European Opel and Vauxhall Dealers Want to Buy 20% Stake from General Motors

Instead of waiting for fate to strike, Opel and Vauxhall dealers in Europe have decided to take matters into their own hands by making a proposition to buy a direct equity stake in the European automaker that has been put up for sale by General Motors. The decision was made on Friday after representatives from Opel and Vauxhall's 4,000 dealers in Europe got together in Vienna and approved a plan that could see them controlling a 10 to 20 percent stake in the carmaker.

Euroda, the Opel and Vauxhall European dealers association said that it wants to raise a capital of about €500 million or US$675 million to help GM's European division by having each dealer contribute €150 or US$200 from each car they sell over a period of three years.

"We will start talks with all potential and possible bidders, the governments and GM on Monday," Euroda Chairman Jaap Timmer told reporters. "We are thinking about a 20 percent stake, it could be more, it could be less. Of course it hurts to pay into a fund, but it will pay dividends. It will be far worse if we have no manufacturer at all," Timmer added.

As for two most prominent candidates to obtain a majority stake in the maker, the Austrian - Canadian components maker Magna and Italy's Fiat S.p.A, Timmer said, "Our preference will be clear after we have talked to them. After our talks with the parties, we will go back to the members to get final and binding approval for our plan."

Via: ANE (Sub. Req.)

GM Sending Termination Notices to 1,100 Dealers Across the U.S.

Only a day after Chrysler LLC announced that it is shutting down almost 800 dealers or a quarter of its sales network, General Motors sent termination notices to 1,100 of its 6,000 dealerships on Friday. According to GM spokeperson Susan Garontakos, the dealers that received notice are being told that their contracts will not be renewed when they expire in October 2010.

The move is part of a greater scheme to cut the automaker's network by more than 40 percent to 3,600 dealers by the end of 2010 as GM struggles to avoid bankruptcy by a June 1 government-set deadline. The rest of the cuts will come from the sale of the Hummer, Saab and Saturn brands that control about 600 dealerships, the axing of Pontiac that has around 35 standalone dealers and the closing of the remaining number of dealerships through buy-sell negotiations.

Via: CNN

Bookies Bet on who will Own Saab! Chinese Consortium the Hot Favorite

Brits love to bet on anything and everything - even on Saab's future owner. Ladbrokes, the world's largest gamble company that is based in London but operates in more than 200 countries from Asia to Europe, has opened up a special betting on will buy Saab from General Motors. The bookmakers have selected a Chinese consortium as the hot favorite to be the next owner of Saab at 6/4. Other contenders included by the bookmakers are a Swedish consortium, a German consortium, Fiat and Volvo while the bets on Renault and a U.S. consortium are closed.

Link: Ladbrokes

European Sales Down 12.3% in April but Fiat Group and Hyundai Manage to Sell More Cars

Despite the fact that the new passenger car market declined for the twelfth consecutive month in Europe, totaling 1,251,862 units in April, or 12.3% less than in the same month a year ago, Hyundai and the Fiat Group that consists of the Fiat, Alfa Romeo and Lancia brands managed to buck the downward trend posting 9.7% and 4.7% sales gains respectively. Overall, the Fiat Group sold 121,671 cars in April while Hyundai, 27,454 units. With the exception of Skoda (+0,4%), Chevrolet (+4.5), Dacia (+60,4%), all the other brands recorded declines in the month of April.

Europe's largest automaker, the VW Group was down 4.2% to 284,607 units, while Daimler (Mercedes-Benz and Smart) and the BMW Group saw their sales tumble by 26.3% and 31.2% respectively.

The French PSA Peugeot Citroen Group posted a 14.7% drop, Toyota recorded a 22.4% decline, Renault a 14.0% decrease while GM and Ford posted a drop of 13.1% and 6.3% respectively.

Nissan Announces New Record Nurburgring Time for GT-R: 7min 26.7 sec

To whom it may concern because quite frankly, these Nurburgring lap time records are starting to get as boring as the never-ending promotion of Chevy's Camaro, Nissan has officially announced that it has improved the GT-R's lap time at the Nordschleife circuit in Germany to 7min 26 seconds 70 on April 23, 2009. The previous recorder lap times at the 'Ring were 7 minutes 27 seconds 56 on April 15, 2009, 7min 29sec in April 2008 and 7min 38sec in September 2007.

