McCain has no plans for Detroit bailout

Back in the late seventies and into early eighties, Chrysler had gotten itself into such horrid financial shape that the U.S. government decided to step in and fix the situation itself. Considering the sorry state of affairs that all three of the Detroit automakers find themselves in today, some may wonder if a government-funded bailout is in the cards. Not so much... at least according to John McCain. "Frankly I just don't see a scenario where the federal government would come in and bail out any industry in America today," says the Republican.

So, what plan does McCain have in store for the Detroit 3? More Chevrolet Cobalts and Pontiac G5s for one, as the Arizona Senator said the above words after touring the plant in Lordstown, Ohio where the GM compact cars are made and a where third shift has just been added. "I am convinced that what is being done at the Lordstown assembly plant is the future of the American auto industry," added McCain.

In more related good news for the U.S. automakers, McCain says he supports nationwide CO2 standards and would oppose any state's individual plans -- California, we're looking at you. The Presidential hopeful also wants to see more fair-trade standards implemented with the other various auto-building nations and quicker violations for unfair practices. We await a response from the Democratic side.

Ferrari California assembly underway at Maranello

Several months ahead of its scheduled debut at this fall's Paris auto salon, production of the new Ferrari California has already begun at the Ferrari factory in Maranello. The news comes after previous speculation suggested that the California might have to be assembled off-site – potentially at sister-company Maserati's nearby facility in Modena – because the existing Ferrari assembly lines were already at full capacity. However, having now unveiled its newly-retooled manufacturing facility under the Formula Uomo program, the company has apparently increased production capacity to accommodate the assembly of the California, thus securing its legitimacy in the eyes of enthusiasts and potential customers alike.

2008 Mazda MX-5 Miata Retractable Hard Top

Just as it appeared that winter was finally drawing to close here in Michigan, one of the definitive summertime cars turned up on our doorstep -- the Mazda MX-5 Miata . Somewhere back in the middle part of the last century, small, lightweight, roadsters flourished with a variety of models available from mostly British manufacturers. Names like MG, Triumph, Austin-Healey and Lotus defined the genre. Unfortunately, a number of factors such as random intermittent windshield wipers, intermittent headlights, intermittent ignition, persistent oil leaks and predisposition for the bodies to convert to iron oxide soured the reputation of these and other car builders. This was followed by the consolidation of the most of the British car industry into British Leyland and then the onset of safety and emissions regulations. By 1980, the classic British sports car had become all but extinct.

Then a strange thing happened. Mazda, always had a reputation as being slightly offbeat (witness its dedication to the Wankel rotary, which exists to this day) introduced a new model dubbed the MX-5 Miata . This compact, rear-drive two-seat roadster bore a strong resemblance to a '60s vintage Lotus Elan. However, unlike the Elan and its compatriots, the Miata started every time you turned the key, didn't leave you drenched when it rained, and didn't leave puddles of oil on your garage floor. In other words, it was a classic British sports car that worked like a modern Japanese car. Read on after the jump to find out how the latest incarnation fares.

New Porsche 911 Targa next in the 997 pipeline

When Porsche introduces a new 911 update, you know exactly what that means: derivatives. The Porsche 911 has more derivatives, body-styles and variants than just about any other automobile in production, and after unveiling the latest 911 Carrera and Carrera S, Carerra 4 and Carrera 4S, in both coupe and cabrio formats, the next version due for release is the 911 Targa.

Porsche defined the term Targa when it borrowed the name from the famous Sicilian race, the Targa Florio, and applied it to its lift-roof-section model, bridging the gap between its convertibles and coupes. The outgoing 911 Targa features a sliding panoramic roof section, but we'll have to wait and see what tricks Porsche has up its sleeve for the newest version.

Buick Reatta a design flop?

The Buick Reatta a design flop? That's what a University of Michigan professor told The Wall Street Journal recently. Really? The Reatta is the one car that he could find to pick on as an automotive design flop? Sure, the high-tech coupe was overweight and underpowered, overpriced and under-appreciated. But a design flop? I think most of us would agree there are uglier, slower, more poorly-made cars in the history of automobiles. Our Dan Roth even called it a Future Classic not too long ago.

The story is part of a larger collection of design studies that looks at everything from blue jeans to concrete saws. One other automotive element of the series is a gushing story and video about Buick's Invicta concept car. If the piece is to be believed, the LaCrosse that may be based on the Invicta, will surely never make it onto a list of design flops.

So by that logic, fake, plastic portholes insure design success, but sexy, restrained style doesn't.

Aston Martin suits up a Kilgour V8 Vantage for Paris fashion show

Supercars and high fashion go together like super models and getting high, so for its first ever fashion show in Paris, bespoke tailor Kilgour of Savile Row has presented its spring/summer collection alongside a bespoke Aston Martin V8 Vantage coupe. The haute couture Aston is dipped in a one-off Morning Forst Satin paint described as having the texture of fine silk, which would be quite a feat if true since metal usually feels nothing like fabric. The interior is also done up in Kilgour Midnight Blue with polka-dotted seat inserts. Apparently circles are Kilgour's trademark shape, hence the gaudy pattern on the seats. We don't understand high fashion very much, like why people care about apparel that's completely impractical and overpriced, but we suppose some could say the same thing about the cars we like. For instance, the Aston Martin V8 Vantage. Well, those people just don't understand.

Nissan GT-R deliveries begin July 7th, 70-percent spoken for

For the lucky 1,700+ people who have already preordered their 2009 Nissan GT-R, the wait is about to end. On Monday, July 7th, Nissan will begin delivering its first allocation of GT-Rs for the U.S. market to dealers. According to a Nissan spokesperson, the 70-percent preorder rate for the GT-R exceeded the automaker's expectations, and we somehow doubt Nissan will have a hard time finding buyers for the remaining 30 percent.

Pricing for the GT-R remains the same, with the base model coming in at $69,850 and the premium model listed at $71,900. Destination and handling costs amount to $1,000 and the only options available on the 2009 model are an iPod converter ($360), GT-R floor mats ($280) and the "Super Silver" special paint ($3,000). Make the jump for the press release.

Chrysler LLC Launches Umbrella 'uconnect' Name for Connectivity Technologies

Today's consumers are passionate about staying in touch and want to be connected no matter where they are home, work, school or vehicle. To focus on the experience and connect customers to the things that matter the most, Chrysler LLC will now bundle innovative consumer technologies under one umbrella name - "uconnect." The function of the feature is directly in the name - uconnect phone, uconnect tunes, uconnect gps, uconnect studios and uconnect web.

"We set out to connect customers to the things that matter most to them," said Deborah Meyer, Vice President and Chief Marketing Officer - Chrysler LLC. "The role for 'uconnect' in the 2009 model year places the focus on the customer experience and how the features will make their life easier."

What it does: Uses Bluetooth(R) technology to provide voice-controlled wireless communication between the occupants' compatible mobile phones and the vehicle's onboard receiver. New for 2009, the hands-free system automatically downloads up to 1,000 phone book entries from supported phones. The system also recognizes three languages, and is capable of learning. Voice commands can manage onboard phone book entries, select radio stations and access voice mail. Voice memos can be recorded using the microphone that's integrated within the rearview mirror. Three memos of up to thirty seconds each can be stored in the system. The hands-free option promotes safety, freedom, value and flexibility.

