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The first two installments of Turn 10's Xbox 360-exclusive Forza Motorsport series received some incredibly high marks, so racing fans are pretty stoked to hear that version three is on the way. In October, Forza 3 will hit stores, and it looks as impressive as ever, ...

Originally posted at Crave

How the World's Largest Automaker Drove Down the Road to Bankruptcy

June 1, 2009. Less than a year after celebrating its centenary, the company we knew as General Motors is dead. Once the richest and most powerful automaker in the world; the symbol of American industrial might; the engine room of the American economy, General Motors is now officially bankrupt. A new GM is scheduled to emerge from Chapter 11 in 60 to 90 days' time. It will be leaner, smaller, more focused. But it will also be a mere shadow of the company that once defined 20th century America.

U.S. Government Expected to Hold Majority Share for Years

Like a LaSalle, any stock certificates you have in General Motors have become collectors' items. Like the Pontiac Aztek, they're not worth anything. And like Citigroup, GM stock is no longer part of the Dow Jones Industrial Averages. The new owners of the company are the American taxpayers, at 60 percent, the Canadian and Ontario governments, at 12 percent, the United Auto Workers' Voluntary Employee Benefit Association at 17.5 percent and unsecured bondholders who agree not to challenge the bankruptcy owning most of the rest, about 10 percent. They hold warrants to buy another 15 percent later on.

According to the chairman of Magna International, the Canadian auto parts company is banned from selling Opel cars in the U.S. and China.

“The agreement with General Motors does prevent us from selling Opel in the United States,” Frank Stronach told reporters at a news conference in Ottawa.

Prohibition on selling Opels in China might be flexible in the future if it makes economic sense.

Stronach said that Magna has been talking to the Canadian government for funding a project to produce electric-systems for electric-vehicles that it may produce in the near future.

“I’m very confident that Magna will be amongst the leaders in selling and building electric cars,” Stronach told reports.

No word on whether Magna will electrify Opel with a lineup of electric-cars; although, we wouldn’t doubt it.

Source: Reuters

Ken Block, rally racer and co-founder of DC Shoes has released his Gymkhana Two infomercial. We’re not going to kill too much of your time since the video itself is 7 minutes of outstanding drifting by Block that will leave you with your jaw dropped.

The 2008 Subaru STi in the video was custom built by Crawford Performance and the Sunkworks Team. The car, which was created specifically for Gymkhana Two, was custom built according to Block’s unique specifications.

It features a 565-hp Crawford Performance SR5 2.65L race engine that produces a maximum torque of 435 lb-ft. It also features a Tein Super Racing Coilovers, which were custom valved for Gymkhana Tein springs. Stopping power comes from a Brembo Gran Turismo braking system.

Source: Gymkhana Two

Finally, an edition of Miscellaneous Thoughts that isn’t focused around GM’s bankruptcy filing. However, we find the first crime (that we’re aware of) committed against the 2010 Chevrolet Camaro and find out that men (which makes up all of egmCarTech’s staff) are twice as likely to fall asleep behind the wheel.

Chevrolet Camaro wheels stolen: Camaro5 forum member Number 3 woke up to a very painful sight this past Sunday when he found the 18-inch wheels on his 2010 Chevrolet Camaro 1LT missing. Apparently thieves stole the wheels overnight and left the Camaro sitting in the driveway. We’re hoping that there is no damage to the exhaust or oil pan. Nonetheless, the perpetrators of this crime shouldn’t be too hard to find since there aren’t many 18-inch wheels for the 2010 Camaro on eBay. - Camaro5

Men twice as likely to fall asleep while driving: According to a study by insurance company AAMI, men are twice as likely than woman to fall asleep when driving. ”Along with speed and alcohol, fatigue is one of the main contributors to road fatalities and injuries,” AAMI corporate affairs manager Mike Sopinski said in a statement. Make sure you get enough sleep people! - drive

DeVry to replace GM in S&P 500: Listen - we did our best to avoid GM headlines today so let us slip one in here.  Standard & Poor’s said it will replace General Motors with post-secondary education company DeVry in the S&P 500 index after the close of trading today. - WSJ

GM announced today that its sales fell 29.6 percent in May, which is much better than the 36 percent decline the analysts predicted. GM sold a total of 191,875 vehicles in May, as compared to 272,363 during the same period last year.