"This record demonstrates our commitment to the continuous evolution of the Nissan GT-R," says Kazutoshi Mizuno, Chief Vehicle Engineer and Chief Vehicle Specialist. "We would like to continue delivering the passion and pride of ownership to our customers by improving its performance every year."

In other words, expect to see Porsche, Nissan, GM and who knows who many other automakers, announcing new 'record' lap times at the 'Ring faster than you can say Nordschleife.

Chrysler LLC Shutting Down 789 Dealerships Across the U.S. by June 9

The latest development in Chrysler's ongoing saga is the elimination of approximately a quarter of its 3,181 U.S. dealerships by early next month. In a motion filed with the U.S. bankruptcy court, the American automaker said that it would shut down 789 Chrysler, Dodge and Jeep dealerships that represent around 14 percent of the firm's sales volume in the U.S. by June 9. Chrysler supports that the company's goal with this move is to create a stronger and more profitable dealer network.

"It is with a deep sense of sadness that we must take steps to end some of our Sales and Service Dealer Agreements," said Steven Landry, Executive Vice President, North American Sales and Marketing, Global Service and Parts. "The decision, though difficult, was based on a data-driven matrix that assessed a number of key metrics."

"The review was an objective and rigorous process that was both thoughtful and thorough. We plan to work to have an orderly transition. These are extraordinary times, and they call for an extraordinary response. It is important to our dealers and to our customers that these steps be completed quickly and seamlessly as we transition to a new Chrysler," Landry added.

Audi Confirms A5 Sportback and new A8 for 2009, Q5 Hybrid also in the Works

During his speech at Audi AG's annual shareholders meeting in Germany, Audi Chairman of the Board, Rupert Stadler, revealed that the automaker is planning to present the next-generation A8 in November and extend its range with the new A5 Sportback sometime in 2009. Furthermore, Stadler confirmed earlier reports that Ingolstadt based company is also working on a hybrid version of the Mercedes GLK rivaling Q5 SUV and that the A1 minicar is due for a 2010 market launch with the Q3 small SUV following in 2011.

This means that unless Audi has another surprise up its sleeves, the four-door coupe derivative of the A5 is most probably the new model that the maker said its preparing to unveil during the celebrative festivities for the firm's 100th anniversary in Germany on July 16.

The A5 Sportback is in essence the production version of the sleek-looking Sportback Concept that was first shown in Detroit in the beginning of the year. Expect to see a familiar Audi engine lineup, including the latest 2.0-liter TSI with 211HP, the 3.0-liter supercharged V6 with 290HP and a 3.0-liter V6 diesel cranking out 240HP.

"The A4 has attracted the largest share of customers loyal to the Audi brand. And a great number of them want to move further upward while carving out their own unique identity," said Stadler.

"The A5 Sportback is precisely what they're looking for. This vehicle will pose a genuine innovation in the B segment: a revolutionary vehicle concept offering the ideal blend of functionality and aesthetics"

As for the brand new A8 sedan (see the spy shots here), Stadler said claimed that it will be the sportiest model in its segment and that it will redefine people's notions of a luxury car's interior.

"We will also be presenting the next-generation Audi A8 and rest assured, Ladies and Gentlemen, it's going to be a sensation. The A8 remains Audi's flagship: it embodies our understanding of the word "premium"," Stadler told Audi's shareholders.

"The A8 will be the sportiest luxury sedan in its class – and set new standards with regard to interiors. Its precision and build quality are second to none. This model naturally means a great deal to us, because it played a greater role than any other car in the rise of the Audi brand. And we will unveil it to the world in a remarkable fashion in late November."

GM Shares Sink to 76-Year Low after Lutz, Stephens and Other Execs Sell Stocks

We think that the phrase that sums up the story here is 'jump ship before it sinks to the bottom of the sea'. As General Motors heads towards bankruptcy or a restructuring that would ultimately wipe out existing shareholders, everyone is looking to dump their stocks. Just a day after it became known that six high-ranking GM executives including former vice chairman and product chief Bob Lutz and his successor Thomas Stephens sold their shares and liquidated their remaining direct holdings, the company's stock sunk more than 22 percent or 31 cents at $1.13 on Tuesday, the lowest since 1933.

The other executives who followed in the footsteps of Lutz and Stephens were GM North America President Troy Clarke, Chief Information Officer Ralph Szygenda, manufacturing chief Gary Cowger and the firm's head of European operations Carl-Peter Forster.

