Autoblog

REPORT: GM to depart with form and run certain plants around-the-clock

Michael Harley — Wed, 23 Dec 2009 10:59:00 EST

Filed under: Plants/Manufacturing, Buick, Chevrolet, GM, Earnings/Financials, UAW/Unions

Two weeks from now, General Motors will start running its Fairfax assembly plant continuously on a permanent basis. The unprecedented around-the-clock operation, following on the heels of the temporary third shifts a few months ago, is intended to boost the plant's production from its current 4,500 vehicles per week to 6,300 units over the same period.

Operating around-the-clock is no simple feat. Experts point out that automotive assembly lines require a lot of scheduled maintenance, cleaning, and restocking - tasks that are usually accomplished during the down periods between shifts. Typically, car makers add second shifts on a temporary basis when the market demands more vehicles. Third shifts are common for part suppliers, but not for automakers (even Toyota Motor Corp., often cited as a benchmark in efficiency, rarely operates more than two shifts). To allow time for maintenance, GM and union officials have figured out how to "overspeed" parts of the assembly line so they can be slowed temporarily later. The three-shift assembly line will run about 21.6 hours per day (up from 14.5 hours with two shifts).

GM is moving cautiously. The Fairfax assembly plant is the automaker's best candidate for a permanent third shift. Located in Kansas City, it consistently ranks among the most efficient automotive factories in America. In addition, the facility is tasked with manufacturing the Chevrolet Malibu and Buick Lacrosse - both vehicles are selling well, so a third shift will help satisfy demand rather than oversaturate the market. Hat tip to Sea Urchin for the tip!

[Source: Wall Street Journal - Subs. Req'd]

REPORT: GM to depart with form and run certain plants around-the-clock originally appeared on Autoblog on Wed, 23 Dec 2009 10:59:00 EST. Please see our terms for use of feeds.

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Mysterious Dutch billionaire behind Spyker's renewed Saab bid?

Jonny Lieberman — Tue, 22 Dec 2009 13:31:00 EST

Filed under: Europe, GM, Saab, Earnings/Financials, Spyker

Saab: A history in pictures - click above for high-res gallery

Too bad Saab couldn't get this much ink while they were fully-alive. That's right folks, another day, another story about the undead Swedish brand. Just-Auto.com is reporting that a mystery Dutch investor is behind Spyker's 11th-hour bid for Saab. As we've learned, it's best not to do any Saab reporting of any kind without first checking in with the ~~crazy~~ kind folks over at Saabs United.

And guess what? They're pointing to an article in Holland's Telegraff that states the mystery billionaire is (maybe) none other than... Marcel Boekhoorn. We've never heard of him either, but apparently he's quite rich. Boekhoorn, for his part, denies any such deal, stating, "All not true. It is invented." However, Mr. Boekhoorn is a Spyker investor and reportedly acts as an adviser to Spyker owner Victor Muller. Let's not forget that Spyker's stock price swelled 23.5% after their renewed bid for Saab. Mr Boekhoorn's also an investor in Telegraaf...

Reportedly, one of the eleven qualms that General Motors had with selling Saab was over some of the Russian investors tied up with Spyker - fears of Saab's technology falling into Russian hands and all that. As it turns out, Spyker's main investors, Vladimir and Alexander Antonov who together own a 29.3 percent stake in the Dutch sports car maker, are not behind the renewed deal. Nor is the Abu Dhabi state investment fund Mubadala Development, which owns 22.7 percent.

Could it be that GM is only talking to Spyker and the Swedish government because of this maybe-mysterious Dutch billionaire investor? Short answer, yes. Besides, it's not December 31 yet, GM's original deadline for offloading Saab. We'll keep you posted.

Gallery: Saab- A History in Pictures

[Sources: Just-Auto; Saabs United; Telegraaf]

Mysterious Dutch billionaire behind Spyker's renewed Saab bid? originally appeared on Autoblog on Tue, 22 Dec 2009 13:31:00 EST. Please see our terms for use of feeds.

