Autoblog

REPORT: Infiniti still mulling production Essence coupe

Chris Shunk — Fri, 04 Dec 2009 11:28:00 EST

Filed under: Concept Cars, Coupe, Hybrid, Geneva Motor Show, Infiniti, Luxury

Infiniti Essence Concept - click above for high-res image gallery

When we first laid eyes on Infiniti's Essence concept at this year's Geneva Motor Show, we were, quite frankly, smitten by its voluptuous lines. We apparently weren't alone, as Infiniti exec Ben Poore has reportedly told Motor Trend that reaction to the concept was "phenomenal." When the Essence was unveiled, Infiniti told the audience at Geneva that the vehicle was concept-only and that future vehicles would be influenced by its stunning design. We were a bit disappointed by that news, because, of course, the world can never have too many stunning twin-turbo V6 hybrid coupes capable of a combined 592 brake horsepower.

But while we were let down by Infiniti's initial decision on Essence, we're at least encouraged by the fact that Poore recently told MT that that the concept is "only a show piece... for now." Could that mean that we could have a production vehicle based off of the Essence in the future? We hope so. Will it have a twin-turbo 3.7-liter V6 with a lithium-ion backed disc-shaped electric motor? Perhaps not, but we wouldn't exactly be disappointed if it did.

Gallery: Infiniti Essence Concept

Gallery: Geneva 2009: Infiniti Essence

[Source: Motor Trend]

REPORT: Infiniti still mulling production Essence coupe originally appeared on Autoblog on Fri, 04 Dec 2009 11:28:00 EST. Please see our terms for use of feeds.

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REPORT: GM selling control of Chinese joint venture to SAIC, half of India operations

Chris Shunk — Fri, 04 Dec 2009 09:00:00 EST

Filed under: China, GM, Earnings/Financials

It has been a busy week at General Motors. The week started off with CEO Fritz Henderson's abrupt resignation, then executives converged on the LA Auto Show where Bob Lutz was the keynote speaker and then the U.S. market Chevy Cruze was revealed. Now, the General is reportedly deep in negotiations halfway around the world with its Chinese partner, SAIC, to sell its partnership stake in what is now the largest auto market in the world.

Here is how the deal will reportedly break down: According to Reuters, GM will give SAIC a scant one percent of its interest in the China venture and 50% of GM's India operations. In exchange, the General would receive what amounts to about 20% of the value of the China venture. Sounds like a pretty sweet deal considering the fact that GM isn't exactly a big player in the Indian market - but there is a very big downside. If GM cedes one percent of its joint venture with SAIC, then the Detroit, MI-based automaker would no longer control its China operations. The rumored deal will contain a proviso that the General can later buy back its lost percentage for a "premium price." That sounds a little like GM just got a loan from SAIC and put up one percent of its ownership as collateral.

While GM currently has over $40 billion in its cash coffers courtesy of its recent bailout and bankruptcy, The General is in a big hurry to pay back the money it owes the government. It also has to contend with what is still a very soft auto market - not to mention Opel restructuring costs that could tally $5 billion or more. But China is also a monster part of GM's business plan, so any money gained from this deal could come at an even greater cost. We have to wonder if this deal had anything to do with Mr. Henderson's abrupt exit stage left...

[Source: Reuters]

REPORT: GM selling control of Chinese joint venture to SAIC, half of India operations originally appeared on Autoblog on Fri, 04 Dec 2009 09:00:00 EST. Please see our terms for use of feeds.

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Ford accepting applications for Fiesta Movement 2

Chris Shunk — Thu, 03 Dec 2009 20:28:00 EST

Filed under: Budget, Sedan, Marketing/Advertising, Hatchback, Ford

2011 Ford Fiesta - Click above for high-res image gallery

Ford finally unveiled the U.S. version of its B-Segment Fiesta yesterday at the LA Auto Show, and thanks to some clever marketing, the Blue Oval's newest small car is already well-known to prospective buyers. Ford's ingenious "Fiesta Movement" marketing initiative, which put 100 Euro-spec subcompacts in the hands of socially advanced "agents," resulted in over six million YouTube views, 740,000 Flickr views and 3.7 million Twitter impressions. All that traffic has apparently resulted in a 60-percent vehicle recognition score in Ford's survey findings - a number that would be good for a vehicle that has already been on the market a few years.