GM said that its sales in May were up 11 percent over April, or by 19,000 units. The Detroit automaker said that it was the company’s best performance of the year.

“What was lost in all the financial turmoil is that our outstanding products continue to compete strongly in the market,” said Mark LaNeve, GM’s vice president for North America vehicle sales.

GM announced today that it has entered into a MOU with a buyer for Hummer, which it declined to name.

“The sale is expected to close by the end of third quarter of this year and is subject to customary closing conditions, including receipt of applicable regulatory approvals,” GM said in a statement.

The deal is expected to secure more than 3,000 U.S. jobs in manufacturing, engineering and at Hummer dealerships. GM said that the future transaction will also include plans by the new investor to aggressively fund future Hummer vehicles.

“HUMMER is a strong brand,” said Troy Clarke, President of GM North America. “I’m confident that HUMMER will thrive globally under its new ownership. And for GM, this sale continues to accelerate the reinvention of GM into a leaner, more focused, and more cost-competitive automaker.”

GM said that Hummer will continue to contract manufacturing and other services from GM until a scheduled time period. The H3 and the H3T will be produced at GM’s Shreveport Assembly plant through 2010.

“Other terms and conditions specific to the sale are not being disclosed at this time. Citi acted as financial advisor to General Motors Corporation,” GM said.

Turns out reports of GM selling Hummer to Chinese buyer Sichuan Tengzhong Heavy Industrial Machinery Co., are true.

The automaker has just released a press release stating that talks about the proposed transaction have advanced.

“Tengzhong, a major industrial machinery group, will acquire the rights to the premium off-road HUMMER brand, along with a senior management and operational team. It will also assume existing dealer agreements relating to HUMMER’s dealership network. It is contemplated that Tengzhong will, as part of the transaction, enter into a long-term contract assembly and key component and material supply agreement with GM. In an earlier statement, GM said it expects the deal if successful to secure more than 3,000 US jobs. The final terms of the deal are subject to final negotiations.”

Click through for the full press release.

Press Release:

Industrial Machinery Company To Invest in Growth and Global Expansion of Premium Off-Road Vehicle Brand; Deal is Expected to Secure Over 3,000 US Jobs

Tengzhong In Advanced Talks To Purchase HUMMER From GM In Strategic Acquisition

DETROIT and SICHUAN, June 2, 2009 - Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd (Tengzhong) and General Motors Corp. today confirmed details of their proposed transaction, pursuant to which, Tengzhong, a major industrial machinery group, will acquire the rights to the premium off-road HUMMER brand, along with a senior management and operational team. It will also assume existing dealer agreements relating to HUMMER’s dealership network. It is contemplated that Tengzhong will, as part of the transaction, enter into a long-term contract assembly and key component and material supply agreement with GM. In an earlier statement, GM said it expects the deal if successful to secure more than 3,000 US jobs. The final terms of the deal are subject to final negotiations.

Based in the Chinese province of Sichuan, Tengzhong is a privately-owned company and a leading domestic manufacturer of road, construction and energy industry equipment. It will expand into the premium off-road vehicle segment through what will be a strategic acquisition for Tengzhong and a catalyst for HUMMER’s growth in the U.S. and around the world.

“The HUMMER brand is synonymous with adventure, freedom and exhilaration, and we plan to continue that heritage by investing in the business, allowing HUMMER to innovate and grow in exciting new ways under the leadership and continuity of its current management team,” said Yang Yi, CEO of Tengzhong. Mr. Yang continued, “We will be investing in the HUMMER brand and its research and development capabilities, which will allow HUMMER to better meet demand for new products such as more fuel-efficient vehicles in the U.S.”

HUMMER will continue to maintain its headquarters and operations in the U.S., and will continue to be managed by its existing leadership team. The team intends to expand HUMMER’s dealer network worldwide, particularly into new and underserved markets such as China.

“Today HUMMER is a globally recognized brand with excellent growth prospects, both in terms of new markets and new products for our existing markets,” said James Taylor, HUMMER chief executive officer. “With Tengzhong’s investment and strong support, we will be able to make our visions a reality. This transaction, if successful, will secure more than 3,000 U.S. jobs, and allow us to embark on a more aggressive global expansion, ensuring a successful future with our new partners.”

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.

