Canadian supplier Magna International and an unnamed private equity group have placed a bid for the Chrysler Group, according to KeyBanc Capital Markets analyst Brett Hoselton. The bid for Chrysler is worth approximately $4.7 billion. Given most analysts stating that Chrysler is worth anywhere from nothing to around $13 billion, the offer may not be as low as it sounds.

DaimlerChrysler could also consider offering Magna a minority stake in Chrysler, if other bidders “retreat.” DaimlerChrysler expects that Magna’s bid will not be the last before its annual shareholder meeting on April 4th.

## Source: Reuters ##

Share This

Following the unveiling of its M3 Concept at the Geneva Motor Show, BMW has revealed details of the M3’s new V8 powerplant. The first eight-cylinder for the BMW M3 will deliver 420-hp from just 4.0L.

Not only is the new V8 more powerful than the outgoing inline 6 cylinder, it is also lighter than the previous engine.

Full details after the jump.

## Source: BMW ##

(more…)

Share This

Honda has said that it will recall about 165,000 2005-06 model year vehicles in the United States to fix a potential engine problem. The vehicles being recalled include 2005 models of the Acura RL, TL and TSX sedans, 2005 Honda Accord coupes, sedans and hybrids, 2005 Odyssey minivans and 2006 Ridgeline trucks.

The U.S. receal is part of a global recall due to an defect thatcan cause sealer material to leak onto a coil wire inside the fuel pump relay. The wire can become brittle and snap, and could led to stalls or a failure to start.

Honda has received “multiple complaints,” but there have been no injuries or crashes linked to the defect.

## Source: Detroit News ##

Share This

Last week, Hyundai announced it would add a second engine plant at its assembly facility in Montgomery, Alabama, but there was no announcement what the engine plant would produce. With the current engine plant in Montgomery building Hyundai’s V6 used in the Sonata and Santa Fe, we figured the plant would produce four-cylinder engines. Sixty to 70 percent of the Sonata sedans being built in Alabama are powered by four-cylinder engines that have been imported from Korea.

The new engine plant will build the Global Engine Manufacturing Alliance (GEMA) 2.4L four-cylinder engine, which will be used in the Sonata and for use at Kia’s new assembly plant in Georgia. The GEMA is an alliance of DaimlerChrysler, Mitsubishi and Hyundai, with the engines being used in various vehicles from each automaker, including the Hyundai Sonata, Kia Optima, Dodge Caliber and Avenger, and the 2008 Mitsubishi Lancer.

The plant will be able to build 300,000 engines annually — 200,000 a year in the first phase and another 100,000 annually at full production — and will employ 522 workers. Production is scheduled to begin in September 2008.

## Source: Automotive News ##

Share This

Carlos Ghosn, CEO of Nissan Motor and Renault, will give up some control at the automaker’s American operations. Ghosn will no longer have direct oversight of Nissan’s operations in North and South America, and will turn his focus to Nissan’s and Renault’s global operations. Effective April 1, Hiroto Saikawa will replace Ghosn as Nissan’s chairman for the Americas. Saikawa currently is Nissan’s executive vice president for purchasing.

“The priority for our new management team is to act decisively on the multiple challenges facing Nissan and to boost our overall performance in 2007,” Ghosn said in a statement.

The changes will free up time for Ghosn to focus on global operations, while Saikawa will focus on Nissan’s North American troubles. Nissan has fallen short of its predictions of double-digit monthly sales growth since October.

Full press release after the jump.

## Source: Nissan ##

(more…)

Share This

Cerberus Capital Management, one of the two leading contenders to buy the Chrysler Group, has hired former Chrysler COO Wolfgang Bernhard as a consultant. Cerberus and private equity firm Blackstone Group have emerged as front runners in the bids for Chrysler.

As a former executive at Chrysler, Bernhard was one of the primary architects of Chrysler’s short-lived rebound earlier this decade. He could be an asset to Cerberus’ potential bid with his knowledge of Chrysler’s strengths and weaknesses.

