Autopocalypse Update: Cheap Subayota 2+2 put on ice

As you know, the Crank is a big fan of cheap, rear drive fun. So it’s with great sadness that we apparently won’t be reporting any longer about the developmental progress of the Toyota/Subaru compact RWD 2+2 sports coupe, speculated above and planned for 2011.

According to the Detroit Free Press, the project is dead, kaput, done. At least for now.

Both automakers now admit that the small coupe,  what would have been a reincarnation of the likes of the iconic 1980s AE86 Corolla SR5, right, has been put on hold.

Once again, feel free to blame the current Autopocalypse for yet another fatal blow to fun-to-drive.

[Source: Detroit Free Press]

Bailout Blues: Sensible Swedes sink Saab

Unlike the newfound socialism in Washington, D.C., Sweden’s politicians are a little reluctant to hand over the necessary kronor to rescue General Motors’ long-ailing Saab brand. And the decision may see the first brand casualty in the current auto sales meltdown.

In a rare moment of political common sense, Swedish industry minister Maud Olofsson rejected GM's plea for state funding for Saab, saying it was up to the U.S. automaker to save the brand.

“It would be very risky to promise to take over a car maker that not even the biggest car maker in the world [that’s GM kids] is ready to put money into,” said Olofsson.

I wonder what Olofsson’s take is on the Canadian and U.S. politicos willingness to over bags and bags of money to GM and Chrysler?

But I digress…

If you didn’t already know, after the General announced to the U.S. Congress on Feb. 17 it wants to be done with Saab by Dec. 31 of this year, the Swedish-based automaker filed for bankruptcy protection last Friday with the goal to be spun off or sold by its struggling U.S. parent.

“The basic problem is that [GM has] set an exit date for their ownership without identifying who will take over,” said Swedish Prime Minister Fredrik Reinfeldt.

Are you reading this Mr. Harper? Mr. McGinty?

But I digress...

In the end, all this adds up to a whole lot of Not Good for Saabistas. In a climate where investment money is hard to come by and other automakers are hording cash, the likelihood of a knight in shining armour stepping up and saving Saab are slim to none, at best.

The bottom-line for an automaker the size of Saab, it simply doesn’t have the economies of scale or the deep pockets to get through the current economic mess.

In other words, nothing’s changed at Saab since GM took over nearly twenty years ago.

Compared to Volvo with its 15,000 workers in Sweden, Saab has around 4,500 workers in more than 50 countries. Its main markets include the U.S. Britain, Sweden, Germany, Italy, Australia, France, the Netherlands, and Norway, with most of its production located in Sweden.

In Canada last year, Saab only sold 1,568 vehicles, down almost 30 per cent from the year before. Exotic brands excepted, only Jaguar sold fewer vehicles.

Despite a drastic lack of new products recently (the 9-5 is 10 years old), Saab has three new models ready for launch in the next 18 months—a new 9-5, 9-3X, above, and 9-4X. But unless it can get funding for the engineering, tooling and launch costs, fuggeddaboutit, Saab is done.

Will you miss Saab if it goes away?

Or should Saab have died a natural death back in the late 1990s?

What auto brand do you think is the next domino to fall?

[Sources: Associated Press]

Bailout Blues: Pssst! Wanna buy a car company?

Ever since I played with my first Hot Wheels on the carpet as a kid, I always wanted to own a car company. Kind of like a jock sniffer wanting to own a sports franchise. And now, based on what General Motors and Chrysler dropped on the doorsteps of the Canadian federal and Ontario governments last Friday, that dream may be closer to reality than I had ever imagined before.

And the cost, all-in-all, is relatively peanuts.

Let’s say there are a little over 33,000 million of us currently huddled north of the 49th parallel. With GM asking for $6 billion, proportionally at least, that’s only going to cost each Canadian about $181 to become part owners with one of the largest automakers in the world.

Chrysler’s deal is even better. They’re only asking for $1 B. And they owe Canadian tax payers half that already in back taxes. By my calculations, that’s only going to cost around  $15 each. Sweeet!

