Porsche slashes its dividend after posting a massive pretax loss

After posting a huge pretax loss, Porsche Automobile Holding SE dramatically cut its dividend, marred by writedowns on stock options for heavily inflated Volkswagen shares. Porsche SE recorded a 4.4 billion euro ($6.60 billion) loss before tax. This confirmed a profit warning it issued just days before its 2008/09 fiscal year ended on July 31.

In the previous year, its cash-settled VW stock options gave Porsche windfall gains of 8.57 billion euros.

Porsche SE then submitted a proposal for a symbolic dividend of 0.05 euros per preferred share that it will distribute after taking 1 billion euros from earnings retained in the past to post a small 8.2 million euro net profit based on German accounting standards.

In a statement from Porsche SE, the main factor in the loss was a write-down on cash settlement options to VW shares.

Another factor influencing the result was the “hidden reserves and liabilities” recognized in the course of the purchase price allocation for the shareholding in VW.

Car manufacturing in Poland rose for the first time in 13 months

In Poland, automobile manufacturing rose for the first time in 13 months in October. This is considered great news and many are hoping that this will continue especially since industrial output data has also dropped this year, according to car industry research agency Samar.

In a statement, the group said that October marks the first month this year that the output topped 80,000 cars. For the first time, production grew in year-on-year terms by 16.9 percent. Like most of Europe, car production in Poland dropped along with the decline in demand. Fiat S.p.A. and General Motors Co.’s Opel brand are among those with factories in the country.

Volkswagen’s vehicle deliveries up with 11.1% in October

Volkswagen AG may have recorded strong results in October but it is now sternly warning investors against interpreting those figures to mean that the car industry will be headed for a lasting rebound. VW says that sustained recovery is still a long way yet and that 2010 is expected to be a difficult and challenging year, according to VW sales chief Detlef Wittig.

He had forecast in September that group volumes would stagnate at about 6.2 million vehicles both this year and in 2010.

In October, VW reported a double-digit growth in group sales due to the flurry of demand in China and Germany. Last month, VW delivered 557,300 vehicles across its eight car brands, representing an 11% improvement.

That gain pushed up cumulative sales for the first time in 2009. For the first ten months of 2009, VW’s volumes have been up 0.6 percent to 5.32 million. Due to high demand in China, Brazil and Germany, the core VW brand saw October deliveries rise 17 percent to 349,800 vehicles.

Czech subsidiary Skoda pushed its sales up by 33 percent to 65,600 cars last month, while VW’s money-losing Spanish brand Seat reported a slight gain of 1.9 percent to 29,600 units.

Vw Passat Highline Plus launched in the U.K.

Wolkswagen has added a new trim level to its Passat range called Highline Plus that has been loaded with numerous amazing features. As made obvious by its name, the Highline Plus builds on the current Highline model and is easily distinguishable by the chrome grille surround.

The Highline Plus offers all the features of the standard Passat Highline, including ABS and ESP, six airbags, 17-inch alloy wheels, semi-automatic climate control, cruise control and leather upholstery. The model was equipped with Bluetooth connectivity and VW’s new RNS sat-nav system, which features a five-inch color screen. This new system, priced at £795, will soon be available as an option on other Passat models. The Highline Plus will be available with most Passat engines, from the 1.8 TSI 160 to 2.0-liter TSI 170, with or without Bluemotion. The Highline Plus costs £750 more than the standard Highline with prices starting at £20,515 for the 2.0-liter TDI 110 PS.

Mercedes-Benz may bring a small luxury car to the United States by 2012

Daimler AG will bring in a small luxury car to the US by 2012, CEO Dieter Zetsche has told The Wall Street Journal. The car will be pitted against the Audi A3 and BMW’s 1-Series and Mini Cooper. Zetsche said that the small Mercedes-Benz would offer upscale luxury features in a small package.

Mercedes-Benz plans to import at least one of four next-generation compact models it will start selling in Europe in late 2011. Zetsche said that while the company believes that customers want cars to show some statement, the “definition of luxury will be somewhat different” since it will have less CO2 emissions and have a more modest look.

