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Ending months of negotiation and speculation, General Motors has halted the sale of its European Opel division. GM has cited improving business and the importance of Opel/Vauxhall to its global operations as the reasons for the reversal. GM today posted its October sales figures, showing the first gain in 21 months. The news came hard on Magna International, which had been working with the German government, GM, and partners on acquiring Opel. Known as a major parts supplier, Magna is a large, diverse company that has grown to become a manufacturer-for-hire for several automakers, and this purchase would have been a natural expansion for its business. “GM will soon present its restructuring plan to Germany and other governments and hopes for its favorable consideration,” said Fritz Henderson, president and CEO. “We understand the complexity and length of this issue has been draining for all involved. However, from the outset, our goal has been to secure the best long term solution for our customers, employee, suppliers, and dealers, which is reflected in the decision reached today. This was deemed to be the most stable and least costly approach for securing Opel/Vauxhall’s long-term...
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As the auto industry emerges from crisis , new hope is given to a General Motors factory town with today’s announcement that Fisker Automotive will purchase the Wilmington Assembly plant in Delaware. Vice President Joe Biden and Delaware Governor Jack Markell were on hand for the news that Fisker signed a letter of purchase intent for $18 million. An additional $175 million will be spent to refurbish and retool the factory over the next three years. The funds come from a conditional loan of $528.7 million the Department of Energy awarded the company in September. The facility that previously built the Pontiac Solstice and Saturn Sky will be overhauled to assemble an “affordable” plug-in hybrid sedan dubbed Project NINA. Production is expected to begin in late 2012, and Project NINA is optimistically forecast to support 2,000 factory jobs and more than 3,000 vendor and supplier jobs by 2014, as production ramps up to full capacity of 75,000-100,000 vehicles per year. More than half of the sedans are expected to be exported. The car itself is estimated to cost about $39,900 after federal tax credits. Learn about the Fisker Karma , a luxurious plug-in hybrid that delivers an estimated...
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Automotive enthusiasts openly wept when it became clear that the Holden-sourced G8 sedan would be a casualty in the shuttering of the Pontiac brand . General Motors had teased with world that it would live on as a Chevrolet, then it shattered dreams by declaring the G8 as gone for good. Well, true believers, the G8 will live on as the Chevrolet Caprice. Technically, the Caprice is actually a long-wheelbase model based on the Holden Statesman, stretching 118.5 inches hub to hub. The larger car enables enough rear legroom to accommodate a divider—an essential to protect officers from fiesty suspects. To be sold strictly as a police-spec vehicle, this will be the coolest Caprice in that moniker’s history. The initial powertrain will be a 6.0-liter, 355-horsepower V-8 with 384 lbs.-ft. of torque paired to a six-speed automatic transmission. Chevrolet boasts 0-60 mph times under six seconds, ensuring The Man can outgun most roadway hooligans. This potent engine will be joined by a more fuel-efficient V-6 the following year. The Caprice is given the full cop treatment, bumper to bumper, with all the electrical hookups and convenience features needed by a modern police force. Yes, enthusiasts...
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General Motors declared that it would swiftly wind down the Saturn brand and dealer network by the end of January 2010, in reponse to Penske Automotive Group walking away from a purchase arrangement. (Read: “ Penske Ends Bid to Buy Saturn, GM to Discontinue Brand .”) Without a buyer, GM felt is had no choice but to quickly dismantle the “Different Kind of Company,” swiftly rendering it another footnote in automotive history alongside Pontiac. Saturn will build no more vehicles. It currently has a standing inventory of 12,000 units. Other GM franchises are authorized to service Saturn vehicles and honor warranties. It may be a great time to get a deal on a Saturn, though their value will be negatively impacted by the wind down and long-term parts availability may create risks, particularly for unique models like the Sky or Astra that are not shared with other GM brands. Some current Saturn dealers may continue to offer service, should they remain in business. If you visit your local dealership, wish them well and buy a souvenir. Read our Astra , Aura , Sky , and Vue reviews .