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REPORT: Visteon seeking to end pensions of 21,000 workers, retirees

Jonathon Ramsey — Tue, 22 Dec 2009 08:34:00 EST

Filed under: Government/Legal, Earnings/Financials

Visteon, the automotive supplier currently going through bankruptcy proceedings, is seeking to rid itself of pension obligations for 21,000 current workers and retirees. It wouldn't mean the end of pensions for the workers, but the payments would be taken over by the Pension Benefit Guaranty Corporation (PBGC), and that would mean diminished benefits.

Visteon contributes to four pension plans, three of which is it attempting to drop. The company owes $544 million to those three plans, and although it will make $260 million in payments over the next five years its obligations will grow if it cannot free itself. If it does get clear, pensioners will collectively lose $100 million in benefits because of caps on what the federal body can guarantee.

The PBGC wants Visteon to keep making pension payments, but its now in the hands of the Delaware judge handling the bankruptcy. Visteon has presented a few different options for reorganization, but each has met with resistance from one or more involved parties, including the plan to pay $8.1 million in bonuses to executives and the structure of it's post-bankruptcy stock allocation. The company hopes to emerge from Chapter 11 by the middle of next year. Pension recipients will hope they do it with their funds intact, but that isn't looking likely.

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

REPORT: Visteon seeking to end pensions of 21,000 workers, retirees originally appeared on Autoblog on Tue, 22 Dec 2009 08:34:00 EST. Please see our terms for use of feeds.

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REPORT: Ford offering all 41,000 UAW workers buyout packages

Jeremy Korzeniewski — Mon, 21 Dec 2009 18:29:00 EST

Filed under: Hirings/Firings/Layoffs, Ford, Earnings/Financials, UAW/Unions

According to Ford spokesman Mark Truby, "Despite a strengthening in our business, we still have a surplus in employees." Union employees to be specific. As such, Ford has just announced plans to reduce its unionized workforce by offering a buyout package to all 41,000 UAW members currently employed by the automaker.

Reuters reports that Ford workers with at least one year of experience can take a payout of $50,000 plus a new car voucher worth $25,000 or an additional cash payment of $20,000. Retirement-age workers can opt to take their pensions plus the $25,000 new vehicle voucher or the $20,000 payment. Finally, skilled-trade workers that are eligible for retirement can opt for a $40,000 payout plus their pensions.

Ford says these efforts are necessary to remain competitive with foreign rivals and fellow American automakers General Motors and Chrysler, both of which recently went through government-sponsored bankruptcy proceedings and extensive reorganization. Earlier this year, Ford's UAW workers voted down a revised contract that would have essentially granted Ford the same measures that unionized auto workers had earlier extended to Chrysler and General Motors.

Workers who accept the buyout packages would leave sometime during the month of February, 2010. Any new workers hired as replacements will start at $14 per hour under the latest UAW contract, which is half of the current average wage of UAW employees being offered the buyouts.

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

REPORT: Ford offering all 41,000 UAW workers buyout packages originally appeared on Autoblog on Mon, 21 Dec 2009 18:29:00 EST. Please see our terms for use of feeds.

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UPDATE: Spyker extends proposal to buy Saab from GM 'until further notice'

Jeremy Korzeniewski — Mon, 21 Dec 2009 17:17:00 EST

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

Saab loyalists can keep their candles burning a wee bit longer as supercar manufacturer Spyker has extended the deadline of its final-final offer for the Swedish brand "until further notice."

Spyker says in an all-too-brief statement (which you'll find after the jump) that it has been in contact with General Motors today following the Dutch automaker's announcement that it had that submitted a new offer that addressed 11 obstacles that had apparently previously stalled negotiations. The renewed offer was set to expire at 5pm Eastern today, but Spyker has seen fit to extend it.

Before backing out entirely and signaling its intent to wind down the struggling Saab brand, General Motors had set a deadline of December 31 to conclude its sale. No word on whether or not the Swedish government is involved in the talks, or if other parties (Mahindra?) may still be in the running. Stay tuned.

[Source: Spyker | Image: Torsten Silz/AFP/Getty Images]

Continue reading UPDATE: Spyker extends proposal to buy Saab from GM 'until further notice'

UPDATE: Spyker extends proposal to buy Saab from GM 'until further notice' originally appeared on Autoblog on Mon, 21 Dec 2009 17:17:00 EST. Please see our terms for use of feeds.