GM still aims to receive state aid for Opel restructuring

General Motors Co. does a quick roundabout and takes back what GM’s chairman, Ed Whitacre, told Germany’s Muenchner Merkur newspaper about not needing state aid to help restructure GM’s Opel segment. Whitacre had told the German newspaper that he believes GM will not require money from the German federal government for Opel.

In no uncertain terms, Whitacre said, “If Mrs. Merkel doesn’t want to give us anything then we will pay for it ourselves.” After the publication of the interview, German Economy Minister Rainer Bruederle said that GM can cover the cost of restructuring by itself.

According to a report made through German public television station ZDF, Opel labor leader Klaus Franz called talk of GM not needing aid as “short-term propaganda.” He claims that Opel’s works council would not negotiate with GM until it had laid out a plan for the company for up to 2014.

What makes the topic politically charged is because German politicians feel betrayed by GM’s decision to keep control of Opel after having agreed last September to sell a majority stake to a consortium led by Canada’s Magna International Inc. Chancellor Angela Merkel had given her full support for the deal, which provides Magna billions to restructure Opel.

VW planning to buy Potamkin’s flagship store in Manhattan

The Potamkin family has sold off its flagship dealership in Manhattan to the Volkswagen Group of America. The agreement, which was signed on Friday, will allow the conversion of the property into VW and Audi stores. VW confirmed plans to buy the 265,000-square-foot store at 11th Avenue and 56th Street from Potamkin Auto Group.

Currently, the building houses Potamkin GM, which has Cadillac, Chevrolet, Buick, GMC, Hummer and Saab franchises. Brothers and co-owners, Robert and Alan Potamkin, said that they are moving the six franchises five blocks south on 11th Avenue into a smaller store that housed Potamkin Honda.

Potamkin reveals that a third of the $125 million that VW is set to spend will go to the renovation of the site. The Honda franchise has been sold to Giuffre Auto Group in the Brooklyn borough of New York City. Giuffre owns Mazda, Hyundai, Kia and Mitsubishi dealerships. Robert Potamkin disclosed that Potamkin GM sells about 1,500 new vehicles each year and its Honda store’s sales are about 3,000 units annually.

The reason why the brothers are selling the Honda franchise and moving the GM operations is because property is often worth more than an auto franchise in New York. The Volkswagen and Audi stores will be run by the Open Road Auto Group, which currently owns an Audi dealership in Manhattan as well as BMW, Mini, Nissan, Mazda, Acura and Volkswagen stores in New York and New Jersey.

Porsche posts a 4.4 billion euros loss after failed VW takeover bid

A loss of 4.4 billion euros ($6.6 billion) before tax was recorded by Porsche Automobil Holding SE, Porsche AG’s parent company, in the year ending July 31. The year before, it earned 8.6 billion euros before tax. A statement from Porsche SE said that the loss is due to its failed attempt to take over the much larger Volkswagen AG.

The main factor in the loss was a write-down on cash settlement options to VW shares. Porsche said that another factor leading to the loss was the “hidden reserves and liabilities” identified in the course of the purchase price allocation for the shareholding in VW. When Porsche SE was preparing to buy a controlling stake in VW, it amassed more than 10 billion euros in net debt at a time when credit markets froze. Porsche was then required to refinance, forcing VW to extend it an emergency loan and resulting to the reverse takeover.

GM to open a number of new stores and help rejected dealers

General Motors Co. has been inviting rejected dealers to apply for new dealerships. However, it is a plan that a group of rejected dealers known as the Committee to Restore Dealer Rights has described as inadequate. GM spokesman Greg Martin said that the company is re-establishing select points in various markets around the country as part of the ongoing analysis of its dealer consolidation efforts.

Martin didn’t say which locations are being considered or when these new dealerships are expected to open. He also declined to say how many franchises would be awarded or of what criteria will apply. He did say that any dealer whose store is set to be closed can submit a proposal.

Martin said that this information was mentioned in a letter that GM sent to congressional leaders in September. According to the letter, GM will review all rejected dealer’s applications “in line with its normal business procedures.”