The first Fiesta Movement was created to get the Fiesta in front of the car-buying public while engaging in customer-driven dialog. Connie Fontaine, Ford brand content and alliances manager, says that wave two will focus on "driving unparalleled consideration." In other words, Ford wants customers to be excited to buy a new Fiesta. Given the fact that Ford generated 80,000 "hand-raisers" with Fiesta Movement number one, another group of Fiesta agents probably isn't a bad idea.

Ford is looking now for 20 teams of agents to participate in getting the word out about its new small car. Interested parties can apply via video on fiestamovement.com between now and January 31. Round two begins in mid-February. Winning contestants will need to be "socially vibrant" and "in-tune with the latest happenings in their neighborhood." Winners will be chosen based on public reaction to their video presentations... though it probably wouldn't hurt to look young and Millenialish. Hit the jump to check out Ford's official press release.

Gallery: LA 2009: 2011 Ford Fiesta

[Source: Ford]

Continue reading Ford accepting applications for Fiesta Movement 2

Ford accepting applications for Fiesta Movement 2 originally appeared on Autoblog on Thu, 03 Dec 2009 20:28:00 EST. Please see our terms for use of feeds.

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Inside Line editors pick their 'Most Wanted' for 2010 - do you agree?

Chris Shunk — Thu, 03 Dec 2009 19:00:00 EST

Filed under: Audi, Ford, Mazda, Porsche

Inside Line Most Wanted 2010 - Click above for high-res image gallery

We love award season, even if it is a bit tough to keep up with them all. Motor Trend has a set of golden calipers for its Car, Truck and SUV of the Year winners. Car and Driver has its 10Best. Automobile has the, well, the Automobile of the Year. Then there's Edmunds Inside Line and its six Most Wanted winners. Sure, Most Wanted doesn't enjoy the same sort of name recognition as the aforementioned awards, but at the very least, we tend to like the vehicles IL picks as their favorites. We also appreciate the fact that their selection process isn't exactly chock-full of rules. If they tested the vehicle before November 1, 2009, then it's eligible for Inside Line's six shooter. The only award category that truly stands out is the "Instant Classic," an award won over the last two years by the Audi R8 and the Nissan GT-R, respectively.

This year's list didn't have quite the raw power of last year's winners, but we can definitely see where the final six could be considered big fun on four wheels. The big winner is the 2010 Ford Mustang Shelby GT500. The 540-horsepower pony car picked up IL's Instant Classic award for being such a willing dance partner - even at 3,900 pounds. In fact, Blue Oval badges dominate this year's Most Wanted list, as the EcoBoost'd Flex and the wicked cool F-150 SVT Raptor made the final cut. Porsche scored with its new Panamera, while Audi found its way back on the list with the R8 V10. The cheap thrills Mazda3 rounds out this year's list. Click on the gallery below to check out Inside Line's Most Wanted winners in our high-res gallery, then let us know if you agree with their findings by leaving a note in 'Comments.'

Gallery: Inside Line Most Wanted 2009

[Source: Inside Line]

Inside Line editors pick their 'Most Wanted' for 2010 - do you agree? originally appeared on Autoblog on Thu, 03 Dec 2009 19:00:00 EST. Please see our terms for use of feeds.

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Ready, Set, Go! Clever stoplight concept counts down to green

Chris Shunk — Thu, 03 Dec 2009 17:40:00 EST

Filed under: Safety, Technology

Eko stop light - Click above for image gallery

We've got the stoplights in our neighborhood timed pretty well, but it's pretty painful when you're at a foreign intersection and have absolutely no idea when the light will turn green. We shift our vehicle into Neutral and give our left foot a break at a stoplight that we know is long, but at uncharted lights, we occasionally keep our clutch foot to the floor.

One designer by the name of Damjan Stankovic decided we should wait no longer, so he designed an innovative-looking "Eko" stoplight that offers an easy to read indicator that shows how much time the light has until it turns green. The idea has some merit. If you want to conserve fuel and reduce CO2 emissions, you could turn off your engine during truly long lights. (We wouldn't, but you could). If drivers were able to see the light from far away, they could also let off the accelerator early and save a little strain on the brakes. We can think of one big issue, though: drivers trying to time the turn from red to green.

What do you think? Would a red light timer be a good thing, or would it be a recipe for disaster? Give us your take in 'Comments.' Thanks for the tips, Spyros and Jared!

