Facebook Connect Comes to TheCarConnection.com!
Facebook and TheCarConnection.com are joining hands--or, profiles, really.
Starting now, Facebook Connect is available on TheCarConnection.com, along with the rest of the sites in our High Gear Media group of auto destinations (GreenCarReports, MustangBlog, AllSmallCars and AllCarsElectric, to name a few). This new feature allows our users to sign into our 38 automotive Web sites using their Facebook logins, comment on stories we produce more easily than ever, and then quickly share those comments with their friends through their Facebook profile.
We're really excited about this new feature and curious to see where you take it. There have been some interesting blog posts on the changing nature of the web, and how social ties manifested through platforms like Facebook, Twitter and Digg increasingly allow users to discover great content they otherwise wouldn't find.
Important note: you have complete control of how your comments are posted from High Gear Media sites, and when, and where they show up on your Facebook profile. You'll be asked twice on a per-comment basis before we share any information with your Facebook friends, so feel free to comment away--knowing we'll only share exactly what you want us to.
This story originally appeared at The Car Connection
GM Sells Saturn; Penske Becomes A Virtual Automaker
General Motors has been shopping Saturn to potential buyers for months, and rumors recently began circulating that the company had found one in Penske Automotive Group. In a win-win-win for GM, Saturn, and Saturn fans, those rumors have now come true.
Penske will purchase the soon-to-be-orphaned brand for a price tag in the $100 million to $200 million range, according to Bloomberg. The bulk of that modest sum is tied to the brand itself, the dealer network, and other small interests. In a press release, GM said Penske's purchase will save more than 350 dealerships and 13,000 jobs at Saturn retailers, but made no mention of a manufacturing component.
It's doubtful that the sale includes anything substantial from the manufacturing side--meaning that Penske will own the brand, but the company will need to outsource manufacturing of the vehicles. General Motors will continue to supply Saturn with its current lineup--the Aura sedan, Outlook SUV, and VUE crossover--through the 2011 model year. (Renault Samsung Motors Company may take on the manufacturing contract afterward.) The Saturn Sky roadster is not included in the carryover cars that Penske will receive in the sale; the Delaware plant that builds the two-seater will close this summer.
In an exclusive follow-up to a press conference this morning, Saturn's new owner said its goal is to be a "distribution company", not a warehouse of designers, engineers, and manufacturing experts. Penske also confirmed that there are no plans to fold the Saturn lineup into its existing distribution of Smart Fortwo city cars in the U.S.
The GM/Penske deal comes as welcome news to legions of Saturn fans, whose loyalty has been fairly consistent since the personable, no-haggle brand launched in the early 1990s. Likely, it's even more welcome to the thousands of GM employees attached to Saturn--employees who have at least a temporary reprieve from the massive cuts taking place at General Motors.
GM says it expects to close the sale this fall.
[source: Bloomberg]
This story originally appeared at The Car Connection
Nissan, Renault Getting Closer
The long-distance marriage between Nissan and Renault will get a little warmer, as a result of the downturn in worldwide automotive sales.
As a result, drivers and car shoppers could see more vehicles for sale in America, that share much more in common with the vehicles Renault and Nissan sell in other countries.
Between the Japanese automaker and the French automaker, CEO Carlos Ghosn says $2 billion in potential savings has been identified. What that means, in all likelihood, is more cars and crossovers for both companies will share platforms, engines and other parts.
While Renault specializes in small cars and diesels and minivans, Nissan's strengths are its rear-drive sportscars like the 2009 Nissan 370Z, and its range of Infiniti sedans and crossovers like the 2009 Infiniti G37 Convertible. Its Nissan Altima is a leader in the mid-size segment.
When Nissan and Renault joined efforts in 1999, then-Renault chief Ghosn envisioned a broad product alliance that would benefit both companies. To date, that sharing hasn't led to much in the United States--limited mostly to the Nissan Versa hatchbacks and a shared platform for the Nissan Sentra/Rogue with compact Renaults.
Could the Nissan Altima end up sharing more with the Renault Megane? Will Renault end up selling full-size pickups--and Nissan, a version of the Renault Espace minivan? Those are less likely than increased sharing of engines and transmissions and more small cars, but in the current automotive market, all options are on the table.
"We have to move faster. Seeking synergies is no longer optional, but mandatory," Ghosn told the Associated Press.
Renault holds a 44-percent stake in Nissan, while Nissan has a 15-percent stake in Renault. Their alliance, minted in 1999, is widely seen as a pattern for the forthcoming union of Chrysler and Fiat.
