The Demo Site

Ed Montgomery, known as President Barack Obama’s ‘car czar’ was in Detroit yesterday to answer questions of some 100 state, local and county leaders on how to get a piece of the $76.7 million in energy and conservation dollars set aside for Michigan in the stimulus package.

Gov. Jennifer Granholm said that the need for help “cannot be overstated” as GM heads towards a possible bankruptcy by the end of the month.

Rather than focusing on energy efficiency and conservation block grant funds, Granholm said that the more immediate issue is the next 60 to 90 days. 

“We are in the next week going to see some massive change in our economy. Whatever happens in the next week, we know that things are going to go dark for a while,” Granholm said. “The urgency cannot be overstated. We need to provide the suppliers a means to get through” the next two to three months.

Granholm said that GM and its suppliers will be strong even if they are forced into bankruptcy. She said that as Michigan moves toward a ‘green economy, having access to funds is extremely important.’

Source: Detroit News

The 28th Wörthersee Tour in Austria kicks off on May 20 and ends on the 23rd. The show is a gathering of auto enthusiasts, including those who love the Audi brand. For the latter a special Audi Q5 will be showcased on the Audi stand.

Clad in massive 21-inch wheels with a 7 twin-spoke design, the vehicle is no ordinary Q5. Its track has been widened by 90mm (3.54 inches) while the ride height is 60mm (2.36 inches) lower. The exterior paint colour is called Daytona Gray. Some red paint applications were made on the rims, the roof rails, the front skirt and the rear spoiler. Other fittings include a panoramic roof and ceramic brakes.

There is an S4 connection to this Q5 in that the engine is the same supercharged 3.0 TFSI V6 that powers the S4. Power is not the same 246kW (334hp) though, it has been increased to a sports car-rivalling 300kW (408hp). Torque is 500Nm between 3,000rpm and 5,500rpm. Like a performance car this custom concept is said to whistle away from 0 - 100km/h in 4.4 seconds and top off at a governed 250km/h.

In an effort to show that it is serious about its bid, Fiat CEO Sergio Marchionne went to meet with Chancellor Angela Merkel earlier today to discuss Fiat’s proposal to buy General Motors’ Opel brand. Marchionne drove out of the chancellery in his black Fiat without talking to reporters. Merkel also made no public appearance.

It is reported that Economy Minister Karl Theodor zu Guttenberg also met with Marchionne. Guttenberg said yesterday that all three bidders for Opel - including Fiat, Magna International and RHJ International - need to improve their offers. He said they need to assume greater risk and make commitments to reserve jobs and plants.

“There’s no favorite,” Guttenberg told reporters. “Everyone knows that improvements are still necessary.”

Opel’s management, Germany’s government and other executives from General Motors will meet tomorrow to decided on the preferred bidder.

Fiat has made two bids for Opel; one with and one without an offer for GM’s Latin American operations.

Source: Reuters

Earlier this month, Roger Penske of Penske Group hired former Chrysler co-president Tom LaSorda to consult him on a bid to buy Saturn and its dealer network from General Motors. According to Automotive News, Penske now plans on using the Saturn network to sell vehicles made by Renault Samsung Motors, which is owned 80.1 percent by Renault and 19.9 percent by Samsung (yes, the folks that own Samsung Electronics and manufacture cell phones).

The publications says that Roger Penske recently met with Renault and Nissan CEO Carlos Ghosn to discuss the plan in Paris.

No word on whether Penske plans on using Renault Samsung’s current models or plans to use Renault’s platforms to build new ones.

Renault Samsung currently uses Nissan platforms for its four passenger vehicles; SM3, which is based on the Nissan Bluebird; SM5 and SM7, which are based on the Nissan Teana; and the QM5, which is based on the Nissan Rouge.

Source: AutoWeek

When you think of Hyundai, the first thing that usually comes to mind is an affordable car with subpar design that is very unlikely to turn heads when you pull up in front of an “enthusiast” gathering. Actually, hardly anyone out there would consider a Hyundai owner a car enthusiast. Well, Hyundai is out to change all that and following its take on the luxury-segment with the Hyundai Genesis sedan, the Korean automaker is now offering a new rear-wheel-drive coupe that is sure to keep the enthusiast in you satisfied while attracting some attention to the sound coming from under your hood.