Gallery: Eko Stop Light

[Source: Yanko Design]

Ready, Set, Go! Clever stoplight concept counts down to green originally appeared on Autoblog on Thu, 03 Dec 2009 17:40:00 EST. Please see our terms for use of feeds.

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LA 2009: Ford Taurus and Volvo XC60 named International Car and Truck of the Year

Chris Shunk — Thu, 03 Dec 2009 16:58:00 EST

Filed under: LA Auto Show, Sedan, Crossover, Ford, Volvo

Ford Taurus and Volvo VX60 named International Car of the Year - Click above for high-res image gallery

Hold onto your hats folks, because while magazine award ceremonies appear to be just about finished, the auto show trophies are just starting to be handed out. This time, it's the International Car of the Year at the LA Auto Show, and we've got two winners from within the Ford empire. The Ford Taurus took top car honors while the Volvo XC60 won as the best truck. Both vehicles have been well received by the press and early returns from customers appear to be positive, too. While the Taurus is outselling its bland and unexciting predecessor, the XC60 has helped Volvo achieve six consecutive months of year-over-year sales increases.

ICOTY creator and executive producer Courtney Caldwell claims that the winners aren't chosen based on performance, but instead on how the vehicles "reflect our personalities, lifestyles and self-image and how well the automaker achieves that goal through the design and marketing of the vehicle." Uh-huh. And while the ICoTY award isn't exactly one of the big-name trophies for the mantle, a win is a win, and both Ford and Volvo are proud recipients of the accolades. Hit the jump to read over the press releases from Ford and Volvo.

Gallery: LA 2009 COTY: 2010 Ford Taurus and 2010 Volvo XC60

[Sources: Ford, Volvo]

Continue reading LA 2009: Ford Taurus and Volvo XC60 named International Car and Truck of the Year

LA 2009: Ford Taurus and Volvo XC60 named International Car and Truck of the Year originally appeared on Autoblog on Thu, 03 Dec 2009 16:58:00 EST. Please see our terms for use of feeds.

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VIDEO: 2011 Ford Mustang with 305-HP V6 gets seen and heard in motion

Chris Shunk — Thu, 03 Dec 2009 14:59:00 EST

Filed under: Coupe, Videos, Ford

2011 Ford Mustang - Click above to watch the video after the jump

The 2011 Mustang is only one year removed from a major refresh, but that didn't stop Ford from adding a host of upgrades, especially to the V6 model, to better-compete against its new pony car competition. While we certainly don't discount the V6 Stang's new suspension and packaging updates, the big story resides under its bonnet. The new 3.7-liter V6 packs 305 horsepower mated to a six-speed auto tranny (a six-speed manual is also available, but you lose 1 mpg) giving the new Mustang a big advantage over its predecessor while reportedly delivering the 30 mpg efficiency the masses are looking for.

We got our hands on some b-roll video of the new Mustang V6, with both static and moving shots. If that's not a good enough reason to watch there is also some aural pleasure courtesy of the new 3.7-liter V6. Unfortunately, the engine sounds are only audible when the Stang is in park but it still sounds pretty meaty when inside the cockpit. Hit the jump to see and hear the 2011 Mustang V6 in action.

Gallery: 2011 Ford Mustang 3.7-liter V6

[Source: Ford]

Continue reading VIDEO: 2011 Ford Mustang with 305-HP V6 gets seen and heard in motion

VIDEO: 2011 Ford Mustang with 305-HP V6 gets seen and heard in motion originally appeared on Autoblog on Thu, 03 Dec 2009 14:59:00 EST. Please see our terms for use of feeds.

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LA Preview: 2011 Ford Fiesta for America revealed, hits 40 mpg

Chris Shunk — Wed, 02 Dec 2009 00:01:00 EST

Filed under: LA Auto Show, Budget, Sedan, Hatchback, Ford

2011 Ford Fiesta - Click above for high-res image gallery

The Ford Fiesta has proven to be a very successful small car wherever it's sold in the world. Ford has sold 12 million Fiestas over the vehicle's lifetime and the new-for-2009 model has moved half a million units already this year in Europe and Asia. It's a smash hit in spite of the fact that the Fiesta is not for sale in the U.S., a.k.a. the world's biggest car market. That all changes in the spring of 2010 as the Fiesta finally makes its way stateside.