Availability: Chrysler 300, Aspen, PT Cruiser, Sebring and Town & Country; Dodge Avenger, Grand Caravan, Caliber, Challenger, Charger, Dakota, Durango, Journey, Nitro, and Ram; Jeep(R) Grand Cherokee, Commander, Compass, Liberty and Patriot

Part of uconnect phone on select Chrysler, Jeep and Dodge vehicles is an iPod interface, which allows an iPod to be plugged into the vehicle's sound system to play music through the vehicle's speakers, charge/recharge the iPod when the ignition is on, display artists and music choices on the radio and pause play when uconnect phone receives a phone call. The iPod can be controlled through the radio controls and the remote steering wheel switches (if equipped). The system uses a Universal Customer Interface (UCI) connector located either in the glove box or in the center console, depending on vehicle model.

uconnect tunes

What it does: uconnect tunes includes the following features for music, movie and personalized picture display:

A 30-gigabyte hard drive for ripping up to 6,700 songs from CD or USB memory devices in compressed format (either MP3, AAC or WMA file formats)

Photos can be loaded onto the hard drive, allowing the customer to personalize the home screen

Movies can be displayed on the screen for entertaining passengers when the vehicle is in Park (as permitted by the state regulations)

Availability: Chrysler 300, Aspen, Sebring and Town & Country; Dodge Avenger, Caliber, Grand Caravan, Challenger, Charger, Journey, Nitro and Ram 1500; Jeep Commander, Compass, Grand Cherokee, Liberty and Patriot

uconnect gps

What it does: uconnect gps combines the features of uconnect phone and uconnect tunes with navigation and real-time traffic. The system includes an integrated voice recognition system and touch screen for easy operation. The voice recognition system also recognizes more than 100,000 words and can input addresses, which allows the customer to enter destinations while the vehicle is in motion.

Availability: Chrysler 300, Aspen, Sebring and Town & Country; Dodge Avenger, Caliber, Grand Caravan, Challenger, Charger, Journey, Nitro and Ram; Jeep Commander, Compass, Grand Cherokee, Liberty and Patriot

uconnect studios

What it does: uconnect studios offer optional SIRIUS Backseat TV(TM), featuring three channels of family TV programming, and optional SIRIUS Satellite Radio, with more than 130 channels of the best music, entertainment and information coast to coast. The systems can be bundled or opted for independently depending upon model availability, and either can be operated from the rear-seat entertainment unit or from the radio head unit.

Chrysler's uconnect studios offer optional SIRIUS Satellite Radio which provides more than 130 channels, including 69 channels of 100 percent commercial-free music, plus sports, news, talk and entertainment. Station selection with the radio is easy, using the same familiar method as choosing an AM or FM station. Consumers are able to scan channels or have preset buttons for their favorite channels. They can also search both by music category and channel, which is displayed on the radio screen.

Availability: SIRIUS Satellite Radio is available on all Chrysler, Jeep and Dodge vehicles

Chrysler's uconnect studios offer optional SIRIUS Backseat TV which features three channels of family TV programming: Nickelodeon, Disney Channel and Cartoon Network. SIRIUS Backseat TV operates via an in-vehicle satellite video receiver and two small roof-mounted antennas. Programming is displayed on the vehicle's second- and/or third-row video screens, and channel name, program title and rating is broadcasted and displayed on the screen. In addition, when the vehicle is in Park, programming can be displayed on the uconnect tunes or uconnect gps screen for front-seat viewing (as permitted by state regulations). New for 2009 in the Chrysler Town & Country and Dodge Grand Caravan are larger nine-inch rear-seat video screens that swivel.

Availability: Chrysler 300, Aspen and Town & Country; Dodge Grand Caravan, Charger, Durango, Journey and Ram 1500; Jeep Commander and Grand Cherokee

uconnect web

What it does: The system will provide high-speed data transfer and flexibility, combining WiFi and cellular connectivity for a new level of wireless technology. The system transforms the vehicle into a "hot spot" to deliver the Internet directly to the vehicle, for instant access to Web sites, e-mail, personalized music, online gaming, photo albums, and more.

Availability: Chrysler plans to offer aftermarket in-vehicle "hot-spot" wireless Internet capability through Mopar(R) for Chrysler, Dodge and Jeep vehicles.

At Reva launch, govt welcomes hybrids

Governments do not usually launch cars. Companies do. Wednesday, however, was different as Delhi chief minister Sheila Dikshit launched the battery-operated vehicle Reva and announced a 29.5% discount on the vehicle. The Delhi government also announced that it would consider incentives for and subsidies on hybrid cars the automobile industry's latest answer to environmental pollution and rising fuel prices.

"We will certainly consider concessions for the hybrid cars and welcome any new technology that helps improve air quality," Delhi Chief Minister Sheila Dikshit said after unveiling a new version of 'Reva', India's only electric car that is getting concessions from the government.

In April this year, the cabinet had decided to give a 29.5% concession to purchasers of battery-operated vehicles. The concession includes a 15% subsidy on the base price of the vehicle, a VAT refund of 12.5% both of which will be paid through the air ambience fund that was created out of the 25p cess the state government had imposed, about three months earlier, on every litre of diesel. A 2% concession on road tax and registration expenses will also be sourced from the same fund. The state government has already earned Rs 10 crore from the cess, Dikshit said.

Reva is the first car to be accorded that benefit. After the concession, the price of the Rs 4.25 lakh vehicle will come down to Rs 2.99 lakh for the base model. Reva Electric Car Company (RECC) Deputy Chairman Chetan Maini said the company planned to increase the production of electric cars over the next three years as it would be launched across many metros in India and even targeted at markets in Europe and South-East Asia.

Dikshit said that buyers of battery-operated two-wheelers might also be able to avail of similar concessions soon. The government's decision to consider similar concessions for hybrids come as good news for companies that plan to launch hybrid vehicles. Honda launched India's first full hybrid vehicle in a new petrol-electric version of the 'Civic' sedan, although the high cumulative duties on the model have doubled the price of the vehicle to Rs 21.5 lakh from Rs 11 lakh for the petrol-only version. Others like Toyota, Mahindra and even Tata are likely to follow soon.

"We welcome the intention of the Delhi government to consider concessions for hybrids. We have already apprised the central government about our technology and are open to approaching the Delhi government," a spokesperson for Honda said.

Pointing out that almost 1000 new vehicles were registered in Delhi every day, Dikshit said, "We are deeply concerned about what will happen to the air quality with the increasing number of cars in Delhi. Diesel as we all know is the greatest polluter." People who could afford more than one car should explore options like electric vehicles, she said.

Objection! Burberry edition Maserati Quattroporte spotted in Saudi Arabia

Think "Maserati" and "Burberry" and there are so many ways this could have gone classy. But this isn't one of them. Seems some fool with too much oil money and not enough taste has plastered his Quattroporte in what appears to be perforated Burberry-plaid gift-wrap paper. If this were some sort of new camouflage on a test mule for the newly revised Quattroporte, we'd say it was effective (who could focus on the details in between the bouts of vomiting?), but somehow we don't picture the Italians doing anything this horrendously tasteless. In fact, we'd encourage Maserati to track down the owner and repossess the vehicle immediately. Click on the thumbnails below to see more of the Burberry-spangled Maser... if you must.

Ferrari California: new images hit the net

For the unveiling of its first front-engined V8 sportscar, Ferrari rolled out a dedicated launch site. But up until now, the site (as well as the company's media portal) only gave us a glimpse at a handful of studio shots. Germany's AutoBild, meanwhile, managed to obtain a handful of new shots of the California out in the open, inside and out and front to back. Natural sunlight seems to soften the sportscar's lines a fair deal... but don't take our word for it: Check out the images in the gallery below to see for yourself.

U.S. auto giants race to go small

The auto industry is rushing to adapt to the world of $4-per-gallon gasoline, but the effort is a costly one that could tax America's homegrown carmakers most of all.

From Honda to Ford, all the automakers are ramping up production and design of high-mileage small cars and gas-electric hybrids. But consumers shouldn't hold their breath for hot deals on 50-mile-per-gallon vehicles.

The challenge: Product line make-overs can't be accomplished overnight, and a deep slump in current sales is burning through the cash available for investment.

In the past few days, Ford Motor Co. has announced production cutbacks for its light trucks, General Motors has unveiled big incentives to unload showroom inventory, and even Toyota has warned that it may have to scale back its sales target for the year.

In this climate of an overall sales decline, the US brand names are the hardest hit: For the first year ever, they may account for less than half the nation's car sales.

"That is certainly possible," says Tom Libby, an analyst at J.D. Power in Detroit. "In May we saw a dramatic shift in the marketplace."

For months now, high gas prices have been pushing consumers toward smaller cars and from sport-utility vehicles toward so-called crossovers, which offer SUV amenities on a lighter frame.

