Government readies first $8 billion for GM, Chrysler

General Motors, Chrysler LLC and the government today were making final arrangements to transfer the first installments of federal emergency loans to the automakers.

"We're making good progress finalizing the automaker loans and are committed to closing them on a timeline that will meet their individual near-term funding needs," Treasury Department spokeswoman Brookly McLaughlin said in an e-mail to Automotive News.

Under terms of a deal announced Dec. 19 by President Bush, GM and Chrysler are to receive $4 billion each from the government today.

GM spokesman Greg Martin told Automotive News he expects the transaction to be completed on time.

Comment was not immediately available from Chrysler.

The Bush administration promises another $9.4 billion for GM early next year. The final $4 billion of that amount will require congressional action.

Amid collapsing sales, GM and Chrysler told government officials they need the federal funds to avoid running out of cash.

The automakers must file plans by Feb. 17 describing how they will restructure to become viable for the long term. Unless the agreement is changed by the Obama administration, a president's designee, or car czar, is to decide by March 31 if an automaker's restructuring plan is sufficient. If not, the first loans will be called in, possibly forcing the company into bankruptcy.

Ford Motor Co. is not seeking an emergency loan but wants to be able to tap a $9 billion government line of credit if necessary.

Together the Detroit 3 CEOs told lawmakers early in December they need access to at least $34 billion from the government to get through the extreme economic downturn.

Some analysts and economists say much more government help will be needed.

New Ford hybrid sedans post 41 mpg in the city

Ford Motor Co. said today that its Ford Fusion and Mercury Milanhybrid sedans have been certified by the EPA at 41 mpg city/36 highway.

The ratings put the hybrids' fuel economy at the front of the mid-sized pack, Ford said in a statement. Ford engineers spent three years revamping the gasoline-electric powertrain that debuted in the 2004 Escape Hybrid crossover.

The announcement underscores efforts by the Detroit 3 to bring more fuel-efficient vehicles to market.

During recent congressional hearings for federal bailout funds, the Detroit 3 were criticized for their past adherence to larger vehicles with poor fuel economy.

The latest version of Ford's hybrid powertrain again uses a one-speed continuously variable transmission. The size of the gasoline engine has been increased to 2.5 liters from from 2.3. The nickel-metal hydride battery pack is smaller and lighter but puts out 20 percent more power.

The Fusion Hybrid arrives in dealerships next spring with a base price of $27,270, excluding delivery charges that have not been announced. No price has been announced for the Milan Hybrid.

Competition is stiff among fuel-efficient cars.

Volkswagen's compact diesel-powered Jetta sedan delivers 30 mpg city/41 highway, while the Honda Civic Hybrid sedan gets 40 city/45 highway. The Toyota Camry Hybrid, similar in size to the Fusion and Milan, is rated at 33 city/34 highway.

But Ford may have the edge when it comes to driving on pure electric power. The Fusion Hybrid and Milan Hybrid can reach speeds of 47 mph on electricity alone, a higher speed than other hybrids.

"The Fusion Hybrid's ability to run at much higher speed in electric mode allows drivers to maximize fuel efficiently in many driving situations," said Praveen Cherian, Fusion Hybrid program leader. "This would allow drivers to travel around their subdivision and parking areas in all-electric mode."

Pininfarina eyes year-end debt deal

After months of talks that have forced it to postpone a crucial capital increase, Italy's Pininfarina said today it still expected to reach a deal with its creditors to reschedule its debt by year-end.

Like other suppliers and service providers in the car industry, the small designer and niche manufacturer has been struggling to pay off its debt.

Its business has been suffering since clients such as Ford Motor and Fiat's Alfa Romeo have seen their sales tumble in the worst crisis to hit the industry in decades.

One client, Swedish luxury brand Volvo, has had such a hard time that its owner, Ford, has put it up for sale.

Best known for designing Ferraris, Pininfarina was supposed to have reached an agreement with its creditors to reschedule 600 million euros of debt by Sept. 30.

But the talks stretched beyond the deadline.

Since a deal had been a prerequisite for a capital increase of 100 million euros, Pininfarina was forced to abandon its plans to raise the money in November. It was to use it for a joint venture with French financier Vincent Bollore to develop an electric car, a project pivotal to Pininfarina's revival.

The talks eventually led to Pininfarina proposing the banks convert 180 million euros of debt into shares representing up to 30 percent of the company.

The founding family had been ready to cut its stake to about 30 percent from more than 50 percent with the capital increase to a select group of investors including Bollore. But this latest proposal to the banks, announced on Nov. 12, was seen substituting that idea.

Other select investors had included Ratan Tata. But the Indian business leader has had his own money problems, with his Tata Motors finding it hard raising money to pay the $3 billion bridge loan obtained to buy Jaguar and Land Rover.

In light of plunging sales, Pininfarina has been cutting costs by halting production at its three plants on a rotating basis for one week a month in November and December. It plans to do the same thing for all of 2009.

Its creditors include Italian banks Intesa Sanpaolo and UniCredit.

