reviews or comparisons are made around the popular 335i, while the “little brother” 328i, seems to be often overlooked. We’re guilty of that as well, but with the Car and Driver help, we will fix that today.

So, they decided to test the BMW 328i against other popular vehicles in its class: Infiniti G37, Audi A4 2.0T and the Acura TL SH-AWD. Will the C&D’s conclusion reported back in January still remain today? “What the 328i does better than its peers is combine the ingredients of the perfect sports sedan: driving dynamics and luxury.”

Well, shall we find out?

“For executives undergoing painful downsizing, may we suggest something in the $40,000 range, smart yet modest in posture compared with the usual CEO barge. Something in a sports sedan would keep the mood casual. Just in time, we have two new international choices: the bravely chiseled Acura TL and the softly molded Audi A4.

The Acura, apart from its polarizing, sharply creased style, brings Honda’s Super Handling All-Wheel Drive to the middleweight sports class. The A4 brings variable lift on the exhaust valves of the 2.0-liter turbo four, upping output 11 horses to 211.

They join two other old favorites that have been smartly upgraded for 2009: BMW’s ever-popular 328i gets new headlights and hood in front; new wheels, mirrors, and sills in the side view; new taillights, decklid, and bumper in back; and of course, an increment of $900 on the bottom line. The Infiniti G35 of last year is now vitamin fortified and rechristened G37 to reflect the V-6 upsizing to 3.7 liters from 3.5. The previous 306-horse version romped all comers at the drag strip. They should expect even less mercy now.”

Continue reading BMW 328i vs. Infiniti G37, Audi A4 2.0T, Acura TL SH-AWD