GM criticized for winding down Saab despite bids to buy brand

General Motors Co. was criticized in Sweden after the U.S. automaker named a restructuring firm to run the winding-down of Saab even as it reviewed several bids which included an offer from Formula One supremo Bernie Ecclestone.

"It is irresponsible of GM to move at the same time in two different directions -- both toward a sale and a wind-down," IF Metall chairman Stefan Lofven said in a statement.

GM has been trying to sell Saab for more than a year and is preparing to shut the money-losing brand if it doesn't consider the bids for the the 60-year old company suitable.

In a statement on Friday, GM named consultancy AlixPartners -- already closely involved in GM's restructuring -- to run Saab's liquidation. GM said the process is expected to take several months.

GM also confirmed that it had received several offers for Saab and said it is evaluating the bids. This evaluation is not affected by the appointment of AlixPartners, GM said.

Saab an 'amazing brand'

Dutch luxury carmaker Spyker Cars NV made an improved bid for Saab, while Ecclestone joined forces with Luxembourg-based private investment company Genii Capital to pitch a rival proposal. A group of Swedish investors also scrambled to submit a bid.

Genii Capital, which recently invested in Renault's Formula One team, said it will "aggressively work towards a successful closing of the transaction with all the relevant stakeholders of the company."

Lars Carlstrom, a Swedish investor who is coordinating the Genii-Ecclestone bid, said the Formula One boss and his partners were keen on buying Saab mainly for the value of its brand.

"What Genii and Ecclestone have found is that Saab is an amazing brand, comparable to brands such as Porsche and BMW," he said. "They love brands and they really value Saab's brand ... They are really supportive and will definitely be able to bring Saab to new heights."

Ecclestone has $2.4 billion fortune

Ecclestone, 79, is one of the wealthiest figures in sport and was ranked 24th in Britain in the 2009 Sunday Times rich list with an estimated fortune of 1.5 billion pounds ($2.4 billion). He has been a leading player in Formula One since he bought the now-defunct Brabham team in 1972.

Spyker is hoping to gain Saab's technical resources and its distribution network, while bringing its entrepreneurial skills to the new group.

Swedish media reports on Friday named Jan Nygren, an ex executive of the aerospace arm of Saab and former senior official in the defense ministry, as the head of one group of Swedish investors submitting a last-minute bid.

Saab spokesman Eric Geers said any decision over its future and the latest round of bids was in the hands of General Motors. "We all hope these bids are strong enough for General Motors to consider them."

Tokyo go, go for storming Lexus supercar

V10-engined LFA will be star of Japanese expo.

It's the news every supercar fan was desperate to hear: the Lexus LFA is going into production! Although Honda has canned plans for a new NSX, the wrap,s will be taken off the LFA at October’s Tokyo Motor Show.

The two-seater flagship will feature a 600bhp V10, giving 0-60mph in less than four seconds and a 200mph-plus top speed. Expect a light carbon fibre body with a pop-up wing, rear-wheel drive and an F1-style paddleshift box.

A replacement for the Celica will also be revealed at Tokyo. This rear-driven coupé is the result of a joint project by Toyota and Subaru, and features an Impreza platform and drivetrain. But the show could be short on launches from other makers. Ford, GM, Chrysler, Mercedes, Renault, Volkswagen and Lamborghini have all pulled out of the expo, blaming the economic downturn. This follows news that the British Motor Show has been cancelled for similar reasons.

MINI Spirit returns

British legend's big plans for new small car are exclusively revealed

It’s MINI’s biggest ever secret – and autoexpress.co.uk has all the details.

We’ve uncovered a bold plan by the British car maker to develop a new family of city cars, including a zero emission flagship powered by an advanced electric engine.

Though exact details remain scarce, it’s believed that the ultra efficient model line up will also offer drivers fuel sipping petrol engines as MINI owner BMW seeks to build an army of green machines aimed at beating tough legislation on CO2 and other gas emissions due in 2012.