Ford appears to be focusing its efforts in the U.S. small car market at exactly the right time, as consideration for B-Segment vehicles is at an all-time high and the trend appears to be upwardly mobile. And while Ford would love for us to believe that it was clairvoyant when deciding to bring the Fiesta to the U.S., it just isn't true. In fact, the Fiesta wasn't originally designed for the U.S. market, but the shock of $4 per gallon gas and a new-found interest in eco-friendly transportation led the Blue Oval to rethink its strategy. Ford didn't start readying the Fiesta for the U.S. market until many bits and bolts of hardware were already settled, so Team Blue had to go back to the drawing board to make its small car ready for Americans. The result is a U.S.-spec Fiesta that has only 60% of its parts in common with the Euro Fiesta. Will Americans be missing out? Follow the jump for everything you need to know about the Fiesta.

Gallery: 2011 Ford Fiesta

Continue reading LA Preview: 2011 Ford Fiesta for America revealed, hits 40 mpg

LA Preview: 2011 Ford Fiesta for America revealed, hits 40 mpg originally appeared on Autoblog on Wed, 02 Dec 2009 00:01:00 EST. Please see our terms for use of feeds.

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REPORT: GM could sell some Saab assets to Chinese; brand has through year's end to find buyer

Chris Shunk — Tue, 01 Dec 2009 19:26:00 EST

Filed under: China, Plants/Manufacturing, GM, Saab, Earnings/Financials

General Motors' Saab brand has been given a one month stay of execution as the Detroit, MI-based automaker has announced that it will hold off on a decision regarding the brand's fate until the end of the year. GM's apparent non-decision comes just one week after it announced that Swedish specialty car maker Koenigsegg unexpectedly pulled out of the running for Saab.

While GM isn't commenting on any potential suitors at this time due to non-disclosure agreements with the parties involved, speculation is that Beijing Automotive Industry Holding Co. and Wyoming-based Merbanco Inc are in the running for the struggling Swedish automaker. BAIC appears to make some sense considering the Chinese automaker's desire to enter the U.S. market and the fact that it was also involved in a bid to purchase Opel from GM earlier in the fall.

Beijing Auto was also reportedly involved in the original Koenigsegg deal, which fell apart for reasons we may never know. GM said in a brief statement (available after the jump) that if no deals materialized by the end of the year, it expects to begin an orderly wind down of the global Saab business at that time."

[Sources: The Detroit News; General Motors | Image: Torsten Silz/AFP/Getty Images]

Continue reading REPORT: GM could sell some Saab assets to Chinese; brand has through year's end to find buyer

REPORT: GM could sell some Saab assets to Chinese; brand has through year's end to find buyer originally appeared on Autoblog on Tue, 01 Dec 2009 19:26:00 EST. Please see our terms for use of feeds.

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Michael Richards named Buick GMC general manager

Chris Shunk — Tue, 01 Dec 2009 19:01:00 EST

Filed under: Hirings/Firings/Layoffs, Buick, GM, GMC

Fritz Henderson's unexpected resignation may have taken top billing today, but it wasn't the only move announced by General Motors today. Michael Richards has been named the new General Manager of Buick GMC effective immediately, with the automaker looking from outside the company to fill the roll. Richards replaces Susan Docherty, who was named Vice President of US Sales in October. Richards joins GM after a short stint at Trilogy Automotive in Austin, Texas, where he led the use of digital and Internet-based solutions. Richards also worked as a consultant for JD Power where he launched tools for improved vehicle launch profitability and customer satisfaction.

The bulk of Richards' experience comes from cross-town rival Ford where he worked from 1981-2008. Richards was most recently the marketing brand manager for Lincoln Mercury from 2006-2008. Prior to that he worked as the general sales manager for Ford Customer Service from 2002-2006.

Regardless of where Richards received his management chops, Vice Chairman and Marketing and Communications chief Bob Lutz likes what he has with the long-time Ford man. "We are pleased to have Mike as a member of the GM family. His vast sales and marketing experience will be invaluable in his new role, as he leads the team building the Buick and GMC brands."

[Source: GM]

Continue reading Michael Richards named Buick GMC general manager

Michael Richards named Buick GMC general manager originally appeared on Autoblog on Tue, 01 Dec 2009 19:01:00 EST. Please see our terms for use of feeds.