Tata may need to invest $1B in Jaguar

 India's Tata group may have to spend at least $1 billion to revive premium brands Jaguar and Land Rover, which were bought by Tata Motors earlier this year, the Economic Timesreported on Tuesday.

Tata Sons, the holding company that holds large stakes in group firms, and unlisted financial services unit Tata Capital are among the options being considered to raise the cash, the newspaper said, quoting unnamed company sources.

"We will do everything in our ability to resource all our operations," the paper quoted a Tata Motors' spokesman as saying. Tata Motors paid $2.3 billion to buy Jaguar and Land Rover from Ford Motor Co. earlier this year, just as global auto sales began collapsing. He declined comment on the size of funds required.

A spokesman for Tata Motors could not be immediately reached by Reuters for comment.

On Monday, UK's Financial Times had reported that Tata Motors had agreed to inject "tens of millions of pounds" into Jaguar and Land Rover to prevent an immediate cash flow crisis.

Tata Motors, which has a market value of about $1.5 billion, has dropped 74 percent so far this year while the main BSE index is down more than half.

Zenvo ST1

Madly styled supercar boasts a Veyron-besting 1089bhp and 1055lb ft

Clearly the world doesn't have enough mad hypercars, with the Bugatti Veyron, Ruf CTR3 and TVR Speed 12 clamouring for more competition. It has come in the shape of this, the Zenvo ST1, quite probably the world's first all-Danish car.

It's a rear-wheel-drive coupe, propelled by a mid-mounted 7-litre V8 which boasts a supercharger and turbocharger - making it good for 1089bhp at 6900rpm and a fairly frightening 1055lb ft, which is available from 4500rpm. Whether all of that can be transferred to the tarmac without repercussions is an entirely different matter.

Claimed performance for the 1376kg coupe is 0-62mph in around 3sec, 0-124 in under 9 and an electronically-limited 233mph. That allows it to drive the length of Denmark in 18 minutes, apparently. Mated to that monster engine is a six-speed manual gearbox and a hydraulic limited-slip differential.

The brakes are ventilated discs, covered up by 19in alloys at the front and 20in at the rear, wrapped in Michelin rubber. Ceramic brakes are on the options list, and quite possibly a wise buy to rein in all that grunt. Also on the options list is a roll cage and four-point harnesses, turning this into a pretty extreme trackday car, no doubt.

Development on the ST1 has been ongoing since 2004, with deliveries penned to start in 2009. Just 15 are set to be made, with no price tag quoted. It'll be at least six figures, if not seven we'd imagine.

GM will equip Chevy Equinox with fuel-saving technology

General Motors' revamped Chevrolet Equinoxcrossover will carry direct-injection engine technology across the line, boosting fuel economy in the base model while delivering the same amount of horsepower.

The move will contribute to GM's goal of equipping most of its North American vehicles with direct injection. In the 2010 model year, GM says it will have 18 vehicles with the technology, including the Equinox, which goes on sale next summer.

The feature increases performance while curbing fuel consumption and emissions. GM plans to show the 2010 Equinox next month at the North American International Auto Show in Detroit

The base version will be powered by a 2.4-liter four-cylinder engine that develops 180 hp, about the same as the current V-6, GM said in a statement. The automaker expects that vehicle to deliver 30 mpg in highway driving. There is no four-cylinder 2009 model. The current Equinox has an EPA fuel-economy rating of 17 mpg city/24 mpg highway.

A 3.0-liter, direct-injected V-6 will be optional. That engine is rated at 255 hp. It will replace a 185-hp, 3.4-liter V-6 built in China that dates to the 1970s.

GM Powertrain spokesman Tom Read said the new V-6 will be built at GM's St. Catharines,Ontario, plant. The four-cylinder engine will be made at the former Saturn plant in Spring Hill, Tenn.

Ford has 2 finalists for car, truck of the year

Ford Motor Co. placed two candidates on the short list of finalists for the 2009 North American Car and Truck of the Year awards.

Ford's Flex car and the F-150 pickup are among the six vehicles to make it through the latest round of voting by 50 automotive journalists in the United States and Canada.

The other cars were the diesel-powered Volkswagen Jetta TDI and Hyundai's Genesis luxury sedan. No Korean automaker has made the cut before.

The Mercedes-Benz ML320 Bluetec and the Dodge Ram pickup round out the truck field.

The VW and Mercedes models are the first vehicles with diesel engines to qualify as finalists in the 16-year history of the awards. The winners will be announced Jan. 11 at the Detroit auto show.

Last year, the Chevrolet Malibu won car of the year, and the Mazda CX-9 was honored as the top truck.

Domestic automakers have won the car trophy eight times, the Europeans four times and the Japanese three times.

In trucks, domestics have won nine times, followed by the Japanese four times and the Europeans twice.

Additionally, hybrids have won four times.

More than 50 vehicles were considered this year; 14 cars and 11 trucks made the initial ballot.

Subaru Legacy

Hard pressed car maker Subaru will unveil its brand new Legacy at this year’s Detroit Motor Show.


Hard pressed car maker Subaru will unveil its brand new Legacy at this year’s Detroit Motor Show.

