GM buys 50% of diesel engine maker

Over the next few years there will be a dramatic increase in cars and truck available with diesel engines. GM solidified its position in this area buy buying 50% of Italian diesel engine builder VM Motori. Motori already designs and builds diesels for a number of GM vehicles. GM is planning a V6 turbo diesel for cars, crossovers, and light trucks. They are also working on a 4.5 liter V8 turbo diesel for pickup trucks.

Motor Trend

Tesla goes 255 miles on a charge

The Tesla went 225 miles on a charge in the EPA City test cycle. It went 235 miles on the Highway part of the test. This beats any previous electric car. The GM EV1 with lead acid batteries would go 40 to 60 on a charge. In 1999, the EV1 with nickel metal hydride batters could go up to 140 miles. The Tesla is not just an efficient vehicle, it has impressive performance. It is expected to go 0 to 60 in under 4 seconds. 600 Tesla Roadsters are planned to be manufactured in 2008. Tesla hopes to build an electric powered sedan in 2009.

AutoWeek
Tesla Motors

GM strike ends

The United Auto Workers and General Motors reached a tentative deal on a four year contract. A fund will be created to pay for retiree healthcare. GM will pay $36 billion to start the fund. This is 70% of GM’s expected retiree healthcare expenses. The contract also sets up a two tier wage system. This allows GM to pay non production workers, such as janitors, at a lower rate than production workers. GM also promised to continue investing in the U.S. but no specifics where given. There was also a limit applied to how long a worker can be in the jobs bank. The jobs bank pays workers even when there are no jobs available. Workers will receive $3,000 when the contract is ratified and a 3% bonus each year. The profit sharing will be changed to include profits that GM earns outside of the U.S. This is a landmark deal that makes labor costs of the Detroit Three more competitive with the competition.

USA TODAY

Buick to export Enclave to China

GM signed a deal with its joint venture, Shanghai General Motors, to export U.S. built Buick Enclaves to China. The four year agreement is worth $800 million in vehicles and components. Sales of the Buick Enclave have been strong in the U.S. Shanghai General Motors is the leader in car sales in China. Unfortunately, this is nothing compared to the U.S. – China trade deficit.

GM

UAW strikes GM

The UAW went on strike against GM at 11 AM on Monday. This is the first nationwide strike against GM since 1970. The main issues are job security and benefits. GM has about 67 days supply of cars and trucks on dealer’s lots. The strike will not effect car shoppers much unless it drags on.

USA TODAY

2008 Saturn Astra

Starting in December, GM will bring the Astra to America as a Saturn. The Astra is already sold around the world under the Opel and Holden brands. The Saturn will be available as a three door and five door. The sole engine is a 1.8 liter four cylinder. It puts out 138 HP which is very impressive for an engine of this size. The Astra is tuned for sharp handling with 18 wheels standard on the three door. Pricing starts at $15,995 for the five door and $18,495 for the three door. The Astra comes loaded with tilt / telescoping steering wheel, ABS, OnStar, six airbags, and stability control. The body is stiff and solid, and the interior is well put together and uses quality materials. The Astra is a strong competitor to the Honda Civic and Volkswagen Rabbit.

Edmunds

2009 Volkswagen Tiguan

Volkswagen will enter the small crossover segment in the spring. The Tiguan is based off of the current Golf platform. U.S. versions will be powered by a 2 liter turbo 4 cylinder. You can expect a 2 liter turbo diesel to arrive in a few years. The interior looks to be well done with quality materials. It will be available with front wheel drive or with Volkswagen’s 4Motion all wheel drive system. Pricing will start in the mid $20,000s.

Motor Trend

2008 Nissan Rogue

Nissan is bringing out the new Rogue to do battle with the Honda CR-V and the Toyota RAV4. The Rogue will be sportier than the competition. It is based on a platform that also underpins the Sentra. The only engine available is a 170 HP 4 cylinder mated to a CVT transmission. Fuel economy will be 22 mpg city/ 27 mpg highway for 2wd models and 21 mpg city/ 26 mpg highway for AWD models. Prices start a $19,250.

Motor Trend

2009 Chevrolet Corvette ZR1 – spy photos

The new super Corvette will be called ZR1, and not SS, Blue Devil, or Sting Ray as previously rumored. New spy photos have emerged of the Corvette ZR1 on Motor Trend. The new top model Corvette will have 650 HP to top the 600 HP in the Dodge Viper. The engine is a supercharged 6.2 liter V8. The ZR1 will be unveiled at the Detroit auto show in January. It will go 0 to 60 in 3.5 seconds. Carbon fiber is used for the roof and other body panels to save weight. Top speed is expected to be 200 MPH. The price tag will be about $100,000. This will be a low volume model, with under 2,000 made a year.

Motor Trend

Hybrid sales taking off

Hybrid sales are up 49 percent in the US for the first seven months of 2007. The increase is largely due to sales in the Midwest. Midwest sales are up 57 percent. Sales rose 52 percent in the West, 49 percent in the Northeast and 42 percent in the South. R.L. Polk & Co. predicts hybrid sales will top 300,000 this year. That will be two percent of all U.S. auto sales.