In May, it became clear that this could be a crossover year in other ways as well. If sales patterns for that month continue for the rest of the year, it's possible that Asian brand names alone could outsell Detroit-based Ford, GM, and Chrysler.

It's also possible that Toyota could capture the top spot in global car sales from GM.

Moreover, May marked what could be a crossover moment in consumer preferences. Car sales moved decisively higher than light-truck and SUV sales – which plunged after months of slowly cooling.

"It seemed to us that we reached a tipping point where customers began shifting away from these vehicles at an accelerated rate," Ford chief executive Alan Mulally said in a recent conference call with analysts.

As if the pressure from consumers isn't strong enough, new automotive technology is rising on the Washington political agenda for environmental and energy reasons. Sen. John McCain, the presumptive Republican nominee for president, proposed Monday that $300 million in federal prize money go to whoever can develop a leapfrog improvement in electric-car batteries.

Even as large and small companies push for breakthroughs, automakers' near-term plans are fairly straightforward: Emphasize the most fuel-efficient cars they can produce now.

"It is very important ... for all manufacturers to have hybrids in their lineups," says Mike Omotoso, another analyst at J.D. Power.

Here are some of the product-line shifts under way at major automakers:

•Honda announced a month ago that it will launch a new gas-electric hybrid model, like Toyota's Prius, in 2009. It also plans new hybrid versions of the Civic and Fit, and is ramping up production of the gas-only Fit. A key Honda goal, according to news reports: keeping the extra cost of the hybrids below $2,000 per car.

•GM is pushing to launch its new Chevrolet Volt by 2010, a plug-in hybrid to compete against hybrids whose batteries are charged while in motion. "An extended range electric vehicle like the Volt will cost about two cents a mile for electricity from the grid," GM executive Troy Clarke said this month. A new fuel-efficient compact car will launch with Ohio-based production. One GM specialty: "Mild hybrids" that boost mileage by a little less than rivals but at a lower price.

•Ford said last week that it is adding a third shift at a Kansas City plant making its Escape hybrid and Mercury Mariner hybrid. And it said the European Ford Focus and Fiesta, next-generation small cars, will begin production in North America in 2010.

•Toyota is also ramping up its hybrid production – including plans for a plug-in model. The Prius and hybrid Camry have made Toyota No. 1 in the industry's hybrid sales, with 1.4 million customers as of March.

Another fuel-saving option for consumers is diesel. Mr. Omotoso says diesel's fuel economy can be nearly one-third better, but the fuel's price has also been approaching $5 per gallon. Volkswagen's 2009 diesel Jetta is one option for consumers.

Flashier advances, such as fuel-cell vehicles, may not be available on a mass scale anytime soon, analysts warn.

The marketplace is sending a big signal to carmakers. It's just that developing new products takes time. And it takes money that is suddenly in shorter supply as sales fall.

"Everything has shifted faster than probably everyone predicted," says Karl Brauer, editor in chief at Edmunds.com. "Ford had a definite turnaround plan. I think that is starting to get heavily compromised by what's going on."

Honda, by contrast, appears to be bearing up the best in the current climate. One reason: Its lineup is not heavy on trucks, which have been a drag on profits not just for the US Big Three but also for Toyota.

"Hybrids will keep getting more popular," predicts John Wolkonowicz, an auto analyst at Global Insight in Lexington, Mass.

But even as carmakers roll out new models and put pickup trucks on sale, it's not necessarily an easy time for consumers. Some sticker prices are actually going up, as automakers adjust to higher costs for things like steel. And the new hybrid technologies come at a cost.

"You're not going to save any money on any of this," Mr. Wolkonowicz says. "This whole situation is simply going to cost consumers money."

Ford cuts production as it braces for big losses

FORD Motor has announced cuts in production for the second time in two months and has given up on ending its losses by next year, as the scramble by all three Detroit car makers to switch to smaller cars begins to raise questions about how they will get enough cash to ride out the storm.

Ford said the plunge of US truck and SUV sales -- due to record-high petrol prices -- was forcing the new cuts. It even pushed back the launch of its redesigned F-150 pickup truck that once was expected to drive the company's recovery.

The moves suggest the company is bracing for a greater loss in 2008 than its $US2.7 billion loss last year, and Ford said it no longer expected to break even by next year.

In the past few days it has emerged that Ford and General Motors are seeking ways to raise new capital, while Chrysler has slashed costs to conserve cash.

GM CEO Rick Wagoner said the company had enough cash for 2008 but he declined to elaborate any further.

On Friday, Ford chief financial officer Don Leclair said the company had enough liquidity to see it through the year. But earlier in the week CEO Alan Mulally met billionaire investor and major Ford shareholder Kirk Kerkorian and the two discussed Ford's likely need for more capital.

Beyond the next 12 months it would be uncertain what cash the three car makers would have, said Moody's analyst Bruce Clark. "We're looking at 24 months that could stress the liquidity positions," he said. "There could be an unabated burn for every quarter for the next eight, nine or 10 quarters."

Credit ratings firms on Friday warned of impending downgrades of the Detroit Three, raising further concerns about their future cash positions. Standard & Poor's said it was likely to cut ratings on Ford, GM and Chrysler, while Moody's put Ford and Chrysler on the path to a downgrade. GM and Ford led the market down on Friday to its lowest close since mid-March. The Dow Jones 500 slid more than 220 points, or 1.8 per cent, in a broad market rout.

Ford's stock has dropped more than 36 per cent in the past year and, as of March 31, it had cash reserves of $US33.8 billion, with GM's reserves at $US23.9 billion. Both companies are burning cash and spending billions to develop new models.

Making matters worse, Ford and GM's credit arms, which buoyed the car makers in the past, are now suffering losses on truck loans and leases as a result of declining values for used vehicles.

Ford executives said the company had cash for at least a couple of years, and that despite the current problems, Ford would rebound. They said at least some buyers would return to trucks after this year, including the F-150. Ford plans to increase passenger car production by 15 per cent in the third quarter. Ford is also working to bring small cars from its European unit to the US and is looking at converting at least one US truck plant to car production.

Like Ford, GM is slashing production overall to try to stave off a revenue implosion from fast-falling US sales of pickups and SUVs, which generate a huge chunk of Ford's and GM's revenue and profits.

Chrysler, which as a private company no longer reports earnings, faces similar problems and is looking closely at additional cuts to its truck production. Each of the Big Three is likely to report big falls in sales in June. GM, the US market leader for decades, could fall behind Toyota for the month for the first time, according to a report by JD Power & Associates on sales in the first half of the month.

On Friday, Ford said it would delay the much anticipated F-150 launch for two months, until November. It also said it no longer expected to break even in 2009. In April, Mr Mulally said the company expected to make money next year, and in May, after the drop in truck sales worsened, scaled that back to break even.

The retreat represents a black eye for Mr Mulally.

He had appeared to have the company heading in the right direction when Ford surprised investors with $US100 million in net income in the first quarter. Now the former Boeing executive is working on an effort to cut its cash outflow and ramp up production of more fuel-efficient vehicles like cars and hybrids.

"Clearly, we are working our way through changes in the marketplace," Mr Mulally said. "We're trying to give the best guidance we can."

The rise in petrol prices set off a dramatic shift among US car buyers. Trucks that used to be strong sellers suddenly piled up in dealer inventories and consumers started flocking to small cars. Those had appealed to a smaller segment of the market dominated by Toyota and Honda, which had already battered the US makers with their lower cost structures, higher margins and rising sales.

In addition to funding ongoing operations, each of the Big Three has agreed to put billions of dollars into a trust fund over the next few years to cover the costs of health care for their retired UAW workers.

"They (car makers) need to come up with a funding plan, and need to prove to Wall Street they have a strategy to back that plan up," said one large car industry investor.

In recent weeks, GM said it would shutter four truck and SUV assembly plants by 2010, and cancelled development of new pickups and SUVs slated to hit the market in 2012.

