Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/%SiteURL%/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/Chris Shunk, Sam Abuelsamid and Dan RothThe podcast by the people who obsessively cover the auto industry.<![CDATA[REPORT: German union leader calls on Porsche CEO to end ego trip, merge with VW ]]>http://www.autoblog.com/2009/07/10/report-german-union-leader-calls-on-porsche-ceo-to-end-ego-trip/http://www.autoblog.com/2009/07/10/report-german-union-leader-calls-on-porsche-ceo-to-end-ego-trip/http://www.autoblog.com/2009/07/10/report-german-union-leader-calls-on-porsche-ceo-to-end-ego-trip/#commentsFiled under: , , ,

Volkswagen labor union chief Bernd Osterloh has called out Porsche's CEO for holding up a merger between the two German automakers: "Together, one could do a whole lot of more things if [Wendelin] Wiedeking would end his ego trip." Osterloh believes Wiedeking is standing in the way of a tie-up with VW, and his repeated thrusts and parries are only making things difficult for both companies.

Osterloh further accused the Porsche head of being "part of the problem and not part of the solution," claiming that he has "absolutely no more trust in the current board of Porsche." Although Porsche and VW may benefit from coming closer together, it is also clear that Porsche needs VW more than the other way around. Should the two bickering automakers eventually manage to come to terms, however, the powerful union leader has one last barb to throw: "Wiedeking isn't running our company, and he never will."

[Source: Bloomberg | Image: David Hecker/Getty]

REPORT: German union leader calls on Porsche CEO to end ego trip, merge with VW originally appeared on Autoblog on Fri, 10 Jul 2009 18:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>acquisitionseuropefinancialgermanymergersporscheporsche volkswagenporsche vwporsche vw mergerPorscheVolkswagenPorscheVwPorscheVwMergervolkswagenvwFri, 10 Jul 2009 18:29:00 EST<![CDATA[REPORT: GM pulls its chute on NHRA support]]>http://www.autoblog.com/2009/07/10/report-gm-pulls-its-chute-on-nhra-support/http://www.autoblog.com/2009/07/10/report-gm-pulls-its-chute-on-nhra-support/http://www.autoblog.com/2009/07/10/report-gm-pulls-its-chute-on-nhra-support/#commentsFiled under: , ,



It comes as little surprise that General Motors has canceled its contracts with the NHRA teams it had previously been boosting with money, support vehicles and free parts. "I knew it was coming, I was forewarned," Ken Black, NHRA Full Throttle Pro Stock team owner told CompetitionPlus.com. "That's why they filed bankruptcy ... to get rid of all of this stuff."

According to Black, the writing was on the wall when Fred Simmonds, Drag Racing Marketing Manager for General Motors up until last October, left the automaker ahead of its government-backed bankruptcy filing earlier this year. As far as the teams are concerned, the lack of GM sponsorship means they'll either need to purchase their own support vehicles and parts or find a new manufacturer for support, though those options are also limited.

With "Chrysler in the same boat as GM," as Black puts it, the only likely partner is Ford, though its remotely possible Toyota may be interested. Sounds good to us - the new 2010 Prius is already the perfect wedge shape for drag racing.

[Source: Competition Plus | Photo by Rusty Jarrett/Getty]

REPORT: GM pulls its chute on NHRA support originally appeared on Autoblog on Fri, 10 Jul 2009 13:59:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>general motorsgeneral motors nhraGeneralMotorsGeneralMotorsNhrakb racingKbRacingken blackKenBlacknhranhra drag racingnhra gmNhraDragRacingNhraGmFri, 10 Jul 2009 13:59:00 EST<![CDATA[Porsche considering selling 49% of sports car business to VW?]]>http://www.autoblog.com/2009/07/10/report-porsche-considering-selling-49-of-sports-car-business-t/http://www.autoblog.com/2009/07/10/report-porsche-considering-selling-49-of-sports-car-business-t/http://www.autoblog.com/2009/07/10/report-porsche-considering-selling-49-of-sports-car-business-t/#commentsFiled under: , ,



Porsche has clearly gotten itself in way too deep in its attempt to take over control of Volkswagen, and now it's scrambling to find a way to relieve some of its crushing debt load. In addition to the possible €5 billion investment (nearly $7 billion USD) from Qatar, Reuters is reporting that Porsche's board is going to consider selling part of its car business to Volkswagen. VW AG has proposed a full merger, a plan that Porsche is resisting. Instead, it could sell them a 49% stake in Porsche AG, the car business.