CNN Money

Cadillac DTS and STS to be replaced

The Cadillac DTS and STS will be replaced by one large luxury sedan. The large luxury sedan market has been shrinking over the last five years. Speculation is it will be rear drive, like the STS. Cadillac is also interested in an entry level car that will be priced below the CTS.

AutoWeek

Union, automakers close on retiree health care fund

The President of the United Auto Workers, Ron Gettelfinger, agrees in principle to the creation of a union controlled health care trust fund. The fund will be managed by the UAW and will pay for retiree health care costs. The fund will allow the Detroit automakers to cut about $95 billion in costs and make them more competitive. There is still a gap of billions between the two sides on how much should be put into the fund. GM is also proposing a two-tier wage structure that would allow it to pay new workers less than current workers. GM has an older workforce than Ford and Chrysler, and will see large retirements in the next few years. It is expected that GM will need 15,000 to 20,000 new hires over that time period.

MSNBC

2008 BMW 1 Series

BMW will start 1 Series sales in the US in the spring of 2008. The 1 Series will be available only as a coupe. BMW expects the car will attract younger buyers. There will be a 128i model with a 230 HP six cylinder. The base price of the 128i will start at $30K. The real performer will be the 135i. It will come with a 300 HP six cylinder, and will go zero to 60 mph in 5.1 seconds. The base price of the 135i will start in the mid $30,000s. The 1 Series will fill the entry-level position vacated by the 3 Series as it has moved up in price.

AutoWeek

2009 Mazda 6

Mazda unveiled the new Mazda 6 at the Fankfurt Auto Show. The new 6 is taller, wider, and has a longer wheelbase. The styling is sharp and clean, and mostly a evolution from the previous 6. The front fenders have styling cues from the RX-8. Unfortunately, this is the European version. The North American version will have different styling to make the car look larger.

Edmunds

Audi announces Q7 hybrid and diesel

Audi will start sales in the U.S. of a Q7 hybrid and diesel. The hybrid system was developed with Volkswagen and Porsche. Expect other Audis to get the hybrid system in the future. The Q7 hybrid will have a fuel savings of 23 percent. The Q7 diesel will be clean enough to be sold in all 50 states. The diesel version will be in showrooms at the end of 2008.

AutoWeek

BMW X6 concept

BMW revealed the X6 concept at the Frankfurt Motor Show. The X6 is based on the X5 SUV. With its steeply raked rear window, cargo room in the back of X6 will be is short supply. It is an SUV with the sport turned way up, and the utility taken out. This vehicle does not make much sense to me, buy a sedan, it will handle better. The concept showed off BMW’s two mode hybrid system that was developed with GM and Chrysler. Expect to see the X6 as a 2009 model.

Motor Trend

Chrysler hires Jim Press from Toyota

Jim Press worked for 37 years at Toyota. At Toyota Motor North America, he was president and chief operating officer, and sat on Toyota’s board of directors. He was the first non Japanese to hold those positions. He brings to Chrysler a management style that takes a low key approach and plans for the long term. Cerberus (Chrysler’s new owners) say they are it for the long haul, but most private equity firms look to improve the bottom line then sell off the company. We will see if Jim Press's approach will clash with Cerberus’s goals.

CNN Money

New Hybrids from Mercedes-Benz

Mercedes-Benz will roll out several hybrid models over the next few years. The S400 Hybrid will be a mild hybrid. It will utilize a 275 HP V6 and a 20 HP electric motor. The V6 will shut off when the car is stopped and start back up when the driver wants to move. The electric motor will not be able to move the S400 on its own, it will assists when accelerating. It is expected to get 30 MPG, which is good for a sedan of this size and weight. The ML450 Hybrid will use the two mode hybrid powertrain that was developed with General Motors. This will be a full hybrid that can run on electric alone at low speeds. Drivers can expect up to 31 MPG. Sales of the S400 Hybrid and ML450 Hybrid will start in the U.S. in 2010.

Mercedes will start to offer diesel hybrids in 2010. An E300 BlueTec Hybrid will mate a 200 HP four cylinder diesel engine with a 20 HP electric motor. It should be able to reach 46 MPG. This powertrain will also spread to the S Class and the C Class.

Car and Driver

2008 Nissan Altima coupe

For the first time, Nissan will offer the Altima in coupe form. The exterior is very sporty and only shares the hood with the sedan version. The styling takes many cues from the Infiniti G37 coupe. The interior is well done, and the dashboard is shared with the sedan. The coupe will help boost the Altima’s overall sales numbers. This will help Nissan gain ground on the Accord and Camry, which also sell coupe versions of their popular sedans. The coupe comes with a 2.5 liter four cylinder or a 3.5 liter V6. A cool feature that comes standard is the proximity key. This allows you to lock and unlock the car, and to start and stop the engine with out removing the key from your pocket. The Altima coupe is high on style with a competitive price and should meet its sales targets.

USA Today