Cheers and Gears: News

Interactive Review: 2012 Buick Verano

Wed, 16 May 2012 03:30:41 +0000

William Maley
Editor/Reporter - CheersandGears.com
May 16, 2012

As the Chevrolet Malibu Eco leaves the Cheers and Gears Detroit garage, another vehicle arrives to take its place. The vehicle is the smallest Buick of them all, the new Verano.

The Verano is equipped with a 2.4L four-cylinder producing 180 HP and 171 lb-ft of torque, and a six-speed automatic.

First impressions so far: The Verano is very, very quiet. Something I appreciate very much. Also, I'm finding the 2.4L to be an ok powertrain in the short time I had it.

I will be updating with my thoughts about the Verano throughout this week. In the meantime, send your questions in.

Tesla To Begin Paying Back U.S. Goverment Loans

Tue, 15 May 2012 22:10:03 +0000

William Maley
Editor/Reporter - CheersandGears.com
May 15, 2012

Tesla announced this week they will begin to pay back their loans from the U.S. Government later this year.

Tesla chief financial officer Deepak Ahuja told Bloomberg this week, "We are delivering on the milestones, what we're committed to...once we are delivering customer cars, that signifies completion of the project".

This suggests once Tesla begins delivering the new Model S sedan out to customers, they will begin paying back the Department of Energy loans.

Tesla also announced this week that the first Model S sedans will begin flowing out to customers in June, a month ahead when they originally put it.

“We are pleased that Tesla continues to make progress and look forward to working with them as clean, electric vehicles play an important role in our energy future,” said Damien LaVera, an Energy Department spokesman.

Source: Bloomberg

Porsche Introduces The 918 Spyder Prototype

Tue, 15 May 2012 17:45:58 +0000

William Maley
Editor/Reporter - CheersandGears.com
May 15, 2012

Porsche has just completed the initial prototypes of the new 918 Spyder, complete with a black-and-white livery that pays homage to the 917 race cars. Production is set to begin next September with the pricetag starting at a whopping $845,000 per model.

But with that price, you do get a 570 HP, 4.6L V8 and two electric motors delivering a peak output of 770 HP. That powertrain should be good a 0-60 run of 3.1 seconds, a top speed of 199 MPH, run on electricity alone up 94 MPH, and return around 78 miles per gallon on the EU cycle.

Press Release is on Page 2

918 Spyder prototypes commence trials

Stuttgart. The Porsche 918 Spyder is on the road: Dr. Ing. h.c. F. Porsche AG, Stuttgart, has taken the driving trials of the super sports car of the future a step further with completion of the initial prototypes. The 918 Spyder will go into production at the end of September 2013 as planned, with the first customers receiving their vehicles before 2013 is out. "What we are doing with the 918 Spyder is redefining driving fun, efficiency and performance," said Wolfgang Hatz, Member of the Executive Board Research and Development of Porsche AG.

The prototypes, their camouflage harking back to historical Porsche 917 racing cars, signal the final touches to the 918 Spyder. The focus is on the interplay between the highly sophisticated individual drive components. The combination of combustion engine and two independent electric motors – one on the front axle and one in the drive line, acting on the rear wheels – poses completely new demands on the development of the operating strategies. "They are therefore a critical component in this vehicle into which we have put all of our expertise and capacity for innovation," said Wolfgang Hatz. These operating strategies and the development of the software to go with them are one of Porsche's core competences. Both of them have a major influence on the extreme driving fun to be had with the 918 Spyder and they make possible a unique combination of minimal fuel consumption and maximum performance. The initial results of the driving trials are in line with the high expectations placed on the 918 Spyder.

The super sports car is designed as a plug-in hybrid vehicle combining a high-performance combustion engine with cutting-edge electric motors for extraordinary performance: on the one hand, the dynamics of a racing machine boasting more than 770 hp, on the other hand, fuel consumption in the region of three litres per 100 kilometres. Moreover, Porsche is breaking yet more new ground with the technology demonstrator with spectacular solutions such as the full carbon fibre reinforced plastic (CFRP) monocoque with unit carrier, fully adaptive aerodynamics, adaptive rear-axle steering and the upward-venting "top pipes" exhaust system. In the process, the 918 Spyder is offering a glimpse of what Porsche Intelligent Performance may be capable of in future.

