Autoblog

GM to offer consumer test drives at NAIAS, other auto shows?

Chris Shunk — Fri, 25 Dec 2009 15:15:00 EST

General Motors feels it has a lineup stuffed with vastly improved products and it wants to get as many customers behind the wheel of a new Chevy, Cadillac, GMC or Buick to prove its point. Anyone can head over to the local dealership for a test drive, but the General is reportedly looking for even more ways to get you to evaluate a new GM product, including test drives right at your local auto show.

The Detroit News reports that GM is working with officials from COBO and the city of Detroit to set up a driving route so that consumers can test the automaker's products on-site. Vehicles likely be featured include new products such as the 2010 Buick LaCrosse, Chevy Equinox, GMC Terrain and Cadillac SRX. The test drive area at COBO is reportedly part of GM's totally revamped 85,000 sq ft exhibit space, which includes more interactive displays and plenty of areas to show off new technology like direct injection and the Voltec system. Obviously, the General needed to make some major changes, since it won't need displays for Pontiac, Saab and Saturn in 2010.

Customer test drives were piloted at the New England Auto Show earlier this year, where Cadillac reportedly put over 1,400 people behind the wheel. GM is also looking to set up drives at several other major shows, including Chicago in February, but the biggest push will take place in major metropolitan areas on the east and west coasts, where GM product consideration is weakest.

Auto show test drives make perfect sense, considering that millions of showgoers attend these events every year. People who pay $12 to look at cars in a crammed and crowded convention center are likely the exact same people to get excited about new products. Why not give them seat time and let the word-of-mouth flow?

[Source: The Detroit News]

GM to offer consumer test drives at NAIAS, other auto shows? originally appeared on Autoblog on Fri, 25 Dec 2009 15:15:00 EST. Please see our terms for use of feeds.

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LA Times details Toyota history of concealing safety issues

Chris Shunk — Thu, 24 Dec 2009 18:59:00 EST

Filed under: Government/Legal, Safety, Toyota

The unintended acceleration issue has reached critical mass for Toyota, but is it an isolated incident for an automaker with an otherwise stellar record for being frank with its customers? A recent investigation by the Los Angeles Times shows that Toyota may have concealed safety issues on several occasions in an effort to keep its name clean. The newspaper is reporting that it uncovered several incidents in which Toyota concealed defects or delayed recalls even after several complaints were made.

For instance, there was an issue with a plastic panel that could be dislodged, potentially leading to unintended acceleration issues in some 2003 model Toyota Sienna minivans. Engineers reportedly discovered the problem and fixed the issue after 26,000 units were made. Toyota didn't announce a recall until six years later. Then there was a steering issue with 2004 Toyota 4Runner models. Toyota recalled the vehicles in Japan but insisted that no recall was necessary in the U.S. even after there were dozens of complaints that showed the problem was real. The Japanese automaker finally recalled the SUVs in 2005. More recent was a suit filed by Dimitrios Biller; the ex-Toyota lawyer who alleges that his former employer hid safety data and evidence in rollover cases.

And that's not nearly all. Click past the break to keep reading about more possible safety defects the LA Times suggests may have been concealed by Toyota.

Continue reading LA Times details Toyota history of concealing safety issues

LA Times details Toyota history of concealing safety issues originally appeared on Autoblog on Thu, 24 Dec 2009 18:59:00 EST. Please see our terms for use of feeds.

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NASCAR turns right, headed to Road America in 2010

Chris Shunk — Wed, 23 Dec 2009 16:56:00 EST

Filed under: Motorsports

Some motorsports fans take issue with the fact that the vast majority of NASCAR tracks are little more than a series of left turns. This is for you, roundy-round jokers. The official sport of the South is mixing in some right turns and working the brakes a bit more in 2010 with a pair of road courses. The first race, a June 20 Sprint Cup affair at Infineon Raceway in Sonoma, California, was already on the books, and now the truck racing series has added a second road course on June 19. The Nationwide Truck Series race will be held at Road America near Elkhart Lake, Wisconsin, where a scenic 4.04 mile, 14 turn course awaits tailgate-loving NASCAR drivers.