Ironically, this whole ordeal began as Porsche tried to ensure that it retained access to Volkswagen systems and future components so that it could stay independent. Now, Porsche looks to be trying to avoid being subsumed into the company once pegged as its savior. Supervisory board Chairman Wolfgang Porsche has called a special meeting of the board for July 23 to discuss the company's options.

[Source: Reuters | Image: Nigel Treblin/Getty]

Porsche considering selling 49% of sports car business to VW? originally appeared on Autoblog on Fri, 10 Jul 2009 13:29:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>porscheporsche volkswagenporsche volkswagen takeoverPorscheVolkswagenPorscheVolkswagenTakeoverselling porscheSellingPorschevolkswagenvwFri, 10 Jul 2009 13:29:00 EST<![CDATA[GM expects sales in China to grow 20% in 2009]]>http://www.autoblog.com/2009/07/10/gm-expects-sales-in-china-to-grow-20-in-2009/http://www.autoblog.com/2009/07/10/gm-expects-sales-in-china-to-grow-20-in-2009/http://www.autoblog.com/2009/07/10/gm-expects-sales-in-china-to-grow-20-in-2009/#commentsFiled under: , , , , ,

General Motors boasted in April that it would double sales in China by 2013 with the introduction of 30 new or upgraded models over the next five years.

Last month, GM forecasted that its vehicle sales in China would grow 10% this year alone and now it seems those numbers may have been a bit conservative. Kevin Wale, GM's China Group President, has just announced that the company expects vehicle sales in the region to grow by a little more than 20% in 2009.

While the rest of the global automotive industry is stuck in a rut, the emerging Chinese market seems largely unaffected by stagnant North American sales or GM's bankruptcy filing in early June. As of now, China is the company's second largest market (thanks in part to their insatiable appetite for Buicks).

[Source: Automotive News - Sub. Req.]

GM expects sales in China to grow 20% in 2009 originally appeared on Autoblog on Fri, 10 Jul 2009 10:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>20 percent20PercentChinaChineseGMincreaseKevin WaleKevinWaleRiseSalesvehiclesWaleFri, 10 Jul 2009 10:00:00 EST<![CDATA[BREAKING: New GM drives out of bankruptcy this morning [*UPDATED]]]>http://www.autoblog.com/2009/07/10/breaking-new-gm-reportedly-drives-out-of-bankruptcy-this-mornin/http://www.autoblog.com/2009/07/10/breaking-new-gm-reportedly-drives-out-of-bankruptcy-this-mornin/http://www.autoblog.com/2009/07/10/breaking-new-gm-reportedly-drives-out-of-bankruptcy-this-mornin/#commentsFiled under: , ,



After a scant six weeks in bankruptcy court, General Motors is on its way out of Chapter 11. U.S. Bankruptcy Court Judge Robert Gerber approved the sale of GM's good assets to a new company lead by the U.S. and Canadian governments and the UAW healthcare fund, but gave vested parties four days to file an objection.

After two requests for a stay were denied on Tuesday and an accident victim's request was denied at the last minute on Thursday, all signs point to an exit from bankruptcy within a few days, and this morning, word from the Detroit News is that the company officially emerged from Chapter 11 at 6:30am this morning. CEO Fritz Henderson has called a 9 am press conference this morning, and one can only assume that he will declare the birth of "New GM."

GM has received $50 billion from the US government to keep the mega-corporation out of liquidation. For its troubles, Uncle Sam will receive a 60% stake in the new company. Canada, which pitched in $9 billion, will be 11.7% owners, while the UAW will receive 17.6%. Old GM will receive 10% of the new company to help creditors recoup some money. The "New GM" will be smaller in almost every way, with four fewer brands, a smaller presence in Europe, fewer employees, and a markedly more attractive balance sheet.