Senate Passes Manditory Black Boxes In Vehicles...

Tue, 15 May 2012 02:22:23 +0000

William Maley
Editor/Reporter - CheersandGears.com
May 15, 2012

Its been working its way through the halls of congress, but according to Car and Driver, the "black box" mandate for cars could be in the books. The Senate has already voted to adopt a transportation bill that has a provision mandating event data recorders to be equipped into new vehicles starting in 2015. The House of Representatives is considering a version with slightly different language.

The current state of the bills are "vague". In the Senate version, the bill states that devices must “capture and store data related to motor vehicle safety” and release this information to an “interoperable data access port.” Changes are expected if this does go into law.

Of course, when you bring up government regulations and "black boxes", the tin foil hats come out. Currently in the Senate version, there's a provision that the data contained in the little electronic box is actually owned by the owner of the vehicle. If the law wants access to the data, they will likely have to get a court order. But there is a caveat: first responders such as paramedics would also have access to the data, without a court order, if it would help them in an emergency.

Source: Car & Driver, GovTrack.us (To see the Senate version of the bill)

Rumorpile: Next Infiniti G To Arrive In 2013?

Mon, 14 May 2012 22:17:27 +0000

William Maley
Editor/Reporter - CheersandGears.com
May 14, 2012

The current Infiniti G Sedan, Coupe, and Convertible has been around since 2007 battling against the likes of the Audi A4, BMW 3-Series, and Mercedes-Benz C-Class to name a few. But with the competition in the compact luxury sedan market heating up once more with the new BMW 3-Series, Cadillac ATS, and a refreshed Audi A4 and Mercedes C-Class, Infiniti is readying a new G.

Inside Line sat down with Nissan and Infiniti's Global Business Unit Excutive Vice President, Andy Palmer to talk about various Infiniti productions. During the chat, Palmer revealed the next G will come out next year as a 2014 model.

Palmer didn’t reveal any other details about the next G. But we do Infiniti could be using a mix of Mercedes-Benz and their own powertrains. Also, there is talk about a hybrid model coming.

Source: Inside Line

Chevrolet Introduces Their New Global Crossover...

Mon, 14 May 2012 15:08:55 +0000

William Maley
Editor/Reporter - CheersandGears.com
May 14, 2012

Chevrolet is introducing a new global-market crossover called the Trax. The Trax will serve as the brand's only global crossover.

The Trax appears to be closely related to the Opel Mokka and Buick Encore crossover. The only change appears to be the Trax getting its own fascia.

Chevrolet is being quiet on specific details about the new Trax. Our guess that it will likely share the same engine lineup as the Mokka and Encore, and come in front-wheel and all-wheel-drive.

Chevrolet says the the Trax will make its debut at the Paris Motor Show in September, with sales beginning in the forth quarter in Mexico and Canada. The U.S. won't be getting the Trax "because of the strong position of the Equinox."

Press Release is on Page 2

Chevrolet Will Add New Small SUV to Global Lineup

Trax will debut at Paris Motor Show and be sold in more than 140 countries

DETROIT – The Chevrolet Trax, an all-new small sport utility vehicle, will join the Chevrolet global portfolio and make its debut at the Paris Motor Show in September.

With room for five passengers and class-leading cargo space, Trax will meet the needs of customers in more than 140 markets. Mexico and Canada will be the first markets to launch the crossover in the fourth quarter of this year. Because of the strong position of the Equinox, there are no plans to introduce the Trax in the U.S. market.

“The Trax provides Chevrolet an entry into a growing small SUV segment and delivers the flexibility, great fuel economy and car-like handling that urban explorers around the world require,” said Mary Barra, GM senior vice president of Product Development. “After a record sales year in 2011 and a record first quarter, Chevrolet continues to meet customer needs by expanding its portfolio with strong new entries.”

Chevrolet has recently introduced a new Malibu mid-sized sedan, Colorado pickup, TrailBlazer mid-sized SUV and Cruze station wagon. When it joins its siblings in the showroom, Trax will possess the same pioneering spirit and expressive design that defines each new Chevrolet.

Trax exhibits its SUV toughness and capability in a small package through a muscular exterior design and wide athletic stance. While its contemporary form evolves the global Chevrolet design aesthetic, Trax’s interior and details will be executed to standards usually found in more expensive vehicles.