Ford is pushing back the F-150 launch, in part to gain more time to clear its inventory of current model trucks. Ford is struggling to sell the 2008 versions with consumers fleeing to cars and hybrids. Even a move this month to offer "employee pricing", discounts Ford offers employees, did nothing to move F-150s out of dealerships. "It's been a blip on the radar screen," said Carlos Garcia, a sales manager at North Country Ford Lincoln Mercury in Coon Rapids, Minnesota, of the incentive program.

Fiat group preparing new sports cars for Abarth, Lancia, Alfa

Any day in which we bring you news of a new Italian sports car is a good day by any account. Today we bring you news of three new sports cars under development under the Fiat group umbrella, which we needn't point out controls most of the Italian automotive industry, including Fiat, Abarth, Alfa Romeo, Lancia, Maserati and Ferrari.

First up to bat is the unique sports car which, as we reported back in March, Fiat is developing for its recently revived Abarth performance brand. Reports now suggest that the Abarth roadster would take an Elise-style approach, and could even borrow underpinnings from Lotus. Power could come from the turbo four in the Punto and 500 Abarth, mounted amidships, but unburdened by a lightweight two-seater chassis.

While we wait for more news on that front, there are parallel reports of a new Lancia coupe-cabrio on the horizon. (This in addition to the rumored Aurelia flagship, anticipated for unveiling in Geneva next March.) Previewed by the Fulvia concept from Frankfurt 2003 (pictured above), the Lancia convertible could also spawn an Alfa Romeo variant. The stage is set, and we'll be keeping a sharp eye out for more news as it emerges.

Hamann Stallion: re-turbocharging the Porsche 911 Turbo

You wouldn't be mistaken for thinking that the Porsche 911 Turbo was already one of the fastest, best-performing sportscars on the road today. But that's where uber-tuners like Hamann – who've tuned everything from the MINI Cooper to the Ferrari 612 Scaglietti – come in to confound expectations and shatter assumptions.

Not satisfied with "only" 480 horsepower, the Hamann Stallion packs a whopping 630 of its namesakes. To achieve that 150hp boost in output, Hamann swapped out the variable nozzle turbochargers and replaced them with... bigger variable nozzle turbochargers. They've also fitted a new stainless steel exhaust, a new air filter and, of course, tinkered with the ECU. But they didn't stop at the engine. Hamann also chopped the roof down by 8 cm (about two and a half inches), bolted on a new aero kit and fitted huge 20-inch three-piece modular rims. They've also done up the interior in ostrich skin, applied some racing stripes and, oh yeah, also Lambo'd out the doors. The result? Well, the suddenly ordinary Turbo hits sixty in 3.9 seconds, but the Stallion cuts that down to 3.3. Not too bad for a day's work, but we dare not ask how much all these mods would cost over the price of a stock Turbo.

NHRA driver Scott Kalitta killed in NHRA qualifying

It is never pleasant to report auto-related tragedies. Thats why it's particularly saddening to report the death of NHRA driver Scott Kalitta, who suffered a horrific crash during Funny Car qualifying at Old Bridge Township Raceway Park in Englishtown, NJ on Saturday. Witnesses pegged his speed to be in the range of 300 mph when his engine exploded, engulfing the car in flames. Kalitta was the '94 and '95 Top Fuel champion and his presence will certainly be missed in the NHRA. He is survived by his wife and two sons. We extend our deepest condolences to Mr. Kalitta's family and friends. Thanks to all who sent tips.

Pics Aplenty: Maserati GranTurismo S, in all its glory

The world was stunned when Maserati unveiled the GranTurismo at the 2007 Geneva show, but as beautiful as it is, critics said it wasn't tough enough to take down the competition. The folks from Modena were evidently listening, and one year later laid the beefed-up GranTurismo S on us, complete with 440-hp engine straight out of the Alfa Romeo 8C Competizione.

We brought you a slew of images before and during the show, but now Maserati has been kind enough to grace us with a whole mess of new shots. You know, just in case you didn't want one enough already. Check out the images in our high-resolution gallery by clicking the thumbnails below. Your desktop will thank you.

Auto Dealer Embraces New Generation

Owner of New Port Lincoln Mercury, Dennis Murphy will celebrate 29 years in business with the unveiling of the 2009 Lincoln MKS. Murphy, pictured in his showroom stands next to the MKX, Lincoln's current hot-seller.

Reaching higher and into the future is where Dennis Murphy, owner and president of New Port Lincoln Mercury is heading.

A native of Miami, Murphy relocated to New Port Richey in May 1979 to open New Port Lincoln Mercury.

As a sharply dressed Murphy sat in his office last week, he explained that the car industry is the only business he has known. Murphy, and his partner at the time, Bob Nunn, sold their first car at the end of July 1979.

Over the intervening 29 years, New Port Lincoln Mercury has sold more than 22,500 new and 18,000 used vehicles.

Murphy smiled when asked about the 2009 Lincoln MKS.

A vehicle filled with technology he continued that the vehicle will attract an entire new generation of buyers.

Four years in development, Murphy looks for the MKS to launch the Lincoln nameplate forward.

Lincoln created the new sedan with comfort and convenience in mind and claims the MKS to be "technologically breathtaking."

Lincoln designers wrapped the package in sleek, stylish sheet metal with clean smooth lines, which at first glance, could pass for a high-end import, according to the company's Web site.

The MKS is geared toward technology geeks, 50 years of age and under that lives to have the latest technology fads at their disposal.

Equipped with a 10-gigabyte hard drive based navigation system, owners will be able to display photos on the Global Positioning Satellite, or GPS, screen, burn CD's, watch DVD's and upload music.

Individuals will be able to connect their Bluetooth mobile phone, MP3 player and flash drive via the SYNC's USB port, giving one seamless integration and control of the voice activated communications entertainment system.

An added feature is the MKS radar system with Adaptive Cruise Control.

The system's radar unit comes with preset "safety" gaps. If the MKS and another vehicle come too close to each other the sensors automatically take over and reduce the speed to maintain a safe distance, only to return to the preset speed once a safe gap is achieved.

The MKS comes standard with a 3.7 liter V-6 engine including a fuel-efficient six-speed transmission and has a starting price of roughly $38,000.

Murphy went on to explain that unlike other dealers he has strived to build a dealership that invests in employees for the long term.

Murphy has a son and daughter, which will be involved with the dealership in one capacity or another

A family-oriented business that started out with 19 employees, New Port Lincoln Mercury now employs around 50.

The company slogan, "The Dealership of Choice," was developed by his employees he commented with pride. Murphy, along with his employees strives in creating a dealership that reflects those words.

He believes, as do his employees, that they have built a dealership in that customers choose to purchase their vehicles, and that his employees make the choice to work, on a long-term basis.

A testament to creating this environment exists with the Employee of the Year Award that was given to him by his employees.

MKS Unveiling

New Port Lincoln Mercury is celebrating their 29th year in business with an unveiling of the 2009 Lincoln MKS from noon until 6 p.m. Friday, June 27, at 4727 U.S. 19, New Port Richey, just north of S.R. 54. Lincoln representatives will present a demonstration on the feature-rich MKS at 2 p.m.

Ford delays launch of new F-150

Big pick-up sales are hit by high gas prices and reduced construction spending. Automaker also expects more production cutbacks.

With sales of full-size pickups in a steep decline, Ford Motor Co. said Friday it is delaying the launch of its new, redesigned Ford F-150 pick-up by two months.

The full-size pick-up, which had been due to enter showrooms in early fall will now come out in late fall, instead.

Ford also announced more production cutbacks. The company said it will produce 25% fewer vehicles in the third quarter of this year than it did in the same quarter of 2007. The cuts will be among Ford's large trucks and SUVs.

Meanwhile, Ford said it is working to boost production of its small cars and crossover SUVs, products that have been attracting more sales this year even as overall auto sales have dropped.

The Ford F-series has been the top-selling passenger vehicle in America for 26 straight years. Big pickups have been a popular and profitable item for Detroit Automakers. But high gas prices and a declining home-construction market have hit truck sales hard.