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

*UPDATE: Official press verbiage added after the jump, click here to watch GM's live 9am press conference.

Continue reading BREAKING: New GM drives out of bankruptcy this morning [*UPDATED]

BREAKING: New GM drives out of bankruptcy this morning [*UPDATED] originally appeared on Autoblog on Fri, 10 Jul 2009 08:50:00 EST. Please see our terms for use of feeds.

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DuraCar Quicc! Diva - Click above for high-res image gallery

Volkswagen has struck a deal worth "at least 10 million euros" with Wilhelm Karmann GmbH to keep the insolvent coachworks and specialty builder alive so it can reorganize a new company and "focus on building electric-powered cars." That's according to an unsourced report in the Neue Osnabruecker Zeitung that can be found on Bloomberg. A separate report on HLN.be says that the EV deal is worth 20 million euros, the fruits of which are expected to go on sale in 2011.

Earlier this year, Karmann showed off an EV concept called the E3 Limosine, co-developed with utility company Oldenburg Energy Group (EWE). Last October, Karmann said it would help build some of DuraCar's Quicc! DiVas EVs. Thanks to Frederik for the tip!


Gallery: eBay Find of the Day: electric 1974 Karmann Ghia


[Source: Bloomberg, HLN.be]

REPORT: Karmann saved by VW's multi-million euro order for electric vehicles originally appeared on Autoblog on Wed, 08 Jul 2009 17:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>electric carelectric carselectric vehicleElectricCarElectricCarsElectricVehiclekarmannkarmann ghiakarmann volkswagenkarmann vwKarmannGhiaKarmannVolkswagenKarmannVwwilhelm karmann gmbhWilhelmKarmannGmbhWed, 08 Jul 2009 17:58:00 EST<![CDATA[Respect Your Elders: Even Richard Petty stung by Chrysler's bankruptcy?]]>http://www.autoblog.com/2009/07/08/respect-your-elders-even-richard-petty-stung-by-chryslers-bank/http://www.autoblog.com/2009/07/08/respect-your-elders-even-richard-petty-stung-by-chryslers-bank/http://www.autoblog.com/2009/07/08/respect-your-elders-even-richard-petty-stung-by-chryslers-bank/#commentsFiled under: , , , ,



Richard Petty - quite possibly the best NASCAR racer of all time and the man in charge of Richard Petty Motorsports - says that Chrysler stopped paying his team after filing for bankruptcy last month. No surprise there. The lack of funds prompted RPM to lay off nine workers, although Petty is now saying there is hope that the automaker will soon work out some sort of deal to begin making payments once again now that it's clear of court proceedings.

It isn't clear at this moment if Petty's team, which is in the final year of its current contract with Chrysler, will soldier on using Dodge Chargers Challengers next year. Earlier this month, The King said his team would be willing to talk to any and all manufacturers regarding the 2010 NASCAR season, including Dodge. We'll surely know soon enough, but internet message boards are awash with rumors the team has been in talks with *gasp* Toyota.

[Source: ESPN via MLive.com | Image: Jason Smith/Getty]

Respect Your Elders: Even Richard Petty stung by Chrysler's bankruptcy? originally appeared on Autoblog on Wed, 08 Jul 2009 08:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>king richardKingRichardNASCARpettyrichard pettyrichard petty dodgerichard petty dodge challengerrichard petty motorsportsrichard petty toyotaRichardPettyRichardPettyDodgeRichardPettyDodgeChallengerRichardPettyMotorsportsRichardPettyToyotaWed, 08 Jul 2009 08:29:00 EST<![CDATA[Canada pondering Cash-For-Clunkers too?]]>http://www.autoblog.com/2009/07/06/canada-pondering-cash-for-clunkers-too/http://www.autoblog.com/2009/07/06/canada-pondering-cash-for-clunkers-too/http://www.autoblog.com/2009/07/06/canada-pondering-cash-for-clunkers-too/#commentsFiled under: , , , , ,



Historically speaking, Canada has gotten the blunt end of the stick when it comes to new car pricing compared to its southern neighbors. Pricing on many vehicles versus an otherwise identical U.S. counterpart has long been comparatively inflated, and America's recently passed Cash-For-Clunkers bill has left many Canadian consumers feeling even more short-changed than normal.

