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.

GM plans to show production Volt this month

General Motors plans to show a production model of its Chevrolet Volt extended-range electric vehicle as part of the automaker's upcoming 100-year anniversary celebration this month.

The automaker, which formally celebrates the 100th anniversary September 16, so far has shown only concept versions of the Volt.

"The rumors that a production version of the Volt will show up at the celebrations are true," a GM source told Automotive News Europe.

"The car will be a true representation of what the production version looks like and be somewhat different from the concept versions."

The car will be shown to employees and media at GM headquarters in Detroit.

Speaking at the London auto show in July, Bob Lutz, GM's vice chairman of global product development, said, "A production model will be showing this fall, but not at Paris (auto show)."

Preproduction models of the Volt will be built next year and 2010 ahead of the final production version in 2010, Lutz told Automotive News Europe. A European version will follow in 2011.

"Everything is looking good," Lutz said. "We have quite a few running around now in old Chevy Malibu bodies, so we can modify the engine and battery configuration."

Lutz said the body would be the next-generation global compact architecture. That's the same one to be used on the next-generation Vauxhall/Opel Astra and the Chevrolet Cruze, which will be launched at the Paris auto show in October.

Trulli says Singapore still a worry for F1 drivers

Formula One drivers are still fretting about the sport's first night race less than a month before Singapore's new street circuit makes its debut.

"It's a new circuit, we don't know much about it, the schedule, the times of running. we all are a little bit concerned about the night race and the poor weather which might occur there," Toyota's Jarno Trulli told reporters at the Belgian Grand Prix on Thursday.

"It's a big question mark for everyone, we mustn't underestimate the situation."

Singapore will become the second new venue this season after last month's Valencia street race when the southeast Asian island state hosts the 15th round of the championship on Sept. 28 at the tail end of the monsoon season.

Unlike Valencia, which staged a couple of junior formula races on the street circuit a month before the grand prix to iron out any problems, Singapore remains untested.

"In Valencia they did a good job, so I am confident they can do a good job for Singapore," said Trulli. "But the location is different and the climate conditions are different.

"We are all a little bit uncertain because we probably don't have enough data. I haven't seen the circuit layout but that's not the problem. The problem is we don't know if the circuit is good enough, if the surface is good enough, if we have enough run-off areas, if the safety is good enough for a night race in wet conditions.

"There are several question marks and several concerns. I'm not saying that I don't want to race there, but that we might encounter some more problems than in Valencia."

Aston Martin revives Lagonda

ston Martin has announced that it intends to revive the legendary Lagonda marque, and will use it to launch a whole new range of large luxury models.

Dr Ulrich Bez, boss of Aston Martin, said he plans to relaunch Lagonda as a sub-brand from 2012 in order "to develop cars which can have a different character to a sports car". It's a move that's meant to extend Aston Martin appeal beyond sports cars.

Aston Martin currently sells cars in 32 countries, but CEO Bez believes the brand should launch new models that can appeal to "more than 100" existing and emerging markets.

It's likely that Lagonda will offer a range of high performance, luxury saloons. A spokesperson admitted that the new models would be "more practical" than anything in the current Aston line-up, but he added that an SUV would be out of the question.

As we reported earlier this month, rumoured links between Aston and Mercedes-Benz could make Maybach platform sharing an option. However Aston won't be drawn on its new sub-brand's market positioning.

The Lagonda designs are yet to be finalised. But Aston boss Bez said it will use its own unique design language, and will offer "exclusive, luxurious and truly versatile products".

The company confirmed that the forthcoming Rapide, due in 2009, andthe One-77 hypercar would still be badged as an Aston Martin, not a Lagonda.

MG cancels plans to bring TF to North America

MG's plans to return to North America with a revamped version of the TF roadster are dead. Again.

"The U.S.A. isn't on the short-term radar as an anticipated market for us, but with the right product, it would be good to return there," Gary Hagen, marketing director of NAC MG, told a reporter for the British Web site Austin Rover Online.

Hagen also confirmed that plans to build MGs in Oklahoma from kits shipped from China also have been killed.

Not long after China's Nanjing Automobile Group Corp. bought most of the remains of MG Rover in September 2005, the company told of plans to set up an r&d center and factory in Ardmore, Okla.

"The deal fell through," Hagen told Austin Rover Online.

This month, production of 500 MG TFs started in MG Rover's old Longbridge, England plant. The cars will be sold in Great Britain and are a run-up to a restart of regular production of the two-seat roadster.

Nanjing has since been taken over by larger rival Shanghai Automotive Industry Corp., or SAIC.

Although MGs were last sold in the United States in 1980, the iconic British sports car retains a large and loyal following here. Numerous attempts to return MG to the United States have been hatched over the years, but none has come to fruition.

NAC MG plans to replace the TF with a roadster and several sporty sedans in the coming years.