The two remaining solutions for GM is either a bankruptcy filing by a government-imposed deadline of June 1 (that's only two weeks from now), or an out-of-court restructuring plan that will essentially eliminate the firm's current stockholders as the company would have to issue new shares to pay off its creditors.

Via: Yahoo Finance

Audi A3, A4 and A5 to get New Start & Stop System this Summer

Pressing forward with its efforts to improve average fuel economy by 20 percent by 2012, Audi has announced that it will introduce a start and stop system along with a new efficiency program built into the onboard computer to some of its models this summer. Of course, other carmakers like BMW have been offering similar systems on their cars for quite some time now, but better late than never. The start and stop system promises to lower fuel consumption on Audi models by about 0.2lt per 100 km and CO2 emissions by around 5 g/km.

Audi said that the system will make its debut in the A3 1.4 TFSI with manual transmission and in the A4 and A5 with 2.0-litre engines and manual gearshift with other models scheduled to follow by the end of the year.

The start-stop system reduces consumption by shutting down the engine once the car has come to a stop, the gear lever is in neutral and the driver has released the clutch pedal. Once the driver engages the clutch, the engine starts up again.

The second new feature that Audi has developed is the on-board computer with the efficiency program, an addition to the Audi Driver Information System. Anything that has to do with consumption appears in the center display, with the computer giving the driver tips for saving fuel, depending on the driving situation and driving style.

Furthermore, there's a newly designed gearshift indicator that signals to the driver when to shift for optimal fuel economy while another display in the efficiency program identifies the extra energy consumed by comfort features like air conditioning and seat heating and indicates their share in fuel consumption.

Report Says Chrysler Bankruptcy Could Take up to Two Years and not 60 Days

In another twist to the Chrysler LLC imbroglio, a report from Bloomberg citing an unnamed administration official said that the automaker's bankruptcy procedure may take as long as two years and not the two months period initially projected by President Barack Obama. The administration official told the news agency that the 60 days announced by Obama at a press conference at the end of April only applies to the sale of Chrysler's best assets to a new entity held by Italy's Fiat S.p.A., an auto workers health trust and the U.S. and Canadian governments.

Lawyers seem to be backing the official's claims as they told the news agency that the firm's creditors would later on kick in fighting their cases in court over unwanted factories and other assets to get their money back.

"The unsold assets and liabilities may take years to sort out due to the complexities of resolving thousands of commercial, tort, future asbestos, dealership and employee claims," told Bloomberg Dewey & LeBoeuf LLP partner, Martin Bienenstock.

Via: Bloomberg

BMW Reportedly Working on 1.3-liter and 1.8-liter Turbo Engines with 163 to 321HP

It's a rumor we've been hearing about since the beginning of the decade; BMW's turbocharged four-cylinder petrol engines, yet up until now, the only small capacity turbo unit we've seen from the Bavarian group is the MINI's 1.6-liter engine that was co-developed with PSA Peugeot-Citroen. Now, Britain's Sky Motoring is reporting that BMW is well ahead in the development of not only a 1.8-liter turbocharged four pot, but also a smaller 1.3-liter 3-cylinder unit, both of which will be available in the next generation 1- and 3-Series models.

The author of the article does not state where he got the information from, but he does give out detailed output and torque figures for all the possible variants of the two turbocharged engines. For example, the 1.3-liter 3-cylinder engine is said to be offered in three guises with 163, 201 and 241HP while the larger four-cylinder unit in two variants with 273 and 321HP. That means that the 1.3L unit tops out at an amazing 185hp per liter while the 1.8L at 178HP per liter.

The numbers are suspiciously high for a pair of gasoline engines designated to find their way under the hood of mainstream models such as the 1-Series, so for the time being and until we hear something new, this story remains in 'Rumorville'

Source: Sky , Via: Autoblog.com

BREAKING: Ferrari Says it Won't Run in 2010 Formula One Unless Rules Change

In the latest development in the ongoing saga of Formula One problems, Ferrari made an official announcement today saying that it won't enter next season's world championship unless the sport's governing body revokes its plans for a voluntary £40 million (about €45 million or US$60 million) budget cap is revoked. The Prancing Horse company also said that it was "disappointed" by the way that FIA adopted the measures and its refusal to reach an understanding with constructors and teams.