BMW Shows The New 3-Series Wagon, Coming To The...

Mon, 14 May 2012 02:24:28 +0000

William Maley
Editor/Reporter - CheersandGears.com
May 14, 2012

With the introduction of the new 3-Series sedan earlier this year, we knew that it would be followed by the new wagon, coupe, and convertible. Well, BMW has introduced the second 3-Series model, the 3-Series wagon.

The new 3-Series wagon is larger and boasts 10% more space than the outgoing model. As with the 3-Series sedan, the wagon will come in Sport, Luxury, Modern, and M Sport lines; each providing their own twist on the exterior and interior design.

Inside, the back seats split 40:20:40. There's also a hidden storage compartment, a standard partition net, and an automatic tailgate with separate rear window opening that with an optional package, can become hands free.

Engine lineup for Europe includes the 328i (245 HP), 320d (184 HP), and 330d (258 HP). All engines will have the option of xDrive AWD.

The new 3-Series wagon arrives at European dealers later this year. As for North America, BMW says the wagon will arrive next year. Powertrains and other details for the N.A. spec will come out sometime later.

Press Release is on Page 2

All-New BMW 3 Series Sports Wagon
The favorite wagon of enthusiasts will again be available in the US

Woodcliff Lake, NJ – May 12, 2012 6:00pm EDT... BMW today released the first images and information on the next generation BMW 3 Series Sports Wagon and announced that, as with the two previous generations, this model will be offered in the US. Unlike anything else on the market, the all-new 3 Series Sports Wagon will again offer the flexibility and utility one would expect from a premium wagon combined with the driving dynamics of the quintessential sport sedan, the BMW 3 Series. The new BMW 3 Series Sports Wagon will launch in Europe later this year and is set to arrive in US showrooms in Spring 2013. Powertrain details for the US as well as pricing, specifications and standard/optional equipment will be announced at a later date.

Like its Sedan sibling, the new 3 Series Sports Wagon is slightly larger than its predecessor, most notably its wider track (front + 37 mm/1.46 in., rear + 48 mm/1.85 in.). The car's length (+ 97 mm/3.66 in.) and wheelbase (+ 50 mm/1.96 in.) also accentuate its sporting promise. Inside the new BMW 3 Series Sports Wagon, rear passengers will appreciate the noticeable increase in space made possible by the larger dimensions. These larger dimensions also pay dividends in utility with nearly ten percent more cargo volume both with the rear seats up and when folded.

The new 3 Series Sports Wagon will be the next model to offer BMW Lines as a way to tailor the car to individual tastes, just as with the Sedan, by choosing from a trio of trim and equipment variants – the Sport Line, Luxury Line and Modern Line. Each presents its own individual take on the character of the Sports wagon, with exclusive, high-quality trim and material combinations. For the enthusiast who wants to go beyond even the Sport Line, the M Sport Line will also be offered because it is, after all, a BMW 3 Series at its heart.

Striking face with precise contours and multi-faceted surfaces.
Characteristically, the sporting nature of the new BMW 3 Series Sports Wagon is made apparent to the eye by its wide track. By accentuating the width of the car, the multi-faceted surfaces of the expressive front fascia give the 3 Series Sports Wagon a more athletic face than ever.

A three-dimensional interpretation of the upright, slightly forward-slanting BMW kidney grille emphasizes an assured presence. LED accent lights positioned like eyebrows above the traditional four round headlights with corona rings (if Adaptive Xenon headlights are specified) lend an extra intensity to the classic BMW focused look. Clearly defined headlight surrounds now extend up to the frame of the kidney grille, merging the headlights and grille into a single stylistic element and adding further emphasis to the car's broad-set stance. The 3 Series Sports Wagon replaces the central air intake of its predecessor with two larger intakes, which are positioned underneath the headlights to the outer edges of the front fascia and add extra depth to the car's sporty look. On the left and right edges of the main ducts are small vertical intakes which help create the "Air Curtain". This new technology improves air flow around the front wheels, enhancing aerodynamic efficiency and reducing fuel consumption at higher speeds.

