Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/%SiteURL%/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/ Chris Shunk, Sam Abuelsamid and Dan RothThe podcast by the people who obsessively cover the auto industry. <![CDATA[Forget the Tata Nano, Oklahomans can get a new electric car for $865!]]> http://www.autoblog.com/2009/12/22/forget-the-tata-nano-oklahomans-can-get-a-new-electric-car-for/ http://www.autoblog.com/2009/12/22/forget-the-tata-nano-oklahomans-can-get-a-new-electric-car-for/ http://www.autoblog.com/2009/12/22/forget-the-tata-nano-oklahomans-can-get-a-new-electric-car-for/#comments Filed under: , , ,



When automotive talk turns cheap, the most common vehicle that comes up is the Tata Nano, which currently holds the title as the Cheapest New Car in the World and is only available in India. So, Americans, how would you like to snag a brand-new electric car for the low, low price of just $865, right here in the United States? If you happen to live in Oklahoma, you can do just that... sort of.

There's plenty of fine print, naturally. For instance, the electric car in question, the Kandi Coco, is really a Low Speed Vehicle (or LSV) capped by law to a top speed of 25 mph and restricted to roads with speed limits of 35 mph or less. And yes, it's made in China and looks something like half a Smart Fortwo. Still, the Coco carries an MSRP of $10,599 and you may be able to score one dirt cheap thanks to a couple of state and federal rebates.

The first deduction comes from the federal government and cuts the price by $4,435. Next, the State of Oklahoma deducts another $5,299 from the starting price for a total rebate of $9,734. Do the math, and that equals one Kandi Coco for $865 - but only if you live in Oklahoma, and only if you make the purchase before the end of the year. Now... go out and get that giant red bow before it's too late.


[Source: Kandi via Automobile Magazine]

Forget the Tata Nano, Oklahomans can get a new electric car for $865! originally appeared on Autoblog on Tue, 22 Dec 2009 19:01:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]> kandikandi cocoKandiCocolow speed electric vehiclelow speed vehiclelow speed vehicle creditLowSpeedElectricVehicleLowSpeedVehicleLowSpeedVehicleCreditneighborhood electric vehicleNeighborhoodElectricVehiclenevoklahomaoklahoma electric caroklahoma kandioklahoma tax creditOklahomaElectricCarOklahomaKandiOklahomaTaxCredit Tue, 22 Dec 2009 19:01:00 EST <![CDATA[VIDEO: Man wins India Supreme Court case for 'mountain goat' claims about Chevy Forester]]> http://www.autoblog.com/2009/12/22/video-man-wins-india-supreme-court-case-for-mountain-goat-cla/ http://www.autoblog.com/2009/12/22/video-man-wins-india-supreme-court-case-for-mountain-goat-cla/ http://www.autoblog.com/2009/12/22/video-man-wins-india-supreme-court-case-for-mountain-goat-cla/#comments Filed under: , , , , , ,


Dead Chevrolet Forester in India - Click above to watch the video after the break

First of all, if you weren't aware already, the first-generation Subaru Forester was later sold in India as the Chevrolet Forester (General Motors doesn't have the CUV in its lineup anymore). There weren't any real changes to the vehicle in any way, it was really just a Subaru with a Bowtie emblem. Now that that's out of the way, we have learned that an 80-year-old man in India named Ashok Tolat sued General Motors after his Forester came to a halt and died in one foot of water during the monsoon season in 2005. Angered that his SUV couldn't handle any weather thrown its way, Tolat sued GM.

General Motors denied any wrongdoing, claiming that the Forester wasn't designed as an all-terrain, all-weather vehicle. Tolat countered with the car's sales brochure, which reportedly likened the Forester's capabilities with that of a mountain goat. "A total misrepresentation," says Tolat. As far as we can recall, we're not aware of any 2005-vintage mountain goats that stalled out and died in one foot of water... so, there you go.

The General took the case all the way to India's Supreme Court after losing Tolat's lawsuit in two lower courts, but it ultimately lost there too. It took three years, but Tolat finally got GM to buy back the Forester and pay his legal fees. Score one for determination, even if we're a little leery of the court's ruling without the rest of the facts. In any case, click past the break to watch video of the story as covered on NDTV.

[Source: NDTV via YouTube via TTAC]

Continue reading VIDEO: Man wins India Supreme Court case for 'mountain goat' claims about Chevy Forester

VIDEO: Man wins India Supreme Court case for 'mountain goat' claims about Chevy Forester originally appeared on Autoblog on Tue, 22 Dec 2009 12:28:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]> ashok tolatAshokTolatchevroletchevrolet foresterChevroletForesterchevychevy foresterChevyForesterforesterindiaindia chevy foresterindia foresterIndiaChevyForesterIndiaForestermountain goatMountainGoat Tue, 22 Dec 2009 12:28:00 EST <![CDATA[Volvo recalls over 140K 2001-2005 and 2010 MY vehicles over fuel system issues]]> http://www.autoblog.com/2009/12/22/volvo-recalls-over-140k-2001-2005-and-2010-my-vehicles-over-fuel/ http://www.autoblog.com/2009/12/22/volvo-recalls-over-140k-2001-2005-and-2010-my-vehicles-over-fuel/ http://www.autoblog.com/2009/12/22/volvo-recalls-over-140k-2001-2005-and-2010-my-vehicles-over-fuel/#comments Filed under: , ,


2010 Volvo XC60 - Click above for a high-res image gallery

Vehicles manufactured by Volvo are the subject of two different recalls newly announced by the National Highway Traffic Safety Association (NHTSA). The recalls, both involving problems with fuel systems, cover more than 140,000 vehicles manufactured within the past decade.

The first recall is directed at 136,100 2001-2005 model year S60, S80, V70, XC70, and XC90 vehicles sold and operated in warmer climates. According to NHTSA, the fuel pump can develop cracks in its flange when exposed to hot temperatures (and thermal cycling) combined with varying fuel quality. A compromised flange may leak fuel and/or result in a fire. Owners are instructed to bring their vehicles into the dealer for inspection. If the part is defective, Volvo will replaced it with modified flange at no charge. The recall campaign is scheduled to begin in January 2010.