We joke about NASCAR and right turns, but Wisconsin native Paul Menard thinks the biggest challenge will come courtesy of the brake pedal. "Braking will be the hardest aspect. Strategy will play a big part in this race." NASCAR hasn't run a national cup race at Road America since way back in1956, back when race cars ~~used carburetors~~ weren't as fast. Racing Road America will likely be a challenge for drivers who participate in both NASCAR Series, as a trip from Wisconsin to California inside of 24 hours sandwiched between a pair of tough races doesn't sound at all easy to us.

Whether you love NASCAR or you can't stand it, we're thinking middle America's racing sport of choice deserves hats off for mixing it up a bit this year.

[Source: NASCAR | Image: Road America]

NASCAR turns right, headed to Road America in 2010 originally appeared on Autoblog on Wed, 23 Dec 2009 16:56:00 EST. Please see our terms for use of feeds.

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Review: Gran Turismo 5 Demo requires serious skill [w/VIDEO]

Chris Shunk — Wed, 23 Dec 2009 12:58:00 EST

Filed under: Videos, Toys/Games

Click above to watch the video after the jump

We're waiting with baited breath for the arrival of Polyphony Digital's Gran Turismo 5. It's getting more difficult to sit on our hands all the time, so it's a good thing that Polyphony has released a time trial demo to wet our whistle. The demo is available free of charge for anyone on the Sony Playstation 3 network, and we recently got hold of the 200+ mb file for ourselves (it took about 30 minutes to download via high-speed cable Internet) to get a sense of whether the game is worth our elevated anticipation.

The time trial demo features both a stock and a tuned version of the Nissan 370Z. The goal is to manage the best single lap in each vehicle on a special road course layout of Indianapolis Motor Speedway, and our experience with the demo shows that beating every GT5 fan out there for a chance to win a trip to the Indianapolis 500 is going to be no easy task. Hit the jump for our first impressions of the game, along with video of a hot lap captured by Dave Hinkle over at Joystiq.

Gallery: Gran Turismo 5 Demo

[Source: Joystiq]

Continue reading Review: Gran Turismo 5 Demo requires serious skill [w/VIDEO]

Review: Gran Turismo 5 Demo requires serious skill [w/VIDEO] originally appeared on Autoblog on Wed, 23 Dec 2009 12:58:00 EST. Please see our terms for use of feeds.

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BREAKING: Ford says it has come to terms with Geely on Volvo sale

Chris Shunk — Wed, 23 Dec 2009 09:33:00 EST

Filed under: China, Ford, Volvo

Ford Motor Company has just announced that all major terms relating to the sale of Volvo have been settled between Ford and Zhejiang Geely Holding Group Company Limited. That doesn't mean that all the Ts have been crossed on the deal, but it does indicate that Geely has met all of Ford's terms for the sale to be complete. Ford has issued a press release stating that a definitive sale agreement will be signed in the first quarter of 2010, while the final sale won't take place until Q2.

Earlier in the month, former Volvo executives sent a letter to Ford Chairman Bill Ford, Jr. voicing their concern that Geely doesn't have the necessary resources to support Volvo. Not so, according to Ford's press release. The Blue Oval states "the prospective sale would ensure Volvo has the resources, including the capital investment, necessary to further strengthen the business and build its global franchise." And even though Ford will likely soon be handing over the keys to Volvo to a Chinese automaker, the company still intends to work closely with the Swedish automaker post-sale. That makes sense considering the fact that all Volvo products share platforms and components with Ford-branded cars and crossovers.

The sale will also go far in achieving Ford's goal of divesting itself of its non-core assets so the Dearborn, MI-based automaker can concentrate on matters closer to the Blue Oval's heart. Follow the jump to study Ford's brief press release. Thanks to everyone for the tips!

[Source: Ford]

Continue reading BREAKING: Ford says it has come to terms with Geely on Volvo sale

BREAKING: Ford says it has come to terms with Geely on Volvo sale originally appeared on Autoblog on Wed, 23 Dec 2009 09:33:00 EST. Please see our terms for use of feeds.