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General Motors broke the news today that Penske Automotive Group would not purchase Saturn. The large dealer organization announced a proposed deal this past June to purchase the “different kind of car company.” Due to the withdrawal, GM will wind down Saturn production and the dealer network. (For background, see " GM Enters Agreement to Sell Saturn .") Penske cites an inability to secure vehicles as the reason for withdrawing from the deal. It had negotiated the terms and conditions of an agreement with a yet-unnamed automaker, however, that agreement was rejected by that company's board of directors. The Detroit Free Press has reported that Renault-Nissan was the potential partner. The announcement is a painful blow to the industry. Penske the man and organization is held in high regard, and this deal was considered the best chance for the future of the brand. The plan had been for General Motors to continue to supply vehicles through 2011, after which time Penske would source products from another automaker. This arrangement promised to shake-up the century-old business model and provide unique opportunities. For instances, a Penske-run Saturn could have potentially...
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As of 8 p.m, EST tonight, the Car Allowance Rebate System (CARS) program ended. Considered a success by the auto industry, politicians, and more than 600,000 car buyers, the so-called cash for clunkers program burned through $3 billion in federal funding quicker than anyone predicted. Remember when the original $1 billion had a rundown deadline of November 1st? Hard to believe. The final figures may still be a days away, but the Department of Transportation has shared tabulations made as of this morning, showing 635,186 dealer transactions submitted for credit, worth $2.65 billion. Over half (54%) of the top 10 new vehicles purchased under the program were manufactured in the United States. On average, the new vehicles showed a 9.2 mpg, or 58 percent, fuel economy improvement. Needless to say, the program worked far better than anyone anticipated at moving consumers out of old, “dirty” trucks and SUVs and into new more fuel-efficient cars. The massive mileage improvement makes more sense when looking at the three most popular purchases, all very miserly models. Top 10 New Vehicles Purchased * Toyota Corolla Honda Civic Ford Focus Toyota Camry Hyundai Elantra Toyota Prius Nissan Versa...
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It's the week ending August 21, and we've browsed our favorite automotive blogs all week long to gather a collection of what we feel is the highlight from each. Big news involves the end of the CARS rebates on Monday, as once again the Feds predict the money will run out over the weekend....
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All good things must end. The first phase for Car Allowance Rebate System (CARS) saw $1 billion in federal car-sales stimulus drained in less than two weeks. Congress quickly approved $2 billion to keep the momentum going, with Obama signing into law on August 9th . Now, U.S. Transportation Secretary Ray LaHood has announced the cash for clunkers program will come to a close on Monday, August 24th at 8 p.m. EDT. “This program has been a lifeline to the automobile industry, jump starting a major sector of the economy and putting people back to work,” Secretary LaHood said. “At the same time, we’ve been able to take old, polluting cars off the road and help consumers purchase fuel efficient vehicles.” As of today, the CARS program has recorded more than 457,000 dealer transactions worth $1.9 billion in rebates. John McEleney, chairman of the National Automobile Dealers Association (NADA), issued the following statement: “Today, the Administration announced the submission deadline for all ‘cash for clunkers’ applications. Regardless of when the transaction is consummated, the application must be submitted before the deadline to be considered for funding. “However, the National Highway...
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No one likes to have their children criticized, but General Motors took to heart feedback it received at a recent future product showcase held for employees, potential customers, dealers, media, analysts, and others. (Read: “ 25 in 24: GM Reveals New Models for its Core Brands .”) The diverse panel were very interested in the future Chevrolet Aveo, Spark, and Cruze, and it even lauded the upcoming Cadillac line. However, a Buick crossover expected to go into production in 2011 was not well received. The vehicle was a badge-engineered next-generation Saturn Vue, notable for offering a plug-in hybrid variation. While this sounds like a slam-dunk, those who have seen it feel otherwise. And GM is responding to the feedback. Word has it that the two-mode hybrid powertrain will live on in another vehicle. GM Vice Chairman Tom Stephens said: “The Buick crossover we showed received consistent feedback from large parts of all the audiences that it didn’t fit the premium characteristics that customers have come to expect from Buick.” You may recall that this was the Buick compact crossover I announced in Traverse City a few weeks ago, with a plug-in hybrid version to accompany it — this is not...