Following the announcement of its immediate and total withdrawal from the World Rally Championship, the Japanese firm moved quickly to prove it has ambitious plans for its road cars by releasing this single teaser image of the new model, expected to hit the road in 2010.

Though exact details remain scarce, it’s believed that the Legacy gets an updated chassis, and a development of Subaru’s trademarked symmetrical all wheel drive system.

Under the bonnet, there’s a new 3.6-litre flat six-cylinder engine, plus an advanced six speed gearbox.

For launch, it’s expected that the 3.6-litre unit could be joined by smaller, more fuel efficient engines. Both 2.5-litre four cylinder and 3.0-litre six cylinder boxer engines will be offered, as will the company’s first diesel, a 2.0-litre turbo, that’s also the world’s only oil burning boxer.

The Legacy concept makes its debut almost 20 years to the day of the lunch of the original Legacy model, and builds on that car’s instantly recognisable design.

With a new look nose, and wide track, the sporty looking saloon is aimed at the likes of the BMW 5-Series and new Mercedes E-Class, which will also debut at Detroit.

Honda scraps plans to build NSX sports car

Honda Motor Co. cancelled plans to build a new Acura NSX sports car as the automaker grapples with the global economic slump.

President Takeo Fukui announced the NSX's demise today as one of several cost-saving cutbacks.

The NSX was expected to have a front-mounted, V-10 engine that made at least 500 hp. It would have been the successor to the first-generation NSX, which had a mid-mounted V-6. That NSX went out of production in late 2005 after 14 years.

Its successor was expected to debut as a 2010 model and was poised to be Acura's answer to the Audi R8 and Nissan GT-R.

The NSX was expected to be outfitted with advanced technologies, including the Super Handling All-Wheel Drive system. It was also likely to get aluminum and carbon-fiber parts to keep weight low.

The program appeared to be on track as late as this summer, when spy shooters caught what looked to be an NSX on Germany's famed Nürburgring circuit.

That car looked similar to the Advanced Sports Car concept unveiled at the Detroit auto show in 2007.

In addition to canceling the NSX, Honda is cutting sales and profit forecasts and executive pay while delaying plant openings. It also scrapped plans to launch the Acura brand in Japan in 2010.

Scientists find hole in Earth's magnetic field

Recent satellite observations have revealed the largest breach yet seen in the magnetic field that protects Earth from most of the sun's violent blasts, researchers reported Tuesday. The discovery was made last summer by Themis, a fleet of five small NASA satellites.

Scientists have long known that the Earth's magnetic field, which guards against severe space weather, is similar to a drafty old house that sometimes lets in violent eruptions of charged particles from the sun. Such a breach can cause brilliant auroras or disrupt satellite and ground communications.

Observations from Themis show the Earth's magnetic field occasionally develops two cracks, allowing solar wind — a stream of charged particles spewing from the sun at 1 million mph — to penetrate the Earth's upper atmosphere.

Last summer, Themis calculated a layer of solar particles to be at least 4,000 miles thick in the outermost part of the Earth's magnetosphere, the largest tear of the protective shield found so far.

"It was growing rather fast," Themis scientist Marit Oieroset of the University of California, Berkeley told an American Geophysical Union meeting in San Francisco.

Such breaches are temporary, and the one observed last year lasted about an hour, Oieroset said.

Solar flares are a potential danger to astronauts in orbit but generally are not a risk to people on the surface of the Earth.

The research was funded by NASA and the National Science Foundation.

Scientists initially believed the greatest solar breach occured when the Earth's and sun's magnetic fields are pointed in opposite directions. But data from Themis found the opposite to be true. Twenty times more solar wind passed into the Earth's protective shield when the magnetic fields were aligned, Oieroset said.

The Themis results could have bearing on how scientists predict the severity of solar storms and their effects on power grids, airline and military communications and satellite signals.

The Themis satellites were launched to find the source of brief powerful geomagnetic disturbances in the Earth's atmosphere.

GM delays work on Volt, Cruze engine factory to save cash

General Motors, saving cash as it awaits federal rescue loans, has suspended construction of a Michigan plant scheduled to build fuel-saving engines.

The delay at the $349 million factory in Flint won't affect the late-2010 launch of the Chevrolet Cruze small car and the Chevy Volt plug-in hybrid, spokeswoman Sharon Basel said today.

CEO Rick Wagoner announced the plant on Sept. 25th and said it would produce two versions of a 1.4-liter four-cylinder engine, one with a turbocharger for the Volt and one without for the Cruze.

The delay reflects GM's heightened efforts to reduce spending as its supplies of cash dwindle. GM is waiting for the White House to approve a bailout that will keep the automaker operating and avoid a Chapter 11 bankruptcy filing.

The postponement will allow GM to halt payments for construction materials, Basel said.

"Steel has been ordered but placed on hold, as have additional orders,'' she said. "This has only to do with the construction of the plant, not the program timing.

She said there is enough leeway in the construction schedule for it to build the engines on time after the temporary hold. She did not say when the work would resume.

She said the Flint factory is being built with a common template used around the world. The plant can be assembled in less than a year, she said.