GM will also be selecting the proposal that is found to be the “best one for that particular market.” Tammy Darvish, a leader of the group of rejected dealers, confirmed that in the past few weeks, at least a dozen rejected dealers have received letters from GM inviting them to apply for new dealerships.

Toyota Prius continued to dominate hybrid sales

The Toyota Prius may continue to beat the Honda Insight in terms of hybrid sales but Honda says that it still has much to be pleased about. Last October, the Prius was the top seller in Japan for the sixth straight month with sales of 26,918 units for its third-generation model.

The Insight sold only 7,074 units, putting it in ninth place. The Insight may have been the first hybrid to top Japan’s sales charts this April but currently, it is being outsold by the Fit (Jazz) too.

Having sold 15,444 units in October, the Fit got second place. Even with these odds, Honda says that it isn’t concerned about the Insight’s declining sales.

The sales target for the Insight is 5,000 units monthly, making Insight’s performance for October a good sign.

Another thing is that the Fit has still got much to prove and continues to be very competitive in terms of mpg, utility and pricing.

The Fit costs much less than an Insight. The bottom line is that Honda’s Insight is exceeding expectations and that isn’t bad at all.

Superformance 1963 Corvette Grand Sport revealed

Superformance has formed a sub-brand, Duntov Motors, LLC, to develop a spot-on licensed replica of one of the most famous Corvette models of all time – the hardcore, race-spec 1963 Corvette Grand Sport. Superformance is famous for building replicas of vintage Shelby Cobras (including Pete Brock’s slippery Daytona coupe) and Ford GT40s.

Back in the 1960s, the original Grand Sport project was kept under wraps and was known only be a select few. Corvette chief engineer Zora Arkus Duntov spearheaded the project in 1962 that resulted to five examples of a race-ready ‘Vette.

These were quietly designed and built by Chevrolet’s engineering staff. Duntov held hopes that the GS would evolve into a factory-backed racer (and even a homologation-special production car). But as soon as corporate directors knew of the program, they put a stop to it and sold the cars off to private race teams.

All the five cars are still around today but each is worth far too much to actively drive or race. Superformance views its Grand Sport, which closely adheres to the original car, as a continuation series.

Original blueprints for the car were obtained and the engineers crafted body molds from Grand Sport #002, which was converted into a roadster by Chevy engineers shortly before the program ended.

Baby SLS AMG in the works

AMG’s next project is speculated to be a smaller V8 coupe intended to rival the Porsche 911. AMG has said that after it has launched the new Mercedes-Benz SLS Gullwing, it will be producing more stand-alone products. During the media launch of the SLS Gullwing Monterey, California, company executives informed reporters that it will soon broaden the AMG model line-up in the coming years. The next addition to the SLS range won’t arrive until at least five years from now.

The company executives said that at the moment, no official proposal has been submitted to AMG’s bosses at Mercedes. The SLS must first be able to prove the feasibility for bespoke machines. But they did admit that there have been talks about future projects, signifying that they’re leaning towards a more compact sports car built around a version of the SLS chassis. A rear-engined configuration has been taken out of the picture as it would not be in line with the AMG brand values.

A new-generation V8, which has between 5.8- and 6.2-litre capacity, is likely to be featured on the new baby SLS. The V8 features direct injection and cylinder cut-off technology. This means that only four cylinders will be used during smooth driving or when serious performance is not required. Actually, AMG is already developing this technology, which uses a hydraulic mechanism to close valves in the unused cylinders.

Energy losses are then minimized due to the ’spring’ rebound of compressed air in the cylinder. According to AMG’s product plan, the new engine with cut-off tech will appear in the next-generation SLS as well as the proposed smaller sibling, where its output might be reduced. The baby SLS is likely to retain the front/mid-engined layout of its big brother; however, it will have a shorter front end. This detail became possible because the SLS has a bonnet almost two meters long and an engine set well back towards the driver. This means that some empty space could be cut out at the front of the package.

Ford Taurus is the official vehicle of 2010 International CES

If you’re in Las Vegas from Jan. 7-10, don’t fail to check out the new 2010 Ford Taurus that will be the official vehicle of the 2010 International CES show. The all-new Taurus is Ford’s technology flagship, which offers more user-friendly technology to help keep its passengers safe and connected than cars twice its price.