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REPORT: Spyker stock soars on word of Saab sale reconsideration

Jonny Lieberman — Mon, 21 Dec 2009 14:01:00 EST

Filed under: Europe, GM, Saab, Earnings/Financials, Spyker

Here's the skinny: Saab isn't totally dead yet. As the weekend showed, there's (a little) hope for both Saab and its Dutch suitor, Spyker. As our man Ramsey laid out yesterday, Spyker submitted a renewed eleven-point plan to General Motors that they (Spyker) hopes will allow them to take ownership of the deeply troubled brand. And yes, being pronounced dead four days ago counts as "deeply troubled." As Swedish Prime Minister Fredrik Reinfeldt pointed out, all this dead/not dead uncertainty has been throwing Saab employees, "between hope and despair."

Meanwhile, a (perhaps) unintended consequence of Spyker's eleventh hour rebid is that their stock has soared up 23.5 percent. Now, as some of you well know, Spyker isn't very big. They sold just forty-three cars last year and their market cap was just 26.6 million euros before the stock shot up. Still, if Spyker plays their cards right, this spike in value could have long term benefits, but only if they secure a deal for Saab.

Says one anonymous analyst to Reuters, "The stock's value is close to nothing but if they succeed to buy Saab, invest, and turn the company around then the shares can become valuable." Trouble is, GM only has until 5:00 pm EST today to sell Saab. For we're not sure why, but Spyker is making this a very limited time offer. If we had to guess, it's in order to force a deal. For its part, General Motors is "reviewing several new expressions of interest" for Saab, one of which according to Saabs United is Merbanco.

Should the Spyker deal (and all other deals) fall through, 3,400 Swedish workers will lose their jobs, and the 1,100 Saab dealerships worldwide will be forced to shutter. The Swedish government is in crisis talks with Saab officials right now should such a worst case scenario transpire. As for now, the Saab remains the same - i.e. mostly dead. One last thing, here's an interesting reflection on the demise of Saab by AB pal Jack Baruth.

[Sources: Reuters; Saabs United; Speed:Sport:Life | Image: Gabriel Bouys/AFP/Getty]

REPORT: Spyker stock soars on word of Saab sale reconsideration originally appeared on Autoblog on Mon, 21 Dec 2009 14:01:00 EST. Please see our terms for use of feeds.

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REPORT: VW finished eating companies, will now focus on digestion

Jonathon Ramsey — Mon, 21 Dec 2009 10:31:00 EST

Filed under: Volkswagen, Earnings/Financials

We have a feeling historians will spending a fair portion of next few years finding new words to describe just how bad this year was for the auto industry. And then, at some point, they'll get around to Volkswagen, a company that has been zagging while almost all others zigged. Over the last twelve months, VW has taken a stake in Suzuki, bought Karmann, won European Car of the Year, won the Dakar Rally, turned its eye to F1, released a litter of well received cars, put autonomous cars everywhere, thrown huge money at hybrids and electric cars, and made recycling fun. And it's building a $125 million dealership in Manhattan. And then there was that whole Porsche thing. And it took the crown of No. 1 automaker. We could continue, but there's a post to finish...

When it comes to mergers and acquisitions, remarks from company CEO Martin Winterkorn suggest that VW is finished doing its impression of 18th century England. "We are satisfied with the current line-up," he has told Automotive News. "I don't see any need (for further M&A activity)." That, in spite of his assertion that other companies "want to come under our roof."

VW will focus on what is sure to be a busy year ahead, integrating Porsche and its interest in Suzuki, at the same time as it gears up Karmann's factory for the Boxster, and builds its U.S. plant and prepares its new NMS model. Winterkorn is expecting VW's market share to increase in 2010, which might solidify a place at the top position; although after the shellacking General Motors and Toyota took while they wore the crowns, we don't know why VW would want the attention. And as for the end of M&A, perhaps Winterkorn hasn't heard the rumor about Piech's eyes on Ducati...

[Source: Automotive News - sub. req.]

REPORT: VW finished eating companies, will now focus on digestion originally appeared on Autoblog on Mon, 21 Dec 2009 10:31:00 EST. Please see our terms for use of feeds.

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REPORT: Swedish government to meet with GM officials - could Saab still be saved?