The second recall is directed at 5,253 2010 model year XC60 vehicles. According to NHTSA, a fuel line rail cover designed to protect the fuel lines on the XC60 may be improperly attached, thus exposing the lines to damage. The damaged pieces may leak, possibly resulting in a fire. Owners of the affected models are asked to bring their vehicles to the dealer for inspection and/or a repair at no charge. The recall campaign is scheduled to begin in January 2010.

Owners are asked to contact NHTSA at 1-888-327-4236 or visit www.safercar.gov for more information. The full text from both recall notices is after the jump.


Gallery: 2010 Volvo XC60


[Source: NHTSA]

Continue reading Volvo recalls over 140K 2001-2005 and 2010 MY vehicles over fuel system issues

Volvo recalls over 140K 2001-2005 and 2010 MY vehicles over fuel system issues originally appeared on Autoblog on Tue, 22 Dec 2009 09:57:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]> 2010 Volvo XC602010VolvoXc60damagefirefuelNHTSAS 80S-60S-80S60S80safety recallSafetyRecallV70VolvoVolvo recallVolvo S60Volvo S80Volvo V70Volvo XC70Volvo XC90VolvoRecallVolvoS60VolvoS80VolvoV70VolvoXc70VolvoXc90XC 60XC-60XC60XC70XC90 Tue, 22 Dec 2009 09:57:00 EST <![CDATA[REPORT: Visteon seeking to end pensions of 21,000 workers, retirees]]> http://www.autoblog.com/2009/12/22/report-visteon-seeking-to-end-pensions-of-21-000-workers-retir/ http://www.autoblog.com/2009/12/22/report-visteon-seeking-to-end-pensions-of-21-000-workers-retir/ http://www.autoblog.com/2009/12/22/report-visteon-seeking-to-end-pensions-of-21-000-workers-retir/#comments Filed under: ,



Visteon, the automotive supplier currently going through bankruptcy proceedings, is seeking to rid itself of pension obligations for 21,000 current workers and retirees. It wouldn't mean the end of pensions for the workers, but the payments would be taken over by the Pension Benefit Guaranty Corporation (PBGC), and that would mean diminished benefits.

Visteon contributes to four pension plans, three of which is it attempting to drop. The company owes $544 million to those three plans, and although it will make $260 million in payments over the next five years its obligations will grow if it cannot free itself. If it does get clear, pensioners will collectively lose $100 million in benefits because of caps on what the federal body can guarantee.

The PBGC wants Visteon to keep making pension payments, but its now in the hands of the Delaware judge handling the bankruptcy. Visteon has presented a few different options for reorganization, but each has met with resistance from one or more involved parties, including the plan to pay $8.1 million in bonuses to executives and the structure of it's post-bankruptcy stock allocation. The company hopes to emerge from Chapter 11 by the middle of next year. Pension recipients will hope they do it with their funds intact, but that isn't looking likely.

[Source: Detroit News | Image: Bill Pugliano/Getty]

REPORT: Visteon seeking to end pensions of 21,000 workers, retirees originally appeared on Autoblog on Tue, 22 Dec 2009 08:34:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]> bankruptcyfinancialgovernmentpensionPension Benefit Guaranty Corp.PensionBenefitGuarantyCorp.Visteonvisteon bankruptcyVisteonBankruptcy Tue, 22 Dec 2009 08:34:00 EST <![CDATA[REPORT: Swedish government to meet with GM officials - could Saab still be saved?]]> http://www.autoblog.com/2009/12/19/report-swedish-government-to-meet-with-gm-officials-could-saa/ http://www.autoblog.com/2009/12/19/report-swedish-government-to-meet-with-gm-officials-could-saa/ http://www.autoblog.com/2009/12/19/report-swedish-government-to-meet-with-gm-officials-could-saa/#comments Filed under: , , , , , , , ,


Saab 9-5 - Click above for high-res image gallery

Less than a day after General Motors officially announced Saab's euthanization, it looks like the storied Swedish brand might still have the faintest whisper of a pulse. Motor Trend is reporting that there are rumors swirling that the Swedish government will hold emergency meetings this weekend to try to save Saab. At least some government officials apparently feel that Saab is too important to fail... now where have we heard that before? With such a small population, the closure of Saab could have a major impact on the nation's economy, much like the failure of GM (and Chrysler, to a lesser extent) was viewed as potentially catastrophic in the States.

Some 3,400 employees will be jobless when GM completes its planned "orderly wind down" starting in January. That estimate doesn't include workers from the 1,100 Saab dealers that will also be shuttered around the globe.

Despite the failed selloff, things look like they're picking up at The General. The automaker announced yesterday that they had paid back the first $1 billion TARP money they borrowed from us the U.S. government. BAIC, Koenigsegg, Spyker and others had attempted to jump into the Saab fire-sale, but all have come out burned. Well, BAIC at least scored tooling for the old 9-3 and current 9-5. With a new-for 2010 9-5 having taken the stage at auto shows around the globe in recent months and the 9-4X in the wings, we'd love to see all of the Saab faithful get an early Christmas gift. We're definitely not holding our breath, but we'll keep you posted through the weekend should anything materialize.


Gallery: 2010 Saab 9-5


Gallery: Detroit 2008: Saab 9-4X Concept live reveal


[Source: Motor Trend]

REPORT: Swedish government to meet with GM officials - could Saab still be saved? originally appeared on Autoblog on Sat, 19 Dec 2009 15:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]> BAICbaic saabbaic saab toolingBaicSaabBaicSaabToolingGM Saabgm saab saleGM saleGmSaabGmSaabSaleGmSalekoenigseggkoenigsegg saabKoenigseggSaabSaabsaab 9-3Saab 9-4xsaab 9-5saab gmSaab9-3Saab9-4xSaab9-5SaabGmspykerspyker SaabSpykerSaabswedenSwedish GovernmentSwedishGovernment Sat, 19 Dec 2009 15:50:00 EST <![CDATA[Obama bill signing enacts arbitration process for rejected GM, Chrysler dealers]]> http://www.autoblog.com/2009/12/19/report-obama-enacts-arbitration-process-for-rejected-gm-chrysl/ http://www.autoblog.com/2009/12/19/report-obama-enacts-arbitration-process-for-rejected-gm-chrysl/ http://www.autoblog.com/2009/12/19/report-obama-enacts-arbitration-process-for-rejected-gm-chrysl/#comments Filed under: , ,

Closed dealership

Word on the street is that the Auto Task Force was pushing hard for General Motors and Chrysler to to dump dealerships during bankruptcy. In all, some 2,150 dealers got the axe, reportedly saving the struggling Detroit automakers big bucks while helping to ensure that remaining dealers were healthier. But while the government's Auto Task Force may have been the driving force that kicked dealers to the curb, the U.S. Congress, in an effort led by Representative Steny Hoyer (D-MD) and Senator Dick Durbin (D-IL), is looking to put those same dealers (read: donors) back in business.