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Better Than Before: 2010 NAIAS welcomes return of Nissan and Porsche, 54 carmakers total

Chris Shunk — Tue, 01 Dec 2009 10:00:00 EST

Filed under: Detroit Auto Show, Nissan, Porsche

For many auto enthusiasts, the 2009 North American International Auto Show was the official beginning of the US economic downturn. Nissan, Infiniti, Mitsubishi and Porsche didn't even bother to show up for the once-prestigious event and Honda chose not to unveil any new product. A couple months back, the NAIAS organizers gave us some hope for the 2010 extravaganza when they said that the show would be better attended this time around. Well it appears that the show will at least be marginally better.

NAIAS co-chair Doug Fox has reportedly told the Detroit Free Press that at least 54 automakers will take part in the show this year, up four from 2009. Fox also estimates that a couple more automakers may decide to join in on the fun, but nothing is official at this time. Also exciting is news that both Porsche and Nissan will participate in this year's show, though the extent of their presence isn't very clear. We do know that Nissan will, at the very least, participate in the Detroit show's 37,000-square-foot Electric Avenue exhibit, which features electric vehicles from 26 automakers. So far Porsche will only participate in a special event called "The Gallery," which will be held for holders of the American Express Centurion card. The invitation-only event will be held at the MGM Grand on January 10.

While it's nice to see that Porsche and Nissan are going to be active at NAIAS 2010, we're a bit disappointed at the level of participation. At least the show will top the down year that was NAIAS 2009, but it looks like we may still be a ways away from the grandeur of shows gone by.

[Source: Detroit Free Press]

Better Than Before: 2010 NAIAS welcomes return of Nissan and Porsche, 54 carmakers total originally appeared on Autoblog on Tue, 01 Dec 2009 10:00:00 EST. Please see our terms for use of feeds.

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REPORT: Ford loses appeal in rollover case, must pay $55M

Chris Shunk — Tue, 01 Dec 2009 09:29:00 EST

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

According to The Detroit News, the Supreme Court has let stand a ruling that Ford Motor Company is at fault for a 2002 rollover crash involving a 1997 Ford Explorer and the Dearborn, MI-based automaker must pay $55 million in punitive damages. Benetta Buell-Wilson's Explorer rolled over four-and-a-half times after she swerved to avoid debris. When the roof collapsed on her neck, it severed her spinal cord and left her paralyzed.

Ford unsuccessfully argued that it shouldn't be punished due to the fact that the Explorer complied with federal safety standards when it was built. Buell-Wilson was originally awarded $369 million in damages, but a pair of California courts cut down the total value of damages to $82.6 million.

[Source: The Detroit News]

REPORT: Ford loses appeal in rollover case, must pay $55M originally appeared on Autoblog on Tue, 01 Dec 2009 09:29:00 EST. Please see our terms for use of feeds.

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REPORT: Lamborghini Gallardo cop car crashes in Italy thanks to careless driver

Chris Shunk — Tue, 01 Dec 2009 08:30:00 EST

Filed under: Europe, Government/Legal, Lamborghini

The Lamborghini Gallardo LP560-4 Polizia is a very capable police cruiser that just happens to also be an extremely desirable Italian exotic. How many police cruisers can go 200 mph while toting a vital organ in its specially made refrigerated storage? While Lambo and the Italian State Police thought of all kinds of neat amenities to make the LP560-4 the perfect cruiser, they neglected to install an idiot detection device and now they're paying the ultimate price.

One of two Gallardo LP560-4 Polizias is ready for the scrap heap after a careless Seat Ibiza driver pulled out of a gas station without first looking for $200,000 police car. The undoubtedly surprised driver of the Gallardo swerved to avoid the oblivious one and smashed into a row of parked cars. The wedge-like Gallardo hit the cars so hard that one vehicle actually ended up on top (see above) of the ultimate Pig-mobile, crushing the front end. Luckily, the police officer and his passenger were unhurt in the incident. Ironically, the police issue Gallardo was on its way home from a safe driving seminar when the accident occurred.

What a bummer. The cop driving the car was one of 20 officers specially trained to handle the Gallardo's awesome V10 power. Now that the world's neatest police cruiser is scrap-worthy, he'll likely have to go back to driving a Fiat. Thanks for the tips, everyone!!

Gallery: Lamborghini Gallardo LP560-4 Polizia

[Source: Guardian | Image: YouReporter.IT]

REPORT: Lamborghini Gallardo cop car crashes in Italy thanks to careless driver originally appeared on Autoblog on Tue, 01 Dec 2009 08:30:00 EST. Please see our terms for use of feeds.