Set to hit the road as early as 2011, it’s been confirmed to Auto Express that the top-secret machine is being developed alongside two new models from a joint venture between Fiat and BMW that’s tipped to mark the return of the famous BMW Isetta and Topolino nameplates

Aimed at a fast growing family of soon to be launched rivals – including Volkswagen’s Up! and a new family of small electric cars from French maker Reanult, MINI is promising to return to its roots with a lightweight model the promises to be every bit as innovative as the 1959 original.

It’s said to be no accident that MINI has chosen its 50th year to begin to develop such a ground breaking new model.

With its engine in back, petrol models will offer four seats and easy to access four door cabin. Individual chairs for driver and passenger will ensure safety is first rate, while the car’s wheel at each corner stance promises to ensure the car feels secure and stable on the road.

Plenty of effort is being poured in to ensuring that visibility is as good as it can possibly be with a large glass area set to ensure that the car is as easy as possible to drive on congested city roads.

Also under consideration is lightweight, tough plastic bodywork, like that fitted to the Mercedes Smart, while the car’s chassis will mix aluminium and composite materials like carbon fibre to deliver enormous strength and light weight.

Electric models could further improve the car’s interior space by locating the batteries in a thin sandwich under the car, and placing electric motors in all four wheels.

Technology to propel this version of the machine is reportedly already well advanced, and has already been publicly trialled in a prototype MINI called the E. This machine, which uses a battery and engine set up similar to that developed by American sportscar firm Tesla is set to be made available in small numbers in both the USA and Germany.

There’s no word on pricing for the newcomer, but given the advanced technology it’s expected to offer, it’s likely that flagship models will cost at least £20,000. A concept paving the way to full production is tipped to make an appearance at this year’s Frankfurt Motor Show.

Renault's electric future

You wait years for an electric Renault and then several turn up at once!

In a shock revelation to Auto Express in Geneva, top brass at the French firm has revealed more than one battery-powered model will be unveiled at the Frankfurt Motor Show in September.

And that’s not all, they also confirmed we’d have the chance to drive them before the year’s out.
In an interview with Renault design chief Patrick Le Quément, he revealed that the first electric car will be based on a soon to be launched petrol-powered car – likely to be the facelifted Clio – whereas the other models will be designed from scratch, specifically to run on batteries.

“Designing electric cars is a completely new challenge,” said Le Quément. “Factors such as the positioning of the power packs and the need for a reduced glass area mean conventional-looking designs simply don’t work.”

It also appears that the firm is set to take an equally innovative approach to selling its vehicles too, hinting the production cars could be cheaper to buy than their petrol equivalents.

The firm is looking to adopt a system which would see the cars sold to customers without expensive batteries included. These would then be leased. While it's not clear how much this would cost, Renault has promised that the eventual outlay required would be less than the cost of fuelling the vehicle with Petrol.

This system would also allow drivers to drop in on specially adapted charging stations, where depleted batteries could either be charged, or simply swapped for a full one.

Renault to delay work on top-of-the-range models

Renault has decided to delay work on proposed new top-of-the-range models because of the weak market and a desire to rationalize costs, La Tribune reported, citing an industry source.

Having already rescheduled the new Espace, the company is preparing to delay the successor to the Vel Satis and is completely reviewing its plans for the top-of-the-range market, the business daily said.

Renault is also cautious because of a disappointing sales performance by the Laguna III, the newspaper said

Renault plans production cuts in Douai, France

Renault has decided to cut production at its factory in Douai, northern France, in response to the worsening European sales outlook.

The French carmaker said last week it would also shut a factory in Sandouville, France, for seven days in September on top of a four-week closure in August.

In Douai, Renault has negotiated with unions at least 20 days of shutdown in the July-November period to counter declining demand for cars based on its Megane platform.

Renault produced 268,090 Scenic medium minivans and just more than 40,000 lower-medium Megane cars during 2007 at the Douai site, which employs 5,400 workers.

The company will present a radically restyled version of the Megane during the Paris auto show in early October.