Frank Filipponio — Sat, 19 Dec 2009 15:50:00 EST

Filed under: Performance, Government/Legal, Hirings/Firings/Layoffs, Plants/Manufacturing, GM, Saab, Earnings/Financials, Rumormill, Luxury

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

Less than a day after General Motors officially announced Saab's euthanization, it looks like the storied Swedish brand might still have the faintest whisper of a pulse. Motor Trend is reporting that there are rumors swirling that the Swedish government will hold emergency meetings this weekend to try to save Saab. At least some government officials apparently feel that Saab is too important to fail... now where have we heard that before? With such a small population, the closure of Saab could have a major impact on the nation's economy, much like the failure of GM (and Chrysler, to a lesser extent) was viewed as potentially catastrophic in the States.

Some 3,400 employees will be jobless when GM completes its planned "orderly wind down" starting in January. That estimate doesn't include workers from the 1,100 Saab dealers that will also be shuttered around the globe.

Despite the failed selloff, things look like they're picking up at The General. The automaker announced yesterday that they had paid back the first $1 billion TARP money they borrowed from us the U.S. government. BAIC, Koenigsegg, Spyker and others had attempted to jump into the Saab fire-sale, but all have come out burned. Well, BAIC at least scored tooling for the old 9-3 and current 9-5. With a new-for 2010 9-5 having taken the stage at auto shows around the globe in recent months and the 9-4X in the wings, we'd love to see all of the Saab faithful get an early Christmas gift. We're definitely not holding our breath, but we'll keep you posted through the weekend should anything materialize.

Gallery: 2010 Saab 9-5

Gallery: Detroit 2008: Saab 9-4X Concept live reveal

[Source: Motor Trend]

REPORT: Swedish government to meet with GM officials - could Saab still be saved? originally appeared on Autoblog on Sat, 19 Dec 2009 15:50:00 EST. Please see our terms for use of feeds.

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REPORT: GM to speed up development of vehicles delayed by bankruptcy

Chris Shunk — Fri, 18 Dec 2009 18:31:00 EST

Filed under: Chevrolet, GM, Earnings/Financials

Prior to declaring bankruptcy, General Motors began delaying new products in an effort to conserve cash. The news was disappointing to enthusiasts and brand loyalists, but with its cash piles dwindling, the General didn't have many alternatives. Post-bankruptcy, GM finds itself with $40 billion in cash and a lot less overhead, so where is the money being spent? Automotive News reports that Vice Chairman Bob Lutz confirms that many of the products that were delayed are now being accelerated, adding "Once we got out of the bankruptcy and started having money available, we were able to pull a lot of our programs forward."

One example of the pull-forward is the next-generation Chevrolet Malibu. Early this Fall, GM told us that the next Malibu would arrive in 2012, but Lutz says that time frame has been pulled up to 2011. The next Malibu will reportedly be all-new with a platform based off of the Buick LaCrosse and 2011 Buick Regal. The new 'Bu will apparently have a shorter wheelbase than the current model while still managing more interior room.

Lutz told AN that the uplevel Malibu will have chrome appliques lining the side windows, a trait he says is associated with German and Japanese luxury vehicles. Lutz apparently added that $50 worth of chrome translates into an additional $500 to $600 in perceived value to customers. Beyond the Malibu, Lutz noted that there are "a bunch" of other vehicles being pulled forward to pre-bankruptcy production cadences, though he didn't offer any specific examples.

[Source: Automotive News - Sub. Req.]

REPORT: GM to speed up development of vehicles delayed by bankruptcy originally appeared on Autoblog on Fri, 18 Dec 2009 18:31:00 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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BREAKING: Swedish Patient Succumbs - Deal for Saab is dead on the table, GM to wind down brand

Chris Paukert — Fri, 18 Dec 2009 09:36:00 EST

Filed under: GM, Saab, Earnings/Financials

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

After a protracted saga that has seen bidders drop in-and-out and old model tooling and assets sold off to the Chinese, the enigmatic brand known as Saab is dead. In a press release issued this morning, General Motors announced that the "intended sale of Saab Automobile AB would not be concluded." GM had been in talks with Dutch exoticmakers Spyker Cars after pursuing a number of other buyer leads (including the aborted sale with Koenigsegg), but The General says that in the course of due diligence, the resolution of certain unspecified issues became impossible in the time frame that they had set for themselves.