The $446 billion spending bill President Obama signed earlier this week contains new legislation requiring GM and Chrysler to send out letters to every rejected dealer informing them of their rights to arbitration. Dealers interested in filing arbitration will then have 40 days to submit their intention to file. From there, arbitration must be completed within six months. Automotive News reports that the new law is substantially more dealer-friendly than the old law, and requires GM and Chrysler to spell out exactly why each dealership contract was terminated.

In an earlier report, Automotive News reported that it could cost dealers up to $12,000 in arbitration filing fees and up to $100,000 in arbitration depending on the complexity of the case.

[Source: Automotive News sub. req'd | Image: Spencer Platt/Getty]

Obama bill signing enacts arbitration process for rejected GM, Chrysler dealers originally appeared on Autoblog on Sat, 19 Dec 2009 10:40:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]> Sat, 19 Dec 2009 10:40:00 EST <![CDATA[GM begins repayment to U.S. and Canadian governments]]> http://www.autoblog.com/2009/12/18/gm-begins-repayment-to-u-s-and-canadian-governments/ http://www.autoblog.com/2009/12/18/gm-begins-repayment-to-u-s-and-canadian-governments/ http://www.autoblog.com/2009/12/18/gm-begins-repayment-to-u-s-and-canadian-governments/#comments Filed under: ,



Good news, the check is in the mail! General Motors issued a (very) brief press release this afternoon stating that the automaker had delivered on its promise to issue its first reimbursement checks to the U.S. and Canadian governments by the end of the year. GM sent $1 billion to the feds and $192 million to the Canadian government, and GM reiterated in the statement that it would complete payments totaling $6.7 billion (to the U.S. government) by June 2010.

Beyond the $6.7 billion GM owes the federal government is a 60 percent ownership stake Uncle Sam has on the 101-year-old automaker. When the General releases an initial public offering the resulting stock sale will (supposedly) buy the government out. Experts feel the IPO could happen as early as the second half of 2010. Hit the jump to read over the General's succinct press release.

[Source: GM | Image: Bill Pugliano/Getty]

Continue reading GM begins repayment to U.S. and Canadian governments

GM begins repayment to U.S. and Canadian governments originally appeared on Autoblog on Fri, 18 Dec 2009 17:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]> auto task forceAutoTaskForcegeneral motorsGeneralMotorsgmgovernment loansGovernmentLoansloan paybackLoanPayback Fri, 18 Dec 2009 17:30:00 EST <![CDATA[Cut It Out: Toyota's recalled pedal modification remedy detailed step-by-step]]> http://www.autoblog.com/2009/12/18/cut-it-out-toyotas-recalled-pedal-modification-remedy-detailed/ http://www.autoblog.com/2009/12/18/cut-it-out-toyotas-recalled-pedal-modification-remedy-detailed/ http://www.autoblog.com/2009/12/18/cut-it-out-toyotas-recalled-pedal-modification-remedy-detailed/#comments Filed under: , , , ,


Toyota/Lexus gas pedal recall modification - click above for gallery

Late last month, Toyota announced that it would begin its biggest recall action ever, summoning 3.8 million cars and trucks back to its dealers to combat "pedal entrapment" by cutting down the accelerator pedals of customer cars to avoid them getting hung-up on floormats, resulting in "unintended acceleration." Although Toyota plans to eventually substitute redesigned units for the shaved pedals (beginning in April), for the moment, it's shaved pedals or nothing.

Up until now, we didn't know what went into the modification process or how the finished pedal looks, as Toyota has worked hard to keep this process confidential. However, thanks to an anonymous Autoblog reader who happens to work in service at a Lexus franchise, we now have a much better idea of what goes into the process. Our source reveals that he's only witnessed the alteration carried out on a ES350, not the IS or any other Toyota model, but we imagine the process is quite similar for other vehicles.

In any case, the procedure is surprisingly involved, with the automaker providing the following tools to every dealership: A cutter, an electric sanding wheel, a gauge to measure how much of the pedal is to be removed and a smaller foam block to go under the carpet. Lexus is disbursing people from its area offices to train dealer technicians on the process, and Toyota is undoubtedly doing the same.

We'll let our source take it from here:
"We will have to remove the gas pedal from the vehicle and place it on a vise. Using the gauge, we are to mark the amount to be removed and cut it off. After this, we take the sanding wheel and angle the edges to make a smooth contoured surface that both looks nice and will not stick to the floor carpet or floor mat.