Frank Davis, executive director Product Development, said that “there’s no better venue to show it off than CES.” To deliver the opening keynote address at the 2010 CES show is FoMoCo’s CEO Alan Mulally. At the CES show, Ford will also announce upgrades to its Ford SYNC system. The 2010 Ford Taurus is available at dealerships nationwide with prices starting at $25,995.

Press release:

“The smartest full-size sedan in America, the hot-selling 2010 Ford Taurus, will be the official vehicle of the 2010 International CES (Consumer Electronics Show®), to be held Jan. 7-10 in Las Vegas.
Ford President and Chief Executive Officer Alan Mulally will deliver the opening keynote address at CES, where Ford also will announce enhancements to its award-winning Ford SYNC® communications and entertainment system as well as new technology that builds on the company’s connected-car leadership position.

As the official car of CES, the Ford Taurus will be featured prominently with technology demonstrations and in signage, brochures and other written materials at the show.

“Consumers demand the latest on-the-go innovation in their cars. Ford automobiles are built with cutting-edge technology that makes driving safer and more enjoyable,” said Gary Shapiro, president and CEO of the Consumer Electronics Association (CEA), producer of the International CES. “We are thrilled to welcome Ford to the 2010 International CES and to name the new Ford Taurus as the ‘Official Car of CES.’ We also look forward to hearing Ford’s Alan Mulally kick off the 2010 CES with his opening keynote address on Thursday, Jan. 7.”

As Davis notes, the all-new Ford Taurus is a perfect fit for CES – the world’s largest consumer technology trade show for the $172 billion U.S. consumer electronics industry. In addition to its expressive styling, the vehicle is loaded with advanced features, making it a virtual dream come true for avid techies.

“The Ford Taurus has 10 class-exclusive features not available from any other manufacturer,” said Davis. “This vehicle offers it all – from Multi-Contour Seats with Active Motion™ that are designed to reduce fatigue on long-distance drives to a voice-activated navigation system that can tell you real-time traffic and weather information, and even where to find the cheapest gas.”

The Taurus also offers the latest application of SYNC – Traffic, Directions & Information – along with 911 Assist™ and Vehicle Health Report. SYNC’s USB port and Bluetooth capability connects to MP3 players, memory sticks and smartphones, making them accessible by voice control – a more convenient and safe way to use these devices in the car.

For techies with teenaged drivers, Taurus offers MyKey, a feature that allows parents to program a key that can limit the vehicle’s top speed and audio volume to encourage teens to drive safer and improve fuel efficiency.”

McLaren’s plan to launch MP4-12C in the U.S. in mid-2011 still on course

McLaren’s plan to launch the 200-mph MP4-12C supercar in the United States and Canada in mid-2011 is on track, says Tony Joseph, McLaren’s newly appointed regional director for North America. Joseph responded to rumors that the North American launch of the MP4 is being delayed, asserting that the story has no validity.

While Joseph admits that McLaren discussed the possibility of exhibiting at this December’s Los Angeles Auto Show, it was decided to be too early for the launch plan.

He said that the first MP4s will reach North American customers by May or June 2011, which is about six months after the first cars roll out of McLaren’s U.K. factory. Joseph is presently based in temporary offices in the Soho district of New York.

He joined McLaren from Ferrari North America last June and is currently building up a team of 12 to 14 people to run McLaren’s factory-owned North American distribution operation.

The permanent site is said to be ready next year.

Joseph said that McLaren is near to finalizing its dealer network and will start signing contracts for the first dealers in the first quarter of 2010.

Honda not planning a Tata Nano rival for India

Honda Motor Co. says that it still faces “tough times” in many traditional markets and so it will focus on surging markets in China and India. However, Honda will not be creating an ultra low-cost car to compete with Tata Motor’s Nano.