But help may be on the way. The Vancouver Sun reports that Jim Prentice, Canada's environmental minister, is reviewing whether the Great White North should get a Cash-For-Clunkers scrappage incentive program of its own. According to the story, Prentice has met with "a number of auto manufacturers over the past few months" in order to discuss whether the government should issue its own $3,500 incentives to junk old vehicles and purchase new ones.

Interestingly, before a decision is made, Prentice plans to analyze whether a small, existing auto salvage trade-in program in Alberta has had any effect. That program apparently gives eligible owners a comparatively modest sum - $300 - for scrapping their 1995 or older vehicles. Instead of the cash incentive, alternative awards for the current program include up to $490 toward a new bicycle or as much as a year's worth of mass transit passes.

A decision on a Cash-For-Clunkers program for Canada will likely be handed down in the next 60 days.

[Source: The Vancouver Sun | Image: Theo Heimann/Getty]

Canada pondering Cash-For-Clunkers too? originally appeared on Autoblog on Mon, 06 Jul 2009 16:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>car buyingCarBuyingCash for clunkersCashForClunkersjim prenticeJimPrenticenew car incentiveNewCarIncentivescrappageMon, 06 Jul 2009 16:00:00 EST<![CDATA[Chrysler fills out board of directors]]>http://www.autoblog.com/2009/07/06/chrysler-settles-on-board-of-directors/http://www.autoblog.com/2009/07/06/chrysler-settles-on-board-of-directors/http://www.autoblog.com/2009/07/06/chrysler-settles-on-board-of-directors/#commentsFiled under: , ,



The new Chrysler Group, LLC is out of bankruptcy, in bed with the Italians and the U.S. Government, and now it has a complete board of directors. Chrysler is forging ahead with a fresh group of board members, including former governors, Fiat royalty, and some people you've probably never heard of.

Chrysler announced the rest of its nine member board of directors over the holiday weekend, joining active chairman C. Robert Kidder, who was announced in May. Among the new board members are former Michigan Governor and U.S. Congressman James Blanchard, Fiat CEO Sergio Marchionne, Fiat Powertrain CEO Alfredo Altavill and former Northwest Airlines CEO Douglas Steenland.

Noticeably absent from the board is overt representation from the United Auto Workers, which is perhaps surprising as the labor group owns part of the new Chrysler. Hit the jump to read up on all of the automaker's board members.

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

Continue reading Chrysler fills out board of directors

Chrysler fills out board of directors originally appeared on Autoblog on Mon, 06 Jul 2009 08:29:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Alfredo AltavillAlfredoAltavillboard of directorsBoardOfDirectorschryslerchrysler groupChryslerGroupdodgejeepllcsergio marchionneSergioMarchionneMon, 06 Jul 2009 08:29:00 EST<![CDATA[REPORT: Toyota woes spell trouble for Fuji Speedway]]>http://www.autoblog.com/2009/07/04/toyota-woes-spell-trouble-for-fuji-speedway/http://www.autoblog.com/2009/07/04/toyota-woes-spell-trouble-for-fuji-speedway/http://www.autoblog.com/2009/07/04/toyota-woes-spell-trouble-for-fuji-speedway/#commentsFiled under: , , , ,

Toyota's Timo Glock at the 2008 Japanese Grand Prix at the Fuji Speedway

In any game of chicken, it's all about who flinches first. Ever since its first running in 1963, the Japanese Grand Prix has bounced between Fuji Speedway and Suzuka Circuit, the former dominating in the '60s and '70s before the latter got the exclusive in the late-'80s through 2006, at which point Fuji took over again. The rivalry is about more than just the tracks, though: With Toyota owning Fuji and arch-rival Honda owning Suzuka, the back-and-forth has become something of a turf war between the country's automotive powerhouses.