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REPORT: Toyota dealers caught off guard by pedal recall

Chris Shunk — Mon, 30 Nov 2009 10:59:00 EST

Filed under: Safety, Toyota

Last week Toyota publicly announced that it was recalling 3.8 million Avalon, Camry and Lexus ES 350 models on account of fears over unintended acceleration. The fix for Toyota's sudden acceleration issue includes the reshaping and/or replacing of accelerator pedals, with replacement pedals reportedly arriving in April. As you'd probably guess, the massive recall has led to many customers calling dealers for additional info, but unfortunately dealers weren't exactly prepared to respond.

Wards Automotive is reporting that Toyota didn't inform its dealer body of the proposed changes, which apparently includes the reconfiguration of the floor of some models, before the announcement was made. The industry trade journal says that a Toyota spokesman told them that the severity of the situation meant there was no time to inform dealers first, though all dealers have been informed by now.

Wards spoke to a couple dealers who sound more than a little frustrated by the situation. Earl Stewart of Earl Stewart Toyota of North Palm Bay, FL reportedly called the situation "confusing" and "embarrassing," adding that his dealership has been fixing floor mats the past few months without getting paid by Toyota for their work.

While we agree that Toyota was right in getting this information out to the public as quickly as possible, we're surprised it didn't first alert its dealer body. After all, the dealership is the public face of the company, and if customers call and dealers don't have answers, it looks like the situation is anything but under control. The official recall notices for the Avalon, Camry and ES are expected to come by year end, while five other models, including the Prius, Tacoma, Tundra and Lexus IS 250/IS 350, will receive similar notices sometime in 2010.

[Source: Wards Automotive, sub. req'd]

REPORT: Toyota dealers caught off guard by pedal recall originally appeared on Autoblog on Mon, 30 Nov 2009 10:59:00 EST. Please see our terms for use of feeds.

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Nav for All: Nissan offering inexpensive nav system on popular cars

Chris Shunk — Mon, 30 Nov 2009 09:57:00 EST

Filed under: Technology, Nissan

When navigation systems started showing up in the center stacks of luxury vehicles, the new (at the time) tech typically would set owners back a couple grand or more (and still does). As we gear up for 2010, mapping tech is everywhere from the most expensive luxury sleds to economical hatchbacks, but there is still one problem. If you want an LCD screen with navigation capability, the option will still set you back from over $1,000 to above and beyond $2,000 in most cases. The only exception is Suzuki, which includes its TRIP nav system as standard equipment on the sub-$20k SX4.

Nissan is looking to change the navi pricing paradigm by offering a $400 navigation system in some of its high volume 2010 MY products. That's $400, or the same price as Ford's LCD-less SYNC system. Or less than half the price of most options available in vehicles today. The nav system, which was developed by Nissan and Bosch, gives directions, integrates your tunes with USB and Aux inputs and has integrated Bluetooth connectivity for hands-free calling. The low cost system also connects with a backup camera and can help you save money by pointing out the route that will cost you the least fuel.

The Detroit News reviewed the nav system in 2010 Nissan Sentra and came away impressed with its overall operation, though the smallish five-inch LCD screen was reportedly a bit hard to read at times. We're hoping low cost navvies are here to stay, and with the ultra-competitive nature of the auto industry, we're thinking any automaker that doesn't follow Nissan's lead will be at a major competitive disadvantage.

[Source: The Detroit News]

Nav for All: Nissan offering inexpensive nav system on popular cars originally appeared on Autoblog on Mon, 30 Nov 2009 09:57:00 EST. Please see our terms for use of feeds.

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REPORT: Fitch Ratings says U.S. auto industry headed for airline-style cyclical bankruptcies

Chris Shunk — Mon, 30 Nov 2009 08:29:00 EST

Filed under: Chrysler, Ford, GM

Remember this past spring and summer's super speedy General Motors and Chrysler bankruptcies? If the billions in government loans and White House strong-arming is starting to slip into the recesses of your memory, your mind will likely be refreshed sometime in the future, at least according to Fitch Ratings. Fitch says that high fixed costs, perpetual over capacity and weak sales will lead to more bankruptcies that will mirror the misery of the airline industry.

