GM prepares to announce Pontiac closure next week

General Motors is preparing to announce early next week that the Pontiac brand will be eliminated, said a source familiar with the company's plans.

The announcement will be made as part of an updated viability report to the U.S. auto task force, the source said. A second source indicated earlier this week that GM, surviving with $15.4 billion in U.S. bailout funds, was considering phasing out Pontiac instead of sticking with a plan to have it continue as a niche brand.

In its proposal to the U.S. Treasury on Feb. 17, GM said Cadillac, Chevrolet, Buick and GMC would be its four core U.S. brands. On March 31, the task force told GM that its restructuring plan wasn't aggressive enough and denied a request for $16.6 billion in additional aid.

Pontiac spokesman Jim Hopson declined to comment on Pontiac's future.

"I can't speculate what next week is going to hold," he said. "When we were asked to go back and look at the viability plan, everything went back on the table. We're reviewing everything. Nothing is sacred. We're still under the original viability plan until told otherwise."

The U.S. today granted $2 billion to keep GM operating while it prepares for a new, June 1 restructuring deadline. GM has been staying afloat with $13.4 billion in U.S. loans granted in December by President George W. Bush.

Bloomberg News said GM is expected to tell the government that it will stick with plans to keep GMC, Buick, Chevrolet and Cadillac.

Saab, Hummer and Saturn are for sale.

Muscle-car icon

Pontiac, which launched the 1960s U.S. muscle-car era with the GTO, sold 267,348 vehicles in the United States last year, less than a third of its 1978 peak of 896,980. This year's volume dropped 43.5 percent through March as industrywide demand fell 38.4 percent.

"Pontiac is one of my favorites -- I especially like the G8," said John Pitre, general manager of Motor City Auto Center in Bakersfield, Calif., which sells Buick-Pontiac-GMC and Saturn. "I would be sad to see it phased out. However, if some of those products became part of the Buick brand, I could understand GM's logic."

Chris Haydocy, who owns a Buick-Pontiac-GMC store in Columbus, Ohio, said Pontiac isn't essential as long as the revamped sales channel provides most of what customers are looking for.

Said Haydocy: "I think you need 10 or 12 models to do that."

Killing Pontiac would make sense, said George Peterson, president of marketing and product consulting firm AutoPacific Inc.

"It's sort of a shadow of itself," he said. "All of the Pontiacs, except for the G8, are copies of Chevrolets or GMCs, so there really isn't any reason to keep Pontiac around.''

GM introduced Pontiac in 1926. GM decided to kill Oldsmobile in 2000, three years after its 100th anniversary.

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.

MR2 set to return as Prius coupé?

Production of MR2 stopped in 2007; new car will be a coupé instead of roadster

The MR2 is making a comeback, Auto Express can reveal. Toyota is developing an exciting performance hybrid which would revive the much loved sports car and rival Honda’s upcoming CR-Z.

It’s set to swap its predecessor’s roadster shape for that of a compact coupé. Under the skin will be a rear-wheel-drive chassis, a paddleshift gearbox and a specially developed version of the Prius’s hybrid powertrain.

The new model will boast an amazing blend of performance, economy and low emissions, all wrapped up in a stunning body. It would be a fitting successor to the MR2, which ceased production in 2007.

Speaking exclusively to Auto Express at the Geneva Motor Show, Toyota executive vice president Masatami Takimoto said: “We are aware of the fondness with which the MR2 is held in the UK and Europe, and are developing a small hybrid sports car.

“We have set a tough price point (expected to be around £20,000), as it will be easier to sell if it is affordable. It has to be fun to drive, too, which means the hybrid set-up must be different to the Prius’s, with greater responsiveness.”

These artist’s impressions give you an idea of how it will look. At the front it mixes cues from Toyota’s FT-HS sports car concept with a deep lower air intake, while the side has a kick up on the door towards the roof. At the rear are lights from the FT-HS and a neat diffuser-style lower bumper.

The key challenge for Toyota will be developing a powertrain that’s sporty to drive. It will have to improve the rate at which the batteries charge and discharge, for razor-sharp responses.

If the company gets it right, the car could do 0-60mph in seven seconds, yet return 60mpg and emit less than 100g/km of CO2. A new MR2 would be a desirable addition to the range, but Toyota is concentrating more on family hybrids at the moment, with 10 being launched over the next 12 months.

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.

Dealers aim to raise 400mn euros to buy Opel/Vauxhall stake

Opel/Vauxhall dealers plan to raise 400 million euros to buy a minority stake in the troubled General Motors-owned brands.

Euroda, which represents 4,000 Opel/Vauxhall dealers in 25 European countries, plans to establish a fund to take a stake in the brands.

Each dealer would pay 150 euros into the fund from profits on each car they sell over the next three years in return for a stake in a new Opel/Vauxhall company.

GM Europe, which runs Germany's Opel and UK-based Vauxhall, is asking European governments for help to finance a 3.3 billion euro cash shortfall. The automaker has said it is open to discussions on partnerships or equity positions.