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More details on rumored 2013 Nissan GT-R hybrid

Chris Shunk — Tue, 22 Dec 2009 19:23:00 EST

Filed under: Hybrid, Geneva Motor Show, Nissan

2010 Nissan GT-R - Click above for high-res image gallery

If we told you there was a variant of the iconic Nissan GT-R putting out around 600 horsepower, gobs of weight-saving technology and fuel economy that can hit 25-30 mpg on the highway would you be interested? What if we told you that the added power came via the same 160 hp electric motor that rested beneath the beautiful sheetmetal of the Infiniti Essence concept at last year's Geneva Motor Show?

The crew at Inside Line are reporting that the hybrid-powered Nissan GT-R is a real possibility for production, complete with the current model's 3.8-liter twin-turbocharged V6 and a battery pack for greenification. Weight savings is of paramount importance, and Nissan plans to throw every trick in the book at the hybrid GT-R, although we'd wager that the gas-electric variant will still weigh more than the deceptively porky model in showrooms now. Of course, Nissan wouldn't be interested in a vehicle with less performance than the current model so any hybrid-equipped GT-R would have to at least match Godzilla's numbers.

With all that power comes great fiscal responsibility, so what would a GT-R hybrid cost? IL guesses $100,000 could be the price of entry, though Nissan could be looking for a little more coin than that. After all the GT-R Spec-V was rumored to cost quite a bit more and if you add a hybrid powertrain to Spec-V weight loss techniques, we could be looking at one very expensive green machine.

Gallery: Review: 2010 Nissan GT-R

[Source: Inside Line]

More details on rumored 2013 Nissan GT-R hybrid originally appeared on Autoblog on Tue, 22 Dec 2009 19:23:00 EST. Please see our terms for use of feeds.

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Review: 2010 Subaru Outback adds size, power and refinement for a big wagon winner

Chris Shunk — Tue, 22 Dec 2009 11:57:00 EST

Filed under: Crossover, Subaru, Reviews

2010 Subaru Outback - Click above for high-res image gallery

Even in the face of a bleak economy and dreadful auto sales, Subaru managed to have a breakout year in 2009. Products like the Forester and the Impreza helped Subaru achieve consistent year-over-year gains while the Japanese automaker continues to post stellar quality ratings through J.D. Power and Consumer Reports. And the accolades don't stop there. The new-for-2009 Forester was crowned the 2008 Motor Trend SUV of the year, and this year Subaru accomplished a surprise repeat taking the award for the second straight year with the 2010 Outback.

However, the new Outback isn't the capable, milquetoast lifted station wagon we've come to know and respect over the years. It's now bigger. Quite a bit bigger, performing a similar wagon-to-crossover transformation that the Forester pulled off a year earlier. Granted, the Outback is only two inches taller and wider, and a mere three inches longer between the wheels, but the result is a wagon that looks much larger than the model it replaces. We've come to expect that kind of growth in a world of constant size and weight one-upping, but we had to wonder - has increased functionality come at the expense of entertainment once again? We snagged a six-cylinder Outback to find out.

Gallery: Review: 2010 Subaru Outback

Continue reading Review: 2010 Subaru Outback adds size, power and refinement for a big wagon winner

Review: 2010 Subaru Outback adds size, power and refinement for a big wagon winner originally appeared on Autoblog on Tue, 22 Dec 2009 11:57:00 EST. Please see our terms for use of feeds.

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Ford brags about largest residual value increase in industry - $1,300+ year-over-year

Chris Shunk — Tue, 22 Dec 2009 08:58:00 EST

Filed under: Ford

2010 Ford Fusion Sport - Click above for high-res image gallery

Residual values tell you a lot about a vehicle. If a car or truck has good quality and has plenty of customer demand it will have high residuals. If it's a lemon on wheels, clogging the rental lots, it will carry poor residuals. Detroit automakers have fared poorly in residual values for quite a few years, but it appears Ford may have taken a big step towards correcting that problem.

