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.

With sales numbers continually bad and plants just now awakening from long idle periods, suppliers are particularly vulnerable to financial trouble. Seat supplier Lear Corporation failed to pay a $38 million obligation on June 1st, and the grace period has just run out. With General Motors as its largest customer, and a significant amount of Blue-Oval business, as well, Lear's late 2008 gamble of borrowing $1.2 billion as a hedge against Detroit bankruptcy has proven difficult for the company to pay back. The supplier of seats and electronic components filed for Chapter 11 today in U.S. bankruptcy court for the Southern District of New York. The company hopes to operate business-as-usual while it restructures and plans to emerge from bankruptcy within 60 days.

Lear has been trying to find more diverse automakers to do business with besides the Detroit 3, but in the meantime, the seat and electronics manufacturer will reorganize and try to turn its fortunes around quickly. Investor Carl Icahn made a deal to buy out Lear shareholders a couple of years ago that might have prevented all this, but his deal was met with resistance over the price per share he was offering. Instead of the $37.25 per share Ichan was offering, current shares of Lear are likely to be worth a big old goose egg once Lear starts coughing up to it creditors. While some Lear seats may be very good at coddlng keisters, the company now has a lot of work to do to save its own ass.

[Source: Automotive News - sub. req'd | Photo by Bill Pugliano/Getty]

General Motors has cleared a major hurdle to get out of bankruptcy quickly, as U.S. Judge Robert Gerbe has finally given the automaker the go-ahead to sell off its best assets to a newly formed company that analysts have been calling "New GM". The new GM will include assets like the Chevrolet and Cadillac brands, plus plants and production facilities that haven't scheduled for closure. The old GM will consist of soon-to-be shuttered plants, the Pontiac brand and mountains of debt and liabilities.

Judge Gerbe gave the go-ahead on Sunday because he felt not doing so would cause "immediate and irreparable harm" to the 100-year-old company. The Detroit Free Press is reporting that the Treasury Department was threatening to cut off funding to GM if the sale didn't go through by July 10. Hundreds of GM's debtors requested that the sale be rejected, but Judge Gerbe's ruling likely means that the affected parties won't see much, if any money owed.

GM entered Chapter 11 bankruptcy protection on June 1, and if New GM actually does emerge from bankruptcy this week, the fourth largest bankruptcy in this country's history will have been completed inside of just six weeks. The timeframe is very similar to that of the much smaller Chrysler, which needed only 42 days to exit bankruptcy.

[Source: Detroit Free Press, Photo by Hiroko Masuike/Getty]

A year ago, we showed you pics of the next-generation BMW 5-Series doing some high-speed testing on the Nürburgring, but that was pretty much the last we heard about this midsize bahnstormer. Well, intrepid spy photographer Rich Truesdell spotted a similar mule out in the desert last week, and he has filled us in on some additional details. The car he spotted appears to be a 2011 BMW 540i sedan. Rich relates that the car was big enough to have him thinking 7-Series at first, but BMW helped out by having a clearly larger current 7 on hand for comparison purposes. How thoughtful of them.

While not a lot of final detail shows through, Truesdell points out that the heavy rear quarter cladding could be a tip that something is brewing in the recently revamped styling department in Munich. In particular, around the C-pillar, there was a lot of camo, indicating that perhaps there's something worth hiding. Beyond that, the sedan looks like a shortened 7-Series from most angles, and the dual exhausts suggest that this is likely the V8-powered 540i. Follow the source link to read what Rich thought of the vehicle and to see all of the photos in high-res.



All images © 2009 Rich Truesdell/Automotivetraveler.com

[Source: Automotive Traveler]

Despite having fewer model variations on the market, pent up demand for the 2010 Chevrolet Camaro appears to have been enough to send the bad Bowtie past Ford's redone Mustang in June. Sales figures for the month are beginning to trickle in today, and General Motors says it shifted 9,320 Camaro units last month, as compared to the Blue Oval's 7,632 Mustangs.

Whether Chevrolet's victory will be sustainable over the long haul remains to be seen, but as The General has a backlog of 10,000 sold orders to fill (equating to less than a seven day supply), the streak is likely to continue for at least the next few months. Presently, GM offers just two main Camaro models, the V6 RS and the V8-powered SS, while the Ford Mustang has more bodystyles and trims than you can shake a stick at (arguably making the Camaro's achievement seemingly that much more impressive).

Sales of the third leg of 2009's pony car table, the Dodge Challenger, trail far behind, with just 1,369 units cleared last month.

As the industry heads into the dog days of summer, it looks like America's renewed pony car war is just heating up. Who will take the crown for the whole year? Sit tight, muscle fans.



Photos Copyright ©2009 Alex Nunez / Weblogs, Inc.


Photos Copyright ©2008 Drew Phillips / Weblogs, Inc.

Although it is isn't slated to be officially revealed until this fall's Frankfurt Auto Show, it feels like we've been seeing the wraps come off BMW's X1 baby crossover for years now. Thanks to a steady stream of spy shots over the last 18 months or so, we feel like we ought to be able to tell you not only the shape and size of the glovebox, but the material its walls are made of. Regardless, these are the first official shots of the X1 that have leaked out on the web, apparently because of German magazine FOCUS online.

As we've already seen almost all elements of the X1 already, the final shape doesn't surprise us, which appears much like a shrunken X5 mixed with styling cues from the bull-nosed 7-Series, 5-Series Gran Turismo, and of course, last year's X1 Concept.