The 552,000-square-foot facility will be able to build 800 engines a day. Another $21 million is being spent for a vendor tool area.

GM already builds a nonturbocharged version of the engine for its European small cars. Basel said GM has no plans to import those powerplants from Europe if the U.S. project ends up behind schedule.

Norway govt won't intervene to save carmaker Think

The Norwegian government said on Tuesday it will not directly intervene to rescue electric car maker Think after the company on Monday halted production and said it would not survive without the state's aid.

Privately owned Think had asked the government to help it out of its "urgent financial distress" sparked by the global crisis, saying it had difficulty obtaining working capital and that its suppliers are severely hit.

"There are many companies that are in a demanding financial situation because of the financial crisis," Deputy Minister of Trade and Industry Rikke Lind told Reuters.

"The government cannot go in on the ownership side or provide loans to specific companies in today's situation," she said.

Think has said it needs 100 million to 200 million crowns ($14.5 million to $29 million) in short-term guarantees after it temporarily stopped production at its Norway plant and laid off between 50 percent and 70 percent of its employees to survive and proceed with expansion plans.

Norway's government is preparing a fiscal stimulus package to combat unemployment and shore up its construction industry, due to be presented in late January or early February.

The government has approved an increase in loan support for Innovasjon Norge, an organization fostering small- and medium-sized companies, by 1 billion crowns to 2.5 billion, in effect from Jan. 1, 2009, from which Think could apply for loans.

It has also said it will boost export credit institution Eksportfinans with about 50 billion crowns to ensure exporters get the financing they need to sustain operations.

"Think needs to contact the apparatus, where we have different lending and guarantee options, but they have to be considered in line with everybody else," Lind said.

Think was not immediately available for comment.

Earlier in December, the Swedish government said it would provide up to 25 billion Swedish crowns ($3.12 billion) in credit guarantees and emergency loans to its ailing auto industry but has no plans to buy stakes in Volvo or Saab.

With one car model in production, the micro Think City, the Norwegian company aims to ramp up production next year, launch the car in several European cities and set a date for its U.S. entry

Ferrari positive on '08, unsure on '09

CEO Amedeo Felisa wants the brand's dealers to do more to improve their stores

 The crisis hitting the auto industry has not slowed Ferrari so far.

The sports car maker is on track to match or beat its 2007 sales record, and CEO Amedeo Felisa is optimistic about next year because Ferrari's newest model, the California, already is sold out.

Felisa, 62, spoke about the brand's future when he met withAutomotive News Europe Chief Correspondent Luca Ciferri at the launch of the California here.

Sales are dropping at most automakers. Why has Ferrari avoided the decline?

So far, we have not seen significant change in our order flow so we remain optimistic about 2008. For the future, we are carefully monitoring the situation as it remains very unpredictable

Another reason for our optimism is the important investments we made in fully renewing our product range.

Our oldest car today is the 612 Scaglietti, which is just 5 years old.

With the new California, we are expanding our range by adding a V-8 front-engine car with a retractable hardtop -- a model that Ferrari has never had in its 61-year history.

The California is already sold out for 2009 and 2010. That means someone who orders the car today has to wait until 2011?

A two-year wait is typical for new models that are in high demand from our customers. It takes 18 to 24 months for the order flow to stabilize.

What is important to me is not the fast start, but the ability to keep the volume up for the entire life cycle. For the California, it is so far, so good.

How long is the wait to get the rest of the range?

The 430 Scuderia and the 599 GTB Fiorano take more or less a year; the 612 Scaglietti takes about six to eight months.

Are you counting on the California to boost Ferrari's sales volume to 10,000 units a year?

We have never given such a target. The California will help Ferrari to broaden its appeal by attracting customers who previously looked to our competitors for such a model.

Of course, the car will help increase our volumes, but we are not planning on such massive growth during a time of such uncertainty.

Our chairman, Luca Cordero di Montezemolo, always says we should offer 'Ferrari diverse per Ferraristi diversi' [Italian for: Different Ferraris for different Ferrari owners].

Time will tell how many of the California sales are conquest sales and how many of the sales come from people who would have bought a mid-engine V-8 coupe or spider from Ferrari.

How many customers does Ferrari have and how many Ferraris are still around?

We estimate that we have 65,000 customers and that there are about 90,000 Ferraris that still exist out of about 130,000 units built since 1947.

Ferrari set a new sales record last year with a volume of 6,465 units. What volume do you expect for the full year?

Similar or marginally up on last year. Do not forget, although the California is in high demand, it does not go on sale until January 2009.

The California is expected to add up to 2,800 units to your sales volume next year and about 3,000 starting in 2010. What volume do you expect by 2010?

First of all, let me say that we aren't interested in volumes. That being said, it's a very difficult to make any forecast right now.

What has driven Ferrari's growth?

Ferrari's growth in the last decade derives mainly from an expansion in the number of markets where we sell cars and a little from increasing the units we deliver to our traditionally big markets. This lets us keep the right level of exclusiveness for our products and helps us protect our residual values.

On average, how much money does a Ferrari customer spend on options to customize the car?