Credit Suisse is acting as exclusive financial advisor and Shearman & Stearling is acting as international legal counsel to Tengzhong on this transaction. Citi is acting as financial advisor to GM.

Along with its rivals GM and Ford, Chrysler today announced its best retail sales month of 2009. The Auburn Hills automaker reported total sales of 79,010 units during the month of May, a 30 percent decline when compared to the same period a year ago.

Overall, sales for the Chrysler brand improved 32 percent over April while Dodge and Jeep increased 23 percent and 21 percent respectively.

Chrysler also announced new incentives for the month of June.

“Beginning June 2, Chrysler LLC is pleased to offer zero percent financing for 60 months through GMAC Financial Services on select 2009 model vehicles, or up to $4,000 Consumer Cash on 2009 model vehicles. In addition, current Chrysler LLC vehicle owners are eligible for $1000 Owner Loyalty cash on most 2008 and 2009 Chrysler, Jeep and Dodge vehicles. These offers are in addition to the $1000 Credit Union Bonus Cash on select products for qualified credit union members who finance their new vehicle purchase through a participating Credit Union under the Invest in America program. These incentives are valid through July 1, 2009.”

Yesterday,  the U.S. Bankruptcy Court approved the sale of the majority of Chrysler LLC’s assets to a new company, Chrysler Group LLC, which will be owned by Fiat SpA.

Separately, Chrysler hopes to reopen most of its facilities by the end of June. The decision on which plants will open will be made by Friday when Fiat takes control of Chrysler Group LLC.

__________

Press Release:

Chrysler LLC Posts Best Retail Month of the Year; Reports May 2009 Sales

* Chrysler LLC posts best retail sales month of 2009
* Chrysler, Dodge and Jeep brands post double-digit retail sales gains compared to previous month
* Jeep Wrangler sales continue upward trend increasing 4 percent year-over-year compared to May 2008
Auburn Hills, Mich., Jun 2, 2009 - Chrysler LLC today reported May U.S. total sales of 79,010 units, representing the best retail sales month of 2009 and a retail performance that was better than the industry average. Compared to May 2008, retail sales decreased 30 percent. During the month of May, Chrysler LLC did not produce any vehicles for fleet sales which resulted in a fleet sales reduction of 90 percent year-over-year for the same period.

“We are pleased that consumers responded to Chrysler’s reorganization by purchasing our products, resulting in our best retail sales month of the year,” said Jim Press, Vice Chairman and President - Chrysler LLC. “Overall our sales were above expectations during this month of transition.”

On June 1, the U.S. Bankruptcy Court approved the sale of the majority of Chrysler LLC’s assets to a new company, Chrysler Group LLC in alliance with Fiat S.p.A.

“The uncertainty that has been surrounding Chrysler for the last few months is coming to an end, and a vibrant, new company is beginning to take shape,” Press added. “One that will better serve our customers and dealers with a broader and more competitive lineup of environmentally friendly, fuel-efficient, high-quality vehicles.”

May Sales Highlights

* May was the best retail sales month of 2009, with 74,741 retail units sold.
* Chrysler’s retail market share is higher than May of last year and also stronger than last month
* Jeep Wrangler continued its strong upward sales trend for the fifth month in a row, with May retail sales up 4 percent year-over-year compared to May 2008 and up 8 percent compared to the previous month. Wrangler also increased its share of the segment for the fifth month in a row
* Chrysler brand retail sales improved 32 percent compared to the previous month
* Dodge brand retail sales increased 23 percent compared to the previous month
* Jeep brand retail sales were up 21 percent compared to April 2009

“May was a very encouraging retail month for Chrysler and the industry,” said Steven Landry, Executive Vice President North American Sales and Marketing, Service and Parts - Chrysler LLC. “Retail sales for the industry came in stronger than expected and our retail performance during our restructuring was even stronger than the industry, giving us improved share and optimism that the market is showing signs of life.”

Compared to the same time period in 2008, Chrysler LLC’s total sales decreased 47 percent. The Company finished the month with 260,407 units representing an 86 day supply. Inventory is down 37 percent compared with May 2008 when it totaled 412,009 units.

Product Redistribution
Chrysler is taking actions to assist in the redistribution of remaining eligible inventory of dealers who had their sales and service agreements rejected. The inventory from the rejected dealers will be matched with dealers who are moving forward with the new company and need to replenish their inventory or acquire inventory for additional brand lines they may add.