Earlier this week, Chief executive Takanobu Ito said that the automaker was considering a new compact car for Asian markets and more specifically for India, where Honda’s first small car, the Jazz hatchback, was launched earlier this year. Ito spoke to reporters in the Indian capital and expressed that with regards to its own business plans, Honda is not expecting an immediate recovery in the traditional markets. In fact, General Motors Co. appears to also embrace this trend since it said earlier this week that its China vehicle sales in October more than doubled from a year earlier.. GM has had a string of monthly sales records since the start of 2009 due to Beijing’s stimulus policies.

Skoda starts manufacturing the 2010 Superb Estate

Czech carmaker Skoda this week started building the 2010 Superb Combi at the Kvasiny production plant. Priced at CZK 589,900 (about US$34,600), the new mid-size station wagon is also referred to as Estate in some markets. The Superb Combi measures 4,838 mm long, 1,817 wide and 1,510 high.

It has a luggage compartment of 633 liters (1,865 liters with the rear seats folded down). In standard configuration, the car comes with a 1.4-liter TSI engine that develops 92 kW (123 horsepower) and mated to a six-speed manual transmission. The car is offered with several engine configurations, either gasoline or diesels, with outputs ranging from 125 hp to 170 hp. With regards to displacement, most of the units will be in the 1.4l range. Completing the lineup is the top of the line 3.6l V6 that develops 260 hp.

2009 Nissan 370Z by Advanced Performance Parts (APP)

The tuning specialists at Advanced Performance Parts (APP Europe) truly love Japanese cars. The latest project of Landsberg-based APP Europe on the Nissan 370Z is inspiring.

After refining Nissan’s 350Z and GT-R models, APP Europe then turned its attention to the Nissan 370Z, which gets a striking three-piece 20-inch Oxigin Lexor wheels in black and white wrapped in tires with size 245/30 front and 275/30 rear. Also mounted is a stainless steel exhaust system from MR Car Design, which ensures the proper sound of the vehicle. Lowering the sporty car by 30mm was made possible with a KW option 3 coilover kit. It even provides better driving dynamics. The APP Europe Nissan 370Z is further equipped with a Stoptech High Performance brake system – 6 pistons with discs size 380×32 mm in the front and 4 pistons with disc size 355×32 mm in the back.

All-new Vw Touareg confirmed for the 2010 Detroit Auto Show… again!

An all-new Volkswagen Touareg will be unveiled at the Detroit Auto Show in January (this was also confirmed by us back in August in this post). That the line-up will include a hybrid from the outset is a pleasant surprise. This petrol-electric Touareg is actually VW’s first production hybrid. It will be the first of several new hybrid and electric models that will be launched by VW in 2013.

Expect the new Touareg range, including the hybrid, to go on sale in the second half of 2010. Karl-Thomas Neumann, former Continental boss, has been brought in to lead VW’s electric propulsion development and will start next month.

The job, which was created especially for Neumann, requires him to report directly to CEO Martin Winterkorn. Neumann will be responsible for developing the Up, VW’s first all-electric car.

An electric e-Up Concept was shown at the 2009 Frankfurt Motor Show but it is expected that it will be presented to the market by 2013.

Meanwhile, VW will start trials of 20 examples of its plug-in hybrid Golf Twin Drive in Berlin this January. The Twin Drive is the firm’s first plug-in and can run for more than 30 miles on electric power alone. The Twin Drive also has a 2.0-litre diesel engine, giving a combined power output of 172bhp.

Workers at Ford’s plant in Mo. voting on whether to authorize a strike or not

Votes will be submitted on Nov. 13 and 14 by workers at a Ford Motor Co. plant in suburban Kansas City, Mo., to decide whether to authorize a strike. Despite the seriousness of this development, the head of the UAW local has expressed confidence that the matter will be resolved. Changes in work processes at the plant were what set off the dispute between Ford and UAW Local 249.

Ford said that those changes are simply part of an annual reworking that it does at every plant. The Kansas City plant manufactures F-150 pickup trucks and Ford Escape, Mercury Mariner and Mazda Tribute crossovers. Jeff Wright, president of Local 249, refers to the voting as a formality.

Wright said that talks with Ford are ongoing that this is just one step in the process. Ford spokeswoman Marcey Evans said the plant continues to operate normally.

Evans asserted that the carmaker is working jointly with the UAW at the national and local level to resolve the issues that have been raised by Local 249.