And for all you cynics out there who don’t think there may be other more sustainable businesses Canadians could throw their money at, remember, the governments say these moneys aren’t bailout funds, just “bridge financing,” with the loonies and twoniees to be paid back when both of these companies start making money again.

Which we all know will be soon, right?

Granted, if you had the opportunity to invest $4 billion in an automaker, like you, maybe these two Detroit automakers aren’t at the top of the list.

To say you own a chunk of Lamborghini or Porsche sounds so much sexier. Jeez, you could probably pick up Saab for a lot less and sell them out of Ikea stores.

But hey, auto tycoons can’t be choosy these days. You know what I mean?

So when or if the politicos in Ottawa and Queens Park hand over the cash (oops, sorry, issue the “loans”), as a Canadian taxpayer, how excited are you to become a financial partner with the General and the Cerberus-owned Chrysler?

And if you had your choice, what automaker would you invest your hard-earned into these days?

Geneva Leak: Recessionary Roller revealed

How’s your real estate portfolio these days? Or your Nortel stock? Are some of your loonies lost to a certain Mr. Madoff? Is a $440,000-plus Rolls-Royce Phantom looking a tad ostentatious?

If you count yourself swimming in the slightly poorer plutocrat pool, have no fear. BMW’s Rolls-Royce may have just the ticket for these uncertain economic times: a baby Roller.

Set to debut at next month’s Geneva auto show as the 200EX concept, when it goes into production about a year from now it will be sold as the Rolls-Royce RR4.

Despite using BMW 7 Series bits and bites, in overall dimensions the RR4 sandwiches itself between the 7 and the humungous Phantom. A new BMW V12 that will also end up in the 7er will also power the more petite Rolls.

Targeted directly at the likes of the $191,500 Bentley Continental Flying Spur and $183,00 Mercedes S 600, I expect BMW will demand even more. Say closer to $300,000, taxes, freight and PDI, not included.

Given the collapse of the luxury goods market, how do you feel about the timing of BMW’s move?

Does taking the Rolls-Royce brand down-market hurt its ultra-luxury image?

Autopocalypse Update: Fun-to-drive takes another one for the team

Driving enthusiasts have another reason to cry in their beers tonight: the General is pulling the plug on its High Performance Vehicle Operations.

Ironically, in a company as huge as GM, the tiny HPVO team churned out some of the automaker’s best products—performance or not—including the V-series Cadillacs and the Chevrolet Cobalt SS, HHR SS.

Of course, you can’t really blame GM. Begging for taxpayer money AND making politically incorrect fun-to-drive stuff is a not a good PR mix these days anyway you cut it.

And now you gotta wonder how long the Corvette is for this world.

Regardless, for those who love to drive, these are dark days.

AMG is moving to diesels. BMW has already canned some M cars in favour of going green.

And Mitsubishi, a brand that’s built it’s reputation on professional rallying and AWD street racers has “postponed product development spending,” with the exception of a push into small cars and electric vehicles.

This piles on Mitsu’s earlier news that after 12 victories, including 7 consecutive wins, it’s pulling out of the Dakar Rally, Dakar Series and all cross-country races.

While Canadian driving enthusiasts are getting their first taste of the EVO super sports compact this year, they may be advised to enjoy the super sports compact while they can.

Do you think automakers should go green instead of mean?

Or this a politically charged over reaction?

[Source: Automotive News]

Bailout Blues: When does the madness stop?

You can read all about how General Motors’ and Chrysler’s respective bailout plans in more detail here. But for now, I just had a few questions, like:

Are the General’s plans about five years too late?
GM says Saab will return to to its homeland, but only if the Swedish government steps up with some cash. Don’t hold your breath Saabistas—plan on seeing Saab go bye-bye by April 1.

And Saturn? Without proper marketing funds, Saturn—even with the surge in new product—was always doomed. A simple case of too many cooks in GM’s ad budget kitchen.