Two years ago, the two tracks worked out a deal that would have the race alternating year to year, sort of like Germany's arrangement between Hockenheim and the Nürburgring. However, emerging reports suggest that tightening belts at Toyota could spell trouble for Fuji Speedway. The costs of hosting a Formula 1 grand prix event continue to escalate, and those costs may be harder to justify for the cash-strapped auto giant - especially if ticket sales don't cover the budget. Honda is likely in no better a financial situation, as evidenced by their unfortunate withdrawal from the sport. But if Toyota flinches first, Honda might win the race... in one sense or another.

[Source: F1-Live | Image: Mark Thompson/Getty]

REPORT: Toyota woes spell trouble for Fuji Speedway originally appeared on Autoblog on Sat, 04 Jul 2009 15:19:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>f1formula 1formula oneFormula1FormulaOnefujifuji speedwayfuji toyotaFujiSpeedwayFujiToyotagrand prixGrandPrixhondahonda f1HondaF1japan gpjapanese grand prixJapaneseGrandPrixJapanGpsuzukasuzuka circuitsuzuka hondaSuzukaCircuitSuzukaHondatoyotatoyota f1ToyotaF1Sat, 04 Jul 2009 15:19:00 EST<![CDATA[Ford reportedly tops sales charts in Canada for first time in 50 years]]>http://www.autoblog.com/2009/07/03/report-ford-tops-sales-charts-in-canada-for-first-time-in-50-ye/http://www.autoblog.com/2009/07/03/report-ford-tops-sales-charts-in-canada-for-first-time-in-50-ye/http://www.autoblog.com/2009/07/03/report-ford-tops-sales-charts-in-canada-for-first-time-in-50-ye/#commentsFiled under: , , ,


2009 Ford F-150 - Click above for high-res image gallery

Given the state of the market, the Ford Motor Company is on a bit of a roll right now. The Blue Oval posted an 11% decline in volume for June versus the same month in 2008; a far better number than nearly every competitor from Japan or Detroit. Ford also flat-out dominated the market in the Great White North, as the Dearborn, MI-based automaker ranked number one in sales volume for the first time in 50 years.

Ford outpaced perennial market leader General Motors by a substantial (for Canada) 5,000 units. Ford posted 27,408 sales for the month; a 24.6% increase over June 2008. Toyota and Honda also were in the rear view mirror, as the Japanese stalwarts managed sales declines of 17%. Chrysler was a distant fifth place, as bankruptcy and an outdated product lineup conspired to sink sales by 58% verses June 2008. Overall sales in Canada were down 13% on the month.

Ford's increase in sales was due in part to a surprising 41% increase in CUV and SUV sales. The F-150 also posted a healthy 59% increase, with Ford's Edge was up 23%.

[Source: London Free Press]

Ford reportedly tops sales charts in Canada for first time in 50 years originally appeared on Autoblog on Fri, 03 Jul 2009 18:15:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>chryslerfordford canada salesford motor companyFordCanadaSalesFordMotorCompanygeneral motorsGeneralMotorsgmhondatoyotaFri, 03 Jul 2009 18:15:00 EST<![CDATA[REPORT: A1GP and Speedcar racing off into the sunset]]>http://www.autoblog.com/2009/07/03/report-a1gp-and-speedcar-racing-off-into-the-sunset/http://www.autoblog.com/2009/07/03/report-a1gp-and-speedcar-racing-off-into-the-sunset/http://www.autoblog.com/2009/07/03/report-a1gp-and-speedcar-racing-off-into-the-sunset/#commentsFiled under: ,



In the wake of Formula One's near collapse and the shock resignation of Indy chief Tony George, it'd be all to easy to assume these are the only two racing series in serious trouble. However, emerging reports indicate that they're only the tip of the proverbial iceberg.

According to the latest, both the Speedcar and A1GP series are on the verge of total collapse. The former, for those unacquainted, is a stock car series pitting former F1 drivers like Jean Alesi, Heinz-Harald Frentzen and Jacques Villeneuve against each other on tracks around the Middle and Far East. After only two short seasons of operation, Speedcar's official website is offline and reports suggest the cars have been parked along with it.