Also included in the repair is to replace a foam block under the floor carpet with a smaller one to lower the height of the floor slightly behind the gas pedal. What was explained to us is the foam block is glued to the bottom of the floor carpet from the factory. The block will need to be removed by heating the top side of the floor carpet with a hair dryer - not a heat gun. This is to prevent burning of the floor carpet.
(Click through to the jump for the rest of the process and more details)


Gallery: Toyota/Lexus gas pedal recall modification

Continue reading Cut It Out: Toyota's recalled pedal modification remedy detailed step-by-step

Cut It Out: Toyota's recalled pedal modification remedy detailed step-by-step originally appeared on Autoblog on Fri, 18 Dec 2009 13:57:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]> AvalonCamryIS 250IS 350IS250IS350LExus ES350Lexus IS 250Lexus IS 350LexusEs350LexusIs250LexusIs350NHTSApedal entrapmentpedal recallPedalEntrapmentPedalRecallPriusrecallTacomaToyota AvalonToyota CamryToyota pedalToyota Priustoyota recallToyota TacomaToyota TundraToyotaAvalonToyotaCamryToyotaPedalToyotaPriusToyotaRecallToyotaTacomaToyotaTundraTundraunintended accelerationUnintendedAcceleration Fri, 18 Dec 2009 13:57:00 EST <![CDATA[Christmas List 2010: Rattner's book to debut in time for next Christmas]]> http://www.autoblog.com/2009/12/18/christmas-list-2010-rattners-book-to-debut-in-time-for-next-ch/ http://www.autoblog.com/2009/12/18/christmas-list-2010-rattners-book-to-debut-in-time-for-next-ch/ http://www.autoblog.com/2009/12/18/christmas-list-2010-rattners-book-to-debut-in-time-for-next-ch/#comments Filed under: , , , ,



Planning for the future is perhaps an alien concept to big business - even automakers, with their protracted product development cycles. Take a cue of what not to do from them, then, and start planning now for next Christmas. May we suggest that your 2010 wishlist starts with what's destined to be a hotly-anticipated tome: Steven Rattner's memoir of his spearheading the bailout of General Motors and Chrysler. Tentatively titled "Overhaul," the cloyingly-named book will tell the story of the quick-rinse bankruptcies Rattner presided over.

A fascinating piece that Rattner wrote for Fortune Magazine back in October gave us a glimpse of how riveting such a seemingly-dry subject can be. The book is on track for a debut in the fall of 2010, and might be even more interesting in a year depending on how Rattner's deals work out. The hardest part is going to be behaving well enough for an entire year so this thing gets stuffed in our stocking.

[Source: The Detroit News | Image: Neilson Barnard/Getty]

Christmas List 2010: Rattner's book to debut in time for next Christmas originally appeared on Autoblog on Fri, 18 Dec 2009 10:03:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]> bailoutbailout planBailoutPlanbailoutsbankruptcychryslerchrysler bankruptchrysler bankruptcyChryslerBankruptChryslerBankruptcygmgm bailoutgm bankruptgm bankruptcyGmBailoutGmBankruptGmBankruptcyrattnerSteven RattnerStevenRattner Fri, 18 Dec 2009 10:03:00 EST <![CDATA[Chrysler announces $179 million investment in Dundee plant to build Fiat Multiair engines]]> http://www.autoblog.com/2009/12/17/chrysler-announces-179-million-investment-in-dundee-plant-to-bu/ http://www.autoblog.com/2009/12/17/chrysler-announces-179-million-investment-in-dundee-plant-to-bu/ http://www.autoblog.com/2009/12/17/chrysler-announces-179-million-investment-in-dundee-plant-to-bu/#comments Filed under: , , , ,



In a none-too-shocking announcement, Chrysler announced plans to invest $179 million to convert its engine plant in Dundee, MI, from building the so-called World Engine to Fiat's 1.4-liter Fully Integrated Robotized Engine. Back in September, Chrysler bought out its former partners Hyundai and Mitsubishi so that it could utilize the Dundee facilities to build the new Multiair powerplants.

Both Chrysler and Fiat are likely to use powerplants built at the facility, with the first application being the diminutive Fiat 500 that's slated for North American production by the end of 2010. Fiat's Multiair technology is said to increase power by up to ten percent while offering a similar reduction in fuel consumption and emissions. Later, a turbocharged unit will be built at the plant that will offer V6-level power using 25 percent less fuel. Multiair technology will eventually be added to the rest of the Chrysler engine lineup, including the new Pentastar V6.

Chrysler promises that the Dundee plant will add 573 new jobs to the local economy including 155 directly at the Dundee plant for a single shift of engine production. That was enough to earn a series of incentives from the state of Michigan and tax credits from the Michigan Economic Development Corporation and the Village of Dundee that could add up to $4.6 million over the next ten years. For more, click past the break for the dueling press releases from Chrysler.

[Source: Chrysler]

Continue reading Chrysler announces $179 million investment in Dundee plant to build Fiat Multiair engines

Chrysler announces $179 million investment in Dundee plant to build Fiat Multiair engines originally appeared on Autoblog on Thu, 17 Dec 2009 16:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]> chryslerchrysler multiairChryslerMultiairDundeedundee facilitydundee midundee plantDundeeFacilityDundeeMiDundeePlantfiatfiat multiairfiat multiair chryslerFiatMultiairFiatMultiairChryslerMultiAirMultiair Enginemultiair fiat chryslermultiair technologyMultiairEngineMultiairFiatChryslerMultiairTechnology Thu, 17 Dec 2009 16:00:00 EST <![CDATA[REPORT: Old Carco (read: "Bad Chrysler") to not repay $4B in TARP loans]]> http://www.autoblog.com/2009/12/17/report-old-carco-read-bad-chrysler-to-not-repay-4b-in-tar/ http://www.autoblog.com/2009/12/17/report-old-carco-read-bad-chrysler-to-not-repay-4b-in-tar/ http://www.autoblog.com/2009/12/17/report-old-carco-read-bad-chrysler-to-not-repay-4b-in-tar/#comments Filed under: , ,



Before Fiat and prior to bankruptcy, the old Chrysler, LLC needed $4 billion just to keep the doors open. The Bush Administration came through with the company-saving cash at the 11th hour, keeping the Pentastar solvent long enough to make it to bankruptcy court. Chrysler was reportedly given $15 billion in total aid, and it appears much of that money will be repaid through future payments and through incentives for Fiat to increase its stake in Chrysler from 20 percent to 35 percent. But that original $4 billion? Don't expect that money to come back any time soon - if ever.

The Detroit News reports that what's left of the old Chrysler LLC (which has been renamed Old Carco), has filed court papers saying that the $4 billion will likely never be repaid. New Chrysler is not legally responsible for that debt and Old Carco doesn't exactly have considerable assets. And the government isn't the only debt-holder that isn't going to get its cash. Many secured and unsecured creditors will be unlikely to see their cash, thought some $21 million in secured debt could be paid. Old Carco contains the bad assets not purchased by the new Chrysler when it exited bankruptcy in the spring. The sale of those bad assets, which includes plants, tooling and miscellaneous items like old company cars, will help pay back some of the money creditors lost.