"The same rules for all teams, stability of regulations, the continuity of the FOTA's endeavours to methodically and progressively reduce costs, and governance of Formula 1 are the priorities for the future," said Ferrari in a statement.

"If these indispensable principles are not respected and if the regulations adopted for 2010 will not change, then Ferrari does not intend to enter its cars in the next Formula 1 World Championship."

If Ferrari goes ahead with its decision to boycott the 2010 F1 Season, it will be the first time it has done so ever since the sport's inception in 1950.

Via: Autoblog.it , Source: Ferrari

GM: Opel's New Owner to be Chosen by end of May

In a news conference in Detroit today, General Motors CEO Fritz Henderson told reporters that the company will single out a buyer for Opel and its British sister brand Vauxhall, before the end of May. "We are speaking with multiple bidders. We would like to have at least some understanding of what the agreement might look like no later than the end of this month, slightly before the end of this month," Henderson said. According to media reports, Italy's Fiat Group and Austrian-Canadian supplier Magna International have emerged as the two most serious bidders for GM's European arm.

Even though officially the German government will not have a say on which company should buy Opel, Henderson made it clear that GM's choice will be influenced by Berlin. "We are going to make sure any partner we pick is going to be suitable for them (the German government). We need their support," Henderson was quoted saying.

And by support, Hendersdon means the €2.6 billion or about $3.5 billion in loan guarantees that Opel is seeking from the German government in order to keep afloat.

GM has not disclosed any details on how much of Opel and Vauxhall it will sell, but it is clear that the American automaker would like to keep a minority stake in the new company. "We have indicated a willingness to move into a minority position. But we need to negotiate something before we say what it is," said Henderson

Via: AN (Sub. Req.)

China's Huatai Group Working on Bentley Continental Sedan Clone

There seems to be no end in sight for China's lust for cheap knockoffs that shamelessly copy the designs of anything produced in the West. Now, the Chinese media are reporting that a company we've never heard before called Huatai Group, is prepping a new mid-size sedan that looks a "tee bit" like the Bentley Continental Flying Spur saloon. There's no specific info on the car but if these renderings are anything to go by, then the VW Group owned British firm ought to start looking into the matter before we see it in the flesh at a future Chinese motorshow.

Via: Autohome , Source: Che168

GM CEO Fritz Henderson's Webchat with Online Readers

General Motors' newly appointed President and CEO Fritz Henderson had a live chat with online users on the company's Fastlane Blog on Monday morning. While Henderson didn't make any revelations during the 30 minute webchat, he did answer a couple of interesting questions such as why GM is forced to proceed with the sale of Opel and the reasons behind the decision to keep GMC as one of the company's core brands. Hit the jump to check out the entire conversation.

Source: Fastlane Blog

WEBCHAT

10:15 Fritz Henderson:
good morning. this is fritz henderson and thanks for joining us. first question from one of our reader comments.

10:15 GMBlogs: How does GM plan to win with higher CAFE standards in the coming years? -Robert Kubler

10:17 Fritz Henderson:
it starts with fantastic cars well engineered, lighter, more aero, with segment leading fuel economy enabled but superb and highly efficient powertrains. next, we introduce advanced propulsion technology into our line up, for example the volt by end of 2010. we already have 8 hybrids in the market today, with more coming. finally, we continue with key research work to ensure that we are able to support promising technologies such as fuel cells. 100 on the road today with great feedback.

10:17 Comment From John Heim: What will happen to the salaried pension fund In or out of bankrupsy---will it be turned over to the govt ?? or will G.M. continue to take care of it in the future ?? THANKS !!

10:19 Fritz Henderson:
good question and understand natural concern. the answer is that it is premature today to speculate or get into this matter. IF and when we would need to file for chapter 11, we would identify at that time how we would handle pension funds more generally, including hourly and salaried.

10:19 Comment From Dr. Ron McGarry: I know that shuttering popular brands is difficult, but as a former Pontiac owner and now with a Corvette, I am concerned about the whole Corvette/Bowling Green operation. Destroy this and it will be bad fro GM on a whole. Any hints on plans for Corvette?

10:20 Fritz Henderson:
corvette remains a force within our product lineup. it is a superb high performance car, the equal or better car relative to cars that sell for 3x the price. the corvette pays the rent in terms of profitability and cash flow and is one of our strongest (if not our strongest) nameplates in the entire gm lineup. we intend to keep this car fresh and in a segment leading position. I also own one and love it.

