Dodge to launch new 2009 Ram with 0 percent loans

Chrysler LLC is offering 0 percent financing for 72 months on 2009 Dodge Ram pickups in most of its business centers. The company announced the offer in a July 8 conference call.

Dealers in several regions of the country confirmed they were scrambling to get the offer into their advertising.

Chrysler is on a company-wide summer shutdown this week. No officials were available to confirm whether the offer is nationwide.

Chuck Eddy, owner of Bob and Chuck Eddy Chrysler Dodge Jeep in Austintown, Ohio, said: "We're trying to get some lift on it (the 2008 Ram)."

Dealers want to unload their slow-selling 2008 Rams to make room for the redesigned 2009 model, which arrives in about two months.

Renaultsport Twingo 133

Renault's hot Twingo will start at £11,500 and go on sale in September.

Renault has offically taken the wraps off its entry-level hot hatch! Called the Renaultsport Twingo 133, the racey looking model will start from £11,500 and go on sale this September, with orders being taken from July.

Almost identical to the Twingo RS concept that was revealed at the Paris Motor Show back in 2006, it gets wider front and rear wings and a aerodynamic spoiler giving it a sporty and agressive look.

Inside, there's a four-spoke steering wheel and rev-counter located directly behind the steering wheel while under the skin, buyers can choose between two suspension set-ups – a standard set up and an even racier Cup chassis.

The hot hatch gets its power from a 1.6-litre 16V engine which delivers 133bhp at 6,750rpm and 160Nm of torque at 4,400rpm. A lot of time has also been spent developing a deeper engine note and the addition of a four-into-one exhaust enhances the performance whilst lowering emissions.

Renault has also announced the first 133 people to order a Twingo will receive a free track day and tuition.

Ford could face suit over troublesome truck engine

Ford Motor Co. once again could be haunted by a diesel engine problem resulting from a batch of bad engines used in 2003- and 2004-model trucks.

A federal court reinstated a lawsuit Wednesday against Ford alleging that the automaker equipped its 2004-model diesel-powered Super Duty pickups with flawed engines from the 2003 model year.

The ruling reopens a motion previously filed to give the suit against Ford class-action status.

The 6th Circuit Court of Appeals in Cincinnati ruled in favor of Kenneth E. Corder of Louisville, Ky., who sued Ford in 2005.

According to court documents, Corder purchased a 2004 F-250 Super Duty pickup that contained a 2003 model year version of the 6.0-liter Power Stroke, instead of the improved 2004-model engine.

Corder said he waited to purchase the 2004 model because of "widely reported problems" with the 2003 engine model, according to court documents.

"The engine in the 2003 F-250 truck was notorious for its deficiencies, which were widely publicized, including leaky fuel injectors, oil leaks, broken turbochargers, wiring harness troubles, faulty sensors, defective exhaust gas recirculation valves and bad computers," U.S. District Judge William Schwarzer wrote in an opinion Wednesday.

Corder sued Ford in 2005 and filed a motion for class-action status to represent anyone who bought a 2004 pickup with a 2003-model engine.

A two-judge majority of three federal judges ruled in favor of reinstating the case. The dissenting judge was U.S. District Judge David McKeague.

"Ford is disappointed with the decision," spokesman Marcey Evans wrote in an e-mail to Automotive News. "The company agrees with Judge McKeague that it is not misleading or deceptive not to inform car purchasers about the manufacturing history of vehicle components, and that the plaintiff in this case, who is satisfied with his properly-performing vehicle, has suffered no loss. We believe that a jury is likely to reach these same conclusions as well."

Ford argued that its engines do not have model years. But Schwarzer wrote today there is "substantial evidence" that Ford distinguished between the 2003 model and 2004 model diesel engines, according to court documents.

The documents cite internal letters from Ford that distinguish between a 2003 engine and 2004 engine.

A U.S. district judge dismissed the suit in 2007 before ruling on the motion seeking class-action status.

The case now returns to U.S. District Court in Louisville for further proceedings.

Ford faced engine problems in 2003- and 2004-model Power Stroke trucks. Automotive News reported in 2005 that at least 58 suits were filed against Ford involving quality problems with the engines.

Ford said in 2005 that its warranty costs soared by $500 million through the first nine months of that year compared with the same period in 2004. Part of the increased costs were to pay for repairs of the faulty diesel engine.

Chevrolet's new compact car to be called the Cruze

General Motors is calling its new compact car for Chevrolet the Cruze, the automaker confirmed late today.

"The name is a derivative of the word cruise," says Nancy Libby, GM spokeswoman.

GM will unveil the production version of the Cruze at the Paris auto show this fall, Libby confirmed.

On June 2, Automotive News reported that GM would build a new compact car to replace the Chevrolet Cobalt at its plant in Lordstown, Ohio. The next day, GM CEO Rick Wagoner confirmed that Chevrolet would get a new compact.

The Cruze will be built on GM's Delta compact car architecture. It will use a new 1.4-liter global engine that GM developed and recently announced in Europe. The turbocharged four-cylinder engine will be used in several GM vehicles worldwide.

GM says the engine will be capable of developing 120 to 140 hp. Sources say mileage could exceed 40 mpg.

Production of the Cruze is slated to start in the middle of 2010 as a 2011 model.

Libby sees the Cruze's main competitors as the Honda Civic, Volkswagen Jetta, Mazda3 and Ford Focus.

The Cruze will be sold globally and will be similar in size to the Cobalt, Libby said. The five-passenger car will be about 15 feet long.

"We're coming to market as a sedan," Libby said. "There's no news yet on any other variants that could be spun from that vehicle."

Libby said the engine will be built in Flint, Mich.

GM unveiled the Cobalt in late 2004 as a 2005 model. It's been a top-selling car since its launch, selling more than 200,000 vehicles annually. Through June, amid a spike in gasoline prices, Cobalt sales are up 18.5 percent to 114,250. In June alone, Cobalt sales rose 21.6 percent versus June 2007.

The demand for the Cobalt has prompted GM to add a third shift at its plant in Lordstown starting on Aug. 4.