The closely spaced, squat openings of the kidney grille, with their eye-catching surrounds, form the most prominent element of the new BMW 3 Series Sports Wagon's front design. It is also where the precise lines of the dynamically contoured hood begin at the base of the A pillars and flow over the full length of the hood. The result is a front that appears lower-slung, giving 3 Series Sports Wagon a clear sporting edge when viewed head-on.

Precise lines produce a silhouette that enhances the car's dynamic impact.
Powerfully taut surfaces with sweeping lines dominate the side view of the BMW 3 Series Sports Wagon, stretching the car visually and lending extra verve to its dynamic stance. The flanks of the car are shaped by an eye-catching double character line running alongside each other. The higher character line emerges out of the low-slung nose and flows over the front wheel with an understated sweep, in a nod to the wagon's fleetness of foot. The second character line develops lower down behind the front wheel and follows a delicately arching path towards the rear. Together, they reinforce the dynamic wedge shape of the car's flanks. As well as providing a discreet increase in muscularity in the rear section below the character line, these styling cues also create vivid light and shade effects, which draw further attention to the car's wide track.

The car's athletic overall impression is emphasized by the steeply raked D-pillars, the angle of the rear window and the subtly wedge-shaped geometry of the window surfaces. The roofline – which slopes downwards slightly to the rear and is extended visually by a spoiler – and the "Hofmeister kink" at the foot of the D-pillar also generate a sense of dynamic tension. The finely balance between the greenhouse and the body lends the new BMW 3 Series Sports Wagon a sporty, elegant and nimble look, while the rear lights extend well into the sides of the body and combine with its flowing lines to create a harmonious transition between the flanks and rear section.

The rear of the new BMW 3 Series Sports Wagon also boasts a blend of sporting elegance and modern practicality. The horizontal lines and L-shaped lights set far to the outer edges accentuate the subtly flared fenders and the wider track. Two integrated bars of LEDs allow a slim light design and ensure they maintain an appearance that is instantly recognizable as a BMW both day and night. The positioning of the lights at the outer edges of the rear underline the car's hunkered-down stance on the road. The large tailgate opening and low sill make loading and unloading bulky items that much easier.

The new BMW 3 Series Sports Wagon again features a rear window that opens separately from the tailgate. The window is unlocked electrically via a button on the rear window wiper arm and opened by hand. This practical function makes it easier to load and unload smaller items – especially when space is tight, as the rear window opens up rather than out.

In order to make access to its generous cargo area easier, a power tailgate will be offered for the first time on a 3 Series Sports Wagon. Getting into the cargo area can be done at the touch of a button, either on the remote key or from inside the interior. Access is made even easier when Comfort Access is ordered, which will include the Hands Free Opening Tailgate. If one approaches the new 3 Series Sports Wagon with hands full, one need only stick a foot under the rear bumper and the tailgate automatically swings open.

Practicality and versatility: Hallmarks for the new 3 Series Sports Wagon
The new BMW 3 Series Sports Wagon offers remarkable flexibility. A net as well as an additional strap along the right side panel can be used to help secure cargo. Four tie-downs are integrated into the cargo floor. A net along the left-hand panel will also be available. A pair of coat hooks and an addition 12-volt outlet add an extra measure of flexibility. A storage tray under the load compartment floor and a deep stowage compartment on the left-hand side of the cargo area can accommodate smaller items. Another neat twist, the luggage compartment cover can be stowed away under the load compartment floor, allowing it to be kept in the car even when not in use. Also standard is a separate partition net, which can be employed in a variety of ways even when the rear seat backrests are folded down. The rear seats can be folded down in three sections in a 40:20:40 split. The large through-loading facility allows the new 3 Series Sports Wagon to carry four adults and longer items, such as skis or snowboards, at the same time.

In addition to the flexibility and utility offered by the interior of the new BMW 3 Series Sports Wagon, other features unique to this model includes roof-rails to accommodate all manner of storage racks for everything from bicycles and skis to cargo boxes. It will also be available with a full glass panoramic sunroof.

BMW ConnectedDrive: The latest in safety and infotainment
With its broad range of driver assistance systems and mobility services, all offered as part of BMW ConnectedDrive, the new BMW 3 Series Sports Wagon sets a new benchmark when it comes to safety, convenience and infotainment. To ensure that the available features deliver the maximum benefit, the exchange of information between the passengers, the vehicle and the outside world is managed by BMW ConnectedDrive.