Meanwhile, the A1GP World Cup of Motorsport, an open-wheel feeder championship between various national teams, appears to be going down the same path. Only one season after unveiling their new Ferrari-designed and -powered spec single-seaters, A1 Grand Prix Operations Ltd has reportedly declared bankruptcy and began liquidating its assets. A1 was starting to position itself as an alternative to the likes of GP2 and the new Formula 2 as a feeder series for aspiring F1 drivers, but its purported collapse will leave that territory to the mainstream series, while Speedcar's demise will leave one less sunset into which burnt-out grand prix pilots can ride off.

[Source: F1-Live]

REPORT: A1GP and Speedcar racing off into the sunset originally appeared on Autoblog on Fri, 03 Jul 2009 07:58:00 EST. Please see our terms for use of feeds.

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With the ink still wet on the Fiat/Chrysler deal, many auto sites (including Autoblog) have had a bit of fun prognosticating which Fiat/Alfa models would be rebadged as Chrysler products. U.K. site Autocar is reporting that Fiat is exploring bringing in Dodge models to Europe to be rebadged at Alfa Romeos. CEO Sergio Marchionne is said to be considering the move, saying that the two brands share the same core identity.

Autocar quotes Marchionne as saying that Dodge is the muscle car of the U.S. while Alfa is the muscle car of Europe, the latter being an interesting bit of positioning that we Statesiders don't normally associate with the brand. If the right Dodge-branded products were to make their way to Europe, the theory is that the Auburn Hills marque could actually bolster the products already offered by Alfa. The problem is, though, that there are few (if any) Dodge models that could reasonably be expected to perform well in Europe. The only models that are likely to be of interest are the Charger, Viper and Challenger, and the there is a chance that the Viper could soon find itself outside of the Chrysler portfolio altogether. The Charger and Challenger are likely too big for Europe as well, and would probably only sell in small numbers.

Marchionne also tells Autocar that the Chrysler group is still losing money, but the rate has slowed due to production and labor cuts.

[Source: Autocar]

REPORT: Dodges to be rebranded as Alfa Romeos in Europe originally appeared on Autoblog on Thu, 02 Jul 2009 19:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>alfaalfa romeoAlfaRomeododgemarchionnerebadgingsergio marchionneSergioMarchionneThu, 02 Jul 2009 19:00:00 EST<![CDATA[REPORT: Despite having no real value, investors continue to trade GM stock]]>http://www.autoblog.com/2009/07/02/report-despite-having-no-real-value-investors-continue-to-trad/http://www.autoblog.com/2009/07/02/report-despite-having-no-real-value-investors-continue-to-trad/http://www.autoblog.com/2009/07/02/report-despite-having-no-real-value-investors-continue-to-trad/#commentsFiled under: ,



As of 10 am this morning, General Motors stock was trading at about 80 cents. If you think that is a bit of a bargain, you may be a bit of crazy. With The General apparently almost finished with bankruptcy, there is near certainty that the company's common stock will mean exactly nothing in a manner of days or weeks.

GM is warning investors that the stock grab is a bad idea, releasing a statement reiterating its "strong belief that there will be no value for the common stockholders in the bankruptcy liquidation process, even under the most optimistic of scenarios."

With GM common stock scheduled for oblivion in the near future, it seems likely that any money spent on stock in the struggling company would be more useful as kindling for a bonfire. Since the new GM will be owned by the federal government, unions and shareholders, the stock-buying public likely won't have an opportunity to buy in for months - or more likely, years.

[Source: Detroit News | Image: Scripophily Trader]

REPORT: Despite having no real value, investors continue to trade GM stock originally appeared on Autoblog on Thu, 02 Jul 2009 14:01:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bankruptcycommon stockCommonStockgeneral motorsGeneralMotorsgm stockGmStockThu, 02 Jul 2009 14:01:00 EST<![CDATA[REPORT: Prepare to shell out a lot more for your next rental car]]>http://www.autoblog.com/2009/07/01/report-prepare-to-shell-out-a-lot-more-for-your-next-rental-car/http://www.autoblog.com/2009/07/01/report-prepare-to-shell-out-a-lot-more-for-your-next-rental-car/http://www.autoblog.com/2009/07/01/report-prepare-to-shell-out-a-lot-more-for-your-next-rental-car/#commentsFiled under:


Hertz Fun Collection Chevrolet Corvette ZHZ - click above to enlarge

The economy is in one of the deepest recessions in decades, and one pleasant side-effect of fiscal woes is that many companies are offering huge discounts to get you off the consumer sidelines. One industry that hasn't gone that route so far is the rental car industry. Abrams Consulting Group tells The New York Times that the cost of a week-long rental went from $199 in May 2008 to $345 this year; a 73% increase. The news hasn't gotten much better for June, as the prices went up 65% from $210 to $347. If car rentals are down 15% on the year, why the increase?