It depends a lot on the market and model, but it is roughly €15,000 to €18,000 per car.

That represents an additional 10 percent on a V-8 model and 7 percent to 8 percent on a V-12.

Ferrari just completed an 11-year, €200 million renovation and expansion of its headquarters and production lines in Maranello. How many people now work for Ferrari?

We are roughly 3,000 people, of which 1,800 work on road-car production, 800 are in the racing department and 300 in r&d.

What is the installed capacity at the upgrade assembly plant?

Twenty units a day.

In the second half, Ferrari reported an operating margin of 20.5 percent. That was the best of any automaker during that period and could be the best result ever for an auto company. Was this a one-time success or is there room for further improvement?

For a company like ours, where there is a significant amount of spending on Formula One racing during certain months, a quarter-by-quarter analysis is not particularly significant.

Ferrari's operating margin was 12.6 percent in 2006. It grew to 15.9 percent last year and will improve significantly this year.

Could you provide a breakdown of your revenues per sector?

Since the company was established, Mr. Ferrari only wanted to reveal how much the company was earning overall. We love to follow our founder's guidelines. Licensing and merchandising are clearly important for us and they are continuously growing. For example, the estimated retail value of all the Ferrari-brand products worldwide is about €1 billion.

Which sector is the most profitable?

In term of return on sales, it is licensing and merchandising by far.

The business accounts for 15 percent to 20 percent of Ferrari's operating profit.

We currently have 25 Ferrari stores. More than half of them are located outside of Italy.

What expectations do you have for your theme park in Abu Dhabi?

We want to expand Ferrari brand awareness to new markets and to a broader audience than just Formula One supporters.

The park will be ready in 2010, which is when the first Abu Dhabi F1 race takes place.

If this park is successful, we could expand the idea to other markets. Trust me, we are not lacking in requests.

Dealers in Europe have complained that they may lose their franchises because of tough standards demanded by the company in August after Ferrari canceled all its franchise contracts.

The cancellation was done in preparation for the new franchise contracts that will be needed to comply with the next block exemption, as the current one expires in 2010.

Ferrari has made significant investments in the past decade to completely renew its headquarters, factory and products. We want our dealers to follow us by upgrading their corporate standards to match what the new Ferrari is.

We have 80 dealers in Europe. If they want to continue partnering with us, we would be happy to continue doing business with them.

At 305.6 grams per kilometer, the Ferrari California's CO2 emissions are 27 percent below the 430 coupe's. Which areas contributed most to the reduction?

The new direct-injection engine and the new design of the cylinder heads contributed more than 50 percent to the improvement. Better aerodynamics contributed 10 percent, the new dual-clutch transmission saved 7 percent to 8 percent, while new tires and new brakes each accounted for about 5 percent to 6 percent of the CO2 reduction.

When will Ferrari offer a car that produces less than 300g/km?

Starting in the middle of next year we will install a stop-start-system on California units that will be shipped to China. Those cars will emit less than 300g/km.

For our V-12 engines, our target is to slash CO2 emissions more than over 20 percent to about 350g/km.

By 2011-2012, new Ferrari models will emit 30 percent to 40 percent less CO2 then our current range.

If you could instantly get something, what would you ask for?

More new technologies from our suppliers.G

Honda quits F1

Japanese sensationally drop out of Formula One

Honda has quit F1 due to deepening financial worries and a crashing car market. Honda has recently pulled back production at its Swindon plant, and the decision to leave F1 is apparently to protect the brand's core business activities.

Where this leaves Jenson Button remains to be seen, with Honda placing its team for sale rather than winding it down altogether. It sends a stark message out to followers of F1 though, who may now fear other manufacturers such as Renault doing the same.

This is the statement from Takeo Fukui, President and CEO of Honda Motor Co:

"We, Honda Motor Co., Ltd., have come to the conclusion that we will withdraw from all Formula One activities, making 2008 the last season of participation.

This difficult decision has been made in light of the quickly deteriorating operating environment facing the global auto industry, brought on by the sub-prime problem in the United States, the deepening credit crisis and the sudden contraction of the world economies.

Honda must protect its core business activities and secure the long term as widespread uncertainties in the economies around the globe continue to mount. A recovery is expected to take some time.

Under these circumstances, Honda has taken swift and flexible measures to counter this sudden and expansive weakening of the marketplace in all business areas. However, in recognition of the need to optimize the allocation of management resources, including investment regarding the future, we have decided to withdraw from Formula One participation. We will enter into consultation with the associates of Honda Racing F1 Team and its engine supplier Honda Racing Development regarding the future of the two companies. This will include offering the team for sale.

In its third era of Formula One activities, Honda has been participating in Formula One races from the 2000 season, initially with BAR, by adopting a new format of jointly developing racing machines. Subsequently, in a move to meet the changing environment surrounding Formula One, we switched to running a 100% Honda-owned team commencing with the 2006 season.

Surmounting many challenges, the Honda Team achieved a Grand Prix victory in 2006, enabling Honda to receive overwhelming support from Honda fans around the world that were looking forward to greater success. It, therefore, has been an extremely difficult decision for us to come to this conclusion without having been able to fully meet the expectations of our fans.