The new BMW 3 Series Sports Wagon is available with a full-color Head-Up Display. It projects key information in sharp resolution onto the windshield in the driver's direct field of vision. Depending on the vehicle specification the speed limit is noted in addition to the car's speed. The driver can also see navigation instructions and various alerts in the Head-Up Display. Thanks to the wide variety of driver assistance systems available in the new BMW 3 Series range, more information can be placed in the driver's direct line-of-sight while their eyes remain squarely on the road.

State-of-the-art camera technology provides the potential for new levels of safety and convenience. Active Safety options include Lane Departure Warning as well as Blind Spot Detection. Backing up and parking both are made easier with the available Rear-view Camera with Top View which provides a bird's-eye view of the car. Another convenience-enhancing assistance system is the BMW Parking Assistant, which takes charge of maneuvering into parking spaces making parallel-parking a breeze.

BMW Assist, a globally unique mobility service, comprises among other features a telephone information service and BMW's industry-leading enhanced Automatic Collision Notification function with automatic detection of the vehicle location. BMW Assist also includes Bluetooth hands-free phone connectivity.

Other innovative technologies allow the integration of the Apple iPhone and other smartphones as well as music players, including the use of Internet-based services. The Apps option enables iPhone users, among other things, to receive Internet radio stations and to display Facebook and Twitter posts on the onboard monitor. With BMW Apps, iPhone users can access and listen to music streaming services like Pandora and MOG today with Stitcher coming soon.

The all-new BMW 3 Series Sports Wagon again brings the versatility of a wagon with the driving dynamics of the quintessential sport sedan. The new 3 Series Sports wagon will be arriving in US showrooms in spring 2013. Powertrain details for the US as well as pricing, specifications and standard/optional equipment will be announced at a later date.

Caroll Shelby Passes Away At Age 89

Fri, 11 May 2012 20:30:57 +0000

William Maley
Editor/Reporter - CheersandGears.com
May 11, 2012

Automotive legend Caroll Shelby passed away last night at the age of 89 after a lengthy illness at the Baylor Hospital in Dallas, TX.

Shelby's shadow extended nearly across automotive world. In the fifties, Shelby was a highly accomplished racer. He would win three U.S. sports-car championships, the 1959 24 Hours of Le Mans, and set land speed records at Bonneville. However, a heart condition in 1960 would cause him to stop racing.

But that didn't stop Shelby. During the sixties, Shelby would be known for building the Shelby Cobra and his partnership with Ford, building the Shelby GT350 and GT500 Mustangs. Racing would still be a big part of Shelby's work as Daytona Cobras and GT40s terrorized Ferrari, Porsche, and Jaguar on their own turf.

In the eighties, Shelby would hook up with Chrysler to produce a number of specialty cars and trucks, including the Onmi GLH and GLHS.

Beyond that Shelby grew his business into a "skunkworks," doing research and development for auto companies. In 2005, Shelby and Ford buried the hatchet from a disagreement in the seventies and would work together once again building high performance Mustangs.

However it wasn't always good times for Shelby. He made some shaky business deals, held grudges, and would go to court over trademarks with Ford, AC Cars (Ironically) and Cobra replicar manufacturers Superformance International, Inc. and Factory Five, Inc.

But the most inspirational and remarkable fact about Caroll Shelby's life was how hard he worked with his heart condition. That would land him with a heart transplant in 1990. Six years after the heart, he would get a kidney transplant from his son.

In a statement released today by Shelby American, President Joe Conway said,

“We are all deeply saddened, and feel a tremendous sense of loss for Carroll’s family, ourselves and the entire automotive industry. There has been no one like Carroll Shelby and never will be. However, we promised Carroll we would carry on, and he put the team, the products and the vision in place to do just that.”

Source: Autoweek, Motor Trend, Motoramic

Interactive Review: 2013 Chevrolet Malibu Eco

Fri, 11 May 2012 18:48:21 +0000

William Maley
Editor/Reporter - CheersandGears.com
May 11, 2012

Spending the next few days here in the Cheers and Gears Detroit garage is the 2013 Chevrolet Malibu Eco. This is Chevrolet's second hybrid sedan; the first being the last generation Malibu Hybrid sold from 2008-2009.

