Porsche set to move closer to VW takeover

Porsche will be one step closer to acquiring majority control of Volkswagen on September 2, when its deal to buy 4.9 percent of that company's ordinary shares takes effect.

The VW takeover "will be executed piece by piece," Porsche CEO Wendelin Wiedeking said during an event in the Black Forest on Wednesday evening.

A spokesman for Porsche said the deal closes on that day in early September.

The purchase of another 4.9 percent of VW common shares was necessary before Porsche could proceed with gaining regulatory approval from the European Commission, which required further proof a takeover was indeed intended.

Once Porsche has received the green light from various antitrust authorities, it plans to raise its voting stake in Volkswagen to over 50 percent.

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.

Strikes cost Hyundai 2,000 vehicles

Strikes last week cost Hyundai Motor Co. an estimated 30 billion won ($28 million at recent exchange rates) and 2,000 vehicles.

Affiliate Kia Motors Corp. lost an estimated $11 million and 900 units.

Separate unions at the automakers took part in strikes against the South Korean government's deal to resume imports of American beef.

More strikes appear to be planned. Union workers at Hyundai plan to stop work for another four hours on both the day and night shifts on Thursday over a wage deal, the union said on Monday.

The strikes have been organized by a larger group called the Korean Confederation of Trade Unions. Hyundai and Kia unions are members.

The union at Hyundai struck for two shifts Wednesday, July 2, and Thursday, July 3, for a total of six hours, including overtime. The union at Kia struck for a total of four hours.

Unions at GM Daewoo Auto & Technology Co. and Ssangyong Motor Co. did not strike, and no more beef-related strikes have been announced.

But larger strikes could be on the way as all four companies have ongoing contract negotiations with unions. The talks are expected to continue well into July and perhaps into August.

Korean unions, especially the one at Hyundai, typically strike every year during contract negotiations. Last year, the union at Hyundai finished negotiations without striking. But the union joined the more aggressive Korean Federation after last year's talks. While there have been signs rank-and-file members want a more moderate stance from their union, the influence of the powerful Korean Federation could prove to be stronger on union leaders

Fiat, BMW plan small-car alliance

Fiat and BMW will cooperate to develop a new platform for small cars, supplier sources said.

The platform will underpin the next Fiat Grande Punto and BMW's third-generation Mini. Both cars are due early in the next decade.

The two companies are also considering developing a new family of gasoline and diesel engines, sources told Automotive News Europe.

Fiat Group CEO Sergio Marchionne said today that the carmaker will announce a cooperation agreement with another automaker tomorrow.

"Most likely it will be in the car business," Marchionne said on the sidelines of the press introduction of the 500 Abarth model here.

Marchionne did not give any more details on the cooperation.

But supplier sources familiar with the matter told ANE that Fiat and BMW will cooperate on a new small-car platform.

Fiat already has industrial alliances with other carmakers including PSA/Peugeot-Citroen, Suzuki and Tata.

BMW cooperates in Europe with PSA on engine production and the company has a joint venture in China with Brilliance.

Automakers increasingly are cooperating with competitors to reduce investments costs for new models.

China's Chery could bid for Volvo

China's Chery auto group is considering a bid to buy Swedish-based Volvo from Ford Motor, state media said today.

The Caijing business magazine quoted sources as saying that Chery has not yet reached any agreement or applied for permission from the government of Anhui, the company's home province.

It said Jin Yibo, an assistant to Chery's chief executive, had ruled out the possibility of buying Volvo, but other sources told the magazine that Chery had already contacted banks and private equity firms about financial backing for a possible acquisition.

Industry insiders estimated that Volvo could cost Chery more than 30 billion yuan (4.4 billion dollars), it said.

Chery produces several lines of passenger cars, mostly cheap compact models, and plans a share offer in Shanghai next year, Caijing said.

Earlier rumors reported in state media had linked the Shanghai Automotive Industry Corporation to a possible takeover of Volvo.

GM mulls job cuts, sale of brands

General Motors could shed thousands of white-collar jobs and sell or cease producing certain brands as part of a strategy reevaluation, said the Wall Street Journal, citing people familiar with the matter.

The job cuts are expected to be approved at a meeting of the GM board in early August. The management may also suggest options for raising additional cash to help GM make it through the downturn, and may discuss cutting certain brands, the sources said.

A company spokesman declined to comment on either the job or brand cuts, said the report.

GM sells under eight different brands, but most, including Buick, Saturn and Saab, struggle to attract buyers. The company has already decided to put its Hummer division up for sale.

On the job cuts, GM employs 76,000 white-collar workers globally, with the bulk of the force based in North America, said the report.

McLaren SLR Speedster

It looks like Mercedes-McLaren have big plans for its SLR farewell party! With the Mercedes supercar coming to the end of its production life, the German manufacturer has no plans to send the thoroughbred off quietly. Speculation has been growing about a final special edition speedster version of the SLR 722 - and it looks like the rumours were true. Despite the confusing disguise these exclusive spy shots, taken somewhere in the heart of Germany reveal Mercedes and McLaren have one last trick up its sleeve and it appears to be quite a special one.

We can also reveal that 75 examples of the final SLR will be produced and can confirm it will be light-weight speedster versions of the purebred supercar. The limited edition car will pay homage to the silver 300 SLR driven by Stirling Moss in the mid fifties and will have no roof and only a small wind screen in place of the car’s windshield.

Further deletion of the air conditioning system and power windows plus the use of composite materials in the body panels will shave about 440 pounds off the SLR’s kerb weight. The end result will be a car that can accelerate from 0-186 mph in just 26 seconds, on its way to a blistering top speed of about 217 mph, 8 mph faster than any previous SLR.

Sources can also reveal the limited edition SLR is expected to retail from about 450,000 euros if you can manage to get one.