Autoblog

GM begins repayment to U.S. and Canadian governments

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

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

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

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

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

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

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Cut It Out: Toyota's recalled pedal modification remedy detailed step-by-step

Chris Paukert — Fri, 18 Dec 2009 13:57:00 EST

Filed under: Government/Legal, Recalls, Safety, Lexus, Toyota

Toyota/Lexus gas pedal recall modification - click above for gallery

Late last month, Toyota announced that it would begin its biggest recall action ever, summoning 3.8 million cars and trucks back to its dealers to combat "pedal entrapment" by cutting down the accelerator pedals of customer cars to avoid them getting hung-up on floormats, resulting in "unintended acceleration." Although Toyota plans to eventually substitute redesigned units for the shaved pedals (beginning in April), for the moment, it's shaved pedals or nothing.

Up until now, we didn't know what went into the modification process or how the finished pedal looks, as Toyota has worked hard to keep this process confidential. However, thanks to an anonymous Autoblog reader who happens to work in service at a Lexus franchise, we now have a much better idea of what goes into the process. Our source reveals that he's only witnessed the alteration carried out on a ES350, not the IS or any other Toyota model, but we imagine the process is quite similar for other vehicles.

In any case, the procedure is surprisingly involved, with the automaker providing the following tools to every dealership: A cutter, an electric sanding wheel, a gauge to measure how much of the pedal is to be removed and a smaller foam block to go under the carpet. Lexus is disbursing people from its area offices to train dealer technicians on the process, and Toyota is undoubtedly doing the same.

We'll let our source take it from here:

"We will have to remove the gas pedal from the vehicle and place it on a vise. Using the gauge, we are to mark the amount to be removed and cut it off. After this, we take the sanding wheel and angle the edges to make a smooth contoured surface that both looks nice and will not stick to the floor carpet or floor mat.

Also included in the repair is to replace a foam block under the floor carpet with a smaller one to lower the height of the floor slightly behind the gas pedal. What was explained to us is the foam block is glued to the bottom of the floor carpet from the factory. The block will need to be removed by heating the top side of the floor carpet with a hair dryer - not a heat gun. This is to prevent burning of the floor carpet.

(Click through to the jump for the rest of the process and more details)

Gallery: Toyota/Lexus gas pedal recall modification

Continue reading Cut It Out: Toyota's recalled pedal modification remedy detailed step-by-step

Cut It Out: Toyota's recalled pedal modification remedy detailed step-by-step originally appeared on Autoblog on Fri, 18 Dec 2009 13:57:00 EST. Please see our terms for use of feeds.

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Christmas List 2010: Rattner's book to debut in time for next Christmas

Dan Roth — Fri, 18 Dec 2009 10:03:00 EST

Filed under: Etc., Government/Legal, Chrysler, GM, Earnings/Financials

Planning for the future is perhaps an alien concept to big business - even automakers, with their protracted product development cycles. Take a cue of what not to do from them, then, and start planning now for next Christmas. May we suggest that your 2010 wishlist starts with what's destined to be a hotly-anticipated tome: Steven Rattner's memoir of his spearheading the bailout of General Motors and Chrysler. Tentatively titled "Overhaul," the cloyingly-named book will tell the story of the quick-rinse bankruptcies Rattner presided over.

A fascinating piece that Rattner wrote for Fortune Magazine back in October gave us a glimpse of how riveting such a seemingly-dry subject can be. The book is on track for a debut in the fall of 2010, and might be even more interesting in a year depending on how Rattner's deals work out. The hardest part is going to be behaving well enough for an entire year so this thing gets stuffed in our stocking.

[Source: The Detroit News | Image: Neilson Barnard/Getty]

Christmas List 2010: Rattner's book to debut in time for next Christmas originally appeared on Autoblog on Fri, 18 Dec 2009 10:03:00 EST. Please see our terms for use of feeds.