She explained that the taking of a strike authorization vote does not necessarily indicate that a work stoppage will result. She calls a strike as the last resort if a resolution can’t be reached.

Saab’s new owner will reject 81 of Saab’s 218 U.S. dealerships

Koenigsegg, the new owner of Saab, will be rejecting numerous Saab US dealerships, leaving only 137 of the 218 existing stores, according to General Motors Co. spokeswoman Ryndee Carney. GM sent out letters to the rejected dealers through Federal Express last Wednesday.

Swedish exclusive sportscar maker Koenigsegg selected the surviving stores based on the business plan and the needs of that plan. Also factoring into the decision were the dealerships’ profitability, throughput, and location. Koenigsegg will operate the brand through a new entity, Saab Cars North America Inc. Mike Colleran, COO of Saab Cars North America in Detroit, said that the target date to close the sale of Saab is Nov. 30, but that it could take until the end of 2009.

Detroit Auto Show will include a 37,000-square-foot exhibit for electric vehicles

At the upcoming 2010 Detroit Auto Show that begins January 11, there will be a 37,000-square-foot exhibit devoted to electric vehicles. Organizers announced that the exhibit will be called Electric Avenue and will be located on the main floor of Detroit’s Cobo Center. On display will be about 20 vehicles from both conventional automakers and startup companies.

The presentation will illustrate “the long-term viability of the auto industry using a subject that is top of mind globally these days,” according to Doug Fox, chairman of the auto show.

The auto show will also reprise last year’s EcoXperience exhibit, which allowed attendees to drive a variety of electric vehicles around a landscaped quarter-mile track in Cobo’s basement.

The Michigan Economic Development Corp. sponsors the exhibit.

The Electric Avenue is sponsored by Dow Chemical Co., which develops batteries for electric vehicles.

Mercedes-Benz to decide whether to shift some C-Class production to its U.S. factory

To protect itself against currency swings, Daimler AG is considering an option to shift some of its C-Class passenger-car production to its factory in Vance, Ala.. At a media briefing held recently, Daimler AG said that it will announce its decision by January. Daimler CEO Dieter Zetsche said that a decision on expanding production for the new C class would have to be made in the near future.

The company would be making its decision based on currency rates and on whether the dollar will remain weak against the euro. The C-Class is the largest-selling Mercedes-Benz vehicle in the US and transferring production to its Alabama plant would shield Daimler from further currency swings.

Reports from Germany say Daimler estimates it will produce 80,000 C-Class cars each year in Alabama. A Daimler AG spokeswoman said that shifting the production to the US would require additional investment for the factory expansion and for new tooling.

The next-generation C class is expected in 2013. The Vance, Ala. factory rolls out the M-, GL- and R-Class models. For 2009, the plant has built 83,461 units so far. In 2008, it built a total of 152,500 units.

Mercedes-Benz USA and Hughes launch new ‘mbrace’ telematics service

Mercedes-Benz has partnered with Hughes Telematics to launch “mbrace,” a new system that has 18 various services, ranging from a vehicle locator for packed car parks to directions on how to order online. This telematics system is comparable to Ford’s Sync system and GM’s OnStar. Another mbrace feature that has many people thrilled is its ability to link up smart phones like iPhones and BlackBerrys to the car’s electronic interface.

Car owners could then be able to lock or unlock their cars remotely by using their phones. The other services the system offers are certainly as practical. If the car gets stolen or figures in an accident, there is an automatic emergency service notification.

Other services include a vehicle health check function that goes live to the nearest dealership and real-time weather and traffic reports. A concierge service gives the driver 24/7 access to a customer-service rep who will assist in making dinner reservations, book a hotel or order a flight.

All Mercedes-Benz models will offer the mbrace system as standard equipment except for the GLK, C-Class, SLK and the new E-Class Coupe, where it is being offered as an option. The service is free for the first six months, after which an annual subscription will cost $280. For the concierge service, an additional $20 per month is needed.