Lawyers working on the bankruptcy case say it take years before the book is finally closed on Old Carco. One item that could help drag matters out is a $25 billion lawsuit Old Carco filed against former owner, Daimler.

[Source: The Detroit News | Image: Bill Pugliano/Getty]

REPORT: Old Carco (read: "Bad Chrysler") to not repay $4B in TARP loans originally appeared on Autoblog on Thu, 17 Dec 2009 11:31:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]> bailoutbankruptcychryslerchrysler llcChryslerLlcgovernment loansGovernmentLoansold carcoOldCarco Thu, 17 Dec 2009 11:31:00 EST <![CDATA[REPORT: Honda plans to settle Civic Hybrid mileage suit out of court. Is it a fair deal?]]> http://www.autoblog.com/2009/12/16/honda-plans-to-settle-civic-hybrid-mileage-suit-out-of-court-is/ http://www.autoblog.com/2009/12/16/honda-plans-to-settle-civic-hybrid-mileage-suit-out-of-court-is/ http://www.autoblog.com/2009/12/16/honda-plans-to-settle-civic-hybrid-mileage-suit-out-of-court-is/#comments Filed under: , , , ,

2008 Honda Civic Hybrid - Click above for high-res image gallery

If you buy a hybrid, you'll be rewarded with excellent fuel economy, right? Well, that's the idea, but sometimes things don't turn out exactly as we had hoped. Such is apparently the case with a number of Honda Civic Hybrid owners who claim that their vehicles don't even come close to achieving the mileage figures estimated by the EPA, leading to a class action lawsuit against Honda.

Back in the summer of 2007, we conducted a telephone interview with John True, one of the two men who started the suit. At the time, True claimed he only achieved, at best, 34.6 miles per gallon and had averaged well under that figure. The window sticker showed EPA estimates of 49 city and 51 highway, though the EPA's revised 2008 rating sits at 40 city and 45 highway.

For its part, Honda admits to no wrongdoing and points out that it was the EPA that estimated those mileage figures. Still, according to The New York Times, the Japanese automaker has agreed to settle the case out of court. If approved, owners of 2003-2008 Civic Hybrids will get a voucher worth up to $1,000 to purchase a new Honda or a check for $100 if they can prove they complained to Honda about their car's mileage.

Interestingly, the current Civic Hybrid, Insight and Fit - Honda's three most fuel efficient models - are excluded from the list of vehicles eligible for the trade-in or purchase voucher. The two plaintiffs would receive $12,500 and $10,000 and their lawyers would pocket $2.95 million. So, um, is it a fair deal? Perhaps more importantly, is Honda to blame here? Sound off in the comments.


Gallery: ABG Garage: 2008 Honda Civic Hybrid


[Source: The New York Times]

REPORT: Honda plans to settle Civic Hybrid mileage suit out of court. Is it a fair deal? originally appeared on Autoblog on Wed, 16 Dec 2009 09:01:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]> civiccivic hybridcivic hybrid class actioncivic hybrid epacivic hybrid epa mileagecivic hybrid lawsuitcivic hybrid mileageCivicHybridCivicHybridClassActionCivicHybridEpaCivicHybridEpaMileageCivicHybridLawsuitCivicHybridMileagehondahonda civic hybridhonda civic hybrid mileageHondaCivicHybridHondaCivicHybridMileagejohn truejohn true hybridjohn true lawsuitJohnTrueJohnTrueHybridJohnTrueLawsuit Wed, 16 Dec 2009 09:01:00 EST <![CDATA[How They Roll: NYT investigates the wheels of Mexican drug cartels]]> http://www.autoblog.com/2009/12/16/how-they-roll-nyt-investigates-the-wheels-of-mexican-drug-carte/ http://www.autoblog.com/2009/12/16/how-they-roll-nyt-investigates-the-wheels-of-mexican-drug-carte/ http://www.autoblog.com/2009/12/16/how-they-roll-nyt-investigates-the-wheels-of-mexican-drug-carte/#comments Filed under:



The Mexican drug trade business is booming. Drugs are flowing between Mexico and the U.S. on a daily basis, overwhelming the Mexican military and U.S. border patrol officers. Most of the drugs arrive stateside via cars and trucks, and the vehicles transporting contraband range from a Rolls Royce to a VW Rabbit. The New York Times spent some time in Sinaloa, Mexico with Mexican General Federico Solórzano at what looked to be a used car lot.

The general's troops have seized 766 vehicles to date ranging from Jaguars to brand new SUVs to classic muscle cars. Custom choppers, pickup trucks and sports cars are all accounted for on the lot, but these vehicles are different from cars and trucks you can purchase at your local dealership: they have secret compartments for carrying drugs and weapons across the Mexican boarder. The vehicles housed untold millions of dollars in addition to automatic weapons in false sidewalls, modified bumpers and trap doors. General Solórzano reportedly told the NYT that vehicles have been retrofitted with bullet-proofing tech, machine gun turrets, secret compartments that hold sharp nails for police cruisers in hot pursuit and even a smoke machine to assist in losing the Federalis.

The vehicles are being stored at a military base because drug traffickers have raided police facilities and took back the vehicles seized near the border. In total, the Mexican government is said to have over 14,000 vehicles in its possession, yet tons of drugs make the trip from South America to the U.S. without detection. The vehicles will eventually be sold at auction or will be used by other federal agencies, but the apparent crawl of the Mexican legal system means trials are sometimes years away. Head over to the NYT to read more about the vehicles that bring drugs from the Mexican boarder to a town near you. Pretty interesting stuff. Top tip, Mehul!