As such, GM will immediately begin the "wind down" of the much-loved yet perpetually unprofitable cult brand, but says it will continue to honor warranties and provide spare parts and service - presumably through other GM brand dealers - as Saab dealers go offline. Officials note that this is not a bankruptcy or forced liquidation situation, so outstanding creditors should still expect to receive payment.

It is not clear what will happen to the production-ready 2010 9-5, nor the current 9-3/9-3X model and almost-ready 9-4X. Official death certificate available after the jump, historical slide show of the brand in photographs viewable below.

Gallery: Saab- A History in Pictures

Gallery: 2010 Saab 9-5

[Source: General Motors]

Continue reading BREAKING: Swedish Patient Succumbs - Deal for Saab is dead on the table, GM to wind down brand

BREAKING: Swedish Patient Succumbs - Deal for Saab is dead on the table, GM to wind down brand originally appeared on Autoblog on Fri, 18 Dec 2009 09:36:00 EST. Please see our terms for use of feeds.

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REPORT: Michigan gives GM tax break but automaker to still halve staff at RenCen

Jonathon Ramsey — Fri, 18 Dec 2009 08:30:00 EST

Filed under: Hirings/Firings/Layoffs, GM, Earnings/Financials

There are roughly 4,000 GM employees working at the company's Renaissance Center headquarters in Detroit. During the restructuring, GM has been working out how many employees to let go and where to put the remainder, and that, for the state of Michigan, meant another few thousand workers unemployed.

To lessen the damage, the Michigan Economic Growth Authority (MEGA) has been in talks with GM to limit the number of retrenched employees. The General had committed to maintaining a workforce of 2,500 at the RenCen in exchange for a $50 million tax break over twenty years, but the number was recently reduced to 2,000. GM simply needs to do all it can to get itself back in contention.

The company will still receive the tax break and talks are continuing, yet while there aren't many details it's an intriguing deal to strike. This could be cynical of us, but GM has white-collar workers in numerous locations in Michigan, and we wonder if the company wouldn't simply shuffle people around to keep the required number at the RenCen but get rid of all the employees it feels it needs to. And when the company gets its new CEO, well, as we've seen before, he or she might plot a very different course than the one being charted now.

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

REPORT: Michigan gives GM tax break but automaker to still halve staff at RenCen originally appeared on Autoblog on Fri, 18 Dec 2009 08:30:00 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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Zetsche: Maybach "not significant or relevant," but a facelift is coming anyway

Jonathon Ramsey — Tue, 15 Dec 2009 10:30:00 EST

Filed under: Sedan, Maybach, Earnings/Financials, Luxury

2010 Maybach Zeppelin - click above for high-res gallery

Maybach's 2009 sales through the first eleven months of this year have declined about 20 percent. That's at the kinder end of the industry average, all the more impressive because the "cheapest" one starts at $358,000. The part that's not so kind is the actual number of sales: 88, versus 110 last year.

Mercedes-Benz boss Dieter Zetsche has told Autocar that there's a facelifted Maybach on the way, but his comments sound like those of a player ready to get out of this game. With an aside that he thinks luxury buyers are becoming more discreet, he admitted that Maybach's addition to the company "is not significant or relevant" and "there are no plans in the long run." Correct us if we aren't remembering correctly, but last we checked Dr. Z wasn't the kind of guy to leave dead weight hanging around.

This is just speculation, but assuming he spoke of Rolls-Royce when he said "there are only two players in this market and we are one of them," (apparently Bentley's Mulsanne doesn't move his needle) perhaps Zetsche sees the top tier luxury race needing only one Maybach hit or a Rolls stumble to even up. Rolls sales have fallen 18 percent this year, but that's from 407 to 330. On the other hand, Zetsche's unwillingness to commit to saying a new Maybach is on the way makes us think you should get one while you can. Or not. Hat tip to Williem D!

Gallery: Maybach Zeppelin

[Source: Autocar]

Zetsche: Maybach "not significant or relevant," but a facelift is coming anyway originally appeared on Autoblog on Tue, 15 Dec 2009 10:30:00 EST. Please see our terms for use of feeds.