In May, the F-series fell to fifth place for the month as the Honda Civic compact car became America's best-selling model, followed by the Toyota Camry. General Motors' (GM, Fortune 500) Chevrolet Silverado, usually a second-place seller behind the F-150, ranked sixth.

Overall sales of full-sized trucks like the F-150 are 23% lower this year than they were by this time last year, according to market analyst Power Information Network.

"Our plan all along has been to introduce the new F-150 after our dealers had a chance to sell down inventory of the existing model, and - with the current slowdown in the marketplace - we decided it was prudent to adjust the start of public sale for the new truck by about two months," Mark Fields, Ford's President of The Americas said in a statement.

Despite all this, when 2008 comes to a close, the F-series could still be number one in sales for the year, said Tom Libby, an analyst with Power Information Network.

"This is a very important model for Ford," said Libby. "Ford will do whatever it takes to protect that model."

That could mean aggressive incentives as the automaker tries to clear out 2008 trucks and keep its sales crown.

George Pipas, a sales analyst for Ford denied that the company is at all concerned with ranking. "If we were going to do whatever it takes, why would we do what we did today?" he asked.

Ford cut F-series truck production by 40% as of today, he pointed out. Meanwhile, the Toyota Camry mid-size car is just 37,000 sales behind it so far this year and closing in fast. That's close enough to easily take the top spot by the end of the year, said Pipas.

"We're going to do whatever it takes to meet the market," he said.

Ford (F, Fortune 500) said it would further cut large SUV and truck production for the remainder of 2008. The cuts will be made through additional downtime, shift reductions and slowing assembly line speeds.

At the same time, Ford reiterated that is taking steps to more quickly boost production of small, fuel-efficient cars.

"We sell some of the best smaller cars and utility vehicles in the world in our profitable European and South American operations, and our plan is to introduce these same vehicles in North America as quickly as possible," said Alan Mulally, Ford's president and chief executive, in a statement.

Ford will increase production at plants that make the Lincoln MKX, Ford Edge, Mercury Mariner and Ford Escape crossover SUVs, as well at plants producing the Ford Focus compact car.

The automaker says it will reduce overall third-quarter production by a further 50,000 vehicles. It now plans to produce 475,000 vehicles, 25% fewer than the third quarter of last year.

Fourth-quarter production will drop 8 to 14% compared with the same quarter last year.

The company also said Friday it expects industry-wide U.S. sales this year to drop to a range of 14.7 million to 15.2 million units. The company previously had predicted 15 million to 15.4 million units.

Ford's small car for India by 2010

The US automobile giant Ford Motor Co proposes to launch its small car for the Indian market by 2010 and will set up a new unit soon to manufacture engines, top officials said on Thursday.

"Small car segment holds 75 per cent in Indian market and when we launch the small car that's when the real volumes will come in," Ford India managing director and president Michael Boneham told media at the launch of the company's new car.

He also said Ford's new engine manufacturing facility will be set up in 2009-10 with a capacity of 250,000 units per year. "The plant will fulfill the entire domestic demand and will also cater to the needs for ford in the Asia Pacific region."

The company also launched a new sports variant of the mid-sized sedan here Thursday - the Fiesta S that clocks 0-100 km in 11 seconds. Also launched was an upgraded SXI variant of the Fiesta featuring new front grille and head lamps.
Boneham said the company has now increased the warranty for all its cars to two years or 40,000 km to two years or 100,000 km, whichever was logged first.

Fiesta SXI will be priced at Rs.700,000 and Rs.814,000 for the petrol and the diesel variants, respectively, in Delhi. Fiesta S will come with a price tag of Rs.715,000.

Boneham said that the mid-sized sedan, since its launch in the country two-and-a-half years ago, and has sold more than 65,000 units.

The company, however, had a 19 per cent fall in sales during 2007-08, which he attributed to the sluggish Indian auto industry in the last financial year.

Scion to go road racing in KONI Challenge

Four years after it first hit showrooms, the Scion tC will finally make a showing in a professional road racing series. And no, factory optioned and equipped vehicles being tossed around Long Beach by B-list celebrities cannot be considered professional. A tC has already been heavily modified to compete in the Formula Drift series, but the peppy compact's road race profile, outside the annual celebrity race of course, has been relatively low. This weekend though, Toyota's sporty little coupe will be moving up from amateur abuse to make its big time debut in Grand-Am's KONI Challenge Series. This week's race will take place at Mid-Ohio Sports Car Course in Lexington, OH and the tC will be part of the ST (Sport Touring) class.

The Scion's venture into the KONI series is being fueled by communications firm Jackson-Dawson, TRD and BGB Motorsports. Driver and team manager Dan (pronounced Don) Gardner has taken his Scion's setup through the NASA club ranks to prove its worth. Having already tackled that territory, moving onto a production-based national series is the next logical step for the team. In the KONI Challenge ST class, Dan and his tC will face formidable foes such as Mazda RX8s, BMW 330s and Acura TSXs. While Toyota may be competitive on the ovals, hopefully this one can do better on the curves than the company's F1 effort. Check out the gallery below for snap shots of the Jackson-Dawson Scion tC and hit the jump for the full press release.

Fiat apologizes to China for Richard Gere commercial

According to Olivier Francois, Chief Executive Officer of Lancia, Richard Gere was chosen for a recent ad for the Lancia Delta because he "is not merely a fine actor; not merely one of the most famous men in the world. He is a man with a great difference: the ability to combine talent, fame and style with great character. I'm talking about his commitment to peace." That affinity for peace stretches especially towards the people of Tibet, a people who's autonomy from China Gere supports.

This commercial, which you can watch after the break, features Gere driving a new Lancia Delta from Hollywood to Tibet in just 30 seconds and aired in Italy. After reports of the commercial appeared in Chinese newspapers, China was apparently none too happy about it. Fiat has decided to apologize, with a company spokesman saying, "Fiat Group extends its apologies to the Government of the People's Republic of China and to the Chinese people."

Our opinion? Gere's alright in Pretty Woman, but not much else after that. Apologies are usually pretty lame, but we'd appreciate one for Gere's horrible singing in Chicago as long as they are being handed out so freely. And how 'bout one for that Lancia's front end?

Honda launches Indias first hybrid car

First the good news for those caring for environment: Japanese auto giant Honda Motors Co. on Wednesday introduced India to the first hybrid vehicle-- the Civic Hybrid that runs on a petrol engine assisted by an electric motor.

The bad news: Thanks to a hefty 104 per cent duty that the government levies on imported cars, the hybrid version would cost Rs 21.50 lakh (ex-showroom Delhi), almost double the price of the conventional variant.

The prohibitive pricing may keep out buyers, but Honda hopes it would make a strong statement about the future of the auto industry in the backdrop rising oil prices and concerns of growing carbon emissions.

"We are not looking for volumes here but showcasing our technological prowess. We want the Indian consumers to experience this new technology which surely is the future of cars," said Masahiro Takedagawa, President and CEO at Honda's Indian subsidiary.

A hybrid vehicle is basically driven by a conventional petrol engine with an assisting electric motor that is powered by a battery. Due to the assisting electric motor the petrol engine is smaller but it delivers the same performance with lower emissions and higher fuel efficiency. The Civic hybrid for example has a smaller 1.3 litre gasoline engine (the normal Civic is powered by a 1.8 litre engine) but delivers around 50 per cent higher fuel efficiency.

The car uses regenerative braking as well which ensures that the energy lost when the vehicle is decelerated is used to recharge the batteries powering the electric motor. This also does away with restrictions of range and charging that need to be done in a conventional electric vehicle.

Despite the many advantages of hybrid technology, the pace of growth in India has been slow due to its high cost and lack of incentives. Though the government has reduced excise duties on hybrid cars to 14 per cent earlier this year, import duties remain steep. And Takedagawa said his company "will not be able to manufacture the car here due to technological reasons."

eBay Find of the Day: 2008 Shelby Super Snake

Despite the Shelby GT500KR's claim of supremacy over the dominion that is the open road, there is yet another Mustang that is even more extreme. Shelby's Super Snake package for the GT500 offers up to 725 horsepower and even more aggressive options for the suspension and braking systems. Available as a post-sale conversion for the GT500, the transformation can be performed at the Shelby facility in Las Vegas or at one of the official mod shops around the country. There have been a handful of owners who have already converted their GT500s, and one is already for sale on eBay. Something seems wrong with the seller's math, however, because a "Buy It Now" price of $200,000 is far more than the cost of a GT500 plus the $31,995 needed for the 725 horsepower conversion. We could understand the markup if these were in high demand, but pretty much any GT500 owner can send his car to get converted. So unless you really can't wait, keep your mouse away from the bidding button and just enjoy the gallery below. Thanks for the tip, Brad!