Fitch gives plenty of reasons that the auto industry is far from out of the woods, chief among them is the continuation of weak sales. The ratings agency predicts 2010 car sales will rise by 7.8% to 11.1 million units, an improvement that is still far shy of the industry's peak sales of 17 million units. Another chief concern is GM and Chrysler's inability to access the credit markets for the foreseeable future. Credit markets are tight enough already, and Fitch doesn't see any bank lining up to loan money to any company fresh out of bankruptcy and still in restructuring mode. And if suppliers don't become more healthy or if gas prices spike again, Fitch sees the potential for more stress and ultimately more bankruptcies. And the Detroit 3 still have to contend with a high dollar union workforce and retiree obligations. Of the Detroit automakers, Fitch unsurprisingly sees the most stability at Ford. The Blue Oval still has access to bank loans and Fitch feels it has the strongest product lineup as well.

While we certainly agree that the auto industry is anything but out of the woods, we're also a bit skeptical of Fitch Ratings' foggy crystal ball. After all, Fitch didn't foresee much of the banking collapse that brought this country to its largest recession in decades until the collapse was painfully obvious, giving AA ratings to banks like Lehman Bros. only one year before that financial institution's dive into Chapter 11 protection.

[Source: Reuters | Photo by David Goldman/Getty]

REPORT: Fitch Ratings says U.S. auto industry headed for airline-style cyclical bankruptcies originally appeared on Autoblog on Mon, 30 Nov 2009 08:29:00 EST. Please see our terms for use of feeds.

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REPORT: Saab still has at least two interested parties - BAIC and Merbanco

Chris Shunk — Sat, 28 Nov 2009 09:40:00 EST

Filed under: GM, Saab, Earnings/Financials, Rumormill

2010 Saab 9-5 - Click above for high-res image gallery

When Koenigsegg pulled out of its agreement with General Motors to purchase Saab, many thought that General Motors would dump the Swedish automaker much like it did the Saturn brand. But it appears that The General is still willing to look for another interested party, and speculation is that two perspective buyers are at the front of the line. The Swedish press is reporting that China's Beijing Automotive (BAIC) and Wyoming-based merchant bank Merbanco have shown renewed interest in perennially cash-poor Saab.

Saab spokeswoman Gunilla Gustavs reportedly told Automotive News that there were 27 suitors interested in the Swedish automaker prior to Koenigsegg becoming the preferred bidder and confirmed that there are now other bidders interested. "We have a close dialog and close contact with several who have expressed interest in buying Saab Automobile," Gustavs says.

if another bidder does win the opportunity to purchase Saab, they'll inherit an automaker that expects to lose $427 million in 2009 and a similar amount of cash in 2010. That buyer will also run into plenty of resistance when trying to get its hands on GM's technology assets. One issue that reportedly derailed the Koenigsegg bid was GM's reluctance to share its tech for new products like the new Saab 9-5. On the upside, the aforementioned 9-5 sedan has just begun serial production, the 9-3X allweatherwagon is ready to go, and the 9-4X looks to be just around the bend, too.

Earlier in the week, GM released a statement stating that it would "take the next several days to assess the situation and will advise on the next steps next week." Thanks for the tips, everyone!

Gallery: 2010 Saab 9-5

[Sources: Autocar; Automotive News; Auto Motor und Sport]

REPORT: Saab still has at least two interested parties - BAIC and Merbanco originally appeared on Autoblog on Sat, 28 Nov 2009 09:40:00 EST. Please see our terms for use of feeds.

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Nicolas Cage bought nine (nine!) Rolls-Royce Phantoms... and an island

Chris Shunk — Fri, 27 Nov 2009 01:02:00 EST

Nicolas Cage is suing his former manager Samuel Levin for $20 million for gross negligence of his finances and for lining his own pockets at the actor's expense. Cage is moving to sue the former manager due to the actor's sudden cash crunch, which includes a boat load of debt and over $7 million in back taxes. But Levin has a story of his own to tell, and it involves excess on a scale that we can hardly imagine. According to Levin, the actor purchased a scad of really expensive stuff. Like a $7.5 million island in the Bahamas, 15 mansions, four yachts, a Gulfstream, 47 pieces of art and even nine Rolls-Royce Phantoms.