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Chrysler announces $179 million investment in Dundee plant to build Fiat Multiair engines

Jeremy Korzeniewski — Thu, 17 Dec 2009 16:00:00 EST

Filed under: Government/Legal, Plants/Manufacturing, Chrysler, Earnings/Financials, Fiat

In a none-too-shocking announcement, Chrysler announced plans to invest $179 million to convert its engine plant in Dundee, MI, from building the so-called World Engine to Fiat's 1.4-liter Fully Integrated Robotized Engine. Back in September, Chrysler bought out its former partners Hyundai and Mitsubishi so that it could utilize the Dundee facilities to build the new Multiair powerplants.

Both Chrysler and Fiat are likely to use powerplants built at the facility, with the first application being the diminutive Fiat 500 that's slated for North American production by the end of 2010. Fiat's Multiair technology is said to increase power by up to ten percent while offering a similar reduction in fuel consumption and emissions. Later, a turbocharged unit will be built at the plant that will offer V6-level power using 25 percent less fuel. Multiair technology will eventually be added to the rest of the Chrysler engine lineup, including the new Pentastar V6.

Chrysler promises that the Dundee plant will add 573 new jobs to the local economy including 155 directly at the Dundee plant for a single shift of engine production. That was enough to earn a series of incentives from the state of Michigan and tax credits from the Michigan Economic Development Corporation and the Village of Dundee that could add up to $4.6 million over the next ten years. For more, click past the break for the dueling press releases from Chrysler.

[Source: Chrysler]

Continue reading Chrysler announces $179 million investment in Dundee plant to build Fiat Multiair engines

Chrysler announces $179 million investment in Dundee plant to build Fiat Multiair engines originally appeared on Autoblog on Thu, 17 Dec 2009 16:00:00 EST. Please see our terms for use of feeds.

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

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

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

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

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

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

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

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

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REPORT: Honda plans to settle Civic Hybrid mileage suit out of court. Is it a fair deal?

Jeremy Korzeniewski — Wed, 16 Dec 2009 09:01:00 EST

Filed under: Hybrid, Sedan, Government/Legal, Honda, Earnings/Financials

2008 Honda Civic Hybrid - Click above for high-res image gallery

If you buy a hybrid, you'll be rewarded with excellent fuel economy, right? Well, that's the idea, but sometimes things don't turn out exactly as we had hoped. Such is apparently the case with a number of Honda Civic Hybrid owners who claim that their vehicles don't even come close to achieving the mileage figures estimated by the EPA, leading to a class action lawsuit against Honda.

Back in the summer of 2007, we conducted a telephone interview with John True, one of the two men who started the suit. At the time, True claimed he only achieved, at best, 34.6 miles per gallon and had averaged well under that figure. The window sticker showed EPA estimates of 49 city and 51 highway, though the EPA's revised 2008 rating sits at 40 city and 45 highway.

For its part, Honda admits to no wrongdoing and points out that it was the EPA that estimated those mileage figures. Still, according to The New York Times, the Japanese automaker has agreed to settle the case out of court. If approved, owners of 2003-2008 Civic Hybrids will get a voucher worth up to $1,000 to purchase a new Honda or a check for $100 if they can prove they complained to Honda about their car's mileage.

Interestingly, the current Civic Hybrid, Insight and Fit - Honda's three most fuel efficient models - are excluded from the list of vehicles eligible for the trade-in or purchase voucher. The two plaintiffs would receive $12,500 and $10,000 and their lawyers would pocket $2.95 million. So, um, is it a fair deal? Perhaps more importantly, is Honda to blame here? Sound off in the comments.

Gallery: ABG Garage: 2008 Honda Civic Hybrid

[Source: The New York Times]

REPORT: Honda plans to settle Civic Hybrid mileage suit out of court. Is it a fair deal? originally appeared on Autoblog on Wed, 16 Dec 2009 09:01:00 EST. Please see our terms for use of feeds.