The reason for the jump in prices is that there are fewer vehicles to rent, as companies like Hertz and Avis have cut back on the amount of vehicles that they're buying. They're also selling vehicles to used-car starved dealerships. The result of smaller fleets is customers paying more for the cars and trucks that are left. And since customers have become accustomed to getting their rentals at the last minute, some aren't getting a rental at all.

To beat the car rental blues, The New York Times suggests that you start your search earlier. Not getting a rental from companies at the airport is also a good idea, as off-airport companies don't have as much demand. Sites like Priceline and Expedia also generally offer discounts over retail.

[Source: New York Times]

REPORT: Prepare to shell out a lot more for your next rental car originally appeared on Autoblog on Wed, 01 Jul 2009 19:28:00 EST. Please see our terms for use of feeds.

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June auto sales will no doubt be ugly. In all likelihood, the sixth month of the year will be the 24th month in the past 25 to see a year-over-year sales decline. June could also bring a bit of good news, though, as an Automotive News poll of nine different industry analysts shows that sales may hit an annualized rate of 10 million, up from the 9.1-9.9 levels of previous months this year.

The slight pickup in June sales verses May numbers would suggest that the market for new cars and trucks has likely bottomed out. Edmunds predicts that the automaker likely to gain much share in June is Ford, as the car research site predicts sales that its sales are down only 15.6%. The next smallest decline is predicted to be Nissan at 24.2%, and then Toyota, Honda, GM, and Chrysler are all guesstimated to be between 28-32%. The June 2009 sales figures will likely be a bit skewed for Honda, though, as the Japanese automaker had an unusually strong June 2008 because of a big-time push for fuel efficient vehicles due to $4 per gallon gas.

Deutsche Bank analyst Rod Lache has told Automotive News that the second half of the year could see even more of an upward trend due to the freshly minted Cash-for-Clunkers law. Lache says sales could hit 11 million on an annualized rate, though it's likely that most people driving junkers can't afford a new car payment along with increased insurance rates.

[Source: Automotive News subs req'd | Image: Karen Bleier/AFP/Getty]

REPORT: Analysts suggest new vehicles sales could rebound to 10M pace in June originally appeared on Autoblog on Wed, 01 Jul 2009 11:30:00 EST. Please see our terms for use of feeds.

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The final days of MG were disastrous and disastrously expensive. The British government finally has an accounting of what happened, but it only adds to both sides of the disaster: the report took four years and £16 million ($26 million U.S.) for CPA firm BDO Stoy Howard to compile.

For now, various government figures are upset about the delay and the cost. BDO is reported to have spent more than £130,000 ($214,000 U.S.) on hotels and expenses, leading to charges of the firm "living like kings" while MG's workers were living on government support. The report hasn't been released yet, so no one knows what it says. When it is made public, if the MG story continues as it has, what's actually in the report will probably be just as hard to swallow as the lead-up to it.

[Source: Sunday Mercury]

Findings from inquiry into demise of MG Rover finished... only took 4 years and $26M originally appeared on Autoblog on Tue, 30 Jun 2009 18:01:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>BDO Stoy HowardBdoStoyHowardbritainenglandmgroverukTue, 30 Jun 2009 18:01:00 EST<![CDATA[Porsche loan request rejected by Germany's state bank]]>http://www.autoblog.com/2009/06/30/porsche-loan-request-rejected-by-germanys-state-bank/http://www.autoblog.com/2009/06/30/porsche-loan-request-rejected-by-germanys-state-bank/http://www.autoblog.com/2009/06/30/porsche-loan-request-rejected-by-germanys-state-bank/#commentsFiled under: , ,



Porsche is profitable and it owns a big chunk of the far larger Volkswagen, yet cash seems to be in short supply. Automotive News is reporting that the world-renowned luxury sports car maker's 1.75 billion euro ($2.45 billion USD) loan request from German state bank KFW has been rejected, leaving Porsche to search elsewhere for funding. Porsche secured 10.75 billion euros ($15.1B) in financing from banks in March to feed its 9 billion euro debt ($12.6B) mountain, but it's looking for alternative means for financing its cash crunch.