Bernhard was most recently at Volkswagen before leaving during the automaker’s management shake-up. Bernhard joined VW after he was dropped at DaimlerChrysler in 2004 just before he was about to take over the Mercedes Car Group. Don’t be surprised to see Bernhard running the Chrysler Group if Cerberus ends up as the next owner of the automaker.

## Source: Automotive News ##

Share This

Two DaimlerChrysler shareholders have called on the automaker to drop "Chrysler" from the company's name if the Chrysler Group isn't sold by March 31st, 2008. The proposal from shareholders Ekkehard Wenger and Leonhard Knoll have requested the amendment the company's articles of incorporation at the annual meeting April 4 in Berlin.

"Maintaining a corporate name that evokes associations with the failure of the business combination with Chrysler is detrimental to the image of the corporation and its products," they wrote.

Under the proposal to change DaimlerChrysler's name, the shareholders have proposed that the automaker's name be changed to Daimler-Benz AG.

DaimlerChrysler is opposed to the name change. "The DaimlerChrysler name is established all over the world," the company said in a statement. "There are no grounds to change the name of the corporation."

## Source: Detroit Free Press ##

Share This

BMW CEO Norbert Reithofer announced that the automaker will continue its new product initiative with the X6 crossover. The X6 crossover will begin production in 2008 at the company’s assembly plant in Spartanburg, South Carolina. The X6 is a spin-off of the X5 SAV that will seat four and feature a coupe-like body. The X6 will be offered with all-wheel drive and be powered by V8 engines.

Reithofer said that BMW hopes to increase production in the U.S. to more than 200,000 annually by 2010. BMW’s annual production capacity at its only U.S. production plant in Spartanburg, S.C., is currently around 140,000 vehicles. The aim of a North American expansion is to reduce the effect of a strong euro on prices in North America, BMW’s top single market.

## Source: BMW ##

Share This

MINI revealed that its new extended model would be called the “MINI Clubman” at last week’s Geneva Motor Show. The Clubman is inspired by the MINI Concept that debuted at the 2005 Frankfurt Motor Show, which was in-turn inspired by the successful Morris Mini Traveller of the 1960s.

The new MINI Clubman will debut at the 2007 Frankfurt Motor Show this fall. It will be launched in Europe before the end of 2007, and is expected to be available in North America in 2008.

## Source: MINI ##

Share This

Hyundai has announced that it will build a new engine plant at its Montgomery, Alabama assembly plant. The new plant will begin engine production in September 2008 and will cost around $270 million. The new engine plant will add 520 jobs to the Montgomery assembly plant. The engines from the plant will be used in vehicle built at Hyundai’s Alabama plant, and also at Kia’s new plant in West Point, Georgia.

Hyundai currently produces V6 engines used in its Sonata sedan and Santa Fe crossover in Alabama.

Hyundai also said that it will begin prodcution of hybrid vehicles in 2009, will an output of 300,000 units annually by 2015.

## Source: Reuters ##

Share This

Audi has announced that it will take over management responsibility for Volkswagen’s Brussels, Belgium assembly plant. Late last year, VW announced that it will move production of its Golf to plants in Germany, and there was speculation that the automaker would completely close the assembly plant. are now growing that the factory may be closed completely. However, VW decided that it would use the plant’s capacity to build the Audi’s new A1 entry-level car.

Under the terms of the agreement, later this year, the Audi A3 will join the production mix, and will be built along with various Volkswagen models until the end of 2009. After that, the new, compact Audi A1 (or whatever it will be called) will be built in Brussels starting in late 2009 or early 2010.

With various work rule changes, the new competitive pay and cost structures will cut personnel costs by 20 percent. The Brussels plant will help Audi meet is goal to increase production from 905,000 cars in 2006 to 1.5 million by 2015.

Audi press release after the jump.

## Source: Audi ##

(more…)

Share This

One of two remaining original Auto Union Type D race cars from did not sell during a closed-bid auction held by Christie’s Auction House. The ultra-rare 1939 German race car is expected to be the most valuable car in the world. The Auto Union Type D is expected to go for around $12 million U.S.