By making the best of what we have learned during these times of economic turmoil, coupled with the spirit of challenge gained through active participation in racing, we intend to continue with our commitment in meeting new challenges.

Finally, we would like to take this opportunity to sincerely thank our fans and all those who have supported Honda’s Formula One efforts, including everyone in the world of Formula One.

Thank you very much."

Aston Martin may axe 600 jobs in cost-cutting drive

Aston Martin may cut as many as 600 jobs, the British sports car brand said today.

The possible cuts of 300 full-time jobs along with "a similar number" of temporary positions are part of a discussion between the former Ford Motor Co. subsidiary and its trade union. Aston Martin also said it's considering other undisclosed cutbacks related to worldwide economic woes and plunging sales.

"These are regrettable but necessary measures in the extraordinary market conditions we all now face," Aston Martin CEO Ulrich Bez said in a statement.

The cutbacks come as the automaker seeks to revive the Lagonda luxury brand to diversify its product mix beyond sports cars.

Julian Jenkins, CEO of Aston Martin North America, said sales fell 19 percent through the first three quarters of 2008, while the ultraluxury segment dropped 21 percent.

The Warwickshire, England-based company has 1,850 employees worldwide. The company said a 90-day consultation period had been launched with the union Unite, and that the jobs would go in the new year.

In May of last year, Ford sold Aston Martin to a group that included motorsports investors David Richards and John Sinders and two Kuwait-based investment companies. Ford took its initial stake in Aston Martin in 1987.

PRESS RELEASE: Aston Marton announces job cuts

Gaydon, 1 December 2008 - Aston Martin and its Trade Union partners have today begun consultation on a range of cutbacks to reflect the current downturn in the world economy and the corresponding fall in car sales. It is hoped to do this by minimising the impact on employees as far as possible, but the possibility of up to 300 permanent and a similar number of temporary job losses cannot be ruled out.

Aston Martin Chief Executive Officer, Dr Ulrich Bez said: "Like other premium car brands, Aston Martin has been forced to take action to respond to the unprecedented downturn in the global economy. These are regrettable but necessary measures in the extraordinary market conditions we all now face.

"Overall we remain confident that the Aston Martin brand is the strongest it has ever been - with dedicated design, engineering and manufacturing facilities and an award-winning product range, we remain well positioned for the upturn in the economy."

Ford says it might sell Volvo

Ford Motor is exploring the possible sale of Volvo Cars, the company said Monday.

The US automaker said it would "re-evaluate strategic options" for the Swedish brand.

It said its decision had been forced by the decline in the global auto industry and economic downturn.

"Given the unprecedented external challenges facing Ford and the entire industry, it is prudent for Ford to evaluate options for Volvo," said Ford President and CEO Alan Mulally in a statement.

One of the options includes the sale of Volvo, which is based in Gothenburg, Sweden.

Ford said the review likely will take several months to complete.

Until then, Ford will continue working closely with Volvo as it implements its restructuring plan under CEO Stephen Odell, who was appointed to lead Volvo in September.

"Volvo is a strong global brand with a proud heritage of safety and environmental responsibility and has launched an aggressive plan to right-size its operations and improve its financial results," said Mulally.

He added: "As we conduct this review, we are committed to making the best decision for both Ford and Volvo going forward."

Mulally said the strategic review was part of Ford's plans to make sure it has enough money to survive the current downturn.

Ford and Volvo will continue to put in place processes that allow Volvo to operate on a more stand-alone basis, Ford said.

Ford bought Volvo for 50 billion kronor ($6.45bn) in 1999 following a bidding war with Volkswagen and Fiat.

The brand was profitable at first, but, more recently, it has been in the red.

Sales slipped 13.5 percent to 295,634 units in the first nine months of 2008.

In the third quarter, Volvo's pretax losses widened to $458 million from $167 million a year ago.

In response, Volvo cut 6,000 jobs this year.

Despite this, Odell was positive about the brand's future. "Outstanding safety, an increased focus on environmentally friendly vehicles and contemporary Scandinavian design will continue to be the foundation upon which we will build a strong Volvo business for the future." he said in a statement.

He said Volvo has a strong presence in Europe, North America and the Asia Pacific region.

Said Odell: "We are growing in key markets such as China and Russia, where we are the leading premium brand."

New look for Lincoln's MKZ

The Lincoln MKZ was restyled and re-engineered for the 2010 model year. The most striking change is the large split grille with tall vertical fins, key elements of Lincoln's new design language. Richer-looking materials and a higher level of fit and finish highlight the redesigned interior. The car debuted last month at the Los Angeles Auto Show. Sales begin in the first quarter of 2009.

Bentley boom is over — for now

The global sales slump finally has caught up with high-flying Bentley Motors.

Volkswagen AG's British superluxury brand has enjoyed a terrific decade, but its rapid growth has come to a screeching halt this year.

Sales in 2008 will decline about 30 percent both worldwide and in the United States, said Stuart McCullough, Bentley's board member for worldwide sales and marketing.