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

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

Filed under: Government/Legal

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

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

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

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

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

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REPORT: Detroit Three call Japan's cash-for-clunkers program unfair

Chris Shunk — Fri, 11 Dec 2009 10:32:00 EST

Filed under: Car Buying, Government/Legal, Japan

The U.S. Car Allowance Rebate System (a.k.a. 'cash-for-clunkers') program was a short-term boon for automakers participating in our market. Sales went up, inventory went down and nearly 700,000 vehicles that would likely have otherwise ended up on used car lots were destroyed. And since the U.S. is essentially a free market where automakers around the globe are allowed to participate, Japanese and European automakers benefited from the program as well. In fact, Japanese automakers fared even better than their U.S. competitors, as Toyota, Honda and Nissan are said to have surpassed their market share with the program. A reported 319,000 of the 677,000 vehicles sold via cash-for-clunkers were from Japanese companies. But while the U.S. C4C program took place in a free market where everybody is able to participate, critics are complaining that the new Japanese program is anything but equal opportunity.

Japan is considered by many to be the world's most insular auto market, and its $3.7 billion government clunker program makes U.S. autos ineligible for government assistance. According to The Detroit News, the program, which the Japanese government is using to spur sales (which are down 17 percent versus 2008 levels), provides cash rebates of up to $2,830 for customers who turn in vehicles 13 years or older. Car buyers who don't turn in a vehicle can still get over $1,100 toward the purchase of a new vehicle. An estimated 87 percent of all Japanese vehicles are eligible for the program, while zero vehicles from General Motors, Ford and Chrysler will be eligible.

The DetNews is reporting that Motown automakers have written a letter to the Deputy U.S. Trade Representative calling for action on a matter that was called "another example of Japan continuing efforts to discriminate against imported vehicles." Carol Guthry of the U.S. Trade Representative told the newspaper that the government is working to resolve the issue, adding "our position remains that changes are necessary to give U.S. vehicles greater opportunity to qualify under Japan's program."

While we're not exactly import/export experts and we don't have any experience with foreign relations, we're thinking it's about time Japan treated foreign automakers in the Land of the Rising Sun with the same level of equality that its automakers receive elsewhere in the world. What do you think? Have your say in 'Comments.'

[Source: The Detroit News | Image: Yoshikazu Tsuno/AFP/Getty]

REPORT: Detroit Three call Japan's cash-for-clunkers program unfair originally appeared on Autoblog on Fri, 11 Dec 2009 10:32:00 EST. Please see our terms for use of feeds.

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REPORT: Fed predicts it will lose $30B on auto industry bailout

Chris Shunk — Thu, 10 Dec 2009 13:27:00 EST

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

2009 isn't quite over yet, but we're pretty sure most automakers would rather forget that it ever happened. And while General Motors and Chrysler suffered the pain and humiliation of bankruptcy and workers lost thousands of jobs and many plants and dealerships closed, the good news is that the General and the Pentastar are now more fiscally healthy than they've been in ages. The bad news is that it cost U.S. taxpayers an estimated $82 billion to save what has been called hundreds of thousands of jobs.

The Detroit News is reporting that after wading through the wreckage of the auto bailout, the Obama Administration only expects to get back an estimated $52 billion of its original investment. That's horrible news, right? Not so, says Gene Sperling, the senior counsel to Treasury Secretary Timothy Geithner. He said the $30 billion estimate is better than the $44 billion the government thought it would lose a few months ago. And with the perceived stabilization of the auto industry, Sperling feels the numbers could improve.

The DetNews reports that President Obama stressed during a speech on the economy that while the bailout of the auto industry wasn't politically popular, it was absolutely necessary to save "hundreds of thousands of jobs." The president then added "these were not decisions that were popular or satisfying; these were decisions that were necessary."

There are signs that at least GM will start paying the government back $6.7 billion as early as the end of the year. Chairman and interim CEO Ed Whitacre has reportedly intimated that the company could pay the money back in one lump sum. And once the auto industry is in a little better shape, the government could recoup much more cash when the General goes public. For the moment, though, Uncle Sam (e.g. the U.S. taxpayers) still owns 61 percent of the new GM.