[Source: New York Times | Image: Jesus Alcazar/AFP/Getty Images]

How They Roll: NYT investigates the wheels of Mexican drug cartels originally appeared on Autoblog on Wed, 16 Dec 2009 07:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]> drug carteldrug cartelsDrugCartelDrugCartelsGeneral SolórzanoGeneralSolórzanomexican drug tradeMexicanDrugTrademexiconew york timesNewYorkTimes Wed, 16 Dec 2009 07:59:00 EST <![CDATA[REPORT: Detroit Three call Japan's cash-for-clunkers program unfair]]> http://www.autoblog.com/2009/12/11/report-detroit-three-call-japans-cash-for-clunkers-program-unf/ http://www.autoblog.com/2009/12/11/report-detroit-three-call-japans-cash-for-clunkers-program-unf/ http://www.autoblog.com/2009/12/11/report-detroit-three-call-japans-cash-for-clunkers-program-unf/#comments Filed under: , ,



The U.S. Car Allowance Rebate System (a.k.a. 'cash-for-clunkers') program was a short-term boon for automakers participating in our market. Sales went up, inventory went down and nearly 700,000 vehicles that would likely have otherwise ended up on used car lots were destroyed. And since the U.S. is essentially a free market where automakers around the globe are allowed to participate, Japanese and European automakers benefited from the program as well. In fact, Japanese automakers fared even better than their U.S. competitors, as Toyota, Honda and Nissan are said to have surpassed their market share with the program. A reported 319,000 of the 677,000 vehicles sold via cash-for-clunkers were from Japanese companies. But while the U.S. C4C program took place in a free market where everybody is able to participate, critics are complaining that the new Japanese program is anything but equal opportunity.

Japan is considered by many to be the world's most insular auto market, and its $3.7 billion government clunker program makes U.S. autos ineligible for government assistance. According to The Detroit News, the program, which the Japanese government is using to spur sales (which are down 17 percent versus 2008 levels), provides cash rebates of up to $2,830 for customers who turn in vehicles 13 years or older. Car buyers who don't turn in a vehicle can still get over $1,100 toward the purchase of a new vehicle. An estimated 87 percent of all Japanese vehicles are eligible for the program, while zero vehicles from General Motors, Ford and Chrysler will be eligible.

The DetNews is reporting that Motown automakers have written a letter to the Deputy U.S. Trade Representative calling for action on a matter that was called "another example of Japan continuing efforts to discriminate against imported vehicles." Carol Guthry of the U.S. Trade Representative told the newspaper that the government is working to resolve the issue, adding "our position remains that changes are necessary to give U.S. vehicles greater opportunity to qualify under Japan's program."

While we're not exactly import/export experts and we don't have any experience with foreign relations, we're thinking it's about time Japan treated foreign automakers in the Land of the Rising Sun with the same level of equality that its automakers receive elsewhere in the world. What do you think? Have your say in 'Comments.'

[Source: The Detroit News | Image: Yoshikazu Tsuno/AFP/Getty]

REPORT: Detroit Three call Japan's cash-for-clunkers program unfair originally appeared on Autoblog on Fri, 11 Dec 2009 10:32:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]> C.A.R.S.c4cCar Allowance Rebate SystemCarAllowanceRebateSystemCarol GuthryCarolGuthryCARScash for clunkersCashForClunkerschryslerdetroit threeDetroitThreefordgmimportexportjapanjapanese cash for clunkersJapaneseCashForClunkersprotectionismtarifftarrifftrade protectionismTradeProtectionism Fri, 11 Dec 2009 10:32:00 EST <![CDATA[REPORT: Fed predicts it will lose $30B on auto industry bailout]]> http://www.autoblog.com/2009/12/10/report-fed-predicts-it-will-lose-30b-on-auto-industry-bailout/ http://www.autoblog.com/2009/12/10/report-fed-predicts-it-will-lose-30b-on-auto-industry-bailout/ http://www.autoblog.com/2009/12/10/report-fed-predicts-it-will-lose-30b-on-auto-industry-bailout/#comments Filed under: , , ,



2009 isn't quite over yet, but we're pretty sure most automakers would rather forget that it ever happened. And while General Motors and Chrysler suffered the pain and humiliation of bankruptcy and workers lost thousands of jobs and many plants and dealerships closed, the good news is that the General and the Pentastar are now more fiscally healthy than they've been in ages. The bad news is that it cost U.S. taxpayers an estimated $82 billion to save what has been called hundreds of thousands of jobs.

The Detroit News is reporting that after wading through the wreckage of the auto bailout, the Obama Administration only expects to get back an estimated $52 billion of its original investment. That's horrible news, right? Not so, says Gene Sperling, the senior counsel to Treasury Secretary Timothy Geithner. He said the $30 billion estimate is better than the $44 billion the government thought it would lose a few months ago. And with the perceived stabilization of the auto industry, Sperling feels the numbers could improve.

The DetNews reports that President Obama stressed during a speech on the economy that while the bailout of the auto industry wasn't politically popular, it was absolutely necessary to save "hundreds of thousands of jobs." The president then added "these were not decisions that were popular or satisfying; these were decisions that were necessary."

There are signs that at least GM will start paying the government back $6.7 billion as early as the end of the year. Chairman and interim CEO Ed Whitacre has reportedly intimated that the company could pay the money back in one lump sum. And once the auto industry is in a little better shape, the government could recoup much more cash when the General goes public. For the moment, though, Uncle Sam (e.g. the U.S. taxpayers) still owns 61 percent of the new GM.

[Source: The Detroit News | Image: Saul Loeb/AFP/Getty]

REPORT: Fed predicts it will lose $30B on auto industry bailout originally appeared on Autoblog on Thu, 10 Dec 2009 13:27:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]> 30 billion30Billionauto task forceAutoTaskForcebailoutbarackchryslerEd WhitacreEdWhitacregmgovernment bailoutgovernment task forceGovernmentBailoutGovernmentTaskForceobamaobama administrationObamaAdministrationPresident obamaPresidentObamaWhitacre Thu, 10 Dec 2009 13:27:00 EST <![CDATA[<i>Consumer Reports</i>: Over 40 percent of 'sudden acceleration' claims involve Toyota]]> http://www.autoblog.com/2009/12/08/consumer-reports-over-40-percent-of-sudden-acceleration/ http://www.autoblog.com/2009/12/08/consumer-reports-over-40-percent-of-sudden-acceleration/ http://www.autoblog.com/2009/12/08/consumer-reports-over-40-percent-of-sudden-acceleration/#comments Filed under: , , ,



We're guessing you've heard about Toyota's massive 3.8 million vehicle recall for unintended acceleration. It appears to be an issue that could have potentially resulted in several deaths and reports of hundreds of accidents. Consumer Reports wanted to dig deeper on the matter, studying National Highway Traffic Safety Administration (NHTSA) data for the 2008 model year. CR chose 2008 because the claims occurred prior to the widespread media coverage that has resulted in a flood of new complaints.