The sale of the car was postponed to research its background, which revealed its history was not what was originally believed. This Type D was originally thought to have won the French Grand Prix, but another car with a less illustrious racing history. Though Christie’s didn’t think the revelation would alter the value of the car considering its rarity, apparently bidders disagreed.

This Type D was originally thought to be the winner of a Grand Prix race in Belgrade, Yugoslavia, the last European race held in Europe until after World War II. The car however did race on the Nurburgring in 1939, recording a 5th place finish. It also finished 6th at the 1939 French Grand Prix, in which two other D-types finished 1st and 2nd.

Christie’s didn’t expect this car’s less successful racing history to substantially alter its value considering how rare the cars are. Christie’s plans to put the car up for auction at a later date.

## Source: CNN ##

Share This

Just a few weeks ago Consumer Reports announced its Top Picks for 2007 list. For the second year in a row, all of Top Pick cars came from Japanese nameplates. While the Japanese cars excel in tests, there are good alternatives, and there are many people that will only “buy American.” For the second year, Consumer Reports has published its unofficial “Top Picks, American Style” list featuring only American-brand nameplates.

All Consumer Reports’ Top Picks must be recommended models, which means it must have average or better reliability, provide good overall crash protection (if tested), SUVs must not tip onto two wheels in rollover tests (if tested), or must be available with stability control (if not tested).

In summary, the “Top Picks, American Style” list features the highest-rated, Consumer Reports recommended American vehicles. Here’s the list:

Top Picks American Style

• Fun to drive: Cadillac CTS-V
• Small sedan: Ford Focus ZX4 SES
• Family sedan: Ford Fusion/Mercury Milan
• Upscale sedan: Lincoln MXZ
• Luxury sedan: Cadillac DTS
• Small SUV: Pontiac Torrent
• Midsized SUV: Ford Freestyle
• Minivan: (None named)
• Budget car: Ford Focus ZX3
• Green car: (None named)

Consumer Reports points out that Ford has been slow to implement electronic stability control, which kept the automaker from taking one of the spots. CR pointed out that the mid-pack Pontiac Torrent received the Top Pick over the superior Ford Escape because the 2007 Escape is not available with ESC. Most versions of the new 2008 Escape come with standard ESC.

## Source: Consumer Reports ##

Share This

As we reported back in January, Subaru is working on an update for its slow-selling Tribeca. With sales only running at half of the original projections, Subaru will address several of the common criticisms for the 2008 model Tribeca, including the controversial (read: ugly) front end. Gone is the polarizing “propeller” grille that will be replaced by a more conventional design. The new front end will feature a large grille with horizontal bars topped by the Subaru logo and wider, shorter headlamps.

Under the new hood, the 2008 Tribeca will be powered by a more powerful 3.6L flat-six in place of the current 3.0L engine. With 254-hp, the new engine only gets a slight boost from the current engine’s 245-hp, but torque is up to 247 lb-ft (from 215 lb-ft). All while running on regular gasoline — instead of premium like the 3.0L engine.

One other complaint was third row access. For 2008, the third row of seats will now be accessible from both the driver- and passenger-side. Previously, only the passenger-side of the second row could fold.

The redesigned 2008 Tribeca will debut at the 2007 New York Auto Show in April.

## Source: Automobile ##

Share This

Lexus will stage the world debut of its all-new LX 570 luxury SUV at the 2007 New York Auto Show in April. “The third-generation LX 570 will reach new heights in performance via a powerful new V8 engine while achieving elevated levels of comfort, style and safety,” said the automaker.

Based on the Lexus naming scheme, the LX 570 (2007 LX 470 shown) will likely be powered by the 5.7L V8 that debuted on the new Toyota Tundra pickup. In the Tundra, the 5.7L engine develops 381-hp and 401 lb-ft of torque, and is mated to a six-speed automatic.

## Source: Lexus ##

Share This