Autoblog

It may be time to stop holding your breath. The planned deal between Chrysler LLC and the Chery Automobile Company to bring a Chrysler-badged Chery to our shores seems to be completely over... no, really this time. While there was nothing inherently wrong with the concept of importing the small fuel-efficient cars to North America (even if there were near insurmountable obstacles to overcome in the area of safety and emission standards), both companies have been crushed by the economy. According to a former Chery executive, "I wouldn't place much hope on it... both companies have their own problems to deal with, and both have run out of money." As neither company ever offered a public timetable for the arrival of the cars after the initial announcement early last year, the news is unlikely to come as a surprise.

[Source: Automotive News - Sub. Req.]

Soaked in bad news, GM and Ford received yet another dousing when their three big European credit insurers dropped them this week. Euler Hermes, Atradius, and Coface have all refused to write policies for suppliers trading with both automakers. The three giant insurance companies control more than 80 percent of the world's credit insurance (insurance companies typically pull their coverage when a client stops proving insurers with enough information to calculate a credit risk, or their overall risk profile has deteriorated). Without their credit cover, suppliers will be forced to either trade uninsured, cease trading, or ask for payment up front. Supply issues aside, this news only compounds the automaker's problems as it also weakens investor confidence, already completely slumped.

[Source: FT, free subs. req'd]

The all-new 2009 Hyundai Genesis sedan has been capturing more than its share of the spotlight this year. The luxury-oriented four-door sedan was launched with much ballyhoo over the summer. With a long list of standard features, a choice of six- or eight-cylinder power, and its sights pointed directly at some heavy-hitting established competition, the sedan rolled into showrooms with high expectations. After a few short introductory drives, Hyundai put both models in the Autoblog Garage so we could spend some time getting a bit more intimate with its new players. How solid is the chassis, engine and powertrain? How does the sedan hold up to the daily grind? How does the late-arrival fare against its status-laden competition? Find out after the jump.

Photos Copyright ©2008 Michael Harley / Weblogs, Inc.

Joining Denny's, Dunkin' Donuts and Dairy Queen, Dodge has rolled out its version of a discount for the geriatric among us. While the aforementioned restaurants will cut prices for anyone generally over the age of 50, Dodge is seeking card-carrying AARP members (it's $12.50 per year, in case you need to join). Presenting a valid AARP card at the time of sale will get you "Employee Pricing" (or better) on all 2008 and 2009 Dodge vehicles except the Sprinter, Challenger, and Viper SRT 10 ACR models. According to the fine print, the program isn't compatible with other national incentives and it expires (the incentive program, not Chrysler LLC) on January 2, 2009. There's also a $200 fee just to be eligible for the offer, which our penny-pinching parents aren't going to like one bit. Thanks for the tip, MarkWeb!

[Source: Dodge, Photo by taberandrew | CC2.0]

BMW announced pricing for its all-new 2009 diesel models during a live webcast today. Fitted under the hood of the 335d and X5 xDrive35d will be a 3.0-liter twin-turbo diesel rated at 265 hp and 425 lb-ft of torque (BMW's own flagship 6.0-liter gasoline V12 barely tops it with 444 lb-ft). The torque precludes BMW from fitting a 6-speed manual to the engine, so both models will arrive with a 6-speed Steptronic automatic. The sedan will sprint to 60 mph in just over six seconds with the SAV adding about a second to the time. Base MSRP for the BMW 335d will be $44,725 (the price includes destination fees), while the base MSRP for the X5 xDrive 35d will be $52,025 (including fees). Both vehicles will qualify for the IRS Alternative Motor Vehicle Tax Credit, though the exact amount has yet to be determined. For comparison's sake, the 2009 VW Jetta TDI gets a tax credit of $1,300 while the Mercedes-Benz GL320 BLUETEC gets $1,800. The first shipment of vehicles will arrive at dealers before the end of the year. However, we'll be driving the 335d during the LA Auto Show next week and will be sure to post our impressions as soon as possible.