Hummer? GM should hope some Chinese automaker will swoop in and pick up its assets for pennies on the dollar when liquidation is the only viable option.

As for Pontiac losing its division status: did anyone really believe Mr. Lutz’s plan top make Pontiac the American BMW had any hope?

Could things get any muddier over at Chrysler?
Nothing but superficial hype about future EVs, cutting cars already scrapped (Chysler Aspen, Dodge Durango, PT Cruiser) a smoke-and-mirrors deal with Fiat for small cars, and the “big news” that refreshed big sedans (300 and Charger) and SUVs (Grand Cherokee) are the vehicles of choice on the automaker’s road to salvation.

Are you buying any of this?

Do you feel that government money provided to these private businesses is simply rewarding incompetence?

Green Car Wars: And now for some good news…no, really

With daily hourly accounts of layoffs, canned product launches, auto show absenteeism and general bad news, it's easy to think your driving future may involve going back to a cart and a horse. Honda, though, is reporting some actual good news from Japan: it’s Insight, the cheapest hybrid vehicle on market, is apparently a hit.

The Japanese automaker said demand for the Insight has ramped up so quickly the company has received more than 5,000 orders in Japan, easily beating its monthly sales target.

A bit of an oxymoron— cheap hybrid—the Insight goes on sale in April in Canada and is expected to be priced around $23,000: substantially less than the next most expensive hybrids in Canada, the $27,350 Civic Hybrid and the $27,710 Toyota Prius.

As things heat up in the Green Car Wars, however, Honda may want to make hay with its Insight while the sun is shining.

Toyota will introduce an all-new third-gen Prius starting in May. The new 2010 Prius is bigger and has a more powerful engine than the current one, but also likely to be more expensive. Although there has been speculation of Toyota continuing to sell the current Prius alongside the new model and price it against the Insight—kind of like a Prius Classic.

While premium pricing and relatively cheap gas have recently kept hybrid sales in check, is the Insight’s value equation finally high enough for you to consider a hybrid?

Would you take an Insight over Honda’s similarly sized Fit, right?

[Source: Detroit News]

Bailout Blues: Embargoes, shmargoes: GM and Chryco reveal 2010 products

Poor old Brenda Priddy. I figure that with the General and Chrysler revealing some of its future product plans as part of their homework they handed into the U.S. government late yesterday, the car spy photographer extraordinaire is out a few bucks.

Buried in the lengthy documents were reveals of new products that to this point, no one outside the companies has seen.

The first, the 2010 Cadillac CTS, left, is no surprise.

Unveiled as a concept at the 2008 Detroit, GM had already confirmed the BMW 3 Series Coupe rival was going to make it into production. First scheduled to be revealed at last year’s L.A. show then this year in Detroit, the “when” part of that equation was the only thing in doubt. But as the image suggests, SORP (Start Of Regular Production) is set for June of 2010 with an estimated on sale date in the Fall.

If you can ignore the cheesy PowerPoint graphics (obviously Chryco owners Cerberus isn’t wasting money on high priced graphic designers) amongst starburst boasts of improved fuel economy and reliability ratings, we get a sneak peek at the 2010 Chrysler 300C and 2010 Jeep Grand Cherokee, or at least what we think will be these future models.

 

The photo of the 2010 300C, right looks like a very mild makeover, not nearly as comprehensive of a design change as the 200C concept we saw in Detroit in January.

The 2010 Grand Cherokee, left, is more believable. If both make it into production, it looks at least Chrysler is trying to make its interiors less Lego-like.

How do you feel that Chrysler is hanging their hat on two vehicles that are anathema in the marketplace right now—large rear-drive sedan and mid-size SUV?

Do these vehicles inspire confidence that GM and Chrysler have their act together?

Enough to get an additional $19 billion U.S. and potentially another $4 billion Canadian in tax payer money?

[Source: GM, Chrysler]

Bailout Blues: Homework due today for GM and Chryco

If you’re a General Motors or Chrysler dealer, employee, stockholder, vehicle owner—or for that matter a taxpayer—yet another significant deadline arrives this week in the painfully ongoing process we call around here, the Bailout Blues.