Men's 100m Freestyle: Bernard displays touch of gold

France's Alain Bernard turned the tables on world record holder Eamon Sullivan of Australia to win the gold medal in the Men's 100m Freestyle, in a fascinating battle at the National Aquatics Center on Thursday.

Sullivan and Bernard exchanged world records on Wednesday with Sullivan responding to Bernard's world record of 47.20 in the first semifinal by lowering the mark another 0.15 to 47.05 in the second semifinal. On Thursday Bernard enjoyed the last laugh, claiming the gold medal in a time of 47.21.

Sullivan was 0.04 outside world record pace at the 50m mark and looked comfortable, only to tire and let Bernard bring the race home to the wall-touch first and relegate Sullivan to the silver medal in a time of 47.32.

Sunday's hero in the Men's 4 x 100m Freestyle Relay, 32-year-old Jason Lezak of the United States won the bronze in 47.67.

Olympic champion Pieter van den Hoogenband of the Netherlands, who recorded his quickest time in eight years to qualify for the final, failed in his quest for a record three straight 100m Olympic titles, finishing fifth in 47.75.

The battle between Bernard and Sullivan resumes on Thursday in the heats of the Men's 50m Freestyle - and that tussle should be even fiercer.

Surprisingly, the joint world champions from 2007, Filipo Magnini of Italy and Brent Hayden of Canada, both failed to contest the final after they were knocked out in the semifinals.

China's Yang Wei wins gold in Men's All-Around

Chinese gymnast Yang Wei won the gold medal in the Men's Individual All-Around in Beijing on August 14, scoring a total of 94.575 points.

The silver medal was won by Japan's Uchimura Kohei who scored a total of 91.975 points, while the bronze medal was won by France's Benoit Caranobe who scored a total of 91.925 points.

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

Pininfarina CEO dies in road accident

Andrea Pininfarina, CEO of Italian design and contract manufacturer Pininfarina, died Thursday morning in a road accident near Turin.

Pininfarina, 51, died after a car collided with the Vespa motorcycle scooter he was riding to the company's design and r&d center in Cambiano.

Pininfarina's death comes at a time when the family-controlled company is in the midst of a crucial restructuring.

Last year, Pininfarina's consolidated net loss increased to 114.9 million euros from 21.9 million euros the previous year.

Andrea Pininfarina has been Pininfarina's CEO since June 2001. He was also appointed chairman in May 2006. His father Sergio is the company's honorary chairman. His younger brother Paolo is Pininfarina's vice chairman and his elder sister Lorenza is a member of company's board.

Andrea Pininfarina is the grandson of Pininfarina founder Battista "Pinin" Pininfarina. He is survived by his wife Cristiana, and two sons and a daughter.

Prime Minister Silvio Berlusconi said in a statement Pininfarina was "the representative of a dynasty that helped bring the story of 'made in Italy' to the world."

Fiat and Ferrari Chairman Luca Cordero di Montezemolo praised his business acumen.

"Italy, Turin and the Fiat group have lost a business figure who knew how to follow and develop the work of his grandfather Pinin and his father Sergio," Montezemolo said in a statement.

The driver of the car, 78-year-old Giuliano Salmi, was taken to hospital suffering from shock.

"I didn't see him, I was going slowly and I really didn't see him," Salmi said, according to local news agency Ansa.

Andrea Pininfarina was born in Turin, the centre of Italy's car industry, on June 26, 1957 and joined the family business in 1983 after gaining a degree in mechanical engineering.

Art and Design

Pininfarina SpA, which designed Ferraris such as the Dino and Testarossa, boasts of "Experience, Creativity, Innovation" on its Website www.pininfarina.com, where it says it is a company of "art, design, innovation. The cars of kings."

News of the chief executive's death prompted market speculation that its ownership could quickly change.

The shares jumped so high they had to be suspended in Milan for excessive gains and were indicated up over 13 percent pending a resumption of trade.

"The market thinks that ownership change will speed up," said one trader.

On March 10, Pininfarina asked its shareholders for a 100-million-euro capital increase to cover of its losses.

The move means that the Pininfarina family will lose its majority in the company.

The family currently controls 55 percent of Pininfarina's voting shares.

The Pininfarina family will underwrite part of the capital increase and will rely on the support of new investors, such as Ferrari vice chairman Piero Ferrari, Tata Group chairman Ratan Tata and French industrialist Vincent Bollore.

After the capital increase, the Pininfarina family will remain the main shareholder of the company with about 30 percent of the shares.

Pininfarina agreed a deal with its creditor banks last week, which temporarily exempted it from repayments on 600 million euros of debt while it restructures its finances.

It has tried to cut costs as the economic downturn hits carmakers and narrowed its loss to 9.7 million euros in the first quarter, from 9.9 million in the same period a year ago.