[Source: The Detroit News | Image: Saul Loeb/AFP/Getty]

REPORT: Fed predicts it will lose $30B on auto industry bailout originally appeared on Autoblog on Thu, 10 Dec 2009 13:27:00 EST. Please see our terms for use of feeds.

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Consumer Reports: Over 40 percent of 'sudden acceleration' claims involve Toyota

Chris Shunk — Tue, 08 Dec 2009 11:29:00 EST

Filed under: Government/Legal, Safety, Ford, Toyota

We're guessing you've heard about Toyota's massive 3.8 million vehicle recall for unintended acceleration. It appears to be an issue that could have potentially resulted in several deaths and reports of hundreds of accidents. Consumer Reports wanted to dig deeper on the matter, studying National Highway Traffic Safety Administration (NHTSA) data for the 2008 model year. CR chose 2008 because the claims occurred prior to the widespread media coverage that has resulted in a flood of new complaints.

In studying NHTSA's accumulated 5,916 reports CR found that 166 involved unintended acceleration complaints. Of those, 128 were reported prior to August 28, 2009, when a California family was killed in a Lexus sedan experiencing uncontrollable acceleration. Of those 128 complaints, 47 came from Toyota and five from Lexus, representing 41 percent of overall unintended acceleration complaints. That's obviously a disproportionate amount of reports for an automaker with 16 percent of the US market's overall share. Here's one complaint logged by NHTSA.

"I felt the vehicle [2008 Lexus ES 350] increasing in speed to about 90 mph, without depressing the accelerator. I had been on cruise control at about 73 mph... [A] passenger screamed at me to slow down. I was unable to do so, even after stepping forcefully on the brakes."

While Toyota had a disproportionate amount of unintended acceleration claims, the Japanese automaker wasn't alone. Ford received an also high 36 overall complaints, or 28 percent of all U.S. models. The F-150 appears to have been one of the Blue Oval's main culprits, and complaints ranged from a gas pedal that was too wide to an engine that decided to go buck wild.

"The engine immediately increased in rpm to the point where the rear tires began spinning on the gravel. I put the transmission in Neutral and the engine rpm increased. I removed my foot from the brake and the engine continued at a very high rpm. I then depressed and released the accelerator and the engine returned to a normal idle."

While Toyota and Ford have the lion's share of unintended acceleration claims, other automakers have a disproportionately low amount of complaints. Chrysler came in with 11 complaints, GM had seven, Honda had five and Nissan had three. Head over to Consumer Reports for its full report and more information on unintended acceleration.

UPDATE: Numbers and percentages mentioned in second paragraph further clarified.

[Source: Consumer Reports]

Consumer Reports: Over 40 percent of 'sudden acceleration' claims involve Toyota originally appeared on Autoblog on Tue, 08 Dec 2009 11:29:00 EST. Please see our terms for use of feeds.

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REPORT: U.S. customs agents seize a very familiar gray-market Cizeta V16t

Frank Filipponio — Tue, 08 Dec 2009 09:59:00 EST

Filed under: Coupe, Performance, Government/Legal

1994 Cizeta V16t

Whenever we've mentioned the Cizeta V16t supercar here on the pages of Autoblog in the past, we have always received mixed reactions. With its love-it-or-hate-it, Diablo-prototype looks and its unique transverse V16 engine, the car was a stunning achievement by former Lamborghini engineer, Claudio Zampoli. It was his vision, his engineering and his design work that made this project come to fruition. It was also his initials, C.Z., or "Ci Zeta" in Italian, that led to the vehicle's name. While only ten of the cars were ever built, they have attained a certain cult-like following among some enthusiasts.

Although often misidentified as a Cizeta Moroder, the correct name does not include the name of music composer Giorgio Moroder, who was an early investor that dropped out in the planning stages. The 560-horsepower, V16 beast was said to be good for well over 200 MPH in its day, and for anyone who has seen or heard it in person, it's not hard to believe. We consider ourselves very lucky indeed to have spent some time in one of these Veyron-preceding 16-cylinder marvels. The red one you see above is so familiar to all of us in the SoCal car community that we sometimes forget just how exotic it really is. We've seen it at numerous events around Southern California and have gotten to know Mr. Zampoli as well.