Today in Washington the General and the former-automaker-known-as-Chrysler have to hand in their "we got it all figured out now" homework to the U.S. gov /sugar daddies in exchange for receiving $17.4 billion in U.S. tax payer money—so far. Then, later this week on Friday, the two automakers will have to make a similar pitch to the Canadian and Ontario governments to secure loans of $3 billion for GM and $1 billion for Chrysler.

Right off the bat, both Detroit automakers are looking like teenagers begging for an extension.

GM and Chrysler are unlikely to complete deals with debtholders and union workers by the government-imposed deadline on Tuesday.

Except for the pie-in-the-sky hookup with nearly equally struggling Italian automaker Fiat—to mainly give government suits the impression Chrysler is really serious about small cars—we don’t have a clue what the private equity dudes over at Chrysler majority shareholders Cerberus have conjured up.

But the Wall Street Journal thinks they know what GM will sacrifice this time around for even more government assistance:

Option 1 - The B-Word: ...as in bankruptcy, as in the form of Chapter 11 filing. This would gather all of GM's “viable” assets, including some U.S. brands (potentially Chevrolet, Buick, Cadillac, GMC, Pontiac) and international operations, into a new company," the newspaper said. "The undesirable assets (i.e. Hummer, Saab, Saturn, perhaps) would be liquidated or sold under protection of a bankruptcy court. Contracts with bondholders, unions, dealers and suppliers would also be reworked."

Option 2 – More tin cups: The only other choice for GM to avoid Option 1 is to ask for more government funds.

While GM and Chrysler file their survival plans this week, we probably won’t know until March 31 what their fate will be.

Does anybody have a coin?

Does either of the two above options by GM get the automaker out of the woods and on the road to long-term sustainability?

Or—at the very least—give you any confidence to run out and by a new Malibu?

[Source: Wall Street Journal]

New BMW 5 Series hatch debuts

Seen over the past few years only in grainy spy shots and a recent teaser video from the German automaker, BMW finally pulled the wraps off what we previously knew as the either the V Series or Progressive Activity Sedan.

Obviously not worried about impending trademark infringement lawsuits from Maserati or game maker Polyphony, BMW is dubbing this pre-production prototype the 5 Series Gran Turismo. And in yet another death blow to boring old auto shows, BMW took what it called “ a unique approach to launching a brand-new concept” via that new fangled thing called the Internet in the form of a live streaming feed to media this morning, which unfortunately suffered a wicked-wicked, audio-audio, echo-echo.

Essentially the GT is a tall, four-passenger hatchback built off the 7 Series platform.

From the photos BMW has released so far and from BMWBlog, the 5er GT looks like an amalgamation of the 2010 7 Series up front and the X6 at the back. The hatch has the ability to open fully or only as a more conventional trunk.

Inside, BMW promises rear legroom like a 7 Series, rear headroom like an X5 SUV and 160 litres more trunk space than a 5er wagon. Dial back the fancy finishes, and the interior is basically what to expect in the next 5 Series.

We can assume it will also be the last BMW launched under the watch of the company's recently departed head pen, Chris Bangle, who presented the GT to an inhouse audience in Munich doffing 3D glasses (er, the audience, not Bangle.) That's Bangle's internal replacement, Adrian Van Hooydonk, in the pics here.

If you happen to be at the Geneva auto show in a couple of weeks, you’ll be able to see the 5 Series Gran Turismo in the metal, plastic and rubber. It will be unvieled in production kit at the Frankfurt show in September, while North American sales begin in 2010. At launch, the 5-series GT will be offered only with rear-wheel drive, although the xDrive four-wheel-drive system is planned to be offered as an option in the future.

Knowing BMW’s niche-filling predilection, it’s not outrageous to eventually expect a 3 Series GT as well.

Is the 5er Gran Turismo a worthy addition to the BMW lineup?

Or just a really expensive Toyota Venza?