In studying NHTSA's accumulated 5,916 reports CR found that 166 involved unintended acceleration complaints. Of those, 128 were reported prior to August 28, 2009, when a California family was killed in a Lexus sedan experiencing uncontrollable acceleration. Of those 128 complaints, 47 came from Toyota and five from Lexus, representing 41 percent of overall unintended acceleration complaints. That's obviously a disproportionate amount of reports for an automaker with 16 percent of the US market's overall share. Here's one complaint logged by NHTSA.
"I felt the vehicle [2008 Lexus ES 350] increasing in speed to about 90 mph, without depressing the accelerator. I had been on cruise control at about 73 mph... [A] passenger screamed at me to slow down. I was unable to do so, even after stepping forcefully on the brakes."
While Toyota had a disproportionate amount of unintended acceleration claims, the Japanese automaker wasn't alone. Ford received an also high 36 overall complaints, or 28 percent of all U.S. models. The F-150 appears to have been one of the Blue Oval's main culprits, and complaints ranged from a gas pedal that was too wide to an engine that decided to go buck wild.
"The engine immediately increased in rpm to the point where the rear tires began spinning on the gravel. I put the transmission in Neutral and the engine rpm increased. I removed my foot from the brake and the engine continued at a very high rpm. I then depressed and released the accelerator and the engine returned to a normal idle."
While Toyota and Ford have the lion's share of unintended acceleration claims, other automakers have a disproportionately low amount of complaints. Chrysler came in with 11 complaints, GM had seven, Honda had five and Nissan had three. Head over to Consumer Reports for its full report and more information on unintended acceleration.

UPDATE: Numbers and percentages mentioned in second paragraph further clarified.

[Source: Consumer Reports]

Consumer Reports: Over 40 percent of 'sudden acceleration' claims involve Toyota originally appeared on Autoblog on Tue, 08 Dec 2009 11:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]> 2008 ford f-1502008 lexus es3502008FordF-1502008LexusEs350ford f-150FordF-150toyotatoyota recallToyotaRecallunintended accelerationUnintendedAcceleration Tue, 08 Dec 2009 11:29:00 EST <![CDATA[REPORT: U.S. customs agents seize a very familiar gray-market Cizeta V16t]]> http://www.autoblog.com/2009/12/08/report-u-s-customs-agents-seize-a-very-familiar-gray-market-ci/ http://www.autoblog.com/2009/12/08/report-u-s-customs-agents-seize-a-very-familiar-gray-market-ci/ http://www.autoblog.com/2009/12/08/report-u-s-customs-agents-seize-a-very-familiar-gray-market-ci/#comments Filed under: , ,


1994 Cizeta V16t

Whenever we've mentioned the Cizeta V16t supercar here on the pages of Autoblog in the past, we have always received mixed reactions. With its love-it-or-hate-it, Diablo-prototype looks and its unique transverse V16 engine, the car was a stunning achievement by former Lamborghini engineer, Claudio Zampoli. It was his vision, his engineering and his design work that made this project come to fruition. It was also his initials, C.Z., or "Ci Zeta" in Italian, that led to the vehicle's name. While only ten of the cars were ever built, they have attained a certain cult-like following among some enthusiasts.

Although often misidentified as a Cizeta Moroder, the correct name does not include the name of music composer Giorgio Moroder, who was an early investor that dropped out in the planning stages. The 560-horsepower, V16 beast was said to be good for well over 200 MPH in its day, and for anyone who has seen or heard it in person, it's not hard to believe. We consider ourselves very lucky indeed to have spent some time in one of these Veyron-preceding 16-cylinder marvels. The red one you see above is so familiar to all of us in the SoCal car community that we sometimes forget just how exotic it really is. We've seen it at numerous events around Southern California and have gotten to know Mr. Zampoli as well.

Imagine our shock, then, to hear that the very Cizeta we know best has been seized by Federal authorities. According to news reports, the U.S. Immigration and Customs Enforcement (ICE) agency has seized the car, alleging that Zampoli violated U.S. customs and environmental laws when he brought the car into the country in 2001. One issue was the price claimed for the vehicle when it was brought over, which at $125,000 was approximately one fourth of its price when new.

The other issue is the fact that the car was never certified by U.S. agencies for emissions and safety regulations. It is not uncommon for such small manufacturers to skip U.S. importation because of the cost involved in crash testing these expensive autos. Some are granted exemptions using the government's Show or Display rules, and others are sometimes imported as museum pieces that are never registered for road use.

We know that there will be a lot more to this story as it unfolds. For one thing, we know that Mr. Zampoli moved his operations to the U.S. several years ago. We also believe that this particular vehicle never belonged to him. It was allegedly shipped over for updates and repairs by its Austrian owner in 2001 and was supposed to be shipped back by 2004 after receiving an extension on its stay. For one reason or another, the owner never had it shipped back. It has always worn European tags and a manufacturer plate when out and about.

While the official ICE statement that alludes to these cars being "a real threat to public health and safety" is laughable in many ways, the fact remains that the Cizeta was never certified for sale in the States and due to its extremely limited production, it probably never received an exemption for Show or Display. For now, the authorities are trying to have the car forfeited to the federal government, with the intent to have it auctioned to an overseas buyer eventually. We'll be sure to keep you posted. Thanks for the tips, everyone.