New low-emissions London Black Cab to be based on Mercedes-Benz Vito Traveliner

Londoners could be swapping out black cabs for black vans pretty soon. EcoCity vehicles, through its subsidiary KPM-UK, has worked with LTI, the maker of the famous black cab, for almost 20 years. Now EcoCity has signed an agreement with Mercedes-Benz to produce cabs out of Vito Traveliner vans, which produce lower emissions than the LTI offering.

With 93-percent of the London taxi market owned by black cabs, we wouldn't expect to see Traveliners dominating The City any time soon. For EcoCity, it was more about offering a more environmental choice for drivers and customers. Former mayor Ken Livingstone was a big proponent of that, if you'll remember. And for the city of London, it could mean less of the brown stuff in the air. The Traveliner taxi will be launched next week, and go on sale shortly after.

Be One with the Stars in Driving a Toyota Prius

Toyota is one of the major players when it comes to hybrid cars. In fact, some of its hybrid models are well-preferred by environmentalist celebrities. Among them is one of my favorite actresses, Julia Roberts. A Toyota Prius costs around $22, 305, but I’m sure Julia is not after the cost or the savings she can get from driving a gas/electric hybrid vehicle. For her it’s more about helping save the environment with less emission.

Aside from being a hybrid, what other characteristics make Prius a great car to have? As you can see, it has a great and streamlined form. It features spoke-alloy wheels, multi-reflector halogen headlamps, and color-keyed front and rear bumpers. With the chrome-type finish grille no one can mistake your Toyota Prius for anything else. It is also of a modest size that can seat five persons and still have enough space left for luggage. Advanced airbag system and anti-lock brake system are only some samples of how the Prius keeps you safe on the road.

And you know what? Toyota Prius is not only a great choice for women like Julia Roberts. This is also the preferred vehicle of hot Hollywood actors, like Leonardo DiCaprio.

French auto giants drive down to Indian roots

Selling cars is also about cultural considerations. Ask the French, who are focusing on the Indian cultural aspects to sell automobiles in the country .

France's top business and engineering schools have sent their students to India to learn various aspects while working in the Indian cultural scenario. Renault, the French automobile manufacturer, is sponsoring the trip, and guiding them are students from the IIM-A .

Students from top-notch HEC School of Management and Ecole Polytechnique are visiting Mumbai and Chennai to study the cultural diversity between the two countries as part of a project funded by Renault under its chair in multicultural management set up a few weeks ago. India and Japan are the first focus area for the company, which will be followed up by other countries, because the two countries are “strategically important and yet complicated for being culturally different” , said professor Eolic Godelier, who is leading the team of students from Ecole Polytechnique.

PT Cruiser will survive through 2009, barely

It seems as if earlier rumors of the PT Cruiser's death may have been slightly exaggerated. According to PTCruizer.com, the retro-style hatch from Chrysler is still alive, though perhaps on some sort of artificial life support. At least for the 2009 model year, the Cruiser is expected to be built alongside the Dodge Journey, though this could change in the blink of an eye. The plant in Toluca, Mexico where the two vehicles are built is capable of switching at a moments notice between the Journey and the Cruiser. So, if the Journey picks up sales or Chrysler does the unthinkable and launches its own version of the Dodge crossover, the PT could wave good bye for good.

If you are in the market to do some Cruisin' of your own, our suggestion would be to act fast. Reports indicate that Chrysler is reducing the options on the vehicle as much as possible to make them as easy, and therefore as cheap, to build as possible. For instance, the Limited is the only way to get the turbo engine, though air conditioning is now standard across the line. And if the PT makes it all the way through 2009, Chrysler will almost for certain cancel it after that.

No surprise here: Expedition, Navigator production stopped for nine weeks

May was apparently a tough month for Ford's big SUVs. With consumer demand understandably cold for the gargantuan utes and their hard-to-swallow 12 mpg city ratings, Lincoln Navigator sales slid 37 percent while Ford Expedition sales were down 43 percent. As a result, Ford Motor Company has announced that its Wayne, Michigan, plant that assembles these vehicles will close down for nine weeks starting on Monday. While the plant sits idle, Ford will increase production of its passenger cars to better meet market demand for smaller and much more fuel efficient vehicles. Like we didn't see this coming...

Chrysler lowballs price of its SUV hybrids, starting at $45,340

Apparently hoping to avoid the ignominious fate of the full-size hybrid SUVs from two-mode hybrid partner General Motors, Chrysler is getting aggressive with the pricing of its new Durango and Aspen hybrids. At launch this fall, the Chryslers will be stickered at 45,340 and $45,570 respectively, some $8,000 below the four-wheel-drive versions from GM. GM recently had to slap $4,000 cash on the hood to entice customers to check out the Tahoe Hybrid and Yukon Hybrid. Unlike GM, however, Chrysler has chosen not to offer a two-wheel-drive variant of its hybrid SUVs. At this point we still don't know how equipment levels will compare between the GM and Chrysler models, so it's hard to do a direct comparison of these high-mpg hybrid SUVs.

The last time we talked to Chrysler about the hybrids, they were not planning to implement any of the weight savings measures that GM has used to offset the weight of the two-mode hybrid system in its GMT900 SUVs. On the GM models, an aluminum hood and tailgate, lighter front seats and special wheels drop the weight by about 150 lbs. Chrysler has apparently not given the hybrids unique body work either, which surely added to GM's cost. As for mileage, the official EPA numbers are apparently not in yet, but Chrysler is anticipating 20 mpg at best, which would be equal to the four-wheel-drive GM vehicles.

Mercedes-Benz to launch eco-friendly London black cab

London's iconic black cabs will soon look a little different after it was announced that a new eco-friendly model will be hitting the capital's roads this summer.

EcoCity Vehicles revealed today it has signed an exclusive contract with German car maker Mercedes-Benz to launch a new London cab through its KPM-UK Taxis subsidiary.

The new lower emission six-seat taxi is based on the Mercedes Vito Traveliner, and will be targeted at London's 25,000 licensed 'black cab' drivers.
The new environmentally friendly model will debut on June 26 at the Society of Motor Manufacturers & Traders. The vehicle will go on sale shortly afterwards.

Manufacturers have been under pressure to lower carbon emissions and fuel consumption following a wave of initiatives introduced by former London Mayor Ken Livingstone.

Peter Da Costa, EcoCity's chief executive, said: "Cab drivers and passengers in London will now have a choice of vehicle, and we as a company will continue to look after the driver's needs."
Mercedes-Benz is a division of Stuttgart, Germany-based Daimler AG, the world's largest truck-makers.

KPM-UK has held a contract with the manufacturer and retailer of traditional black cabs, London Taxi International (LTI), since 1989.

LTI is the sole remaining operating division of Manganese Bronze Holdings, the Coventry-based engineering company responsible for about 93pc of London's 22,000 black cabs.

Alfardan Auto launches two new 1 Series models

Alfardan Automobiles, the exclusive importers of BMW, MINI and Rolls-Royce in Qatar, has launched two 1 Series models the BMW 135i coupe and cabriolet - with Twin-Turbo technology.