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Almost there. General Motors continues its reinvention with a 100-percent stock purchase agreement for the sale of Saab to Koenigsegg Group, a Swedish conglomerate known for the affiliation with the famed Koenigsegg supercars. The deal is expected to conclude by the end of the year, and Saab Automobile plans to exit legal reorganization shortly. Conditions to close the sale include expected funding commitments with Swedish government support and guarantees, as well as transitional assistance from GM, as Saab becomes independent. (Read: " GM to Sell Saab to Supercar-maker Koenigsegg .") As part of the proposed transaction, GM and Saab will continue to share technology and services for a defined period. "We have now concluded another important step in realizing the great potential of Saab,” said Christian von Koenigsegg, CEO of Koenigsegg Group. “Our plan is to transform Saab into a stand-alone vibrant entrepreneurial company and make it ‘sustainable’ by making it profitable. We will revive Saab’s Swedish heritage of ecological sensitivity, safety, design innovation, and ‘fun to drive’ experience!" Yeah, adding several hundred horsepower to the 9-3 would be a great...
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President Obama has signed into law H.R. 3435, a bill that extends the Car Allowance Rebate System (CARS) with $2 billion more in funding. This bill doubles the original $1 billion in funding that sparked a new car sales wave. Late Friday, the National Highway Traffic Safety Administration (NHTSA) announced that 245,384 CARS credits had been requested, totaling $1.03 billion. The extension came just in time to continue the offer through the weekend. (See: “ Cash for Clunkers: Senate Approves $2 Billion Extension .”) Obama said, “Now, more American consumers will have the chance to purchase newer, more fuel-efficient cars and the American economy will continue to get a much-needed boost. ‘Cash for clunkers’ has been a proven success: the initial transactions are generating a more than 50 percent increase in fuel economy; they are generating $700 to $1000 in annual savings for consumers in reduced gas costs alone; and they are getting the oldest, dirtiest and most air-polluting trucks and SUVs off the road for good. Businesses across the country – from small auto dealerships and suppliers to large auto manufacturers – are putting people back to work as a result of this program.” From...
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The CAR Allowance Rebate System (CARS), popularly known as “ cash for clunkers ,” is widely regarded as a success, and now we have further proof. In “ Cars for Clunkers Works, Time for a Sequel? ” we chronicled the July sales that were buoyed from the program. We now have more detailed information on what vehicles were purchased, with refined figures by brand. Thus far, 83% of trade-ins under the program are trucks, and 59% of new vehicle purchases are cars. Nearly half of new vehicles purchased under the program were from the Big 3. Detroit’s share in this program (45%) is equivalent to their overall share in the auto market (about 45%) – a couple points less than indicated in published reports yesterday. Looking at the product mix, the trade ins are all traditional, high-volume models from domestic brands. The popular purchases are from several brands, skewing toward the imports. On average, the new models boast 63% better fuel economy than the models turned in. A whopping 184,304 vehicles have been exchanged through this program, with car buyers benefiting from $775.2 million in credits. The program is still in effect, with some money remaining. The Senate is expected to pass a ...
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As Chrysler was looking to divest itself of assets, the Dodge Viper was on the chopping block. It was shopped around, and reportedly there was interest from specialty car builders, though no can’t-refuse offer came. With a need to focus on fuel-efficient vehicles, it seemed the Viper chapter would be closed forever by December 2009. However, Friday Chrysler announced the legendary sports car will live on, with production continuing at the Chrysler Group Conner Avenue Assembly Plant — the exclusive home of Dodge Viper production since 1995. To date, more than 25,000 Dodge Vipers have been built. For 2009, the Dodge Viper SRT10 offers outrageous power, with an 8.4-liter, 600-horsepower V-10 engine contributing to blistering acceleration. Chrysler claims 0-60 mph in less than four seconds and 0-100-0 mph in the low 12-second range. It won’t be long before that powerplant and resulting performance seems truly exotic. For those enthusiasts who have always considered the Dodge Viper to be out of reach, our used car marketplace shows more than 750 for sale right now, and many priced like a new Mustang. See Dodge Vipers for sale . Read our 2003 , 2004 , 2006 , and 2008 Dodge Viper reviews ...
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As General Motors emerges from its bankruptcy today, GM President and CEO Fritz Henderson led a "state of the company" address this morning, describing the immediate priorities for the new General Motors. It's been only 40 days since the company filed its bankruptcy plan on June 1, 2009....
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It's the week ending July 10, and we've browsed our favorite automotive blogs all week long to gather a collection of what we feel is the highlight from each. The biggest news of the week is that GM President and CEO Fritz Henderson led a "state of the company" address this morning, describing the three top priorities for the new General Motors as it emerges from bankruptcy....
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