Imagine our shock, then, to hear that the very Cizeta we know best has been seized by Federal authorities. According to news reports, the U.S. Immigration and Customs Enforcement (ICE) agency has seized the car, alleging that Zampoli violated U.S. customs and environmental laws when he brought the car into the country in 2001. One issue was the price claimed for the vehicle when it was brought over, which at $125,000 was approximately one fourth of its price when new.

The other issue is the fact that the car was never certified by U.S. agencies for emissions and safety regulations. It is not uncommon for such small manufacturers to skip U.S. importation because of the cost involved in crash testing these expensive autos. Some are granted exemptions using the government's Show or Display rules, and others are sometimes imported as museum pieces that are never registered for road use.

We know that there will be a lot more to this story as it unfolds. For one thing, we know that Mr. Zampoli moved his operations to the U.S. several years ago. We also believe that this particular vehicle never belonged to him. It was allegedly shipped over for updates and repairs by its Austrian owner in 2001 and was supposed to be shipped back by 2004 after receiving an extension on its stay. For one reason or another, the owner never had it shipped back. It has always worn European tags and a manufacturer plate when out and about.

While the official ICE statement that alludes to these cars being "a real threat to public health and safety" is laughable in many ways, the fact remains that the Cizeta was never certified for sale in the States and due to its extremely limited production, it probably never received an exemption for Show or Display. For now, the authorities are trying to have the car forfeited to the federal government, with the intent to have it auctioned to an overseas buyer eventually. We'll be sure to keep you posted. Thanks for the tips, everyone.

[Source: The Orange County Register]

REPORT: U.S. customs agents seize a very familiar gray-market Cizeta V16t originally appeared on Autoblog on Tue, 08 Dec 2009 09:59:00 EST. Please see our terms for use of feeds.

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NHTSA investigating claims of stalling on 2006 Toyota Corolla, Matrix

Michael Harley — Mon, 07 Dec 2009 17:59:00 EST

Filed under: Government/Legal, Recalls, Safety, Hatchback, Toyota

When it rains, it pours. With recalls on the books for Toyota floor mats and corrosion problems, the National Highway Traffic Safety Administration (NHTSA) is now investigating reports that Toyota's Corolla and Matrix vehicles may have engines susceptible to stalling. Owners of the 2006 model year Corolla and Matrix vehicles with the questioned 1ZZ-FE engines have described stalling in intersections and on highways, putting drivers at a safety risk while they attempt to restart the engine. There have been no reports of crashes.

It's important to note that about 397,000 vehicles are covered by the review, and that only 26 complaints have been lodged (that works out to about one in every 15,000 vehicles). Since it is a preliminary investigation, there's no recall until NHTSA investigates and determines that the stalling is caused by a specific design or parts defect. Of course, they may also find the stalling issue is attributed to poor maintenance or bad gas... nobody is pointing fingers. Yet.

[Source: Reuters]

NHTSA investigating claims of stalling on 2006 Toyota Corolla, Matrix originally appeared on Autoblog on Mon, 07 Dec 2009 17:59:00 EST. Please see our terms for use of feeds.

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VIDEO: TN Senator Corker's daughter carjacked, suspects apprehended via OnStar

Jonathon Ramsey — Mon, 07 Dec 2009 09:29:00 EST

Filed under: Etc., Government/Legal, Videos, Celebrities

Senator Corker praises OnStar -- Click above to watch the video

Tennessee Senator Bob Corker had this opinion of OnStar a month ago: "Each month I get the bill for OnStar and [I think], 'I don't want to pay this again.'" Then his daughter Julia was carjacked in Washington D.C. last week driving his Chevrolet Tahoe, and having been yanked out of the car by her throat, she was left lying in the street.