[Wall Street Journal]
This story originally appeared at The Car Connection
GM Asks For $2.6 Billion From DOE For Hybrid Program
A sobered, Wagoner-less GM asked Obama's Department of Energy for $2.6 billion in low interest loans. According to an updated business plan released by the company yesterday, the money would be used "to support the development of three new hybrid vehicles" says Automotive News.
The three vehicles would include the 2011 Chevrolet Volt and two more vehicles based on that planned E-REV that GM's been pinning its hopes on. This new request for funding ups GM's total requests to $10.3 billion to a DOE program supporting the development of efficient vehicles.
This marks GM's third request, in all, for low-interest loans backed by U.S. taxpayers. It also marks the General's first official announcement that it will be moving ahead with variants based on the Volt's E-REV architecture, which pairs a newly-developed 1.4-liter gasoline four-cylinder with lithium-ion-powered electric motors that can propel the vehicle on electricity alone for up to 40 miles.
One spinoff possibility is the handsome Cadillac Converj concept first revealed at the North American International Auto Show held in Detroit in January.
This story originally appeared at The Car Connection
GM Advisers Present ‘Best Chance’ Plan For Restructuring
GM bondholder advisers claim they've presented a plan to both GM and Obama's autos task force that "provides GM's best chance for an out-of-court restructuring." They released a statement claiming that the plan, which would trade bondholders' stake in GM's spiraling debt for equity in the restructured entity, is "consistent with the government's restructuring requirements under the terms"set forth by the emergency loans granted to the automaker.
Their plan claims to be the best chance of finding an agreeable middle ground for a diverse group of bondholders that includes mutual funds, pension funds, and retail bondholders. Advisers note that their plan is but one of several being considered for out-of-court restructuring.
The bondholders have been asked to reduce by 2/3s their $27 billion stake in GM in exchange for "new equity in a recapitalized company," according to Automotive News. Bondholders have claimed, given GM's remaining debt and deals being brokered with UAW autoworkers, that they're getting the short end of the deal. But with March 31 looming, the date when the autos task force will decide whether GM and Chrysler are even worth restructuring, this deal might well be their best-case scenario.
[source: Automotive News]
This story originally appeared at The Car Connection
GO SEE CAL! (please?)
Auto sales are so dismal that even the great cowboy of car sales Cal Worthington ("Go See Cal!") is scared. Worthington, well into his 80s, built one of the biggest Ford dealership networks in the country and still flies to check up on his dealerships in a Lear Jet.
Worthington soberly told National Public Radio: "this is absolutely, beyond a doubt, the worst time I have ever seen in the car business." And he's been selling cars for quite some time, having started his franchise in the early 1940s. Worthington even makes a chilling comparison to the Great Depression: "if we don't do something drastic, this is going to be a 1928, '29 deal."
So the immediate future for U.S. auto sales looks about as bright as Worthington's kitchen after "wife number three burned the house down sauteing mushrooms."
But enough negativity. Let's drift back through the technicolor dream machine and take a trip to the circus! The circus of automotive sales ploys, that is, financed by the heyday of U.S. car sales in the baby boom generation. Back when it seemed everybody had a brand new Impala, Galaxie 500, or Belvedere parked proudly in the car port.
Worthington built the biggest tent in the land, and his increasingly gonzo pleas to "Go See Cal!" included snakes, skunks, pigs, planes, killer whales, and bears. Dealer lot hijinks included tigers jumping from Buick to Buick, grizzlies in the pasenger seat, and, yes, even a monkey careening on rollerskates.
[source: NPR]
This story originally appeared at The Car Connection
Toyota Is Hot In Us And Japan
Toyota Is Hot In Us And Japan by Jonathon Hardcastle
Major car manufacturer Toyota has produced car models that have consistently ranked high in both the US and Japan market, specifically with regard to the Toyota Camry and the remodeled Toyota Corolla.
While the Toyota Camry has been the best-selling car in the United States for the past four years (2002-2005), back in Japan where Toyota is based, it is the Toyota Corolla that has been the best selling vehicle. Reports say there were 70,675 units of the Toyota Corolla sold from January to June this year. That total is actually a decrease of 11.7% from their total sales during the same period a year ago.
According to figures from the Japan Automobile Dealers Association, the Toyota Corolla has actually been the best-selling car in Japan for the last four six-month periods. Toyota actually released a fully remodeled Corolla in August 2000 and its impressive sales performance since that time attests to its immense popularity.
The performance of the Toyota Camry in the United States has been simply amazing. Not only has it been the best-selling car for four straight years now, it has also been the country's best seller in eight of the last nine years. It has consistently topped its mid-size competitors such as the Honda Accord and the Chevrolet Impala in that period.