Euroda acknowledged that its fund would only raise enough cash to finance a minority stake in the automaker but said its plan would give a clear signal of support to governments, Opel/Vauxhall workers, and -- above all -- customers.

Opel/Vauxhall dealer associations in different countries will vote on the proposal in the coming weeks and a final vote will be held at the next Euroda meeting on May 15.

Euroda Chairman Jaap Timmer said: "Opel/Vauxhall dealers have 125,000 employees and they are responsible entrepreneurs who want to preserve these jobs as well as their investments."

Last week, GM Chief Operating Officer Fritz Henderson said that GM Europe would run out of money early in the second quarter if it did not receive financial support.

GM delays innovative new diesel truck engine

General Motors' deteriorating financial situation has caused the company to delay one of the most advanced engines that it has ever designed, a 4.5-liter diesel for light-duty trucks.

"We have to make tough decisions right now," said GM Powertrain spokeswoman Susan Garavaglia.

Truck enthusiasts were eagerly awaiting the engine, which would have started production next fall at GM's plant in Tonawanda, N.Y. The engine has unique cylinder heads that eliminate the intake and exhaust manifolds. Its lightweight block has advanced castings for the crankshaft-bearing journals and oil-circulation system.

GM had planned to install the engine in the Chevrolet Silverado and GMC Sierra pickups. The result would have been a fuel-efficient truck priced for less than the heavy duty diesel-powered trucks available now.

The move comes three weeks before a U.S. auto task force is set to determine whether the automaker deserves an additional $16.6 billion in federal aid. GM, kept afloat by $13.4 billion in U.S. loans received so far, is trying to shed brands, sell assets and curb spending as it battles a worldwide collapse in auto sales after four profitless years.

Selling the rights? GM has been awarded several patents for the engine design, and early tests have shown the new motor to be as smooth and quiet as a gasoline engine. Development of the engine was far along when the decision was made to put the program on hold. Rights to the engine may be sold to another company, Garavaglia said. If GM decides to revive the engine, it would likely take at least a year for it to enter production. Meanwhile, GM will not be out of the diesel truck business. The company will continue to offer the 6.6-liter Duramax engine in heavy-duty pickups and modify it as necessary to meet tougher emissions standards. GM also has just launched Two Mode hybrid versions of the Silverado and Sierra, which get an EPA rated 21 mpg city and 22 mpg highway. The 4.5-liter diesel would have raised the trucks' fuel economy into the mid to high 20s mpg. Last month, GM scrapped plans to build an engine plant for the upcoming Chevrolet Volt plug-in hybrid and Cruze small car. Instead, the engines will initially come from a European factory while an existing factory in Flint, Mich., is retooled to make the new engines. GM Powertrain Group Vice President Tom Stephens recently said that all of GM's future production plans are constantly being re-evaluated.

Mercedes Gullwing

Merecedes confirms plans for thrilling new gullwing model at Geneva Motor Show

It’s official! Mercedes has finally confirmed its plans to launch a new AMG supercar at this year’s Frankfurt Motor Show.

The all-new machine, called the Mercedes SLS AMG is said to represents ultimate in AMG driving dynamics and performance, according to company chairman Volker Mornhinweg.

Smaller and lighter than the McLaren-Mercedes SLR, the SLS is based on a new aluminium spaceframe chassis.

Developing around 570bhp at 6800rpm, Mercedes claims the 6.3-litre V8 machine will sprint from 0-60mph in 3.8seconds while top speed is electronically limited to 196mph.

Drivers will get a 7-speed dual-clutch transmission (first seen in the SL63 AMG and located in the rear transaxle) while the engine is dry-sumped in order to keep the centre of gravity as low as possible.

Supension matches conventional coil springs with twin aluminium wishbones at each corner, lightweight ceramic brake discs are an option.

There;s still no clear word on price, however the car is due to go on sale in summer 2010.

A source close to the project suggested drivers could expect to pay around 150,000 euros - less than half the price of the outgoing SLR.

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.

Aston Martin DBS Volante

Making its debut at the Geneva Motor Show next month, the new drop-top will line up alongside the V12 Vantage and new Lagonda luxury saloon, giving show goers a triple treat of fresh metal.

Described by Aston Martin as the “the ultimate open air motoring experience”, the DBS Volante gets the same mighty 6.0-litre V12 as the coupe and stunning looks with a fabric hood that closely follows the silhouette of the coupe.

Capable of dropping at the touch of a button in just 14 seconds and at up to speeds of 30mph, the roof automatically stows under a re–sculpted tonneau cover, which maintains the slick look of the coupe. And as you can see, all the styling cues from the storming DBS coupe are carried across.

The front end gets sleek air intakes, a low splitter and bonnet air vents, the side skirts are lower while at the rear are clear lens covers for the taillights, a subtle boot-lid spoiler and a diffuser. While the bonnet, front wings and boot lid are made from carbon fibre, the DBS Volante is quite a bit heavier than the coupe.

