Report: Morgan Stanley says GM should bail on Opel

Filed under: Europe, Government/Legal, GM, Earnings/Financials, First Drives, Opel

General Motors should walk away from its European brand and settle its losses, one financial institution said this week in a report.

Morgan Stanley analysts said Thursday that Opel has cost GM $10 billion to $20 billion over the past three years, and if GM keeps the brand, it will cost it up to another $12 billion over the next 10 years. Even selling off Opel could cost GM up to $13 billion, the report concluded.

GM considered selling off the brand three years ago when the company filed for bankruptcy protection. However, that plan ultimately failed when the board of directors turned it down. Since then, Opel has had several changes in leadership and remains plagued with financial problems.

Of course, GM remains supportive of Opel in public. "We are committed to Opel and believe we can restore it to long-term profitability," GM spokesman Jim Cain told the The Detroit Free Press in an e-mail.

Morgan Stanley says GM should bail on Opel originally appeared on Autoblog on Fri, 07 Sep 2012 15:46:00 EST. Please see our terms for use of feeds.

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Report: Bentley Mulsanne convertible expected to be greenlit this year

Filed under: Convertible, Bentley, Luxury

That was quick - it was only was only three weeks ago that the Bentley Mulsanne Vision concept, a droptop take on the brand's flagship sedan, was sketched out for the Pebble Beach crowd. Now Autocar reports that a production version is expected to be approved later this year, with a launch something like two years away. And even though it hasn't been officially given the go-ahead, it has a price: "at least £275,000" ($436,232 U.S.). That price would make for a £50,000 premium ($79,313 U.S.) - at least - over the current UK price of the Mulsanne sedan.

Just as the Continental GTC differs from its coupe sibling, Autocar says the Mulsanne cabrio would be unique from the A-pillars back as compared to the sedan. Shortened by roughly six inches in both length and wheelbase, frameless doors and a lowered windshield will contribute additional rakishness, and note the rear fender treatment meant to evoke the fifties-era Bentley R Type in the upper right corner of the sketch above. At launch it is predicted that power will come from the twin-turbo 6.75-liter V8, but Autocar predicts that V12 power being developed for the production version of the EXP 9 F SUV will eventually find its way up front.

Bentley Mulsanne convertible expected to be greenlit this year originally appeared on Autoblog on Sat, 08 Sep 2012 17:47:00 EST. Please see our terms for use of feeds.

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Report: Alfa Romeo's U.S. rebirth delayed. Again.

Filed under: Europe, Alfa Romeo

Alfa Romeo has been threatening to re-enter the North American market for a while now, and the latest word, via Automotive News, is that Alfa has whiplashed back to being off again, for now. Then there's that thing about Volkswagen maybe buying Alfa from parent Fiat, though that's also likely on hold until the voracious German gets its latest acquisitions settled in. Fiat has repeatedly denied that Alfa is for sale.

Sergio Marchionne will lay out the newest plan for Alfa Romeo at the end of October, about the time we were supposed to be getting a compact crossover. The 4C will still probably wow the crowd at the North American International Auto Show in January, but actual vehicle rollout and sales plans are shifting. That's partially due to increased slack in European demand for Alfa Romeo vehicles, which have required volume projection adjustments.

For now, the 4C will likely lead the charge, with the next-generation Giulia being a good bet for the next Alfa on offer. We should also see the Alfa Romeo sibling to the new Jeep Liberty that's rolling out next year. The Alfa version will follow in 2014 and be built alongside the Jeep in Toledo.

Alfa Romeo's U.S. rebirth delayed. Again. originally appeared on Autoblog on Sun, 09 Sep 2012 14:03:00 EST. Please see our terms for use of feeds.

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Report: Why new cars are more dangerous for emergency responders [w/video]

Filed under: Safety, Technology, Videos

Among the best reasons to buy a new car are the safety improvements that have been made across the industry over the past decade. Yet safer cars for drivers and passengers haven't meant an improvement for first responders. On the contrary, the added complexity and new technologies employed in modern vehicles routinely frustrate firefighters attempting to save occupants involved in a crash.