Reports say that plans are currently afoot to launch a hybrid Camry later this year as well a fully redesigned version of the Camry in 2007. The general expectation is that Toyota Camry set to be unveiled Monday at the North American International Auto Show in Detroit, the sedan likely will set the bar high for its competitors.
Understandably, Toyota has been mum about the new Camry, hardly releasing any details. However, according to Jim Press, president and chief operating officer of Toyota Motor Sales USA Inc., it will offer better style, technology and drivability. And it will build on the reputation the nameplate has established in previous incarnations.
Press said he expects the company this year to sell about the nearly the same as the 432,000 Camrys it sold in 2005, but may lose some sales as it switches from offering the old model. He said Toyota strives to keep Camry's style timeless while keeping in mind the goal of a well-balanced car that satisfies drivers' needs.
Jonathon Hardcastle writes articles on many topics including Automotive, Shopping, and Recreation
Article Source: Free Articles ArticleSnatch Article Directory
Volvo, Saab to Be Rescued by Swedish Government
Showing that economic troubles and auto industry woes are not confined to the U.S., Sweden just announced that it is releasing a 2.1 billion euro credit line/emergency loan for Volvo and Saab. AutoCar claim the money is both to help the automakers and safeguard Swedish jobs.
A statement from the Swedish government assured a "clear assumption that the state does not intend to acquire any of the existing automotive manufacturers." Interesting--and similar to U.S. Congressional mandates for efficient vehicles--is Sweden's pledge of 250 million euro for a government-backed automotive research company set to develop green technologies for future vehicles. This should dovetail nicely with Volvo's trio of DRIVe concepts and Saab's extensiveresearch and development of gasoline engines that actually make more power and better mileage while running on ethanol.
Both Swedish auto firms are currently controlled by U.S. automakers; GM owns Saab, while Ford owns Volvo. But in drastic attempts to stay alive and cut back costs, both domestics have put these European brands up on the auction block, showing the worldwide ripple effect of troubles in the U.S. auto industry.--Colin Mathews
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This story originally appeared at The Car Connection
Senate Republicans Likely to Target UAW’s "Jobs Bank" This Week
As the Big Three trudge back to Washington tomorrow to make their carefully tailored plans for federal assistance, Automotive News says that Republicans are likely to request practices such as the United Auto Workers (UAW) union's "Jobs Bank" be eliminated. These and other concessions are expected to be proposed by some or all of the Big Three as they make more allowances in hopes of placating a Congress none too eager to fund billions in assistance for three companies notorious for inefficient money management.
The UAW's Jobs Bank ensures unionized, hourly auto workers nearly full pay when they are laid off. Automotive News calls the practice "a powerful symbol of auto industry excess."
Senator Kit Bond of Missouri, who is described as a moderate Republican, told Automotive News that "management, workers and investors are going to have to make sacrifices if they truly want to turn around their companies enough to earn taxpayer help." They say that GM will likely be the first to propose the Jobs Bank elimination.
Republican Senator Elizabeth Dole, who recently lost her '08 reelection bid to Democrat Kay Hagan, said that "the enormous costs in union-required benefits are unsustainable. Renegotiating these contracts would be essential if there were to be hope of keeping these companies afloat."--Colin Mathews
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Make sure you check out our partner sites dedicated to focused news, reviews and more for Ford, Chevrolet, Toyota, Honda, and the Toyota Prius.
This story originally appeared at The Car Connection
Chapter 11 Could Decimate Big Three Dealers
Dealership lawyers predict that Chapter 11 filings by any of the Big Three would "kill many of its dealerships quickly" even if the companies successfully reorganize, says Automotive News. The situation would place dealerships into an immediate cash shortage from which many would simply not recover.
What money would they miss out on in the event of Chapter 11? Automotive News says sales incentives, holdbacks, and warranty reimbursement payments from automakers direct to dealers would all cease, and with the current dearth of auto sales, this scenario could be the final turning point for dealers and the catalyst for their failure.
Bankruptcy court might allow automakers to pay dealerships just small fractions of the money they owe, and even those payments could be significantly delayed. Some industry pundits are claiming that it's high time that the domestics' (especially GM) sprawling, bloated dealer networks are dramatically trimmed, and it looks like Chapter 11 might just force that to happen. On the other hand, GM's Wagoner claims that nobody wants to buy from a bankrupt automaker. Wagoner cited research that claimed 80 percent of buyers would not consider purchasing a vehicle from a bankrupt automaker.
Would you buy a fantastically designed, great-driving vehicle from a bankrupt automaker? How about a dowdy little Daewoo Pontiac G3?--Colin Mathews
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Make sure you check out our partner sites dedicated to focused news, reviews and more for Ford, Chevrolet, Toyota, Honda, and the Toyota Prius.
This story originally appeared at The Car Connection