Ford is gleefully touting the results of the ALG January/February 2010 Residual Value Forecast for a good reason; the residuals of Ford, Lincoln and Mercury vehicles went up by $1,310 versus the January/February 2009 numbers. The residual values are based off of a formula that shows how much 2010 vehicles will be worth 36 months after purchase and Ford maintains the increase in residuals has a lot to do with the success of its latest redesigns and improved quality.

Proof of Ford's improved 36-month value scores comes in a comparison of the Fusion versus the Toyota Camry. The Fusion is now reportedly worth $687 more than the Camry after three years. The Ford Flex enjoys an even more decisive win versus the Toyota Highlander, as the boxy Blue Oval-branded wagon will reportedly be worth $1,800 more in three years. The 2010 Taurus scored the biggest increase, but not against the foreign competition. The smartly restyled sedan is worth $4,862 more after three years than the invisible 2009 Taurus. Both the Taurus and the Super Duty won the Kelly Blue Book Best Residual Value award in their respective segments.

A big reason Ford's residual values have skyrocketed in only one year is due to the automaker's improved status amongst customers. Fresh data from research firm Compete, Inc reportedly shows that the Blue Oval has surpassed Toyota in overall customer consideration for the past three months. Ford hasn't passed Toyota in Compete's customer satisfaction index since the firm began collecting data in 2002. Hit the jump to read over the Ford press release.

Gallery: 2010 Ford Fusion Sport

[Source: Ford]

Continue reading Ford brags about largest residual value increase in industry - $1,300+ year-over-year

Ford brags about largest residual value increase in industry - $1,300+ year-over-year originally appeared on Autoblog on Tue, 22 Dec 2009 08:58:00 EST. Please see our terms for use of feeds.

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REPORT: Ford altering Taurus model mix to build more SEL, SHO models

Chris Shunk — Tue, 22 Dec 2009 08:00:00 EST

Filed under: Car Buying, Sedan, Marketing/Advertising, Ford

2010 Ford Taurus SHO - Click above for high-res image gallery

When a new model hits the market, auto manufacturers typically release higher-option models out of the gate to maximize early profits. In short, if you're jonesin' to get into an all-new product, you often pay a content premium to be one of the first to get said new car or truck. In a good market, that makes sense, but since 2009 has been a sales disaster for automakers, it was understandable that Ford chose to make more lower-spec 2010 Tauruses than normal. Despite the challenging financial climate, as it turns out, many dealers are clamoring for more high content models.

Automotive News is reporting that dealers are short on SEL and SHO variants of the new Taurus. Marketing chief Jim Farley reportedly told a group of reporters at a press event that the situation was "a problem for our dealers." Overall inventory of the Taurus is solid, with the typical dealer holding a 60-70 day supply of the plus-sized sedans - but some dealers have reportedly waited up to 80 days for certain custom orders.

Given how much more upscale the 2010 model is over the last model, this can be seen as a victory of sorts for the Blue Oval, as it wasn't clear that consumers would welcome back the Taurus nameplate on any car, much less one with loftier aspirations and price tags. That said, all is not puppy dogs and ice cream - Taurus sales are down 22 percent year-over-year (selling 38,361 units through November), although whether that is because of the economy or the car itself remains up for discussion.

Ford dealers are reportedly also running short on F-150 Double Cab models as market demand was misjudged by product planners.

One vehicle that may help Ford to pick the right mix out of the gate is the Fiesta. Ford has gained over 80,000 hand-raisers for what will soon be the Blue Oval's smallest US vehicle and the "Fiesta Movement" has helped the automaker get a lot more data on what kinds of variants customers expect. If the Fiesta launch goes as planned, we're thinking Ford will take similar steps to market other products in the future.

[Source: Automotive News - sub. req.]

REPORT: Ford altering Taurus model mix to build more SEL, SHO models originally appeared on Autoblog on Tue, 22 Dec 2009 08:00:00 EST. Please see our terms for use of feeds.

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VIDEO: Is this the marketing we can expect for the Fiat 500 in the U.S.?

