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.