Thankfully, Corker's daughter was all right, and she was able to call her father who was nearby. She also remembered that the vehicle as equipped with General Motors' OnStar system, and within an hour, the service had notified the D.C. police that the Tahoe was parked at a Taco Bell seven miles away in Maryland. Corker said that the carjacking happened about 9:15 pm, and by midnight the suspects had been identified and he was headed back home with his daughter.

His opinion of OnStar now: "this is an incredible service." Follow through to the jump to hear about the ordeal in Corker's words (the OnStar talk begins at about 2:15), or check out CNN for the nitty gritty details. And for proof of the extent of Southern politesse, Corker begins the tale with "A gentleman appeared, opened the door, grabbed her by the neck... and he threw her on the pavement and drove away." A "gentleman?" Hat tip to Berto!

[Sources: Politico; CNN]

Continue reading VIDEO: TN Senator Corker's daughter carjacked, suspects apprehended via OnStar

VIDEO: TN Senator Corker's daughter carjacked, suspects apprehended via OnStar originally appeared on Autoblog on Mon, 07 Dec 2009 09:29:00 EST. Please see our terms for use of feeds.

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Bogus car hauler stealing luxury autos from dealers in several states?

Dan Roth — Sun, 06 Dec 2009 09:34:00 EST

Filed under: Car Buying, Classics, Auctions, Government/Legal

Luxury cars are nice. Most people would consider some kind of sacrifice to own one, while others plant their behinds in Corinthian Leather through ill-gotten gains. When something is desirable, there's no end to the scheming. The latest tactic for driving luxe without earning it is pretty blatant: just show up and take it! Automotive News reports that the FBI is currently looking into an operation that's using the identity of Atlas Towing and Recovery of Illinois, a real, legitimate business, to take luxury vehicles right out from under the noses of dealerships.

The false haulers are apparently showing up at dealers and picking up cars using Atlas Towing's credentials, causing the National Auto Auction Association to send out a warning. Over the summer, Manheim Auto Auctions also got hit with a fake car hauler, and that operation is believed to be connected to the more recent activity. Dealers have been warned to notify the authorities if anyone posing as Atlas Towing and Recovery comes calling and and tries to pick up vehicles. It is pretty slick, though, showing up with a truck and an air of official-ness. Points for cleverness, but it's likely not clever enough to avoid capture eventually.

[Source: Automotive News - sub req, | Image: BringATrailer]

Bogus car hauler stealing luxury autos from dealers in several states? originally appeared on Autoblog on Sun, 06 Dec 2009 09:34:00 EST. Please see our terms for use of feeds.

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Here's the Plan: GM reveals how it will deal with shuttered dealers' complaints

Jeremy Korzeniewski — Fri, 04 Dec 2009 16:27:00 EST

Filed under: Government/Legal, Hirings/Firings/Layoffs, GM

Back in May, General Motors announced plans to close down a large portion of its dealership network. Since then, a number of those franchisees have lodged complaints to both the automaker itself and appropriate policymakers, leading to possible legislation on how GM is allowed to handle the closing of dealerships. This being the case, The General is proactively drafting a new set of rules as to how it will deal with these to-be-shuttered dealerships, and it promises that some are likely to be reinstated after the process.

Specific details can be seen in the press release pasted after the break, but it seems that the new plan basically will allow these affected dealerships to get some real-life face time with the automaker to hear exactly whey they were targeted for closure. If the dealer still isn't happy with the outcome, it can elect to enter binding arbitration. If that arbiter finds that GM chose to shutter the dealership for anything other than sound business reasons, the franchise stands to be reinstated.

There's plenty more detailed in the plan, including a provision for GM to help service technicians and dealership employees find new placement, after the break. This plan will go into effect by mid-January "provided that legislation related to GM's dealer restructuring does not move forward."

[Source: General Motors | Image: Justin Sullivan/Getty Images]

Continue reading Here's the Plan: GM reveals how it will deal with shuttered dealers' complaints

Here's the Plan: GM reveals how it will deal with shuttered dealers' complaints originally appeared on Autoblog on Fri, 04 Dec 2009 16:27:00 EST. Please see our terms for use of feeds.