Subaru version of FT-86 will receive an AWD system and around 250 hp

The collaboration has yet to issue final plans but here are several details on the powertrain and chassis of the Toyota FT-86 showcar, the joint Toyota-Subaru project that was built by Subaru. Inside Line has discovered a Subaru variant of this car that will arrive in 2011. It will share the Toyota FT-86’s naturally aspirated 2.0-liter flat-4, but it’s likely that the output will be raised to about 250 horsepower.

On the other hand, Toyota’s car is speculated to have 200 horsepower. Subaru’s version is equipped with all-wheel drive, which means that it will be heavier and would require more power. Both cars will be outfitted with a six-speed manual gearbox.

Due to a stretched platform, Subaru’s car will be slightly larger than the Toyota. Pricing for the Subaru is expected to start from $30,000, which is about $5,000 higher than the Toyota. That’s because the Subaru is larger, has extra power, and has all-wheel drive.

This leads then to the conclusion that the two coupes are unlikely to directly compete with each other. Encroaching onto the market of the Subaru Impreza WRX also won’t be a problem.

Chevrolet Cruze

The new Chevrolet Cruze will premier in the US at the Los Angeles Auto Show on December 2. The car has previously been launched in other global markets including Europe, Asia and Africa. US dealers will receive the latest model in the third quarter of 2010. Brent Dewar, vice president, Chevrolet, said that the Cruze is “extremely gas friendly” with an expected fuel economy of up to 40 miles per gallon.

On the other hand, the Volt electric vehicle can be operated gas-free. Dewar also stated that Chevrolet is focused on “forward-looking technologies” to benefit its customers.

This includes the highly efficient, small-displacement turbocharged engine in the Cruze and the Volt electric vehicle with extended range. The Cruze’s engine is a 1.4-liter turbo that provides good fuel economy, performance and driving fun.

In addition, the Cruze offers more interior and cargo space than the Honda Civic and the Toyota Corolla. In the US version, features will include Bluetooth connectivity, XM Satellite Radio and a total of ten standard airbags.

Mercedes-Benz SLS AMG available to order starting November 16

For those who liked the brand new Mercedes-Benz SLS AMG we have a big announcement: the new sports car from the German manufacturer will be available to order from Monday, 16 November 2009. The sales price will be 149,000 euros net and 177,310 euros gross (including 19% VAT). “Following a high-profile world premiere at the IAA, we are very excited about the SLS AMG’s commercial release on Monday.

There is huge interest in our new super sports car and we are convinced that the SLS AMG will captivate our customers,” said Volker Mornhinweg, Chairman of the Management Board at Mercedes-AMG GmbH. The car can also be configured online at www.mercedes-amg.com and www.mercedes-benz.com

The new SLS AMG takes the Mercedes-Benz cars into a new era and demonstrates development expertise of the very highest order. Everything found beneath the stylish design is impressive: AMG 6.3-litre V8 front-mid-engine developing 420 kW/571 hp peak output, 650 Nm of torque and dry sump lubrication, seven-speed double-declutch transmission in a transaxle configuration, sports suspension with aluminium double wishbones and a kerb weight of 1620 kilograms based on the DIN standard – this superlative combination guarantees driving dynamics of the highest order. The sprint from 0 to 100 km/h is made in just 3.8 seconds while the top speed is electronically limited to 317 km/h. Fuel consumption of 13.2 litres per 100 kilometres (combined) makes it one of the best among its competitors.

Some of the main options include:

- AMG ceramic composite high-performance braking system: €9500 net/ €11,305 gross
- AMG performance suspension with a stiffer setup for optimum lateral
dynamics: €1200 net/€1428 gross
- AMG light-alloy wheels in a 5-twin-spoke design, size 9.5 x 19 inches (front) and 11.0 x 20 inches (rear), tyre sizes 265/35 R 19 (front) and 295/30 R 20 (rear): €950 net/€1130.50 gross
- AMG forged wheels in a 10-spoke design, size 9.5 x 19 inches (front) and 11.0 x 20 inches (rear), with tyre size 265/35 R 19 (front) and 295/30 R 20 (rear): €2000 net/€2380 gross
- AMG performance steering wheel in leather/Alcantara: €400 net/€476 gross
- AMG sports bucket seats: €3300 net/€3927 gross
- AMG carbon-fibre engine compartment cover: €4000 net/€4760 gross
- “AMG alubeam silver” paint finish: €10,000 net/€11,900 gross
- “AMG monza grey magno” paint finish: €3250 net/€3867.50 gross
- AMG carbon-fibre trim (front stowage tray and rear stowage compartment including lid, AMG DRIVE UNIT surround, surrounds for the centre console, shiftgate and rear, trim strips for centre console and door armrests): €3500 net/€4165 gross
- AMG interior carbon package (carbon-fibre trim, trim on seat backrests and sides, door sill panels): €3500 net/€4165 gross
- leather nappa exclusive single-/two-tone: €2500 net/€2975 gross
- Memory package with electric seat and steering column adjustment, as well as four-way lumbar support: €1225 net/€1457.75 gross
- 6-disc DVD changer: €660 net/€785.40 gross
- Bang & Olufsen BeoSound AMG surround sound system: €5900 net/ €7021 gross

Opel will not be a global brand, says General Motors

General Motors Co. has its work cut out for it if it wants to get the support of the Germany government for Opel’s restructuring. CEO Fritz Henderson went to Opel’s headquarters last Monday to attempt to mend relations. Apparently, he wasn’t able to give a good answer to demands from German unions and political leaders for greater economy from Detroit’s headquarters.

Henderson was only able to give vague assurances that Detroit would give its European carmaker more freedom. Henderson didn’t show much enthusiasm in marketing Opels outside Europe or of elevating the unit’s status from a limited liability company to an incorporated stock company as proof that the carmaker would gain a greater measure of self-determination.

Instead, he pointed to the strategy for its Chevrolet brand in Brazil, where another GM brand is certainly not needed. At the news briefing, he referred to Opel as a regional brand, which he doesn’t think will be changing anytime soon. While he said that he’s not closing his door to ideas on selling Opel elsewhere, he explained that the measure of the Opel brand’s success will be Europe, ”because if you don’t win here all the discussion of exports will be irrelevant.”

To be able to ensure state aid, Berlin is further demanding that German funds are spent in Europe on Opel. The government also wants GM to provide a water-tight legal separation between it and Opel to avoid any suspicion that German cash is being leaked to Detroit.

Zenvo planning to launch three new supercars after its ST1

Following the ST1, Zenvo Automotive will be launching three new supercars. The first supercar of the Danish supercar manufacturer is the Corvette Z01 based-Zenvo ST1, which has an output of 1104bhp and costs 850,000 euros each. Only 15 units of this supercar will be made. In an interview with Autocar, a Zenvo source said that the company has set its sights on a smaller, cheaper version of the ST1.

The project is currently under extensive development and the supercar will be available within the next three years. Not a lot of details were revealed.

The source would only say that it has cost-saving features, including the removal of more expensive items such as the carbonfiber body panels, while the engine is likely to be detuned.

The source also confirmed that two new supercars, which will also be based on the ST1, are in development.

These models will not be launched before the more affordable ST1, but it is likely that they will be even more powerful and expensive than the ST1.

PSA/Peugeot-Citroen raises its full-year outlook

Because of the improvement in the car market and the success of its models such as the C4 Picasso, PSA/Peugeot-Citroen has raised its full-year outlook. The company is revising its 2009 forecasts “significantly” upwards. In particular, PSA/Peugeot-Citroen now expects recurring operating income for the second half to be at breakeven while full-year free cash flow is anticipated to be positive.

Last July, the group had forecast cash flow to be negative in the second half and saw a full-year operating loss of 1 billion to 2 billion euros ($1.5 billion). PSA had a series of missed expectations the past few years and that had disappointed investors.

This led PSA to become reluctant in providing precise guidance for its results. Thomson Reuters I/B/E/S said that the average expectation for PSA’s full-year operating result is a loss of 1.146 billion euros after it posted a first-half loss of 1.33 billion.

The net loss is seen at 1.37 billion against a reported first-half figure of 962 million. Analyst Adam Jonas at Morgan Stanley observed that PSA had the “most conservative second half guidance of any European (carmaker) this year.”