Gallery: 2009 BMW 335d Advanced Diesel

[Source: AutoblogGreen]

European MINI dealers are being asked to distinguish their stores from the BMW brand by creating a separate showroom for sell the British/Bavarian small-car. This entails new main entrances, and dedicated reception and service desks. While most of the dealers in the United States currently operate in this manner, most European retailers still share space with BMW. If dealers don't move enough volume to justify the investment, they will be dropped. In 2007, there were about 750 MINI retailers in Europe. That number is expected to fall to about 650 by the end of this year (worldwide, MINI has about 1,500 dealers in 70 countries). Unlike nearly all other automakers who are experiencing a sales slump, MINI's global sales are reportedly up more than 12 percent for the first nine months of 2008 -- no doubt credited to their diminutive size and fuel efficient engines.

[Source: Automotive News, subs. req'd]

Demonstrating that good cop cars can also go bad, Chrysler has announced a recall of Dodge Chargers and Magnums equipped with the police package and column shifter. While the cars aren't exactly taking sides with the villainous, they are having difficulty displaying the proper transmission gearshift position on the dash. This error is leading to more than a few headaches for men and women in uniform, and can be downright dangerous if they're not in the gear they think they are. The recalled cruisers are 2006-2009 models, and they number more than 20,000 strong (including the 150 sold to Kuwait). Dealers will reportedly add a locking mechanism to the gearshift cable to keep the displays honest.

[Source: Good Car Bad Car]

We reported ex-Fiat boss Frank Stephenson was tasked with a clean-sheet redesign of the upcoming McLaren supercar, codenamed the McLaren P11, just two months ago. Now we are hearing word that the exotic has been totally redesigned and is scheduled for a launch in 2010. Prototypes of the two-seat, mid-engined coupe (and convertible) are in testing as you read this.

Both body styles are reportedly built on a carbon fiber tub with aluminum front and rear subframes. Weight is expected to be less than 3,000 pounds, making it one of the lightest high-performance cars on the road (the current Mercedes-Benz SLR McLaren coupe, more than a bit on the porky side, tips the scales about 750 pounds heavier). Power for the supercar is expected to come from a 550-hp V8 built by famed engine builder Mahle.

Now that the design of the P11 is theoretically set in stone, McLaren needs to find a factory in which to build it. Sites across Europe, including those in Italy, Austria, and Britain, are being considered. Insiders say the factory will announce their manufacturing decision next summer.

[Source: Autocar]

Nearly 4,000 employees of the Mercedes-Benz assembly plant in Vance, Alabama, are being offered buyouts in advance of another expected round of production cuts at the facility in January. The Vance plant produces the M-Class sport utility, R-Class crossover and GL-Class full-sized sport utility for the Mercedes-Benz lineup. In July, Mercedes slowed production for the first time in more than a decade of U.S. production as rising gas prices in June drastically cut sales. Although the buyout packages are being offered to all employees, Mercedes spokespersons are quick to point out that these are not to be considered layoffs. In fact, the automaker will only hand out an undisclosed limited number of buyout packages as it makes changes to the plant to bring production back in line with demand.

Alabama has been hard hit this year by the global auto industry slump. The state's automotive industry is 134,000 workers strong, and the sobering news from Mercedes-Benz only adds to earlier production cuts from Honda and slowdowns from Hyundai, two other automakers with assembly plants in the Heart of Dixie.

[Source: AL.com]

Despite recent negative news surrounding Tesla Motors, the all-electric automaker has just secured $40 million in financing to move forward with ramping up production of its battery-powered sports car, the Tesla Roadster. It was just last month when Tesla was unable to secure a $100 million investment round and was forced to cut nearly 25% of its work force. The failure to fund also slowed work on its second model, an all-electric sedan known as the "Model S." The San Carlos, California-based automaker has more than 1,200 orders for the $109,000 roadster, but has delivered just over 50 to date. With early transmission problems solved and plenty of cash on hand, the high-profile automaker seems to have finally found itself in a position to zip forward.

[Source: Automotive News, subs. req'd]