Porsche has already looked outside of Europe for funding to handle its mounting debt, as it worked with the Arab emirate of Qatar to secure a sizable stake in the company. VW, smelling blood in the water, reportedly gave Porsche an ultimatum, offering up 3-4 billion euro ($4.2-$5.6B) for 49% of the sports car maker in exchange for not forcing the repayment of a 700 million euro loan ($983M) in September. Porsche responded by saying that ultimatums don't belong in the 21st century. Unfortunately, bankruptcies are all too common in the new economy, so the proud German company may have to dig a bit deeper to keep themselves from falling into the financial abyss.

[Source: Automotive News (subs req'd) | Image: Michael Latz/Getty]

Porsche loan request rejected by Germany's state bank originally appeared on Autoblog on Tue, 30 Jun 2009 16:27:00 EST. Please see our terms for use of feeds.

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2010 BMW 5 Series Gran Turismo - Click above for high-res image gallery

Life is hard at the top, whether that precipice happens to be at the zenith of the overall sales chart or of a specific market niche, such as Lexus' position as the best-selling luxury automaker in the United States. Toyota's posh brand has held the top spot since the year 2000, with BMW perpetually trailing in second place. Could 2009 finally be the year that BMW breaks through to number one?

So far this year, Automotive News is reporting that BMW's 76,819 total sales in the States puts the German brand slightly ahead of Lexus, which has moved a total of 73,186 units thus far in '09. Both brands are down somewhat from 2008, though BMW's 30.5% decline is not quite as severe as Lexus' 37.2% fall. Neither automaker is interested in boasting of its successes in this market, though BMW will gladly accept the extra market share. Speaking to Automotive News, Jan Ehlen, a spokesman for BMW of North America, said:
This year's emphasis is on maintaining our market share and even growing our share a bit. If this results in remaining in the top spot of the premium market, that would be a nice bonus.

Gallery: 2010 BMW 5 Series Gran Turismo


[Source: Automotive News]

REPORT: BMW threatening to oust Lexus as #1 luxury automaker in U.S. originally appeared on Autoblog on Tue, 30 Jun 2009 13:30:00 EST. Please see our terms for use of feeds.

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According to Reuters, General Motors is on its way into bankruptcy court today in an effort to win approval and access to additional federal funding under its asset-split plan. The automaker filed for Chapter 11 protection just 30 days ago, but it will now go before Judge Robert Gerber to sell desirable assets (think: Chevrolet, Cadillac, GMC, Buick) to "New GM" and jettison various debts and negative assets by consigning them to "Old GM," which would be liquidated. If it succeeds in winning court approval, GM will receive billions in U.S. Treasury funding.

Before it can open the Fed's piggy bank, however, GM must weather challenges from bondholders and disgruntled consumers involved in certain types of product liability lawsuits. Industry watchdogs believe that both GM and the Obama administrations auto task force have learned from Chrysler's bankruptcy machinations, which could accelerate the process. For more details on today's proceedings, check out the link below. Thanks for the tip, Michael!

[Source: Reuters via Yahoo | Image: Michael Heiman/Getty]

REPORT: Federal bankruptcy court expected to rule on "New GM" originally appeared on Autoblog on Tue, 30 Jun 2009 10:57:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto task forceAutoTaskForceBad GMBadGmbankruptcyChapter 11Chapter11GMGood GMGoodGmJudge GerberJudgeGerberNew GMNewGmobamaOld GMOldGmRobert GerberRobertGerberTue, 30 Jun 2009 10:57:00 EST