[Source: The Orange County Register]

REPORT: U.S. customs agents seize a very familiar gray-market Cizeta V16t originally appeared on Autoblog on Tue, 08 Dec 2009 09:59:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]> CizetaCizeta V16Cizeta V16tCizetaV16CizetaV16tClaudio ZampoliClaudioZampolicustomscustoms enforcementCustomsEnforcementICEImmigrationMorodersupercarv16Zampoli Tue, 08 Dec 2009 09:59:00 EST <![CDATA[NHTSA investigating claims of stalling on 2006 Toyota Corolla, Matrix]]> http://www.autoblog.com/2009/12/07/nhtsa-investigating-claims-of-stalling-on-2006-toyota-corolla-m/ http://www.autoblog.com/2009/12/07/nhtsa-investigating-claims-of-stalling-on-2006-toyota-corolla-m/ http://www.autoblog.com/2009/12/07/nhtsa-investigating-claims-of-stalling-on-2006-toyota-corolla-m/#comments Filed under: , , , ,



When it rains, it pours. With recalls on the books for Toyota floor mats and corrosion problems, the National Highway Traffic Safety Administration (NHTSA) is now investigating reports that Toyota's Corolla and Matrix vehicles may have engines susceptible to stalling. Owners of the 2006 model year Corolla and Matrix vehicles with the questioned 1ZZ-FE engines have described stalling in intersections and on highways, putting drivers at a safety risk while they attempt to restart the engine. There have been no reports of crashes.

It's important to note that about 397,000 vehicles are covered by the review, and that only 26 complaints have been lodged (that works out to about one in every 15,000 vehicles). Since it is a preliminary investigation, there's no recall until NHTSA investigates and determines that the stalling is caused by a specific design or parts defect. Of course, they may also find the stalling issue is attributed to poor maintenance or bad gas... nobody is pointing fingers. Yet.

[Source: Reuters]

NHTSA investigating claims of stalling on 2006 Toyota Corolla, Matrix originally appeared on Autoblog on Mon, 07 Dec 2009 17:59:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]> 2006 Corolla2006 Matrix2006Corolla2006Matrixengine stallingEngineStallingIZZ-FENHTSAnhtsa recallNhtsaRecallrecall investigationRecallInvestigationstallingToyota CorollaToyota MatrixToyotaCorollaToyotaMatrix Mon, 07 Dec 2009 17:59:00 EST <![CDATA[VIDEO: TN Senator Corker's daughter carjacked, suspects apprehended via OnStar]]> http://www.autoblog.com/2009/12/07/video-tn-senator-corkers-daughter-carjacked-suspects-apprehen/ http://www.autoblog.com/2009/12/07/video-tn-senator-corkers-daughter-carjacked-suspects-apprehen/ http://www.autoblog.com/2009/12/07/video-tn-senator-corkers-daughter-carjacked-suspects-apprehen/#comments Filed under: , , ,

Senator Corker praises OnStar -- Click above to watch the video

Tennessee Senator Bob Corker had this opinion of OnStar a month ago: "Each month I get the bill for OnStar and [I think], 'I don't want to pay this again.'" Then his daughter Julia was carjacked in Washington D.C. last week driving his Chevrolet Tahoe, and having been yanked out of the car by her throat, she was left lying in the street.

Thankfully, Corker's daughter was all right, and she was able to call her father who was nearby. She also remembered that the vehicle as equipped with General Motors' OnStar system, and within an hour, the service had notified the D.C. police that the Tahoe was parked at a Taco Bell seven miles away in Maryland. Corker said that the carjacking happened about 9:15 pm, and by midnight the suspects had been identified and he was headed back home with his daughter.

His opinion of OnStar now: "this is an incredible service." Follow through to the jump to hear about the ordeal in Corker's words (the OnStar talk begins at about 2:15), or check out CNN for the nitty gritty details. And for proof of the extent of Southern politesse, Corker begins the tale with "A gentleman appeared, opened the door, grabbed her by the neck... and he threw her on the pavement and drove away." A "gentleman?" Hat tip to Berto!

[Sources: Politico; CNN]

Continue reading VIDEO: TN Senator Corker's daughter carjacked, suspects apprehended via OnStar

VIDEO: TN Senator Corker's daughter carjacked, suspects apprehended via OnStar originally appeared on Autoblog on Mon, 07 Dec 2009 09:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]> bob corkerBobCorkercarjackcarjackingcorkeretcgovernmentonstarsenator bob corkersenator corkerSenatorBobCorkerSenatorCorkervideo Mon, 07 Dec 2009 09:29:00 EST <![CDATA[Bogus car hauler stealing luxury autos from dealers in several states?]]> http://www.autoblog.com/2009/12/06/bogus-car-hauler-stealing-luxury-autos-from-dealers-in-several-s/ http://www.autoblog.com/2009/12/06/bogus-car-hauler-stealing-luxury-autos-from-dealers-in-several-s/ http://www.autoblog.com/2009/12/06/bogus-car-hauler-stealing-luxury-autos-from-dealers-in-several-s/#comments Filed under: , , ,

Hauler

Luxury cars are nice. Most people would consider some kind of sacrifice to own one, while others plant their behinds in Corinthian Leather through ill-gotten gains. When something is desirable, there's no end to the scheming. The latest tactic for driving luxe without earning it is pretty blatant: just show up and take it! Automotive News reports that the FBI is currently looking into an operation that's using the identity of Atlas Towing and Recovery of Illinois, a real, legitimate business, to take luxury vehicles right out from under the noses of dealerships.

The false haulers are apparently showing up at dealers and picking up cars using Atlas Towing's credentials, causing the National Auto Auction Association to send out a warning. Over the summer, Manheim Auto Auctions also got hit with a fake car hauler, and that operation is believed to be connected to the more recent activity. Dealers have been warned to notify the authorities if anyone posing as Atlas Towing and Recovery comes calling and and tries to pick up vehicles. It is pretty slick, though, showing up with a truck and an air of official-ness. Points for cleverness, but it's likely not clever enough to avoid capture eventually.

[Source: Automotive News - sub req, | Image: BringATrailer]

Bogus car hauler stealing luxury autos from dealers in several states? originally appeared on Autoblog on Sun, 06 Dec 2009 09:34:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]> auction auto theftAuctionAutoTheftauto theftauto theft schemeAutoTheftAutoTheftSchemecar auction theftcar theftcar theftsCarAuctionTheftCarTheftCarTheftsfake auto transport schemeFakeAutoTransportSchemevintage auto theftVintageAutoTheft Sun, 06 Dec 2009 09:34:00 EST