Company sources say anticipation of the new Megane models has slowed sales for the existing versions.

The continuing slowdown in key European markets such as Italy and Spain, where Renault's Megane line has strong market shares, also contributed to weak demand for cars produced at Douai.

The Douai site was initially slated to close from late-July to late-August, for four weeks of annual maintenance.

Weak demand for the Megane and Scenic led management to negotiate a series of three-day weekends with workers in July, September, and October, a company spokesman said.

Renault will also close the Douai site from October 22 to November 12, to coincide with the French autumn school vacation and two national holidays, on November 1 and 11.

Word of the Douai slowdown comes just days after Renault announced that it would shut its factory in Sandouville, northern France, for seven days in September, on top of a planned four-week closure in August.

The Sandouville shutdown is directly linked to poor sales of Renault's upper-medium Laguna.

The French carmaker may also suspend Laguna production for at least three days in October, company sources say.

Ford's talks with Renault to sell Volvo

Ford Motor has had exploratory talks with French automaker Renault to sell Volvo, but the initial talks broke down due to price differences, sources familiar with the matter told Reuters.

The two parties have spoken again after their initial discussions, which were held last fall, the sources said.

Ford has also had talks with China's third-largest automaker, Dongfeng Motor Group, as a potential partner for Volvo, one of the sources said.

Ford spokesman Mark Truby declined to comment directly on the report, but said: "We announced earlier this year that Volvo is not for sale and that we are focused on improving Volvo's business results."

Hamilton In A Class Of His Own In Montreal Qualifying

Not even a flying Robert Kubica and a track that was breaking up in places could stop Lewis Hamilton in Montreal on Saturday afternoon, as he planted his McLaren on pole position for the Canadian Grand Prix.

BMW Sauber’s Kubica had actually taken provisional pole away from him with a lap of 1m 18.498s compared to 1m 18.886s when Hamilton began his final run, but even though there were marbles in Turns Two, Seven and 10, the Briton somehow found another six-tenths of a second to put pole beyond reach with 1m 17.886s. He described himself as extremely comfortable with the car.

Neither of the Ferraris really got going in qualifying, as Hamilton dominated every session. In the end, Kimi Raikkonen placed his third with 1m 18.735s, but an unhappy Felipe Massa was only sixth on 1m 19.048s. In between them came Fernando Alonso with 1m 18.746s, but the Spaniard may again be using the light first-run strategy that Renault employed in Spain. Behind him, Nico Rosberg placed his Williams fifth, with a strong 1m 18.844s best.

Heikki Kovalainen was seventh in the second McLaren, with 1m 19.089s, leaving Nick Heidfeld eighth on 1m 19.633s for BMW Sauber and Rubens Barrichello ninth for Honda on 1m 20.848s.

Mark Webber will start 10th, but did not run in Q3 after spinning his Red Bull exiting slippery Turn Seven and damaging the right front suspension at the end of Q2.

That session saw Timo Glock out-qualify Toyota team mate Jarno Trulli for the first time, with 1m 18.031s to the Italian’s 1m 18.327s. Trulli had two spins, and will start 14th. Separating the TF108s are Kazuki Nakajima, who lapped his Williams in 1m 18.062s and David Coulthard with 1m 18.238s for Red Bull.

Sebastien Bourdais was 16th overall on 1m 18.916s for Toro Rosso, but was the fastest runner to be eliminated in Q1 and will start at the back after needing his gearbox changed this morning. Team mate Sebastian Vettel will be with him. He didn’t run at all in qualifying as his STR3 needs a new monocoque after his crash this morning.

The Force Indias of Adrian Sutil and Giancarlo Fisichella will thus start 16th and 17th on 1m 19.108s and 1m 19.165s respectively. Jenson Button was 19th overall and will start 18th, his troubled Honda recording only 1m 23.565s thanks to gearbox problems.

The track surface is already occupying everyone ahead of a race in which safety cars are also expected to play a crucial role, such is the unforgiving nature of the Circuit Gilles Villeneuve’s walls.