Autoblog

One door closes, another one opens. Just as Chrysler is working to extricate itself from its deal with Getrag, the Pentastar people are about to announce a deal with ZF Friedrichshafen AG. Chrysler is erecting a plant in Marysville, Michigan that will build axles and employ 900 workers, but word is that the deal will involve ZF signing a long-term commitment to operate the plant.

As far back as September, the UAW said that Chrysler and ZF were getting together. The Detroit News reported on the talks at the time, but they were described as a "non-binding discussion" and "a possibility." The Marysville factory, planned to open in 2010, would replace the Detroit Axle plant that currently employs 1,430 workers. Letting ZF run the Marysville location would allow Chrysler to put more focus on getting its survival in order. The announcement will be made at 9 AM EST tomorrow.

[Source: Automotive News, sub req'd]

A master mechanic and two clerks, among others, are being investigated for intentionally sabotaging Mercedes cars being built at the Sindelfingen factory. Allegedly, repair shops in the area that weren't part of the Daimler corporation were bribing workers with gifts, trips, and cash to alter the cars so that the repair shops could get the contracts to fix them.

The sabotage included scratching the cars, loosening clamps and bolts, as well as -- incredibly -- putting foreign liquids into brake lines. According to Suddeutsche Zeitung, the cars affected were C-, E-, and S-Class. The Stuttgart prosecutor's office estimates the costs to Mercedes in the many of millions, but the greatest irony is this: the workers under investigation were part of the quality control department.

[Source: Suddeutsche Zeitung via Benz Insider]

The roundabout that was the Chrysler, LLC-Getrag partnership recently came to an end with Chrysler pulling out the deal, citing untenable financing terms. Now Getrag Transmission Manufacturing, the U.S. company that was going to build the dual-clutch transmissions for Chrysler, has filed for Chapter 11. Getrag has done so in order to streamline its handling of claims and creditors.

Of course, it's not over: Getrag is suing Chrysler for pulling out, Chrysler is suing Getrag for not getting the $300 million financing that Getrag was supposed to bring to the table. Other than the lawsuits and bad blood, all that's left are the partial remains of the factory that was to build the transmissions, and Chrysler's need to find a source of dual-clutch transmissions. Just another monument to the turmoil the auto industry is currently mired in.

[Source: Automotive News, sub req'd]

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.]

Back in July we told you that Fisker had tabbed Valmet Automotive to build its upcoming Karma. Now we get word that all of the contracts have been finalized and production looks certain. Valmet will be doing all of the engineering and manufacturing for the Karma, that sexy new four-door plug-in hybrid sports sedan designed by ex-Aston Martin designer, Henrik Fisker. Production should start about a year from now, in late 2009. The first cars should show up Stateside, with European deliveries following soon after, in early 2010. The companies are planning an annual production of about 15,000 cars worldwide.

The $80k sedan uses lithium ion batteries, and owners should expect about 50 miles of driving before the gas engine ever kicks in. Range should rival the Chevy Volt at 350 miles per charge. Unlike the Volt, however, the Karma will have a top speed of 125 mph, and a 0-60 time of about 5.8 seconds. Even with the price of gas plummeting, we think Fisker should have little trouble selling 15,000 of these beauties a year, even at $80k. Full press release after the jump.


[Source: Valmet Automotive]

Toyota has been scrambling to right its financial ship after cutting its profit forecast by 63% in the face of dismal US auto sales. The Japanese automaker set up an emergency committee to look at areas to cut costs, and all programs are said to be on the table. Though Toyota has announced nothing specific to this point, Japan's Nikkei Business Daily is announcing that the first US-built Priuses may not be produced until 2011. That would mean a one year delay of the opening of Toyota's Mississippi plant, which has already seen a product shift and cost overruns. The new 2010 Prius, which will initially only be built in Japan until the Mississippi plant comes online, is scheduled to be unveiled at the Detroit Auto Show in January.

Toyota is currently denying that Prius production at the Mississippi plant has been delayed. We're a bit skeptical of the Nikkei report anyway considering the Prius is still in high demand despite the economic downturn.


[Source: Reuters Associated Press]

Click above for high-res gallery of the Fisker Karma

The Big 3 may be laying off workers left, right and center, but at least one start up is moving into town to swoop up some skilled workers. That start-up is Fisker Automotive, the aspiring luxury-hybrid automaker headed up by noted designed Henrik Fisker. The new facility is based in a leased property in Pontiac, Michigan, in suburban Detroit, and will help Fisker's engineers get the Karma, first shown in concept form at the last Detroit show and ambitiously gearing up for a production preview at the next one.

The Pontiac site is not replacing Fisker's Irvine, California, headquarters, nor its production site in Finland. It will, however, bring the outfit closer to component suppliers in the Detroit area in an effort to expedite the development process. The 34,000-sq.-ft. Pontiac facility already has approximately 130 staff members hard at work on the Karma, ramping up to 200 dedicated workers and consultants from local parts suppliers.

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

Click above to view the mirrored Veyron in high-resolution

Visitors to Wolfsburg, Germany are in for a treat. The Lower Saxony city is home to Volkswagen, and in 2000 the auto giant built a veritable automotive theme park there to rival anything from California to the Persian Gulf. Called Autostadt (German for "car city"), the site attracts some two million visitors each year. The park holds several world records; serves as an accredited source of extra-curricular education; and encompasses a customer center, factory tour, test track, movie theater and various pavilions showcasing Volkswagen's history, production techniques and numerous subsidiaries.

The latest pavilion to open at Autostadt is the "Premium Clubhouse" in which this mirror-finish Bugatti Veyron stands as a center-piece. Chromed way beyond the level of other shiny superlikes, like the chromed Ferrari 599, McLaren's grand prix car, the chrome SLR or even Bugatti's own Pur Sang edition, the reflective Veyron sits in a mirrored room designed to blur the line between the observer and the observed as visitors see their reflection repeated infinitely in the space around them. Sounds like a real trip to make the actual trip worthwhile.

[Source: Carpages]

There are worse things than being forced to take vacation days -- like your employer going belly-up -- so General Motors is asking the tens of thousands of workers at its Vehicle Engineering Center and the Milford and Mesa Proving Grounds to stay home on December 22nd and 23rd. Factories won't plan any additional idle days in December, but the Engineering Center alone employs more than 16,000 people, so significant savings can be realized from those two additional days of quiet time. Just shutting out the lights and turning the heat back to 55 degrees, even in such large facilities, isn't going to turn GM around in a singular motion, but it's a low-impact way to conserve scarce money. It's also probably a lot easier to get the engineers to take time off than it is to fight with the unions at each assembly plant. One thing that would stick in our craw: if you've already used up all your vaca, you'll have to borrow from next year's time. No free days for you, even as we slide toward the abyss!

[Source: Automotive News - sub req]

Automotive News is reporting that big inventories of current-generation Ford Fusion, Mercury Milan and Lincoln MKZ models will lead to the closure of Ford's Hermosillo plant in Mexico for the entire month of January. The Automotive News Data Center quotes inventory levels of the Ford Fusion at 120 days, while the MKZ is at a very high 229 days. The Blue Oval is allegedly closing the plant even though the launch of the new 2010 Fusion, Milan and MKZ begins in December. Ford hasn't commented about plans to shutter the site for a month, but has stated that the launch is running on schedule and the refreshed triplets should hit dealer showrooms by the end of the first quarter. Ford analyst George Pipas has also stated that the automaker's capacity has to be in line with demand better in the fourth quarter and beyond, so expect plenty of the automaker's remaining plants to experience downtime in the near future.

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