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LA 2009: Lawsuit-happy U.S. kills chances for Lotus Exige Scura, but we'll get something similar

Sam Abuelsamid — Thu, 03 Dec 2009 13:58:00 EST

Filed under: LA Auto Show, Government/Legal, Lotus

Lotus Exige Stealth - Click above for high-res image gallery

We had a chance to chat with Lotus USA spokesman Kevin Smith at the LA Auto Show and he shared a bit of news with us. He confirmed that while we unfortunately won't be getting the limited edition Exige Scura/Stealth that debuted at the Tokyo Motor Show, we will will get something close. The problem is the special matte black paint on the Scura. We reported on the rubberized finish at the time after talking with Lotus vehicle engineering director Roger Becker. The matte finish can be marked up, and because of process used to apply it, it's not possible to do spot repairs on the affected area.

Because of the litigious nature of America when it comes to product liability, Lotus has apparently opted not to offer the special paint job. We will, however, get essentially the rest of the car including the new wheel design that debuted on the Scura. The rest of the mechanical bits are largely the same as the Exige 260 S that we had so much fun with a few months ago. Lotus is still finalizing the spec of the new limited edition model but Smith tells us that it will be available in four colors including Phantom Black. Approximately 20-30 units will be built for the U.S. market in two-to-three months with availability in early spring.

Gallery: Tokyo 2009: 2010 Lotus Exige Scura

Photos copyright (C)2009 Sam Abuelsamid, Jonathon Ramsey / Weblogs, Inc.

[Source: Lotus]

LA 2009: Lawsuit-happy U.S. kills chances for Lotus Exige Scura, but we'll get something similar originally appeared on Autoblog on Thu, 03 Dec 2009 13:58:00 EST. Please see our terms for use of feeds.

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REPORT: NHTSA proposing new side airbag standards expected to cost $54 per car

Jeremy Korzeniewski — Thu, 03 Dec 2009 10:58:00 EST

Filed under: Government/Legal, Safety

Naturally, safety is a top priority for both automakers and consumers alike. It's also of paramount concern to the National Highway Traffic and Safety Administration, which is the government body that sets standards for automobile safety here in the States. According to The Detroit News, NHTSA is currently drafting up new legislation that would make side curtain airbags more robust.

NHTSA projects that the modified airbags would save some 402 lives and prevent 302 serious injuries per year, with the bulk of those made up of motorists who are not properly wearing their seat belts. The new rules would mandate curtain airbags that cover up more of the window opening and stay inflated longer, helping to ensure that occupants are not ejected during a rollover accident.

What price safety? Current estimates peg the upgrade at about $54 per vehicle, which equals roughly $920 million annually. Under the proposal, 20 percent of every major manufacturer's fleet would need to comply by 2014 and all vehicles would need to be so-equipped by 2017.

[Source: The Detroit News]

REPORT: NHTSA proposing new side airbag standards expected to cost $54 per car originally appeared on Autoblog on Thu, 03 Dec 2009 10:58:00 EST. Please see our terms for use of feeds.

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A Game of Chicken: Mitsubishi wants to import Triton pickup and Delica van - but can it afford to?

Jeremy Korzeniewski — Thu, 03 Dec 2009 09:31:00 EST

Filed under: Minivan/Van, Truck, Government/Legal, Mitsubishi

According to a report from Automotive News, Mitsubishi's North American CEO Shin Kurihara would like to bring over the Japanese automaker's funky little Delica van (right) and Triton pickup (above), believing that the two work-ready models may fill a desirable niche here in the States. So, why not wave a magic wand and make that happen? In a word: Chickens.

Sorry, come again? What do chickens have to do with vans and pickups? It's all a bit odd, but back in the early Sixties, the United States levied a 25% tax on potato starch, Dextrin, brandy, and light trucks in response to French and German tariffs on imported U.S. chicken. Yes, really.