According to USA Today, part of the problem facing rescuers is just knowing what hazards might be lurking beneath the sheetmetal. From high-strength steel that's difficult to cut to airbags hidden in every nook and cranny, rescuers face not just frustration, but real danger. Like high-voltage systems in hybrids and electric cars, some of which can be difficult to tell apart from conventional models, according to the report.

To complicate all of this, firefighters are often left in the dark by automakers, and when they do get to practice on vehicles, often those are older models. But things are changing, as industry groups, including the Society of Automotive Engineers, are working on addressing some of these new challenges. The engineering group is close to recommending a new standardized labeling system for electrified vehicles, according to the report.

Scroll down to watch the accompanying video, and click here to read the entire story.

Continue reading Why new cars are more dangerous for emergency responders [w/video]

Why new cars are more dangerous for emergency responders [w/video] originally appeared on Autoblog on Thu, 09 Aug 2012 19:20:00 EST. Please see our terms for use of feeds.

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Report: <i>Consumer Reports</i> calls out "Five Popular Cars To Avoid"

Filed under: Car Buying, Dodge, Ford, Honda, Jeep, Toyota

Those crusaders of shopping empowerment over at Consumer Reports have put together a list of five cars to avoid, even if their sales numbers suggest otherwise. CR points out that just because a vehicle is making a lot of buzz and ringing cash registers, that doesn't necessarily make it a wise choice for buyers. According to the report, these are vehicles that either tested poorly or have been experiencing poor reliability in their new car surveys.

Perhaps of little surprise is the presence of the Honda Civic on this list. The latest Civic has been getting dinged by auto critics left and right, and CR specifically points to a "Choppy ride, noisy cabin, vague steering, and mediocre interior quality" as reasons for its inclusion on the list. Its a good thing, then, that a short-term update is its way.

Perhaps unsurprisingly, Consumer Reports once again voices its disapproval of the Toyota Prius C. We knew they weren't in love with it when they reviewed it back in May, and apparently the passage of time hasn't softened their opinions of Toyota's least-expensive hybrid.

Check out the gallery of all five cars that Consumer Reports is telling buyers to avoid and then weigh in with your thought in Comments.

Consumer Reports calls out "Five Popular Cars To Avoid" originally appeared on Autoblog on Thu, 09 Aug 2012 11:29:00 EST. Please see our terms for use of feeds.

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Report: Suspended Allmendinger says he failed drug test because he popped acquaintance's pill

Filed under: Motorsports, Government/Legal, Hirings/Firings/Layoffs

Suspended NASCAR driver AJ Allmendinger claims he was given the pill that led to his suspension by a friend of a friend, in a Fox Sports report. Allmendinger says he was out with a "buddy" following several sponsor commitments, and revealed to his friend that he was not sleeping well. Allmendinger says he was struggling to stay awake when "One of his friends said, 'Oh I have an energy pill that I take for working out'."

That evening occurred three days prior to testing positive for amphetamine during a random drug test at Kentucky Speedway on 6/29. NASCAR officials determined what they found on him were the same chemical compound as found in Adderall.

Allmendinger was quiet regarding that evening up until this point. "I had to do some soul searching before I came out publicly" he told Fox Sports.

Per NASCAR's no-tolerance policy, Allmendinger was suspended from the following weekend's Daytona race. According to the suspended driver, it had not even occurred to him that the pill he took three days before the race was a banned substance.

Following the suspension, Allmandinger, who was in his sixth year in NASCAR, lost his ride. He was released from Penske racing and is now taking the steps to get back into racing. He has made plans to enter NASCAR's Road to Recovery program, hoping it will lead to his reinstatement.

Suspended Allmendinger says he failed drug test because he popped acquaintance's pill originally appeared on Autoblog on Wed, 08 Aug 2012 18:00:00 EST. Please see our terms for use of feeds.

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Report: Akerson: GM Marketing a group effort

Filed under: Hirings/Firings/Layoffs, Marketing/Advertising, GM

Joel Ewanick split, and many suspected he was forced out the door of the Renaissance Center by General Motors Chairman and CEO Dan Akerson. We may never know if the move was a result of anger in the boardroom, but Akerson took the time during GM's quarterly earnings conference call to point out that GM Marketing is more than one man.