Chris Shunk — Mon, 21 Dec 2009 14:58:00 EST

Filed under: Videos, Fiat

Click above to watch the video after the jump

We hope so. But we doubt it. Why? The post-jump video of a bunch of women in bikinis was shot in Amsterdam -- they're a liberal group. But while we probably won't have throngs of thongs crowding the streets of downtown Chicago or in New York City, at least we can enjoy (via-video) what our Dutch-speaking friends across the pond get to see in person.

Hit the jump to see the guerilla/viral/euro-style marketing effort for the Fiat 500 Cabrio. It's edgy, it's fun and it's full of women in bikinis - in freezing temperatures. We're not going to say another word because we know you're already past the break watching the video.

Gallery: Fiat 500C

[Source: YouTube]

Continue reading VIDEO: Is this the marketing we can expect for the Fiat 500 in the U.S.?

VIDEO: Is this the marketing we can expect for the Fiat 500 in the U.S.? originally appeared on Autoblog on Mon, 21 Dec 2009 14:58:00 EST. Please see our terms for use of feeds.

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Obama bill signing enacts arbitration process for rejected GM, Chrysler dealers

Chris Shunk — Sat, 19 Dec 2009 10:40:00 EST

Filed under: Government/Legal, Chrysler, GM

Word on the street is that the Auto Task Force was pushing hard for General Motors and Chrysler to to dump dealerships during bankruptcy. In all, some 2,150 dealers got the axe, reportedly saving the struggling Detroit automakers big bucks while helping to ensure that remaining dealers were healthier. But while the government's Auto Task Force may have been the driving force that kicked dealers to the curb, the U.S. Congress, in an effort led by Representative Steny Hoyer (D-MD) and Senator Dick Durbin (D-IL), is looking to put those same dealers (read: donors) back in business.

The $446 billion spending bill President Obama signed earlier this week contains new legislation requiring GM and Chrysler to send out letters to every rejected dealer informing them of their rights to arbitration. Dealers interested in filing arbitration will then have 40 days to submit their intention to file. From there, arbitration must be completed within six months. Automotive News reports that the new law is substantially more dealer-friendly than the old law, and requires GM and Chrysler to spell out exactly why each dealership contract was terminated.

In an earlier report, Automotive News reported that it could cost dealers up to $12,000 in arbitration filing fees and up to $100,000 in arbitration depending on the complexity of the case.

[Source: Automotive News sub. req'd | Image: Spencer Platt/Getty]

Obama bill signing enacts arbitration process for rejected GM, Chrysler dealers originally appeared on Autoblog on Sat, 19 Dec 2009 10:40:00 EST. Please see our terms for use of feeds.

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REPORT: GM to speed up development of vehicles delayed by bankruptcy

Chris Shunk — Fri, 18 Dec 2009 18:31:00 EST

Filed under: Chevrolet, GM, Earnings/Financials

Prior to declaring bankruptcy, General Motors began delaying new products in an effort to conserve cash. The news was disappointing to enthusiasts and brand loyalists, but with its cash piles dwindling, the General didn't have many alternatives. Post-bankruptcy, GM finds itself with $40 billion in cash and a lot less overhead, so where is the money being spent? Automotive News reports that Vice Chairman Bob Lutz confirms that many of the products that were delayed are now being accelerated, adding "Once we got out of the bankruptcy and started having money available, we were able to pull a lot of our programs forward."

One example of the pull-forward is the next-generation Chevrolet Malibu. Early this Fall, GM told us that the next Malibu would arrive in 2012, but Lutz says that time frame has been pulled up to 2011. The next Malibu will reportedly be all-new with a platform based off of the Buick LaCrosse and 2011 Buick Regal. The new 'Bu will apparently have a shorter wheelbase than the current model while still managing more interior room.

Lutz told AN that the uplevel Malibu will have chrome appliques lining the side windows, a trait he says is associated with German and Japanese luxury vehicles. Lutz apparently added that $50 worth of chrome translates into an additional $500 to $600 in perceived value to customers. Beyond the Malibu, Lutz noted that there are "a bunch" of other vehicles being pulled forward to pre-bankruptcy production cadences, though he didn't offer any specific examples.