The Malibu Eco comes equipped with GM's eAssist mild hybrid system. The system provides a 15 HP and 79 ft-lb of torque boost to the 2.4L four-cylinder engine's 182 HP and 171 lb-ft of torque.

So how does it drive? It drives pretty nice. The eAssist setup provides enough low-end torque to get off the line. Once going, the 2.4L is more than adequate to get you around town.

I have some more updates throughout the weekend dealing with fuel economy, driving, and Chevrolet's new MyLink infotainment system. In the meantime, send your questions in.

Deaths On U.S. Roads Declining

Fri, 11 May 2012 03:14:53 +0000

William Maley
Editor/Reporter - CheersandGears.com
May 11, 2012

According to the National Highway Traffic Safety Administration, traffic deaths are at their lowest levels since 1949.

NHTSA's preliminary numbers show an estimated 32,310 people died in traffic accidents last year, a 1.7% drop from 2010 where 32,885 people died. Deaths in traffic accidents has been decreasing by 26% since 2005.

New England and the Great Lakes region saw the biggest decrease in car accident deaths in 2011, with the former down 7.2% and the latter down 3.3%. California, Arizona, and Hawaii saw a 3.3% increase.

AAA says the decrease is due several factors, primarily being motorists drove 1.2% fewer miles last year and gas prices increased 6.7%. Vehicles are also being fitting with more standard safety equipment.

Source: The Detroit News, Kicking Tires

Cash-Burning Opel a �Four-Alarm Fire,� Restruct...

Thu, 10 May 2012 20:46:06 +0000

Blake Noble
Editor/Reporter - CheersandGears.com
May 10th, 2012

General Motors’ European operating firm Opel recently lost $256 million dollars in the first quarter of 2012, and changes are underway to stem the losses.

The waves of red ink washing in overseas at Opel are cutting deep into the Detroit automaker’s earnings. While GM posted net earnings of $1 billion dollars for this year’s first quarter, it knows things could’ve been much better if its European outpost were operating profitably.

Compared to the first quarter of 2011, GM’s earnings this time around were down by almost 69 percent because of its losses in Europe.

This has given GM CEO Dan Akerson especially some cause to worry. Akerson described the situation in a recent radio interview as a “four-alarm fire,” going on to say that Opel would “have to restructure again.”

It was barely six months ago that GM reorganized its European operations in a previous effort to turn the German brand around. During the shake-up, former president and CEO Nick Reilly was forced into retirement and replaced by Karl-Fredrich Stracke. Also transferring to Europe, among a host of others, were GM chief financial officer Dan Amman and GM Vice Chairman Steve Girsky. Girsky is now chairman of the board at Opel.

Eurozone malaise squeezing Opel, automotive industry

Opel’s troubles stem from a serious financial and economic crisis currently sweeping Europe.

Just last month, the economy of the United Kingdom skidded into its second recession since 2008. As many as one out of four people living in Spain are currently unemployed. Many European countries, such as Greece, are swimming in sovereign debt and are requesting bailouts from the European Union.

The crisis in Europe has understandably debilitated consumer confidence, and new car sales there are expected to drop as a result. European buyers are expected to buy almost 1 million fewer vehicles than their American counterparts this year and recovery isn’t expected overnight.

When the CFO of rival Ford spoke to CNN Money recently, he said that he didn’t expect European sales to return to a “normal” level of 15 million vehicles a year for the next four to five years.

Over at Opel, signs of a faltering market for 2012 are already beginning to show as it watched its market share decline 0.7 percent in the first quarter — from 7.3 percent in the previous year to 6.6 percent this year.

While Opel CEO Karl-Fredrich Stracke is confident that some market share can be regained in the future with new models like the upcoming Mokka subcompact crossover and Adam city car, he said that he didn’t foresee significant growth in the market for the next two years.

While Opel is feeling the burn of a weakened European economy and automotive marketplace, it isn’t going the ride alone. It’s worth noting competitors Fiat, Renault, and Ford Europe are also similarly struggling, as is GM’s new business partner Peugeot-Citroen PSA.

Restructuring coming

Earlier this week, Opel labor boss Wolfgang Schaefer-Klug said to reporters amidst 4,000 striking workers at Opel’s Russelsheim plant that a restructuring deal could take 2 to 3 months.

Schaefer-Klug said a deal to bring the money-burning automaker back to profitability was “necessary and realistic.”