With its 3.0 litre twin-turbocharged light alloy and magnesium straight-six petrol engine, the 135i delivers 306 horsepower, allowing the car to accelerate from 0-100kph in 5.3 seconds, and up to an electronically limited top speed of 250kph.
“The BMW 135i is a highly anticipated arrival in Qatar, both in Coupe and Convertible forms, due to its unique design and class-leading performance,” Alfardan Automobiles’ acting general manager Naim Majdalani said.
”More than just performance, the 135i delivers a smooth and comfortable drive, providing a host of technology and safety features that make this car an attractive option for the Qatari public,” he explained.
The 135i Coupe offers even more performance and a striking look thanks to the BMW M components. Special features include an M Aerodynamic kit for additional downforce at speed, better brake cooling and enhanced aesthetics, and a sports suspension that offers higher traction and reduced body roll with 18-inch wheels and performance tires.
The sports suspension also includes a high-performance brake system incorporating six-piston fixed calipers on the front and two-piston fixed calipers at the rear. BMW’s highly regarded Dynamic Stability Control Plus system is standard, with its five additional safety features of Soft stop, Hill start assistant, Brake drying, Brake Pre-tensioning and Brake fade compensation.
“Using the same design as the three and five-door models, the 135i comes in a coupé body to emphasise the sporting nature of the car,” Majdalani observed while maintaining the end result is a striking looking vehicle that surpasses expectations, both in terms of interior and exterior design, as well as undiluted performance.
Combining unique dynamic and unmistakable design elements, with a powerful and muscular body, the 135i’s long hood gives it a particularly nimble appearance, while the short overhangs, long wheelbase and large frameless doors sit on a body with a striking shoulder line for a modern interpretation of BMW’s characteristic look.
The control console for auxiliary functions is integrated smoothly and harmoniously into the dashboard. The controller featured in the trademark iDrive system with the optional navigation system is integrated in the centre console, again following BMW’s characteristic design while allowing the driver to control all secondary and comfort function such as communication, air conditioning, entertainment and navigation with minimal effort.
“The interior is also uniquely designed to match the 135i’s character, and can be customised to each owner’s preference and taste. BMW’s unique iDrive system offers drivers an easy to use interface that allows for a manageable yet advanced system,” the official said.
Galvanised pearl gloss surfaces adorn the interior door handles, the glove compartment handle, the radio’s rotary knobs, the knobs of the automatic air conditioning system, the iDrive Controller, and the ornamental trim strips featured on the sports steering wheel giving the car an air of lushness and luxury, while rounding up a uniquely designed package.

Chrysler 'Cuda Convertible Concept at Cars & Coffee

Maybe the 'Cuda is alive after all. While we have speculated about the existence of one ever since we first heard a hint of the SEMA show car from last year, all we've had to work with since are rumors and sketches of what might be. Well, today at the weekly Cars and Coffee show in Irvine, a genuine 'Cuda Concept was parked right in the midst of everything. A convertible nonetheless. It just sat there with only a few people really spotting it for what it was. Considering that real original '70s 'Cudas are plentiful at this show and that several Challenger SRT-8s have already made appearances, it doesn't seem surprising that people might not spot this concept immediately. The surprising part is that it is painted purple with a white convertible top that can't be ignored no matter how hard you try. While the car sported no badges, it wore a mock "NEWCUDA" Colorado plate and had a seemingly stock Challenger-like interior, complete with a Hurst pistol-grip shifter for the automatic trans. While many of the details emulate the 70-74 cars, the bulk says Challenger. Particularly fun is the grill and headlight setup and the Shaker hood scoop. Very nicely done. The only badge we spotted was a big G on the front fenders, the mark of Metalcrafter's Gaffoglio boys. Looks like we have a SEMA '08 preview on our hands.

Is this heaven? No, it's a storage lot in Florida

Something wicked, and white, and silver, and grey, and covered in protective tape, this way comes. In fact, it is already here: a lot full of Nissan GT-Rs in Jacksonville, Florida. Amassed like the automatons in I, Robot, all of them await their chance to embarrass cars costing nearly twice as much on U.S. soil. And a few will probably end up in accidents, ditches and tire walls as well, sadly. Click the link to visit the forum and check out more photos of what's in store for U.S. roads and garage mahals. Thanks for the tip, Jeff!

Ford to cut deeper as gas climbs, sales drop

Ford Motor Co., must further pare its work force as consumers shift to buying smaller vehicles, plant and union officials were told Friday.

Despite two years of downsizing by domestic automakers that has eliminated thousands of jobs and closed dozens of factories, with gas prices rising over $4 a gallon, overall sales are plunging.

Those who are shopping for new vehicles are switching from big SUVs and pickups to passenger cars and crossovers, forcing Ford and others to change its production mix.

It remains uncertain what that will mean for Ford’s Claycomo plant, which has two shifts building the F-150 pickup. The Claycomo plant also has two shifts producing the popular Ford Escape/Mercury Mariner crossover SUVs. The United Auto Workers Local 249 official who attended Friday’s meeting could not be reached after the meeting.

Ford did not release details of any production changes or workforce reductions Friday. Chief executive Alan Mulally said last month that more information would come in July.

Ford, which also may convert some truck plants to car production, said it would prefer to downsize through more buyouts as opposed to permanently shuttering more factories.

“We have a lot of cost-cutting elements that we can work on together,” said Ford spokeswoman Anne Marie Gattari. “We’re looking at doing those kinds of things before we do anything more drastic that no one wants to do.”

The local union has speculated on its Web site about the possibility of Ford adding a third SUV shift, which could offset the loss of 800 jobs on the second F-150 shift, should that occur.

Following Friday’s meeting, a Ford executive called the current business environment “critical.”

“The world has changed dramatically over the past few months for our business and our industry,” said Joe Hinrichs, group vice president of global manufacturing and labor affairs, in a statement. “While our plants have made good progress cutting waste and becoming more competitive, we need them to continue this work. We arrive at the best solutions when the UAW and Ford work together.”

Ford currently has two factories building the F-150. The other plant is in Dearborn, Mich., and has been running three shifts. Both truck lines at Claycomo and Dearborn have been down in recent weeks due to slow pickup sales.

Industry analysts said it was difficult to know what would happen to F-150 production at both plants and what factors Ford was weighing as the company prepared to launch a redesigned F-150 in the fall.

“It’s not the best year to be launching a new truck,” said David Cole, chairman of the Center for Automotive Research in Ann Arbor, Mich., noting that Chrysler LLC is facing the same problem with its new Dodge Ram this fall. “Both Chrysler and Ford are getting zapped by structural changes that are taking place. It’s not just the high fuel prices, but crossovers have also significantly altered the truck-buying landscape.”

F-series trucks, the top-selling industry vehicles for three decades, saw sales plunge 30 percent in May. Nevertheless, Cole said there will always be a market for big trucks, even if that market has shrunk permanently.

About 4,200 hourly Ford employees took early retirement or a cash buyout earlier this year, about one-half of what the company was seeking.

The automaker also is in the process of reducing its salaried workforce by 15 percent companywide.

Chrysler to market certified used cars on eBay

Chrysler LLC said on Thursday it would list its used car inventory on eBay Inc., following a pioneering tie-up between General Motors Corp. and the online auctioneer announced early this year.

Chrysler has reached a partnership to market over 15,000 certified pre-owned vehicles of its Chrysler, Jeep and Dodge brands on the eBay Motors site, the automaker said.

The agreement follows GM's program announced in February to list all of the inventory of certified pre-owned cars at some 3,900 GM-affiliated U.S. dealers on eBay. GM said on Thursday that its listings are now live on eBay.

Automakers increasingly have focused on selling used vehicles amid a deeper-than-expected slump in new car sales. U.S. auto sales are expected to drop to near 15 million units in 2008 and is tracking at a decade low so far this year.

The struggling No. 3 U.S. automaker sold more than 122,000 certified used cars in 2007, up 5 percent from a year earlier. Chrysler's used car sales are up 8 percent so far this year, while new vehicle sales have dropped more than 20 percent, hit by tumbling demand for gas-guzzling trucks and SUVs.

The Chrysler showroom on eBay enables consumers to view its used vehicles within their local area via a classified listings format.

Chrysler's certified pre-owned vehicles cover models from 2003 to 2008 with less than 65,000 miles and are reconditioned to meet the automaker's standards. They carry an eight-year, or 80,000-mile powertrain warranty, roadside assistance and rental car allowances.