[Source: Automotive News - Sub. Req.]

REPORT: GM to speed up development of vehicles delayed by bankruptcy originally appeared on Autoblog on Fri, 18 Dec 2009 18:31:00 EST. Please see our terms for use of feeds.

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GM begins repayment to U.S. and Canadian governments

Chris Shunk — Fri, 18 Dec 2009 17:30:00 EST

Filed under: Government/Legal, GM

Good news, the check is in the mail! General Motors issued a (very) brief press release this afternoon stating that the automaker had delivered on its promise to issue its first reimbursement checks to the U.S. and Canadian governments by the end of the year. GM sent $1 billion to the feds and $192 million to the Canadian government, and GM reiterated in the statement that it would complete payments totaling $6.7 billion (to the U.S. government) by June 2010.

Beyond the $6.7 billion GM owes the federal government is a 60 percent ownership stake Uncle Sam has on the 101-year-old automaker. When the General releases an initial public offering the resulting stock sale will (supposedly) buy the government out. Experts feel the IPO could happen as early as the second half of 2010. Hit the jump to read over the General's succinct press release.

[Source: GM | Image: Bill Pugliano/Getty]

Continue reading GM begins repayment to U.S. and Canadian governments

GM begins repayment to U.S. and Canadian governments originally appeared on Autoblog on Fri, 18 Dec 2009 17:30:00 EST. Please see our terms for use of feeds.

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VIDEO: Porsche 911 GT3 rally cars provide perfect Friday soundtrack

Chris Shunk — Fri, 18 Dec 2009 16:55:00 EST

Filed under: Motorsports, Videos, Porsche

Click above to watch the video after the jump

Rally fans often stand at a corner or in the middle of a straight away, sometimes for hours, just to get a glimpse of their favorite car. If you're lucky, you get a prime spot at a sharp turn or abrupt elevation that leads to airborne cars. Lucky for us, the Internets exist so that the best moments of these races are captured for our enjoyment.

Over eight minutes of high-revving Porsche GT3 rally cars await you after the jump. Just about every shot is a keeper and the intense (and vivid) screams of the hopped up boxer engines is more than enough reason to spend a few minutes of your time watching the footage after the jump. Besides, you'll want to remember what it is to actually drive a car before heading out of the office and into rush-hour gridlock, right?

[Source: YouTube via 0-60]

Continue reading VIDEO: Porsche 911 GT3 rally cars provide perfect Friday soundtrack

VIDEO: Porsche 911 GT3 rally cars provide perfect Friday soundtrack originally appeared on Autoblog on Fri, 18 Dec 2009 16:55:00 EST. Please see our terms for use of feeds.

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Sweeney takes over Buick/GMC general manager duties

Chris Shunk — Fri, 18 Dec 2009 07:59:00 EST

Filed under: Marketing/Advertising, Buick, GM, GMC

For the third time in two months, General Motors has a new Buick/GMC general manager, this time hiring longtime employee Brian Sweeney to the high-profile post. Sweeney gets the job one week after Michael RIchards quit after just nine days on the job.

Sweeney gets the general manager post after spending a year and a half as general sales manager of Buick GMC. GM Sales Service and Marketing VP Susan Docherty said in a press release that Sweeney "consolidated 13 different agencies to one dedicated partner to drive a consistent brand message, led the dealer network through a difficult transition and has earned a reputation for tirelessly driving results that benefit consumers." That sounds like a lot of work to us. Here's to hoping this Sweeney guy lasts a lot longer than the last guy.

Sweeney's old job goes to 25 year GM vet Jennifer Costabile. The 25 year GM employee is coming off assignment as regional sales and marketing manager for Cadillac in GM's Southeast Region. Hit the jump to read the GM press release.

[Source: GM]

Continue reading Sweeney takes over Buick/GMC general manager duties

Sweeney takes over Buick/GMC general manager duties originally appeared on Autoblog on Fri, 18 Dec 2009 07:59:00 EST. Please see our terms for use of feeds.