As such, importing any light trucks from overseas into the States can be an expensive proposition, taking away pretty much any chance of profitability. There may be ways around the issue as Ford has found with its Turkey-built Transit Connect, and Mitsubishi is currently considering its options, which, we surmise, may include bringing the vehicles in only partially assembled and finishing them here in the U.S. We'll see.

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

A Game of Chicken: Mitsubishi wants to import Triton pickup and Delica van - but can it afford to? originally appeared on Autoblog on Thu, 03 Dec 2009 09:31:00 EST. Please see our terms for use of feeds.

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GM confirms Chevrolet Volt to be introduced in California before nationwide rollout

Noah Joseph — Wed, 02 Dec 2009 10:30:00 EST

Filed under: Car Buying, Hybrid, Government/Legal, Marketing/Advertising, Technology, Chevrolet, Electric

2011 Chevrolet Volt - Click above for high-res image gallery

If environmentally-friendly transportation is your thing, there's no place like California. Not only is the state home base to Tesla - the first company to genuinely demonstrate that hugging a tree and hugging the road needn't be mutually exclusive - it was also chosen by General Motors as the launch site for its EV1 and by Honda for the FCX Clarity. It should come as no great surprise, then, that GM has just announced that its latest earthmobile - the highly anticipated Chevrolet Volt - will launch in California first before being introduced in markets across the country.

Not only with the Volt be available in the nation's largest car market before any other, but The General is also partnering with a number of local electric companies to accompany the rollout. Pacific Gas and Electric, Southern California Edison and Sacramento Municipal Utility District, together with the non-profit Electric Power Research Institute, will help demonstrate the benefits and practicality of the Volt's hybrid powertrain, thanks in part to a $30 million grant from the federal Department of Energy's Transportation Electrification Initiative. Follow the jump to read all about it in GM's full press release.

Gallery: Quick Spin: 2011 Chevrolet Volt

[Source: General Motors]

Continue reading GM confirms Chevrolet Volt to be introduced in California before nationwide rollout

GM confirms Chevrolet Volt to be introduced in California before nationwide rollout originally appeared on Autoblog on Wed, 02 Dec 2009 10:30:00 EST. Please see our terms for use of feeds.

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Feds punt on E15 waiver decision, want to test ethanol's effect on more cars

Sebastian Blanco — Tue, 01 Dec 2009 14:29:00 EST

Filed under: Etc., Government/Legal

There is some ethanol in almost all of the gasoline sold in the U.S. Usually, this amount is no more than 10 percent of the total and, if it's more than that, it jumps all the way to 85 percent and is sold as E85. The U.S. Environmental Protection Agency was supposed to come down on one side or the other today of a possible increase across the board to 15 percent that Growth Energy and 54 ethanol manufacturers asked for, but instead announced that it needs more time.

The EPA has been looking at the E15 issue all year and investigating all sorts of issues, but there are a lot of moving parts in this sort of decision. Everyone from farmers and their subsidies to grow the corn used to make most of the ethanol sold today to car makers who have tuned their engines to run on E10 but not E15 want to have their say. The EPA has heard the comments, and now says that it needs more time to test E15 in vehicles. Right now, it thinks that any vehicle built after 2001 will burn E15 just fine, but there are a lot of older vehicles still on the road. Cash For Clunkers didn't get all of them off the road, after all. A decision is now expected in mid-June 2010.

The postponement was met with approval by the Alliance of Automobile Manufactures, which said they want more government testing "to prove that increasing the allowable ethanol blend limit will not harm vehicle emissions, performance, and durability." Read their full statement after the jump.

[Source: Reuters, Auto Allliance | Photo: Scott Olson/Getty Images]

Continue reading Feds punt on E15 waiver decision, want to test ethanol's effect on more cars

Feds punt on E15 waiver decision, want to test ethanol's effect on more cars originally appeared on Autoblog on Tue, 01 Dec 2009 14:29:00 EST. Please see our terms for use of feeds.

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