At the Los Angeles Auto Show, McCullough said he expects Bentley's global sales to fall to about 7,000 units this year from 10,014 in 2007. And he said North American sales will skid to about 3,000 from 4,290 last year. Through October, U.S. sales were down 30.1 percent to 2,333.

Bentley, which has 37 U.S. dealers, has almost three months of inventory in the United States but does not want to pile on incentives, McCullough said.

"We're not putting on dealer cash or cash for retailing, but we're helping fund dealer stock levels," he said.

If a dealer is considerably above normal inventory levels, McCullough said, Bentley provides financial assistance.

Bentley cut production 15 percent this year. "We saw the cascade coming," McCullough said.

At the Los Angeles show, Bentley rolled out a special edition of its Azure — the 500-hp Azure T. The Azure T will be priced about $50,000 above the standard open-top Azure, which starts at $342,495 including shipping.

Only 400 will be produced, with about 100 coming to the United States. The U.S. debut is expected next summer.

MINI Convertible

MINI cabrio goes topless in first official pictures.

The new MINI Convertible has broken cover, and given the success of the previous drop top it’s no surprise that BMW has lifted the lid on the current generation.

Due to reach showrooms in March, the new MINI comes two years later than its hatchback equivalent. These are the first official pictures of the soft-top and it looks like it's been worth the wait.

The second version of the best-selling convertible will make full use of MINI’s ‘Minimalism’ package, BMW's clever term for its Efficient Dynamics systems. The result is a cleaner more frugal beast. Performance has also been improved and the range-topping Cooper S now pumps out 175bhp from its turbo-charged 1.6-litre unit.

The new cabrio gets a healthy makeover too. A raised shoulder line and added chrome strip surrounding the car, highlight the cars sporty nature. While the trademark circular headlamps and hexagonal grille both remain. There are also two all-new colours making their debuts; Interchange Yellow and Horizon Blue.

Opting for the same two-stage electronically-operated canvas roof as the previous car, the top can be partially opened to act as a sunroof as well as fully retracted.

Another accessory making its debut is MINI’s ‘Openometer’, the add-on records how long the top has been down, letting passengers know how long they've been 'cool' for, air conditioning also now comes as standard.

Prices start at £15,995 for the standard Cooper rising to £18,995 for the Cooper S

Aston Martin One-77

Sneaky Paris reveal gives us a hint of what Aston has in store

We've already seen murky pictures of the million pound Aston Martin, but now the company is wheeling out the real thing - albeit with an inconvenient sheet across most of it.

This is our first glimpse at the One-77, although the idea is that those wealthy enough to buy one will be able to tweak and specify a lot of the car themselves - meaning the slight bits of car we see here may not be standard items, or they could be the base that customers have to work with.

It has also been confirmed the One-77 has a sophisticated carbon fibre chassis, handcrafted aluminium body and a stonking 7.3-litre V12 under the bonnet. 'Exhilarating performance' is promised by Aston in 'the ultimate creative interpretation of the renowned British marque'. Consider us teased. Are you? And would you splash out the best part of a big lottery win solely on a car? Wing your way to the forum and reveal all.

Lamborghini Estoque

New super-saloon from Lamborghini gets its Paris unveil

After several weeks of teasing, we finally know the identity of the all-new model from Lambo. This is the Estoque, a four-door, four-seater concept. Expect a production version to not look much different, though, so long as public reaction isn't too negative. It clearly fits in with the existing Gallardo and Murcielago model ranges, and even has hints of Countach about its front-end.

It's front-engined, four-wheel drive and will likely use a V10 power plant. Oddly for a Lambo, practicality and spaciousness are promised, and are achieved via a long wheelbase, which allows the car's height to stay low and keep the Estoque in line with the rest of the brand's models.

And if you're wondering, the name Estoque is derived from the term for a 35in sword used by a matador in bull-fighting. A typically Lamborghini name, then. The car is a concept for now, but in the company's words, they wouldn't produce a concept that couldn't be feasibly built.

Exciting, or just plain silly? The forum's the place to tell us about this, and anything else that's being revealed in Paris.

Porsche plans coup against Piech

Porsche Chairman Wolfgang Porsche has gained majority support among the two clans that own his family's carmaker to remove cousin Ferdinand Piëch from his post as Volkswagen chairman, a German magazine reported.

"It is not a question of 'if', rather 'when' and 'how'," Focus quoted one Porsche manager as saying.

The news magazine report ahead of its publication on Monday comes after a turbulent VW supervisory board meeting on Friday, where Piëch broke ranks with the other three Porsche representatives on the board.

Porsche had been quoted in comments made yesterday to Focus as saying of Piëch: "I am horrified by the behavior of the chairman."

The challenge is the result of long-running tensions between Piëch, part owner of Porsche, and his cousin over control of Volkswagen -- their company's largest investment in which the sports car maker is poised to take the majority this year.

Piëch, who has run Audi and Volkswagen as CEO before taking over as chairman in 2002, is a calculating strategist who has survived several coup attempts.