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REPORT: Mini CUV could come to WRC

Chris Shunk — Thu, 17 Dec 2009 17:58:00 EST

Filed under: Geneva Motor Show, Crossover, Mini

Mini Countryman concept - Click above for high-res image gallery

Mini's history doesn't just include producing attractive, efficient city cars -- it's done some damage in the rally circuit. But while BMW's 2001 reincarnation of the storied British brand has been a success on the sales front, it hasn't taken the motorsports world by storm. As previously reported, that could change with Mini's upcoming five-door people hauler.

The Countryman will reportedly come in several variants, including a GTI version with similar power to the Cooper S or a BMW-sourced 2.0-liter diesel capable of 200 hp. Word on the street is that Prodrive is working on a WRC concept due to debut at the Geneva Motor Show in March.

We're looking forward to seeing the production Countryman in person, but there is some question as to when the micro crossover will finally be on the showroom floor. AutoCar says the Countryman will arrive in September, while Mini-focused site Motoring File says the crossover may be delayed until 2011. If the Rally-ready Countryman does in fact come to fruition, Mini could once again have a mighty mouse ready to take on its larger competition, and that could be fun to watch.

Gallery: MINI Crossover Concept

[Source: AutoCar]

REPORT: Mini CUV could come to WRC originally appeared on Autoblog on Thu, 17 Dec 2009 17:58:00 EST. Please see our terms for use of feeds.

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REPORT: Old Carco (read: "Bad Chrysler") to not repay $4B in TARP loans

Chris Shunk — Thu, 17 Dec 2009 11:31:00 EST

Filed under: Government/Legal, Chrysler, Earnings/Financials

Before Fiat and prior to bankruptcy, the old Chrysler, LLC needed $4 billion just to keep the doors open. The Bush Administration came through with the company-saving cash at the 11th hour, keeping the Pentastar solvent long enough to make it to bankruptcy court. Chrysler was reportedly given $15 billion in total aid, and it appears much of that money will be repaid through future payments and through incentives for Fiat to increase its stake in Chrysler from 20 percent to 35 percent. But that original $4 billion? Don't expect that money to come back any time soon - if ever.

The Detroit News reports that what's left of the old Chrysler LLC (which has been renamed Old Carco), has filed court papers saying that the $4 billion will likely never be repaid. New Chrysler is not legally responsible for that debt and Old Carco doesn't exactly have considerable assets. And the government isn't the only debt-holder that isn't going to get its cash. Many secured and unsecured creditors will be unlikely to see their cash, thought some $21 million in secured debt could be paid. Old Carco contains the bad assets not purchased by the new Chrysler when it exited bankruptcy in the spring. The sale of those bad assets, which includes plants, tooling and miscellaneous items like old company cars, will help pay back some of the money creditors lost.

Lawyers working on the bankruptcy case say it take years before the book is finally closed on Old Carco. One item that could help drag matters out is a $25 billion lawsuit Old Carco filed against former owner, Daimler.

[Source: The Detroit News | Image: Bill Pugliano/Getty]

REPORT: Old Carco (read: "Bad Chrysler") to not repay $4B in TARP loans originally appeared on Autoblog on Thu, 17 Dec 2009 11:31:00 EST. Please see our terms for use of feeds.

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VIDEO: Nevermind that it's not Halloween, behold the best use for a RHD car ever

Chris Shunk — Wed, 16 Dec 2009 15:20:00 EST

Filed under: Videos, Humor

Click above to watch the video after the jump

We're a couple months past Halloween, but this video was just too good to pass up. A gentleman with an old XBox steering wheel, a fake skeleton and a couple black lights managed to scare the holy hell out of some folks by making it look like a glowing blue skeleton was driving his car. How did he do it? The key is to have a right-hand drive vehicle and a little bit of creativity.

The Halloween prankster rigged the steering wheel to his Toyota Sera by propping it up on a 2x4 stand and holding it in place with a heavy bag of pennies. He painted the skeleton white and added a couple black lights in the door jam and attached to the sun visor. He then dressed himself in all black and waited for night fall. The end result is a scary-looking blue skeleton that's ready to send a chill down the spine of the living. Hit the jump to for the full rundown on how it was done - it's worth it to hear the screams emanating from onlookers.