Chrysler said it would seek more tie-ups with search engines such as Cars.com and AutoTrader.com in an effort to help dealers market used vehicles.

About 43 million used vehicles were sold in the United States last year, well over double the 16.2 million new vehicles sold. Used car profit margins are also generally better than they are for new vehicles.

Fisker's request for arbitration granted in Tesla lawsuit

A few months back, Tesla Motors sued Fisker Automotive for allegedly stealing information related to the production of its upcoming plug-in electric sedan named Whitestar and using it to develop its series-hybird, the Karma. Yesterday, a judge ruled in favor of Fisker Automotive by allowing the case to go into arbitration outside the courtroom, which was apparently part of the original agreement between Tesla and Henrik Fisker in the first place. It appears that Tesla went outside that original agreement by bringing forth its lawsuit in the first place, though Tesla may have considered that contract void as the original lawsuit alleged that it was signed merely to gain access to confidential information.

Although the arbitration is to be handled outside of court, the judge has scheduled a management conference this August, perhaps to be sure that negotiations are moving along. This is good news for Fisker, which is currently working to get its Karma PHEV sedan to market by the fourth-quarter of 2009.

GM provides sneak peek of production Camaro Convertible

Just like it first did with "official" spy shots of the production Camaro coupe, General Motors has released a pair of small shots showing the production Camaro Convertible in its current state of development. We're told on the GM FastLane Blog that the pics are a reward for the overwhelmingly enthusiastic response to the first set of shots of the Camaro Coupe, which apparently meant a lot to the team of engineers testing the vehicle. While not much is revealed on these preproduction models that we didn't already know, the second shot shows the convertible's profile with the soft-top up, and it appears that the strong lines of the coupe have not been sacrificed by the retractable roof. Feel free to peruse both pics in our gallery below while we wait for larger ones to pop up.

Does the World Need Another Luxury Car?

At a time when auto sales are struggling, Hyundai is introducing its Genesis luxury car. The timing is bad, but the car is surprisingly good

Hyundai Motor (HYMLF), a little Korean startup company just over 40 years ago, grew into a global brand by selling inexpensive vehicles. Now the company is entering the highly competitive luxury-import market to go toe-to-toe with such automakers as BMW (BMWG), Lexus, and Mercedes-Benz (DAI). Hyundai is offering startling prices, too.

There could not be a worse time to introduce a new brand of luxury car. Oil costs more than $130 a barrel, the economy is in a shambles, unemployment is rising, salaries are stagnating, the housing market is a disaster, and most industries are suffering. As the "R" word circulates broadly, the new car business is sluggish. "Stinks" is the description I've heard from some dealers.

Despite the obstacles, Hyundai will start selling a new luxury car in just a few weeks! A new luxury car?

Do words like "nuts," "gutsy," and "crazy" come to mind? Obviously not to the Koreans. "It's just challenging," Dong Jin Kim, Hyundai's vice-chairman, said at a recent meeting in Seoul. "We have invested a significant amount in time, resources, and money to assure the Genesis is a successful marketing launch."

More Than a Word
"Luxury" is a disruptive, troubling term with significant socioeconomic resonance. The go-go 1980s and '90s firmly established the credo: "You are what you eat, drink, wear, think, read, and of course, drive."

Arguably, the most opulent automotive brands are Rolls-Royce and Bentley now owned by BMW and Volkswagen (VOWG), respectively. With sticker prices ranging from $25,000 to $400,000 depending on the extras, these are the epitome of high-priced wheels. For most drivers, though, luxury begins north of $35,000.

Mike Jackson, president and CEO of Fort Lauderdale's AutoNation (AN), one of the nation's biggest sellers of luxury cars, detailed in a speech earlier this year the benchmark characteristics customers seek in a luxury automobile.
Starting with many of AutoNation's specifics, I've added a few details to capture the vagaries and subtleties that collectively contribute to a customer's appreciation of the luxury cars previously mentioned. There is no ranking order, merely a simple thumbs-up for yes, or a thumbs-down for no. It seems the Genesis stacks up pretty well. As it should: In creating the Genesis, Hyundai closely studied the competition's features and design cues. Many drivers may find the look derivative of more established luxury brands but this charge has been aimed at automotive upstarts since the birth of the internal combustion engine. But just because Hyundai wants to build a luxury car, that doesn't mean it can. It takes more than clever copyists to deliver the goods. To find out for myself if the Genesis is the real deal, I traveled to Hyundai's Namyang, South Korea, research and development center a few weeks ago to put the vehicle through its paces. Here are my perceptions:

Visual Impressions

• Showroom stance: sleek and smooth. Stylish without being over the top. Looks distinctive, with vague reminders of something I can't quite name. Looks expensive. Ready for snobbish valet parking attendants' front row, but will probably start out in the second line.

• Interior on first glance: uncomplicated with nonglaring accents and accoutrements. Colors are quiet, but not boring. Appears spacious. Not ostentatious, but certainly distinctive.

• Amenities: technological playground. Big-sound HD audio with XM, iPod, and Bluetooth functions. Hands-free phone, nav system, rear camera, rain-sensing wipers, and lots more.

• Driver's-seat perspective: instrument panel uncluttered, with a clear typeface on dials. Wish I'd inspected the car at night. Not overly complex. Good viewing area. Several seat adjustments to accommodate drivers of varying height.

• Passenger's-seat perspective: similar to the driver's.

• Rear seating: a big surprise. These seats are not just for munchkins, but for adults, too. I suspect my 6'5" son would be unusually comfortable.

Driving Impressions

Driving was done in a sterile format on a variety of test tracks, with no urban challenges. There were a smooth surface for high-speed straightaways, cone courses, and sudden stops; a bumpy, rutted surface reminiscent of most bad roads in Michigan; a short, undulating surface designed to make the person in the rear seats sick; and not least, a high-speed oval. All of the benchmark competitors' vehicles were on-site for comparison testing. My comments are based on driving and/or riding the rear-wheel-drive Genesis models in both the 3.8-liter V6 and the new 4.6-liter V8 versions.

• Engine startup: literally turn the key and go, without noticeable engine startup noise. Barely a whisper.

• Acceleration: kicked it at once to test speed and noise. Moved out quickly and quietly but not especially memorable or exceptional. After all, this is not a sports car, but a sports sedan. The Genesis will accelerate as needed to merge at high speed with traffic.

• Steering: during the acceleration test, made a quick switch halfway down the track to drive through a tightly spaced series of cones. This required weaving in, out, and around. Handling was light, quick, and responsive. Felt comfortable and confident, even on a very tight (over 30°) left turn of the wheel, and at a higher speed. Balanced, without heavy swaying, or side-to-side tossing, in the driver's or rear seat.

• Handling: on a customized road course that included a variety of twists and turnsboth right and left and was several hundred yards long. Drove the course four times, first to get the general layout and then in three runs at ever-increasing speed. The electronic stability control on the tightest turns, at what seemed nearly unsafe speeds, straightened the vehicle out with little more than some tire squeal. That's all. Very nice.

• Sudden stopping: fast and faster halting! During my acceleration test, the ride-along engineer ordered "Stop!" I did, without swerving or feeling at all loose.

• High-speed track: Unlike Nascar's left-turn ovals, this was a banked, right-turn-only track, five lanes high and a mile long. This road's rule is simply the faster one goes, the higher the groove. While a couple of velocity-obsessed writers favored speeds in excess of 140 miles per hour, I opted for a prudent 100-110 mph, feeling comfortable and in control throughout.

Now for price: The Genesis will make its debut in a few weeks at several thousand dollars less than its rivals cost. The V6 will sell for $33,000, and the V8 for $38,000. In comparison, the BMW 535i commands just under $50,000, while the Mercedes-Benz E350 goes for a little more than $52,000.

Frankly, it will take time for Hyundai's name to become synonymous with luxury, privilege, and quality—if it ever does. But the team that designed the Genesis has taken a commendable leap into the luxury market. Assuming people are still buying luxury cars in 10 years, I'd love to see what Hyundai will be producing then. Some people once laughed at Lexus and Acura.