10:21 Comment From BP: Is there a list of dealers who will be closed? Where can it be found?

10:21 Fritz Henderson:
we plan to communicate later this week to dealers. such a list is not available today.

10:21 Comment From Geoff Livingston: Can you tell us what's next for your green efforts? Certainly the Saturn line and Volt initiatives have been well discussed. What's next?

10:23 Fritz Henderson:
the volt needs to be launched by year end 2010, which means we still have work in front of us. we have a separate team looking at gen II erev technologies while looking at other potential vehicle applications. alongside the volt we have a host of other technology initiatives underway, from second gen biofuels, to hybrids, etc.

10:24 Comment From Sebert: R6P Camaro orders, there seems to be much confusion as to why some of the early order customers are Waiting for the cars while people can by them at dealers.

10:25 Fritz Henderson:
the response to camaro by dealers and customers has been fantastic. we plan to continue to ramp up production at our oshawa complex and fill orders as soon as possible. in the meantime I suggest you continue to speak with your dealers regarding specific orders while we run fast to get production ramped.

10:26 Comment From Tom Ludwick: Is GM really considering holding on to the Saab brand and allowing it to go into bankruptcy because the new 9-5 makes the brand worth keeping?

10:28 Fritz Henderson:
re saab, we have 2 superb saabs (new 9-5 and 9-4x) in development, but we simply do not have the resources to continue as is. as such, saab entered into reorganization earlier this year and is looking at potential investors. as part of this, gm is open to supporting a buyer by finishing development of these cars, but I do not anticipate that we will be the owner of saab post reorg.

10:28 Comment From Al Brown: Sir What update can you give us on the viability plan that we are supposed to give to the Govt. by the end of the month?

10:29 Fritz Henderson:
we would plan to update by no later than the end of the month.

10:29 Comment From JIm Mbongo: Do you really think that selling Opel is for GM a good thing to do?

10:30 Fritz Henderson:
important to understand facts on the question of opel. given the business challenges in europe, our business needs funding. at the same time, we have a commitment to the US Treasury and to the US taxpayer that funding received in the US will not be used to support overseas ops. as such, we need to identify sources of funds for our european business.

10:31 Comment From Thomas Ho: I have a first-generation Prius that needs to be replaced. WHY should I "wait" for the Volt?

10:32 Fritz Henderson:
I would love to take you out of your prius! so why wait for the volt? the car will be beautiful, a great driving experience, and if you commute less than 40 miles per day, the car should deliver a totally electric experience to the owner without using any gas at all.

10:32 Comment From David George: Why was GMC deemed to be one of the core brands when there seems to be so little difference between Chevy and GMC products?

10:33 Fritz Henderson:
easy. very strong brand. very loyal customer base. very profitable. any further questions?

10:33 Comment From Aaron: Did all of the technology that was used to produce the EV1 get thrown away like all of the car were.

10:34 Fritz Henderson:
no. we retained people and the learnings from the car. technologies like regen braking, aero and power electronics are critical to hybrids, volt and many other such cars going forward.

10:35 Comment From MPG: will "deeper and faster" involve additional US salaried employment level cuts, and if so, of what approximate magnitude?

10:37 Fritz Henderson:
we are deeply appreciative of the support we have received from many fronts, most particularly our people. I understand the concern and quite bluntly fears that people have today. we will need to take further measures in this area to lean out our management structure and simplify the work of our salaried work force, which will mean we need further moves. I anticipate communicating our plans in this regard by the end of this month.

10:37 Comment From Lou Bilancio: I'm a huge fan of the new Equinox. I am also spreading the word to my friends about it. When will they begin to arrive at dealers? Thank you!

10:39 Fritz Henderson:
fyi, I recently drove one, an ltz with 4cyl/6sp automatic, 32mpg on the highway. my family owned a first gen equinox and we loved it. this gen II equinox is a superb successor to this vehicle and I anticipate it will be on many shopping lists. coming to a chevrolet dealer in july-august timeframe.

10:39 Comment From Gary: Oops. My last question was sent out prematurely darn tiny netbook keyboard!). There is a lot of negativity in the media. First of all, you'd think that everybody has Swine Flu. There is a lot of anti-domestic sentiment, especially in larger cities where people are "image conscious" and like imports. How goes GM propose to counteract this?