In early March, Opel CEO Karl-Fredrich Stracke also said that restructuring talks could take 2 to 3 months. Just last week, however, he told reporters that it could take an additional 2 months before he could disclose the complete details.

The restructuring at Opel is expected to mainly focus on cutting costs and over production, in order to adjust to the shrinking European market.

“We’ve got to get the break even point lower, get the revenue higher, in order to be profitable in that kind of market environment,” CFO Dan Amman told analysts back in January.

CEO Stracke would go on to say to reporters this month: “We're working intensively on increasing efficiency to improve profitability of the company in a difficult market environment as soon as possible.”

Opel lost an average of $628 dollars for each of the 1.19 million cars it produced last year. This is because its fixed costs are geared toward an additional half-million vehicles — a number worth the equivalent of two major manufacturing plants.

Plant closures out for now

While Opel will trim back production capacity, it denies rumors that it will shutter its plants in Ellesmere Port, UK and Bochum, Germany as part of the restructuring talks.

“We are not addressing any plant closures until 2014,” Stracke said recently.

Although labor boss Schaefer-Klug didn’t comment on the future of the Bochum plant, he didn’t think Ellesmere Port was in danger of closing. “I’ve heard no speculation that they want to close the plant,” he said.

In fact, it seems that Opel has considered relocating production of its compact Astra hatchback after 2015 exclusively to Ellesmere Port and Gliwice, Poland from Russelsheim, Germany. While such a move would cut costs and could boost production, it was met with red-hot disapproval from employees in Germany.

Schaefer-Klug especially rejected that the fact the Russelsheim plant produced only 18,000 Astras out of a total of 330,000 last year made producing the model there relatively insignificant.

“It’s complete rubbish to say that the Astra isn’t important for this plant,” he said, noting that Opel’s home plant is set to build 70,000 Astras this year.

Is saving GM’s burning European ship hopeless?

Since 1999, Opel’s losses have continued to mount and, since 1993, its market share has continued to shrink, leaving some observers to almost dismiss any prospect of the German brand returning to good health.

As much as $13 billion dollars has been lost by the European firm over the past 13 years, and its market share has deflated by 5.3 percent in EU and EFTA countries during the course of almost two decades.

“I almost see Opel’s problems as not solvable,” said industry watcher Maryann Keller in a Bloomberg report back in January.

Analysts also point out that Opel has significant image issues to trump, that it doesn’t have the standing of competitors like Volkswagen to charge prices that would cover costly German labor rates.

But there is some hope for GM’s troubled Euro brand. GM could expand Opel’s dealer network in China with the help of partner SAIC. Morgan Stanley analyst Adam Jonas even went so far as to suggest in a research note written at the beginning of the year that an alliance with SAIC could improve business efficiency at Opel.

The German brand is also set to launch in Australia this year, and that could bring about a slight upward nudge in sales if buyers there respond favorably.

There’s also Peugeot PSA’s partnership with Opel’s parent company. In March, board chairman Steve Girsky said that the union would begin to generate cost savings by the second half of this year.

The alliance between the two firms is expected to eventually save $2 billion annually within 5 years and give GM and PSA better leverage when purchasing components and raw materials. GM and PSA are also expected to share development costs on future vehicles.

While there’s still a rough economic storm ahead for Opel to weather, if GM restructures its European operations to be smarter and leaner, the 150 year-old German company could very well have a second big turnaround story to tell since it came back from the brink after WWII revenged Germany in the 1940s.

Sources: Automotive News (sub. req.), Bloomberg,WSJ (sub. req.) (3/6/12 and 5/10/12), Reuters, The Detroit Bureau, CNN Money, Detroit News, Financial Times

Infiniti Compact To Arrive In 2014, Built By Ma...

Thu, 10 May 2012 19:09:02 +0000

William Maley
Editor/Reporter - CheersandGears.com
May 10, 2012

We've been hearing about a new Infiniti compact car to take the Audi A3, BMW 1-Series, and Mercedes-Benz A-Class for the past year or so. What we didn't know was when the new compact would arrive, until today.

Nissan announced a new deal with Magna Steyr to build the new compact in 2014. In a statement, Nissan said Manga Steyr has begun work with them on the production model.