Meet the 2010 Hyundai Genesis Coupe 3.8 - Hyundai’s first attempt to compete in the high-performance rear-wheel-drive sports coupe segment. According to Derek Joyce, Hyundai’s main expert on the stateside for the Genesis Coupe, when the Korean automaker set out to plan the rear-wheel-drive sports coupe, it had three primary engineering benchmarks, including the Infiniti G37, Mazda RX-8 and the BMW 335i. While the 2010 Genesis Coupe is available with a 210-hp 4-cylinder turbocharged engine, those benchmarks apply mainly to the 3.8 model which is powered by the 3.8L V6 from the Genesis sedan making 306-hp. And since we wanted to see if Hyundai met those benchmarks, we chose to take the 3.8 model (3.8 Grand Touring to be exact) out for a 2-hour drive around Mount Kisco, NY.

As reported earlier this morning, GM’s showdown with the bondholders is its biggest obstacle to restructure and avoid a bankruptcy filing by its June 1 government imposed deadline. The automaker won a 86 percent approval from the CAW for a new cost-cutting deal and the same is expected from the UAW later this week.

According to a report by Reuters, GM has failed to convince enough bondholders to accept a debt-for-equity swamp, and is now planning to file for Chapter 11 by the end of the week.

According to two sources familiar with the matter, GM failed to gain the near 90 percent of bondholder support that it needs to fight of bankruptcy. Insiders say that GM had only “low-single-digit” interest from bondholders.

Nonetheless, bondholders have until midnight to change their mind. GM is hoping to reduce its $27 billion debt in exchange for a 10 percent stake in the restructured company.

Ballmer looks ready to break out into his developers chant as he gets the keys to a Fusion Hybrid.

(Credit: Microsoft)

You've got 11 billion dollars to burn, so what kind of car do you get? If you're Microsoft CEO Steve Ballmer, make that a Ford. Of course,

It’s that time of the day again - where we gather up some of the random things we’ve come across from our editor’s desk into our Miscellaneous Thoughts post.

No smiling rule in place when taking your driver’s license photo: Arkansas, Indiana, Nevada and Virginia have adopted a new rule that forces citizens not to smile when taking their driver’s license photo. ”Neutral facial expressions” are required and allows the DMV to compare a new photo to those in the system. This helps the DMV avoid fraud by using a new face recognition software. - USAToday

Former Cadillac boss Mark McNabb to join Maserati: As reported last week, Mark McNabb has resigned his position as the head of GM’s Cadillac brand. Sources told Automotive News that McNabb will lead Maserati’s North America division and will replace Marti Eulberg who left the Italian automaker last month. McNabb joined General Motors just 13 months ago and will leave on June 1.

Ford’s Advantage Plan ends June 1: Ford’s 0% APR financing and “we’ll make your payments for up to 12 months if you lose your paycheck” plan will be ending on June 1. Interested in buying a Ford but fear that you may lose your job? Go buy one right now. - KickingTires

Jeremy Clarkson, host of our favorite TV show Top Gear, recently got behind the wheel of the new 2009 Audi Q7 V12 TDI. His take?

Even a fast bike, and few are faster than this ghastly Suzuki when ridden by a normal person or that mad-eyed Italian, cannot pull away from the Q7 diesel. And there is something deeply, gooily satisfying about that.

It is a hysterical car, this. Mad. Bonkers. Stupid. It sits on the road network like a Class-1 powerboat would sit at the Henley regatta. Of course, it is also utterly pointless. No one is going to buy a lumbering Q7 for outright speed.

However, let us not dwell on such things. Let us instead rejoice at the fact that it exists. It’s crap. But it’s brilliant too.

You can read his full review over at TimesOnline.

What seems to be the most important week in General Motor’s history is off to a good start. Canadian Auto Workers (CAW) voted 86 percent in favor of a new cost-cutting deal with GM that would assure the company’s feature in Canada. However, in the next five days, GM needs to ratify its terms with the UAW and have a major showdown with bondholders to avoid one of the largest corporate bankruptcy filings ever.

As most of us took the day off to celebrate Memorial Day yesterday, a source familiar with the matter said that the U.S. Treasury was preparing to loan GM $30 billion in debtor-in-possession financing and exit financing. The loan would bring GM’s total federal financing to $50 billion. The struggling automaker received another $4 billion on Friday.

Today, UAW national leaders will meet to discuss a new round of concessions that include closing plants, cutting pay and cutting health car trust. UAW workers are expected to start voting immediately.

The source said that GM is not going to seek bankruptcy protection until its June 1 deadline. Bondholders have until 11:59 p.m. on May 31 to swap $27.2 billion in debt for a 10 percent stake in a restructured GM.

Despite still being in bankruptcy court, Chrysler announced yesterday that it has submitted three proposals to the U.S. Department of Energy that outlines a $448 million plan to “rapidly bring” electric-vehicles and plug-in hybrids to the market.