10:40 Fritz Henderson:
images and brands move step by step, sometimes bigger steps, but take time. it begins and ends with great products supporting strong brands, with leadership listening to dealers and customers every single day.

10:41 Comment From Michael: When can we expect to see the next round of plant closings announced?

10:42 Fritz Henderson:
we are in dialogue with the uaw and do not expect to notify individual plants until we conclude such discussions.

10:42 Comment From brian watters: what do you drive presently and what is your favorite gm vehicle?

10:43 Fritz Henderson:
the henderson family fleet. my wife drives a cool 9-3 saab convertible. my baby is my corvette, I am also driving a camaro, and my daughter drives a malibu.

10:44 Comment From dc: Where do you see GM in 10 years?

10:47 Fritz Henderson:
final question and a good one. I have worked for gm 25 years, in many locations around the world. while proud of what we have accomplished in many respects, nobody (least of all me) can be happy with the current state of affairs. a really difficult situation that is tough on virtually all people that love the company.

so, my vision. a company known for superb cars and trucks. beautiful designs, segment leading fuel economy, and delighted customers. if we accomplish this, I am 100% confident that we will succeed as a business!

10:48 Fritz Henderson:
thanks for your time today. happy to do this in the future. will answer many of the questions we were not able to get to (I can only type at 50 words per minute) via fastlane. thanks for logging in.

GM: Volt to hit the Market as Scheduled in November 2010, One More Brand to get Plug-in Hybrid

Despite the looming bankruptcy and the other serious issues facing the company, General Motors' global product development chief, Tom Stephens told journalists on the sidelines of an event at the University of Michigan that the American automaker is on plan with the development of the Chevrolet Volt plug-in hybrid. "At this point in time, I know of no reason why we can't be in production by November of 2010," Stephens said.

Stephens, who replaced Bob Lutz as GM's vice chairman of global product development on April 1st, 2009, also told reporters that the automaker has not made a decision yet on which of the remaining three brands (Cadillac, Buick and GMC) after the axing of Pontiac and the sale of Saturn and Saab would get a vehicle based on the Volt's plug-in hybrid drivetrain.

"It's best utilized in urban vehicles," said Stephens. "We have to consider what is the usage of the person buying the vehicle. For a commuter who drives 40 miles a day and takes it shopping on weekend, it's the perfect application.".

That said, we reckon that that one of the most obvious and less inexpensive options in terms of development costs would be a Buick model based on the small sedan that the company is currently working on as it uses the same Delta platform as the Volt (as well as the new Astra and Chevy Cruze).

Carscoop's spy photographers recently captured a camouflaged prototype of the Astra/Cruze/Volt-based small sedan during testing in Germany, however it's not clear if the sedan is designed only for the Chinese market or if it will also head to the States.

Via: Autonews (Sub. Req.)

Hyundai to Bring 100 Equus Sedans to U.S. Dealerships this Summer

It looks like New York Auto show goers must have been quite impressed with Hyundai's new Equus luxury sedan as the Korean firm is planning to ship 100 examples of its Mercedes-Benz S-Class rival to U.S. dealerships this summer. This could explain the recent sighting of an Equus with California distributor licenses plates that was spotted just outside Los Angeles. According to a report from USA Today, the idea behind Hyundai's decision is to gauge what American consumers think about the company's flagship model that was recently launched in Korea.

Hyundai believes that if it the Equus were to be successful in the States, it would hugely benefit the image of the company. "It would decisively shift public opinion in our favor. It would be the capstone," told the newspaper Oles Gadacz, a Hyundai spokesperson at the company's Research & Development complex outside Seoul.

The rear-wheel-drive Equus sits atop the Genesis in Hyundai's range and is offered with a 290HP 3.8-liter V6 and a 366HP 4.6-liter V8 while a long-wheel-base version with an even more powerful 5.0-liter V8 engine is also in the works.

The Genesis, which was Hyundai's first serious attempt in the luxury sedan segment, has sold just over 6,000 examples this year through April, according to figures released by Autodata. That's not a lot of cars if you consider that the Korean sedan is priced very competitively at $32k for the base V6 model to about $40k for fully packed V8 model. In comparison, the smaller BMW 3-Series Sedan starts from $33,600 for the entry-level 3.0-liter 328i while the rivaling 5-Series from $45,800 for the 528i.

Makes you wonder how many buyers in the U.S. would actually go well above $50k, maybe even up to the $75k range as the USA Today speculates, for a Hyundai-badged model.