"The fundamental approach is, no change" said Chief Financial Officer Dan Ammann, making earlier statements about Ewanick's conduct not meeting the expectations of General Motors seem all the more personal. On a strictly professional basis, a deal with two English soccer teams and unfavorable advertising metrics, not to mention market share loss, have been cited as reasons for Ewanick's ouster.

Curiously, though, in the face of what seem to be plenty of examples of missed expectations and the need for a revamp, Akerson defends the automaker's strategy, which was presumably presided over by Ewanick. "I know a lot of public views this as a personality-driven industry," clarified Akerson, "It's a team effort. What you saw in the marketplace was a thought-out strategy that was agreed upon as a team." Firing the coach is a common move for teams that don't win, for sure, but taking a business-as-usual approach doesn't tend to clinch victories, and advertising decided upon by a committee tends to only excite said committee.

Akerson: GM Marketing a group effort originally appeared on Autoblog on Tue, 07 Aug 2012 09:13:00 EST. Please see our terms for use of feeds.

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Report: Ford taking Model T-like approach in China

Filed under: China, Ford

Ford Motor Company knows a thing or two about building an empire on the back of a rock-bottom-priced automobile sold to customers in rural regions. That's why the company's strategy in China has been baffling to some analysts. Fords are expensive in China, and there are only a few models that you can get there. This is a problem for Ford, especially as the market for new cars in China, once hotter than the sun, cools a bit. With other markets plumbing new depths, Bloomberg reports that Ford is going back to something like Henry's own game plan.

If you want to become a volume leader in the world," says Ford Motor China Ltd. Chairman and CEO Joe Hinrichs, "you'll have to compete at the lower price points because that's where the growth is." Ford is spending nearly $5 billion to build factories in Asia, with the goal of bumping sales to five times current levels by 2020. It's a strategy intended to beat back the aggressive moves of General Motors and Volkswagen deeper into the Chinese countryside.

"Nearly every established Western automaker has a jump on Ford selling cars in China. Ford hasn't helped itself by offering a limited selection of models at higher prices than the competition, either, though that's beginning to shift with low-priced offerings like the hot-selling Figo B-segment entry. Hinrichs thinks there's gold in the Chinese countryside, and that's why Ford's adding three utility vehicles to its Chinese offerings, importing the Explorer, and expanding local production to get vehicles in Chinese showrooms that don't have import duties tacked on.

With the car market in Europe teetering on the razor's edge of failure and North America still an open question, automakers are looking for more steady success, and executives seem to think that Asia has potential. Ford's going to try and make up lots of ground in what may prove to be the fight of its life, rather than merely an exceptionally ambitious growth plan in a market the Blue Oval was late in embracing.

Ford taking Model T-like approach in China originally appeared on Autoblog on Mon, 06 Aug 2012 18:29:00 EST. Please see our terms for use of feeds.

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Report: Mitsubishi still mulling selling Mirage in U.S.

Filed under: Budget, Japan, Hatchback, Mitsubishi

Let's be honest: The current Mitsubishi lineup here in the United States is mediocre at best. More to the point, its small car offerings like the aging Lancer and miserable i-MiEV are some of the slowest-selling cars in two of the most highly shopped segments. And with no replacements or updates for either in sight, things indeed look bleak.

But that doesn't mean new Mitsu metal won't be hitting our shores. Automotive News reports that the Japanese automaker is once again mulling bringing its new Mirage small car to the U.S., especially in light of its lofty goal of producing 500,000 examples of the small car around the world next year.

The Mirage indeed has attributes that would make it attractive to U.S. small car buyers. For starters, its 1.0-liter three-cylinder engine and continuously variable transmission work together to achieve the equivalent of 64 miles per gallon. And with its low price of ¥998,000 - about $12,550 based on current exchange rates - it could easily slot into the super-small car segment now occupied by the Scion iQ and Chevrolet Spark.

If the Mirage does get the green light for U.S. sales, it's hard to say exactly how quickly the cars will make their way Stateside. In speaking to Automotive News, Mitsubishi's president, Osamu Masuko, only said that, "We have to make a decision soon."

Mitsubishi still mulling selling Mirage in U.S. originally appeared on Autoblog on Tue, 07 Aug 2012 09:59:00 EST. Please see our terms for use of feeds.

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