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REPORT: BMW, Mini to let Mercedes-Benz inspect, prep its vehicles at port

Michael Harley — Tue, 15 Dec 2009 07:59:00 EST

Filed under: Plants/Manufacturing, BMW, Mercedes-Benz, Mini, Earnings/Financials

The Mercedes-Benz Baltimore vehicle process center has secured a five-year contract to inspect, process, and repair pre-delivery BMW and Mini vehicles arriving in the United States. It's a deal that makes economic sense for both companies, say that automakers. BMW models currently arrive in Charleston, South Carolina, and are shipped to nearby Spartanburg (home of BMWs assembly plant) for inspection and pre-delivery work. That plant is "no longer appropriate" once the X3 starts production next year, says Jim O'Donnell, president of BMW North America. O'Donnell says BMW has been looking for an outside contractor, and it was the company's own purchasing department who proposed the deal.

Ernst Lieb, CEO of Mercedes-Benz USA, called the deal "a win-win situation." The company has both the manpower and space to service the additional BMW vehicles, and this arrangement may create additional opportunities for the two companies down the road. The Baltimore vehicle process center, on track to process 70,000 vehicles this year, currently handles Mercedes-Benz and Smart vehicles. The arrangement with BMW will not begin until March 1, 2010.

[Source: Automotive News - Sub. Req. | Image: Max Nash/Getty]

REPORT: BMW, Mini to let Mercedes-Benz inspect, prep its vehicles at port originally appeared on Autoblog on Tue, 15 Dec 2009 07:59:00 EST. Please see our terms for use of feeds.

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Fed may reconsider $500k salary cap for new GM CEO, limit pay for 2nd tier execs

Jonathon Ramsey — Mon, 14 Dec 2009 08:27:00 EST

Filed under: GM, Earnings/Financials

It's official: pay czar Kenneth Feinberg's executive compensation rules for companies yet to return their bailout funds means a cap of $500K for second-tier executives. Importantly, that number represents the total compensation allowed, but only 45 percent of it -- $225,000, can be in cold, hard ducats. Stock remuneration must be held or paid out over at least two years, and extracurricular perks like country club memberships and private jet escapades can be valued at no more than $25,000.

Regarding General Motors, to lure the kind of executive the company seeks it will probably need a bit more flexibility with pay than the rules previously enforced on it by the pay committee. Feinberg said he will look at GM's compensation proposal when a suitor is located. It would be nigh on impossible to lure that candidate with the come-on, "Fix everything, here's a million bucks now, you'll get some Scooby Snacks in 2013, let us know when you're done, kthxbai."

Feinberg appeared to refine his pay re-examination statement, though, citing a case where GM brings someone in "laterally," not simply chooses from among the ranks. Like him, we all know that "It is vitally important that GM, under the law, be competitive and be able to compete in the automobile marketplace," especially if we want to get any more of that $30 billion back.

[Source: Automotive News - sub. req. | Image: Win McNamee/Getty]

Fed may reconsider $500k salary cap for new GM CEO, limit pay for 2nd tier execs originally appeared on Autoblog on Mon, 14 Dec 2009 08:27:00 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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REPORT: Automotive advertising plummets 30.8%

Michael Harley — Thu, 10 Dec 2009 09:59:00 EST

Filed under: Marketing/Advertising, Earnings/Financials

Automobile manufacturers and dealers spent $7.5 billion on advertising during the first six months of 2009, says TNS Media Intelligence. The company that keeps track of nearly every form of advertising for all industries is reporting that the figure represents a 30.8% drop compared to the same period last year, when it was $10.8 billion in spending. Not surprisingly, the plummet nearly mirrors the decline in motor vehicle sales (which dropped 27.4% during the exact same period).

The decline in advertising expenditures isn't is exactly new news as automotive advertising has dropped for seventeen consecutive quarters, reports TNS. Among the nation's top ten advertisers for the same period, General Motors was the only automaker to make the cut in third place behind Proctor and Gamble Co. and Verizon Communications Inc. -although GM only spent $1.4 billion this year (a reduction of 15.5% from last year). Overall, across all industries, advertising is down nearly 15% from last year according to TNS Media.

[Source: Detroit Free Press, image: Productioncars.com]

REPORT: Automotive advertising plummets 30.8% originally appeared on Autoblog on Thu, 10 Dec 2009 09:59:00 EST. Please see our terms for use of feeds.

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