Now we can understand owning nine exotics, or even collecting hundreds of rare cars and storing them at the Burbank airport, but nine Phantoms? At least Reilly purchased a Ferrari with his National Treasure money. We're guessing Cage likes to have a Phantom just about everywhere he is, and since he owns an island and a bunch of mansions he probably has one parked in nine different garages. Regardless, we're having a hard time feeling too sorry for Cage, even if Levin is exaggerating. The actor makes about $20 million a film, so while all that excess sounds like a ton of money, we're guessing the actor can pay his tab with a couple more movie deals. Gone in 60 seconds part two, anyone?

[Source: The Sun]

Nicolas Cage bought nine (nine!) Rolls-Royce Phantoms... and an island originally appeared on Autoblog on Fri, 27 Nov 2009 01:02:00 EST. Please see our terms for use of feeds.

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Who will succeed Mullaly at Ford? It's never too early to start handicapping

Chris Shunk — Thu, 26 Nov 2009 13:32:00 EST

Filed under: Hirings/Firings/Layoffs, Ford

When Alan Mulally arrived at Ford Motor Company three years ago, the Blue Oval was in bad shape. New product wasn't exactly pouring in and the company's cash hoard was steadily shrinking. And word on the street is that the corporate culture at Ford was in as much trouble as the product lineup, making change difficult. Now in 2009, it appears Mulally has done the near impossible, turning around Ford's product lineup while supposedly positively altering FoMoCo's corporate culture.

For all of Mulally's success, there is one problem: he's 64 and can't continue to run the company forever. And although Mulally has given no signals of separating from Ford any time soon, industry insiders are already speculating on who will become his successor. The four names that continue to come up are Ford Americas President Mark Fields, global marketing boss Jim Farley, manufacturing whiz Joe Heinrich and Ford Europe savior Lewis Booth.

The Detroit Free Press feels the early money is on Fields. The Harvard grad has been with Ford for 20 years, and he's lead some high profile success stories. He turned around Mazda and is currently piloting Ford North America in the midst of what appears to be a substantial product renaissance. Farley has an advantage in that he came to Ford from Toyota/Lexus and is seen by many as a real up and comer.

By many accounts, Heinrich is a bit of a manufacturing genius. The Harvard Business grad came from General Motors, where he became the company's youngest ever Plant Manager at age 29. Booth has the longest resume and arguably the most examples of success. He appears to have consistently met and exceeded expectations everywhere he has been, including Mazda, Ford Asia Pacific and Ford South Africa. Booth is different from his fellow executives in that he is the only one who isn't in his 40s.

We have no earthly idea who would become the next head of Ford, and we're guessing that we're at least a couple years away from finding out. We're OK with that, because this Mulally guy appears to know what he's doing.

[Source: Detroit Free Press | Photo by Bill Pugliano/Getty]

Who will succeed Mullaly at Ford? It's never too early to start handicapping originally appeared on Autoblog on Thu, 26 Nov 2009 13:32:00 EST. Please see our terms for use of feeds.

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REPORT: Toyota may pull people out of CA, relocate to KY and MI [UPDATE]

Chris Shunk — Wed, 25 Nov 2009 11:29:00 EST

Filed under: Hirings/Firings/Layoffs, Toyota

While the majority of Toyota's jobs are still in Japan, the auto juggernaut has also accumulated a 34,000-employee empire here in the U.S. as well. Those jobs are scattered among ten manufacturing facilities and three main office complexes in Michigan, Kentucky and at the company's North American headquarters in Torrence, California. But the downtrodden auto industry and Toyota's recent losses have prompted the Japanese automaker to find ways to cut costs, and the company's California headquarters may lose some workers as a result.

The Detroit News is reporting that Toyota is relocating product planning, accounting, travel and data services jobs from California to its engineering and manufacturing headquarters in Kentucky and its technical center in Michigan. Toyota is neither confirming or denying the report, but the company did say it isn't going to exit California like Nissan did earlier in the decade, adding "Emphasis has been placed on finding new efficiencies, shared services and enhanced collaboration to address the changing economic conditions and prepare Toyota for the future automotive market environment." Toyota currently employs 10,700 workers in California, a number that will drop if this report proves true.

UPDATE: Toyota has released a statement that it isn't planning any "significant geographic relocation of personnel" at this time. Hit the jump to view the short release.

[Source: The Detroit News]

Continue reading REPORT: Toyota may pull people out of CA, relocate to KY and MI [UPDATE]

REPORT: Toyota may pull people out of CA, relocate to KY and MI [UPDATE] originally appeared on Autoblog on Wed, 25 Nov 2009 11:29:00 EST. Please see our terms for use of feeds.

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