New technologies always cost the early adopters big bucks. But higher demand leads to increased supply, and costs eventually go down to the level accessibly by the common man. So while carbon-ceramic brakes might be a big ticket item right now - often dipping into five figures as optional equipment on European exotica - Brembo has formed a new joint venture with carbon-fiber supplier SGL Group with the specific goal of mass-producing the brake technology for widespread application.
Carbon-ceramic brakes offer several major benefits over cast-iron discs -- specifically light weight and the ability to dissipate heat quickly, preventing fade -- with few drawbacks. The only downside is that the extant manufacturing process is labor-intensive, driving the cost up, which is why they're currently only available on high-end exotic supercars. Brembo SGL Carbon Ceramic Brakes, however, which just began operations at its Milan headquarters on the first of this month, aims to streamline the production of the rotors so that they can be implemented across the industry. (That's a good thing.) Scope out the press release below the fold for more details.

Ahh, yes. We've been waiting a long time for this. Microsoft Game Studios and Turn 10 Studios have announced that the third rendition of the Forza Motorsport franchise is coming soon, and from the looks of it, there will be plenty to rejoice over. Forza 3 promises to be even more of an evolution than the previous installment, and the developers appear to have addressed the improvements we were hoping to see in the new version. Graphics are massively improved, with ten times the amount of polygons used than Forza 2, and each car has been greatly detailed including interiors which were left out previously.
Car selection is excellent (more than 400 from 50 manufacturers), as we expected, and the game's stable has been updated with new supercars like the Aston Martin DBS and the Audi R8 V10 that is featured on the cover. Perhaps the most exciting news is the availability of over 100 real-world tracks, significantly more than the meager selection in Forza 2. Also new is a "season mode" that creates a personalized racing calendar with more than 200 events including Circuit, Oval, Drag, Drift and Timed Events.
Of course, many of the features that we loved in Forza 2 have remained, including the fantastic multiplayer mode on Xbox Live, the numerous tuning options, and the ability to create infinitely custom liveries in the paint shop.
The only bad news is the wait. Forza 3 will officially go on sale in October of this year, with a price of $59.99, or $79.99 for the Limited Collector's Edition).

As expected, General Motors has announced it's entered "into a memorandum of understanding with a buyer for Hummer," but under the terms of the transaction, the purchaser hasn't been disclosed.
GM's brief release (posted after the break) scratches the surface of the plan, saying only that the deal is expected to close by the third quarter of this year, that the new investor is committed to funding future Hummer products - possibly including the H4 and a two-door H3T - and that 3,000 U.S. manufacturing, engineering and dealer jobs will be saved.
Those last two points caught the eye of PickupTrucks.com, which tapped one of its sources within GM to ask how manufacturing and dealer jobs have escaped the axe. On the manufacturing front, the H3 production facility in South Africa (which makes right-hand drive models for markets outside the States) will be shuttered and assembly will move back to the U.S. Additionally, the memorandum of understanding states that no Hummer dealers in the U.S. will closed.

That screen cap you see above? That's the first evidence that Gran Turismo 5 will finally have damage rendering. The image is courtesy of the new GT5 trailer (posted after the break) Polyphony Digital released today at the E3 gaming expo. Other bits to note: fully-licensed NASCAR and WRC racing have been added for the first time, and, in typical Gran Turismo fashion, PD hasn't released a firm date for the game's release.
However, even more compelling than GT5's imminent arrival is what joined the release of the PSP Go (right), a lighter, more compact version of Sony's Playstation Portable (priced at $249.99). When the new 16-gig PSP arrives on October 1, you'll be able to download the first portable version of Gran Turismo - aptly named Gran Turismo Mobile - to the device. According to Kazunori Yamauchi, the man behind the GT series, this won't be a stripped-down version of the game. It boasts 60 frames-per-second rendering, 800 cars, 35 tracks, career and arcades modes, and the ability to play against three friends over the PSP Go's wifi connection. We haven't been able to find out if Gran Turismo Mobile will work on the current PSP platform, but we might be willing to shell out the coin if it means we can practice running the Nurburgring on our next flight to Germany.

Make the jump to view the full GT5 and PSP Go trailers, and check the galleries below for plenty of brand new high-res screen shots