[Source: StreetFire]

Continue reading VIDEO: Nevermind that it's not Halloween, behold the best use for a RHD car ever

VIDEO: Nevermind that it's not Halloween, behold the best use for a RHD car ever originally appeared on Autoblog on Wed, 16 Dec 2009 15:20:00 EST. Please see our terms for use of feeds.

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Bowling for Michigan: Laid-off GM worker wins PBA championship

Chris Shunk — Wed, 16 Dec 2009 08:30:00 EST

Filed under: Etc., GM

How cool is this? On minute Tom Smallwood is reeling after losing a (once) steady production job at General Motors' Truck Plant in Pontiac, MI, and the next minute he takes the PBA championship. In a real-life event that mimics some of the great tales in the history of underdog turned champion, Smallwood took third in a PBA qualifier event, making him eligible for one year on the prestigious bowling tour.

That alone barely makes the story interesting, but the tale becomes far more compelling due to the fact that Smallwood rolled into Wichita, Kansas an also-ran and left holding the first place trophy and a $50,000 grand prize. Smallwood, a 15-year recreational bowler, even had to beat out PBA bowler of the year Wes "Big Nasty" Malott in the final round. The former GM line worker performed superbly under pressure by hitting two strikes in the decisive tenth frame to take the match 244-228. After Smallwood's big win he was called by GM to take another plant job but the suddenly high-flying bowler turned down the offer in order to stick with his new profession.

We're thinking Smallwood's meteoric rise to the top of the bowling world will net him quite a bit more than his $50,000 top prize. Advertisers love a rags-to riches-story and Smallwood may be selling resin and those wrist things bowlers wear before you're even finished reading this post. Congratulations Tom!

[Source: Kicking Tires]

Bowling for Michigan: Laid-off GM worker wins PBA championship originally appeared on Autoblog on Wed, 16 Dec 2009 08:30:00 EST. Please see our terms for use of feeds.

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How They Roll: NYT investigates the wheels of Mexican drug cartels

Chris Shunk — Wed, 16 Dec 2009 07:59:00 EST

Filed under: Government/Legal

The Mexican drug trade business is booming. Drugs are flowing between Mexico and the U.S. on a daily basis, overwhelming the Mexican military and U.S. border patrol officers. Most of the drugs arrive stateside via cars and trucks, and the vehicles transporting contraband range from a Rolls Royce to a VW Rabbit. The New York Times spent some time in Sinaloa, Mexico with Mexican General Federico Solórzano at what looked to be a used car lot.

The general's troops have seized 766 vehicles to date ranging from Jaguars to brand new SUVs to classic muscle cars. Custom choppers, pickup trucks and sports cars are all accounted for on the lot, but these vehicles are different from cars and trucks you can purchase at your local dealership: they have secret compartments for carrying drugs and weapons across the Mexican boarder. The vehicles housed untold millions of dollars in addition to automatic weapons in false sidewalls, modified bumpers and trap doors. General Solórzano reportedly told the NYT that vehicles have been retrofitted with bullet-proofing tech, machine gun turrets, secret compartments that hold sharp nails for police cruisers in hot pursuit and even a smoke machine to assist in losing the Federalis.

The vehicles are being stored at a military base because drug traffickers have raided police facilities and took back the vehicles seized near the border. In total, the Mexican government is said to have over 14,000 vehicles in its possession, yet tons of drugs make the trip from South America to the U.S. without detection. The vehicles will eventually be sold at auction or will be used by other federal agencies, but the apparent crawl of the Mexican legal system means trials are sometimes years away. Head over to the NYT to read more about the vehicles that bring drugs from the Mexican boarder to a town near you. Pretty interesting stuff. Top tip, Mehul!

[Source: New York Times | Image: Jesus Alcazar/AFP/Getty Images]

How They Roll: NYT investigates the wheels of Mexican drug cartels originally appeared on Autoblog on Wed, 16 Dec 2009 07:59:00 EST. Please see our terms for use of feeds.

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