The new compact will utilize Mercedes' new MFA compact platform that underpins the new A-Class. Mercedes will also provide other bits for the new compact, including four and six-cylinder engines.

Source: Automotive News (Subscription Required)

2013 Honda Accord Order Sheet

Thu, 10 May 2012 14:07:27 +0000

William Maley
Editor/Reporter - CheersandGears.com
May 10, 2012

Even though Honda hasn't showed off the production version of the new 2013 Accord, the order sheet has made a surprise appearance.

The Temple of VTEC got their hands onto an order sheet for the 2013 Accord. Besides a new six-speed automatic for V6 models and a new CVT for the four-cylinder models, there are two new model designations.

On the sheet, there is an Accord Sport and an Accord Touring models. The Sport sits between the LX and EX four-cylinder sedans, and the Touring sits as the top of line model. As to what they'll bring, no one is quite sure at the moment.

Source: Temple of VTEC

Rumorpile: Another Day, Another Omega Platform...

Thu, 10 May 2012 03:37:06 +0000

William Maley
Editor/Reporter - CheersandGears.com
May 10, 2012

Its been a few months since we last heard anything about the rumored Omega RWD platform that could be underpinning future Cadillac flagships. Our last report in September said a sedan and hard top are in the works and will be appearing sometime in 2015.

A new report from Car and Driver says GM has a few Omega vehicles on the way, with the first one arriving sometime in 2015.

Omega will take hold of the larger RWD vehicles ranging from a midsize luxury sedan (CTS, 5-Series, E-Class) up to length of 207 inches (about the same length of an Audi A8L).

The first vehicle in question is the replacement for the still-need-be-launched Cadillac XTS. Car and Driver says the Omega-based replacement will arrive sometime in 2015. The vehicle will have GM's 3.6L DI V6 as a base, a twin-turbo version of the 3.6L, and V8 for an engine lineup. Also, a new eight-speed automatic and a new hybrid system are in the cards as well.

Going further down the rabbit hole, the long-rumored “flagship” Cadillac could eventually be spawned from the Omega platform; whether it takes the form of the Sixteen concept from 2003 or the Ciel concept from last year remains to be seen.

Source: Car and Driver

Related:
The Never Ending Story: More Rumors With The Cadillac Flagships
Omega Likely To Be Approved For Cadillac Flagship, More Hybrids

General Motors Files to Trademark Riviera Name

Thu, 10 May 2012 02:03:57 +0000

Blake Noble
Editor/Reporter - CheersandGears.com
May 9th, 2012

For a span of almost four decades, Buick’s classic Riviera models brought critical acclaim to one of GM’s oldest marques. Arguably GM’s first real success at building a “personal luxury car,” the Riviera was a “best-of” showcase for Buick offering class-competitive styling, luxury and technology.

While the Riviera name has been previously used on a concept car introduced for the 2007 Shanghai Auto Show, it hasn’t been applied to a production model since the last Riviera was built in 1999. Now, according to GM enthusiast website GM Inside News, there is the potential for a Riviera revival.

Last week, on May 3rd, General Motors filed to trademark the Riviera name with the US Patent Office for use on automobiles.

As GM Inside News mentions, it isn’t really much of a secret that automakers regularly trademark various names and wind up not putting them to use on a production car. On the other hand, AutoGuide points out that GM doesn’t trademark names unless it’s serious about putting them to use.

So then if GM intends to use the name, what would a new Riviera be like? At the moment, your guess is as good as ours.

While rumors of Buick adding a new coupe to its lineup have been rather persistent over the last few years, they’ve always been rather sporadic. At one point it was speculated that Buick would sell a coupe version of its Regal sports sedan, based on reports of Vauxhall getting the green-light to develop a two-door version of the related Insignia. There has also since been rumors of Buick building a rear-drive coupe based off of the Alpha platform used by the Cadillac ATS.

However, Car and Driver recently mentioned in a report on the upcoming Chevy SS sports sedan that GM’s Australian firm Holden was being tasked with developing two new rear-drive Buick vehicles primarily for China. The two Buicks would be based on a revised version of GM's Zeta platform. It’s obvious that one of those vehicles could be a replacement for the Holden Statesman-based Chinese Buick Park Avenue. But could the other be a Zeta-based Buick Riviera coupe?

Sources: GM Inside News, AutoGuide, Car and Driver