The plan represents a 50/50 cost-share opportunity where Chrysler LLC and its partners (meaning Fiat SpA) will invest $224 million combined with a DOE matching that with the same number.

“If approved, Chrysler LLC plans to use funds to build a demonstration fleet of PHEVs and EVs, as well as create a new-vehicle electrification technology and manufacturing center located in Michigan.” Chrysler said in statement.

The Auburn Hills automaker said that it will use “as much as $83 million to build a new vehicle electrification technology and manufacturing center in Michigan.” That new facility will be responsible for development, testing, manufacturing electric-drive components and the final assembly of EVs and range-extended-vehicles. Chrysler says that the facility will be functional by 2010 and will produce more than 20,000 units per year.

Press Release:

Chrysler LLC Submits $448 Million Plan to the U.S. Department of Energy for the Rapid Development and Manufacturing of Electrified Vehicles

- Chrysler LLC submits three proposals, totaling $448 million, for two Department of Energy (DOE) initiatives aimed at rapid vehicle electrification - The Transportation Electrification Initiative and Electric Drive Vehicle Battery and Component Manufacturing Initiative
- The 50/50 cost-share opportunity demonstrates how Chrysler LLC, its partners and the DOE can work together to promote technological innovation and energy independence in the United States
- Proposed vehicles to include Dodge Ram 1500 Plug-in Hybrid-electric Vehicles (PHEV), Chrysler Town & Country PHEVs and Chrysler Town & Country Electric Vehicles (EV)

Auburn Hills, Mich., May 26, 2009 - Chrysler LLC today announced the company has submitted three proposals outlining a $448-million plan to the U.S. Department of Energy (DOE) in order to rapidly bring Electric Vehicles (EV) and Plug-in Hybrid-electric Vehicles (PHEV) to market.

Chrysler LLC applied for two initiatives established by the DOE-the Electric Drive Vehicle Battery and Component Manufacturing Initiative and the Transportation Electrification Initiative. Both are designed to speed up development, demonstration, evaluation and manufacturing of EVs and PHEVs. The programs represent a 50/50 cost-share opportunity with $224 million from Chrysler LLC and its partners, combined with a matching $224 million from the DOE. These funds will accelerate the market introduction and penetration of advanced powertrains.

“These initiatives represent how government and the automotive industry are answering the challenge of reaching common goals and demonstrate how rapidly this type of advanced technology can be brought to market in a collaborative environment,” said John Bozzella, Senior Vice President-External Affairs and Public Policy, Chrysler LLC. “Without U.S. innovation and production capacity, we will simply trade batteries for oil in the pursuit of transportation energy.”

If approved, Chrysler LLC plans to use funds to build a demonstration fleet of PHEVs and EVs, as well as create a new-vehicle electrification technology and manufacturing center located in Michigan. The proposal will enable the production of commercially viable products in a shorter time frame. Combined, Chrysler LLC’s proposal will stimulate the economy and help the company achieve its leadership goals in electrified-vehicle development and production.

The Transportation Electrification Initiative
Chrysler LLC’s $365-million submission for the Transportation Electrification Initiative intends to establish a nationwide demonstration fleet of more than 365 test-fleet vehicles for use by select customers and partners. The Chrysler Town & Country and Dodge Ram 1500 are popular models in their respective segments and as PHEVs can achieve substantial greenhouse-gas reduction. To ensure a robust assessment, Chrysler will demonstrate 100 Chrysler Town & Country PHEV minivans and 100 Dodge Ram PHEV pickup trucks across a range of drive cycles and consumer-usage patterns in diverse geographies and climates throughout the United States. The company has established more than a dozen partnerships with city and local governments, research and development authorities, utility companies and universities to test the PHEVs.

In addition, through a partnership between Chrysler LLC’s ENVI group and the U.S. Postal Service (USPS), Chrysler LLC will deliver 165 Chrysler Town & Country EV cargo minivans for daily mail service in four regions throughout the country. ENVI has created numerous partnerships with energy providers and utility companies in order to develop an electric-vehicle charging infrastructure that will efficiently service its electric-vehicle test fleet.

The Electric Drive Vehicle Battery and Component Manufacturing Initiative
Within the Electric Drive Vehicle Battery and Component Manufacturing Initiative, Chrysler LLC plans to use as much as $83 million to build a new vehicle electrification technology and manufacturing center in Michigan. This new facility would house development, testing and electric-drive component manufacturing in addition to final assembly of EVs and Range-extended Electric Vehicles (ReEVs). The complex would be functional by 2010 and produce more than 20,000 units per year.