In its home market, the Equus is priced from 63.7 million won (around US$51,200) for the entry level, V6-powered VS380 model and tops out at 105 million won (about US$85,000) for the V8-powered VS460 Prestige.

Via: USA Today

GM Records $6 Billion Net Loss in First Quarter, Burns $10.2 Billion in Cash

The first quarter numbers are in for General Motors and things aren't looking bright for the largest U.S. automaker as the Obama administration's June 1st bankruptcy deadline nears its end. General Motors recorded a net loss of $6.0 billion in the first three months of the year and at the same time burned through $10.2 billion in cash as the firm's sales plunged by 903,000 units or 40 percent on a global basis year-over-year.

On a regional basis, GM's North American operations' revenue for the first quarter 2009 was $12.3 billion, down 50 percent compared to $24.5 billion in the year-ago period. In Europe, where GM experienced a 46 percent decline in production volume versus the year-ago quarter, revenue was down to $5.3 billion from $9.9 billion the same period in 2008.

In the Asia Pacific region that includes China where GM sales were up 17 percent, the company saw its revenue fall to $2.4 billion from $5.3 billion in the first quarter of 2008. As for the GM Latin America, Africa and Middle East, the firm's revenue for the first quarter of the year was $3.4 billion compared to $4.8 billion a year ago.

"Our first quarter results underscore the importance of executing GM's revised Viability Plan, which goes further and faster to lower our break-even point," said Fritz Henderson, president and chief executive officer of GM.

"Our Plan is designed to fix the fundamentals of our business by restructuring and deleveraging our balance sheet, enhancing our revenue capability and dramatically reducing costs. It's focused on taking care of customers every single day, winning with four core brands, and investing in new products and technology, while at the same time accelerating actions to lower our cost structure to return GM to profitability quickly," Henderson concluded in the prepared statement.

BMW Group Posts €55 Million Loss in First Quarter, Worldwide Sales Plunge 21.2%

Hit by the global financial and economic crisis, the BMW Group that consists of the BMW, MINI and Rolls Royce brands reported a loss before interest and taxes of €55 million in the first quarter of the year. That's compared to an operating profit of €827 million the same period a year ago. The Bavarian automaker said it is almost impossible to predict how the global economy will fare in the near future and that it is still currently not feasible to give reliable earnings forecasts. However, the firm's CEO Norbert Reithofer told reporters that he doesn't expect the market to recover before 2010.

In terms of sales, the total number of BMW, MINI and Rolls-Royce brand vehicles delivered to customers in the first quarter of the year fell by 21.2% to 277,264 units (first quarter 2008: 351,787 units).

Surprisingly, MINI was hit the worst recording a 24.9% decline to 43,592 units versus 58,054 units sold in the first quarter of 2008. Sales of BMW brand cars dropped by 20.5% to 233,498 units compared to 293,550 units a year ago while Rolls Royce sales remained relatively stable at 174 units, which translates to a 4.9% decrease over the same period in 2008 when the company sold 183 vehicles.

Rumorville: MINI GTI Model Based on the Crossover

We've yet to see the production version of MINI's small crossover model that will most likely be called the Crossman, but there already reports that the British firm is exploring the possibility of adding a sport version to the range aimed directly at the Golf GTI and its likes. Citing sources within the company, Autocar magazine is reporting that the GTI variant is one of two other proposals (the other being a standard family hatch) that MINI is considering to develop from its 4meter long, five-door Crossover platform.

If approved, the GTI model would be a direct spin off of the Crossover with changes including a significantly lower ride height, more driver focused dynamics and a series of exterior cosmetic enhancements such as new front and rear bumpers, beefier alloy wheels in new designs and naturally, an aggressively styled bodykit.

Same goes for the 5-door hatchback's interior that would certainly benefit from a sportier trim, unique seats and a proper three-spoke sport steering wheel.

The GTI's range will probably include the most powerful turbocharged engines that MINI has to offer, which translates to the 172 horsepower 1.6-liter unit of the Cooper S and the 211 horsepower 1.6-liter unit of the John Cooper Works model. While the Crossover will also be available with an all-wheel drive system, the GTI model is said to stick with a front-wheel drive layout, though a future AWD model shouldn't be ruled out.

Given that the Crossman isn't due to hit showrooms before 2010, don't expect to see the GTI model before the end of 2011 the earliest.