The inside is typical Bimmer fare as well, with a sober but handsome and well-screwed-together look. The usual accoutrements are present in the photo models' driver oriented instrument panels, including iDrive, USB ports, and thumb-shifters for the automatic.

We're already tired of BMW's awkward model naming conventions, but regardless, the CUV is expected to launch in Europe in xDrive18i and xDrive 18d configurations, along with an xDrive20d model whose 177 hp diesel is apparently good for 60 mph in 8.4 seconds, an xDrive23d model with a 204 hp oil-burner (0-60 mph in 7.3 seconds, top speed of 139 mph), as well as the xDrive28i, which is apparently good for 143 mph. No word yet on what models we'll see in the U.S. just yet, but we'd be surprised to see anything less powerful than the xDrive28i in Stateside dealers, and we'll keep our fingers crossed for a diesel variant.

According to current scuttlebutt, the X1 will launch in autumn exclusively paired with all-wheel drive, but rear-wheel drive versions are expected to come on line soon thereafter. Check out the gallery below and keep checking back with us for further details as they become available.

It's the end of an era for open-wheel racing in America as Indy chief Tony George has stepped down from his post. The long-time president of the Indianapolis Motor Speedway, George was widely seen as the impetus for the 1996 split in Indy racing that created the Indy Racing League (IRL) and the rival Champ Car series (formerly known as CART), but he was also instrumental in fostering the merger of the two championships into the new IndyCar Series over which he's presided.

During his nearly two-decade tenure as the head of the famous race track, George also brought NASCAR, Formula One and MotoGP to the speedway for the first time, vastly expanding the calendar of events at the iconic venue. However, elements within the Hulman-George company that controls the business were concerned with the amount of resources their chief executive put into the reintegrated IndyCar Series and recently asked him to reorganize the company, but Tony evidently decided to step down instead. He'll be focusing his energies on the Vision Racing team which he fields in the series, while the job he vacates will be split into two: CFO Jeffrey G Belskus will take the reins at the speedway, while chief legal counsel W Curtis Brighton will oversee the operation of the series.

[Source: Autosport | Image: Jonathan Ferrey/Getty]

The saga of California's greenhouse gas waiver has come to an end with the EPA deciding that the state can indeed enforce its own GHG emissions standards for new motor vehicles. This means that, at least between now (with current model year vehicles) and when the 2012 MY vehicles arrive, California and the 13 states (and D.C.) that have adopted its rules will use the stricter emission standards to regulate vehicles. In the EPA's statement on the decision, it says it used "the law and science as its guide," in order to "tackle air pollution and protect human health." EPA Administrator Lisa Jackson says:


Here's a short history of the waiver story: CARB asked for the waiver in December of 2005. The EPA announced in December of 2007 that it would deny the waiver (after then Vice President Dick Cheney met with automakers). The day after Barack Obama was inaugurated, CARB asked the EPA to reconsider the denial, a request that the new President supported. When strong national CAFE standards were announced in May, the EPA's waiver lost a bit of its punch, but it still wanted the waiver to bridge the gap between now and when the CAFE rules go into effect with 2012 vehicles. Today, the EPA said "okay." Come to think of it, this saga probably isn't as final as this decision might imply. Check out the official press release after the jump.

[Source: EPA | Image: David McNew/Getty]

Calling it "the most disappointing Honda Consumer Reports has tested in a long time," America's most influential product testing magazine has given extremely poor marks to the Japanese automaker's new Insight hybrid.

In a verdict that reminds us of a certain Jeremy Clarkson review (albeit more kindly worded), Consumer Reports blasted the gas-electric hatchback for its "ride quality, handling, interior noise, acceleration, rear-seat, access, and visibility," consigning the hapless Honda to a 21 out of 22 ranking among other small hatchbacks and wagons. Tallying a road test score of 54 points, it was trailed only by the widely panned Dodge Caliber, which managed just 49 points.

Despite the fact that it won't receive a much-coveted CR "Recommended" nod, the Insight still managed to post a "Good" overall road test score (largely on the strength of its 38 miles-per-gallon as-tested fuel economy). Regardless, it was comprehensively beaten by both the Volkswagen Jetta Wagon and the Hyundai Elantra Touring, which scored 80 and 79 points, respectively.

The Insight was the only vehicle in CR's test group to not to be Recommended, save Kia's Soul, which was excluded because the organization hasn't compiled any reliability data on the vehicle yet. Check out the press release after the jump and our new review of the car by clicking here.



[Source: Consumer Reports]

Four 500s by 2011. That is the latest word out of Italy concerning the adorable Fiat 500. While the Chrysler/Fiat merger chugs along, the tiny 500 is the only model that has been officially greenlighted for American consumption under the Fiat banner. To make up for that dearth of models, Fiat will apparently offer the 500 in four different flavors when it reaches these shores: hatchback, convertible, station wagon and sporty hatchback. There's also an outside chance of a micro-CUV according to this Automotive News piece.

The "sporty hatchback" will be the Abarth, Europe's 2008 Car of the Year. Chrysler/Fiat CEO Sergio Marchionne calls it "our iPod." Wonder if it's too late for some co-branding. While it might seem that a sporty wagon and sporty drop-top would be fairly easy to slot into the mix (Abarth Giardiniera SS Corsa, FTW!), we'll have to make due with those four iterations for the time being. The 500 family should be in U.S. dealerships by the first half of 2011. The American-market cars will likely be produced at a Chrysler plant in the United States or in Toluca, Mexico, but there's no official word on U.S. pricing yet.



[Source: Automotive News - sub. req'd]