“These proposals present a win-win situation for Chrysler and, most importantly, our customers,” said Frank Klegon-Executive Vice President, Product Development, Chrysler LLC. “This plan will accelerate our efforts to develop and manufacture electric and plug-in hybrid-electric vehicles, which will reduce the amount of time it will take to get these vehicles on the road.”

Chrysler LLC would utilize both DOE programs as first steps toward the commercialization of “no compromise” electrified vehicle technologies beyond Hybrid-electric Vehicle (HEV) applications currently on the road.

Last month, ENVI, Chrysler LLC’s in-house electric vehicle organization, made multiple announcements aimed at accelerating the market introduction of electric-drive vehicles. The company created a lithium-ion battery production partnership with U.S. based A123Systems and facilitated a new lithium-ion battery manufacturing plant in Southeastern Michigan-a joint program with A123Systems and the Michigan Economic Development Corporation. Chrysler also announced its plans to address the future needs of fleet customers, such as the U.S. Postal Service, with a pure-electric Chrysler Town & Country EV Cargo minivan.

No Porsches allowed: While Porsche CEO Wendelin Wiedeking is scrambling to find Middle East investors to prevent being taken over by Volkswagen—which would be a reversal of his original plan to acquire the Wolfsburg, Germany-based automaker—VW CEO Martin Winterkorn and Ferdinand Piëch, head of VW's supervisory board, basked among 200,000 aficionados at the annual Wörthersee GTI event in Reifnitz, Austria.

Originally shunned by VW as a proletarian gathering of tuning freaks, over time the event has attracted enough media attention and market value that VW and Audi have repeatedly brought in dedicated concept cars. And while Piëch and Winterkorn remain tight-lipped about any new development with Porsche, they feel right at home talking styling and horsepower on the shores of the Carinthian lake.

All Show and No (Added) Go

This year, VW brought two concept cars—one based on the MkVI Golf GTI and the other on the new 2009 Polo. Dubbed "Wörthersee 09" editions, they are only cosmetic exercises and are in stark contrast to the 641-hp W-12–powered GTI concept that the company built for the 2007 gathering.

Don’t let the badge mislead you; the Jeep Commander commands its brand only in name. It is among the youngest nameplates in the Jeep lineup, and its sales figures command little more than an exasperated groan. From their 2006 high of over 88,000, yearly sales fell to just 28,000 in 2008.

Like the disaster that beset another beleaguered commander, General George Custer, at Little Big Horn, what happened to the Jeep’s sales is well chronicled: the price of gas bloated, killing demand for SUVs; and then the value of everything else imploded, killing demand for cars of all types. You can still get a Jeep Commander with the Hemi V-8, but the responsible choice—as far as seven-passenger, V-8–powered SUVs are concerned in a gasping economy—is the smaller 4.7-liter V-8. Oh, wait. The Hemi is only $820 and gets better fuel economy? Never mind. (There is a V-6, but just because you have rope and are near train tracks doesn’t mean you have to tie yourself to them and wait for the 10:15.)

Getting By With Less, But Not Getting By Very Quickly

The 4.7-liter forfeits 52 hp and 55 lb-ft of torque to the updated Hemi, and we wondered if we would miss them. Could Custer have used a few more soldiers that fateful day? Well, he couldn’t have beenless successful with a couple extra regiments. Zero to 60 mph took 8.0 seconds, with the quarter-mile passing in 16.2 at 85 mph; both figures lag behind all but the slowest entrants in our last three-row-crossover comparo.

Specifications

VEHICLE TYPE: front-engine, 4-wheel-drive, 7-passenger, 5-door wagon

PRICE AS TESTED: $46,635 (base price: $41,505)

ENGINE TYPE: SOHC 16-valve V-8, iron block and aluminum heads, port fuel injection

Displacement: 287 cu in, 4701cc
Power (SAE net): 305 bhp @ 5650 rpm
Torque (SAE net): 334 lb-ft @ 3950 rpm

TRANSMISSION: 5-speed automatic with manumatic shifting

DIMENSIONS:
Wheelbase: 109.5 in Length: 188.5 in Width: 74.8 in Height: 72.1 in
Curb weight: 5199 lb

C/D TEST RESULTS:
Zero to 60 mph: 8.0 sec
Zero to 100 mph: 23.9 sec
Street start, 5–60 mph: 8.3 sec
Standing ¼-mile: 16.2 sec @ 85 mph
Top speed (governor limited): 111 mph
Braking, 70–0 mph: 205 ft
Roadholding, 300-ft-dia skidpad: 0.74 g

FUEL ECONOMY:
EPA city/highway driving: 13/18 mpg
C/D observed: 14 mpg