To cope with the loss in stiffness associated with the removal of the hard-top, extra strengthening – including a rigidly mounted rear subframe – has gone into the bonded aluminium chassis chassis. As a result the Volante tips the scales at 1810kg – some 115kg more than the coupe.

Despite this extra weight, performance isn’t really affected. Under the bonnet lies the same 6.0-litre V12 as the DBS coupe. Based on the same unit that powers the DB9, it gets an uprated airbox, which takes peak power to 510bhp and torque to 570Nm. Standard transmission is a six-speed manual gearbox with the option of Aston Martin’s semi-automatic Touchtronic ‘box.

The Volante posts almost identical performance figures to the coupe, accelerating from 0-62mph in just 4.2seconds (0.1seconds down) and hitting the same top speed of 191mph. Carbon ceramic brakes do the stopping while adaptive dampers and double wishbone suspension with 20-inch alloy wheels and sticky Pirelli P-Zero rubber should mean the Volante is prodigious around corners. Inside the luxurious 2+2 cabin gets a bespoke Bang and Olufsen sound system as standard.

On sale this autumn, the DBS Volante is expected to cost around £170,000 – some £11,000 more than the coupe.

Bentley Supersports

Meet the fastest, most powerful Bentley in history – the stunning Continental Supersports!

Packing a 621bhp 6.0-litre W12 engine, the brutish two-seater coupe can accelerate to a top speed of 204mph. But it’s also green too, as it’s capable of running on renewable biofuel as well as petrol.

Making its worldwide debut at the Geneva Motor Show in March, the mighty machine will go on sale in the UK in Autumn, where it will sit above the 200mph Continental GT Speed as the flagship sports car in the Bentley range.

The result of two-year project by a small number of Bentley designers and engineers, the Supersports is the fastest and most driver-focused Continental yet.

As well as more power, it gets uprated brakes and suspension, a ‘Quickshift’ automatic gearbox and a tweaked four-wheel drive system. It has also undergone an extension weight-saving programme, with lightweight components such as carbon-fibre seats helping it shed 110kg over the GT Speed on which it’s based.

The most obvious change is the muscular bodykit, which packs flared rear wheelarches and wider side sills to cover an increased rear track, larger twin exhaust pipes and a modified rear valance, plus 20-inch 10-spoke alloy wheels. A new dark-smoked steel finish is applied to all exterior ‘brightware’, including the front grille, lamp bezels, window surrounds and wheels.

At the front are a host of intakes and twin bonnet vents, which help provide 10 per cent more air to the uprated 6.0-litre twin-turbocharged W12 engine. With increased turbo-boost pressure, it produces 621bhp at 6,000rpm – 21bhp more than the GT Speed – and another 50Nm of torque taking output to a staggering 800Nm between 1,700-5,600rpm.

Together with the weight loss and the Quickshift transmission, which reduces shift times by 50 per cent, the Supersports does 0-60mph in 3.7 seconds, 0-100mph in 8.9 and jumps from 50mph-70mph 2.1 seconds. With a top speed of 204mph, the Supersports is the fastest Bentley ever made.

The engine is also Bentley’s first ‘FlexFuel’ unit, capable of running on E85 bioethanol or petrol or a combination of the two. The firm has committed to making its entire range FlexFuel-compatible by 2012 and claims that biofuel reduces CO2 output by 70 per cent from its production to its use in a car. Although it’s unlikely the Supersports is much cleaner than the xxg/km GT Speed at the tailpipe, or any more economical.

Positioned as the most driveable Continental GT ever, the Supersports’ rides 10mm lower at the front and 15mm lower at the rear. The anti-roll bars get new geometry, there are new bushes to increase stiffness while the power steering system has been tuned for improved feel.

The Continuous Damping Control (CDC) system has also been tweaked for better response, while the four-wheel drive system now sends power 40:60 per cent in favour of the rear wheels, rather than 50:50 of the standard GT Speed. Ultra-sticky Pirelli tyres, standard fit carbon ceramic brakes and a revised traction control system, which allows more wheelslip, complete the dynamic upgrades.

“The Supersports is an immensely capable real-world supercar with agility and traction in all driving situations”, says Brian Gush, director of chassis and powertrain engineering. “The new rear-bias all-wheel drive and retuned ESP allows the driver to fully exploit the potential of the W12 engine and optimised chassis.”

As you’d expect, the cabin is luxuriously trimmed, but the Supersports uses new, non-traditional Bentley materials including carbon fibre and Alcantara suede. A strict two-seater, the rear seats are replaced by a luggage area while up front, the lightweight sports shells feature carbon-fibre backs and can be individually tailored to the owner.

The headlining, rear compartment and the seat centre panels are finished in Alcantara high quality suede-like material, while the seats get soft-leather with a ‘diamond’ upholstery pattern as do the steering wheel and gear lever. Carbon-fibre replaces the wood veneer on the centre console and facia.

No prices have yet been revealed but the Supersports is expected to cost in excess of £150,000. A limited production run is likely too.