His power base stems from close allies like VW CEO Martin Winterkorn and the unwavering support from VW's powerful unions, which oppose Porsche's attempts to limit their influence.

Volkswagen declined to discuss the report while Porsche was not immediately available for comment.

Porsche Panamera

Porsche’s new four-door coupé is to undergo a extensive testing

Dubbed Panamera, it was pictured recently undergoing intensive chassis testing on the German Nürburgring. Scheduled for an official presentation at the 2009 Geneva show, the fourth range from Porsche is developed to be a strong competitor to the Mercedes CLS and the future Aston Martin Rapide and Volkswagen four-door coupé.

Though the Panamera takes over design elements from the 911 range, there will be significant differences, too. While the first has always kept its rear-mounted boxer engine, the newcomer will do with a choice of three front-mounted motors, though set back to the centre of the car as much as possible. The entry-level unit will be Volkswagen’s 3.5-litre six-cylinder unit developing 300 bhp, while Porsche’s own drivetrain will be a direct-injection eight-cylinder petrol engine, available in naturally-aspirated guise (350 bhp) and with twin-turbo (560 bhp). That should be enough to beat up the competition for a while – Mer'ss’ CLS 63 AMG comes up with 'only' 514 bhp. However, should Stuttgart make the CLS even stronger, Zuffenhausen would strike back with the Porsche GT’s 700-bhp ten-cylinder unit ...

The target for the Panamera is to be a true sportscar while at the same time it shall be a family-car for every-day with four full seats, easy access to the rear and a luggage compartment of around 450 litres. When it hits the road in 2009, Porsche hopes to be able to sell 20,000 units annually – and to jump over the barrier of 100,000 sold cars per year.

Piech stymies Porsche over Audi

Volkswagen Chairman Ferdinand Piech broke ranks with Porsche, his own clan's sports car maker, by tacitly backing VW staff in a boardroom showdown as thousands of workers protested outside.

A source briefed on Friday's events said Piech was not present during a VW supervisory board vote, allowing 10 members from the carmaker's labor unions to outvote the nine remaining shareholder representatives -- including three Porsche executives -- in a motion concerning VW's premium unit Audi.

The defeat for Porsche Automobil Holding means Volkswagen's largest shareholder will need approval from the VW supervisory board for any form of cooperation with Audi.

Volkswagen's luxury brand is a potential competitor to Porsche because Audi makes sporty cars such as the TT roadster and R8 high-performance coupe, which rival Porsche's Boxster and 911.

Porsche Chairman and VW board member Wolfgang Porsche attacked his cousin in a magazine interview, in a rare show of divisions between the Porsche and Piech clans.

"I am horrified by the behavior of the chairman," he was quoted as saying of Piech in Germany's Focus magazine. A preview of the article was released ahead of publication on Monday.

Extra power

The squabble took place as VW staff staged one of the biggest protests in the carmaker's history to support a German law giving labor and the state a big say at VW, which has passed Ford Motor Co to become the global number three automaker.

Both the European Commission and Porsche, poised to boost its VW stake to a majority, oppose the so-called VW law, which gives the state of Lower Saxony extra power to shape company strategy with its shareholding of just over 20 percent.

Union IG Metall said 40,000 Volkswagen workers from inside and outside Germany protested near its Wolfsburg headquarters. Staff from MAN, a truck maker in which VW holds a large stake, joined them.

"In times of shareholder value and finance market-driven capitalism we need more, not fewer, VW laws in our country," IG

Metall's leader Berthold Huber shouted in a passionate address to the noisy demonstration.

After the EU's highest court ruled last October that the 48-year-old law violated EU rules on the free flow of capital and needed changing, the German government made changes aimed at satisfying concerns in Brussels.

But EU Internal Market Commissioner Charlie McCreevy rejected those changes as insufficient.

Huber told the Westdeutsche Allgemeine Zeitung daily he would shift the protests to Brussels if the Commission lodged another complaint against the VW law, as McCreevy's office has threatened.

Earlier this week, Lower Saxony's premier said the state would raise its stake in Europe's biggest carmaker to 25 percent to retain its blocking minority if necessary.

Volvo S80 HPC

A Volvo S80 about to embark on some laps of a race track? Fish out of water? Well this S80 High Performance Concept has evolved a bit. It’s got four-wheel drive, new sports suspension, racing brakes and 345bhp. It’s also the first model to come from tuner Heico Sportiv to be endorsed by the Volvo Car Corporation, so it stands a fair to middling chance of becoming a production reality too.

Much of Heico’s time was spent nurturing the relationship between a pre-production four-wheel-drive system and its own ECU, but, with help from Bilstein, the firm has also developed new suspension that enables the car to sit 40mm lower on its 255/30-shod 20in wheels.

This has the desired effect of reducing roll in corners and further improving the car’s sure-footedness, but it still feels more like a quick saloon than a sporting one. In auto mode the gearbox doesn’t hold ratios long enough to exploit the increased torque, and the steering – an S80 weak point – is lifeless.

Heico was adamant that this car should maintain its ‘Volvo-ness’. It’s certainly achieved that. But in this concept a little too much so.