GM won’t import subcompacts from China, will build them in Michigan

It was reported earlier this month that GM is looking to import Chinese-made subcompact cars to the United States. The Detroit automaker had planned to export more than 51,000 vehicles from China by 2014. Yes, that had the UAW up in and arms and now, as a part of its concession deal with the UAW, GM has agreed not to import “made in China” cars.

Union President Ron Gettelfinger said that GM will build up to 160,000 units of subcompacts per year at an existing U.S. facility and will sell them in U.S.

New concessions by the UAW, which include freezing wage, cutting bonuses and reducing break time, will save GM more than $1 billion a year.

UAW members are scheduled to finish voting on the new deal by 4 p.m. today.

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GM and Magna reach preliminary deal

According to a report by Reuters, GM and Canadian auto parts group Magna International have reached a preliminary deal to invest in Opel, increasing hopes for a deal with the U.S and German governments to save the brand. The move also kills Fiat CEO Sergio Marchionne’s dream of building the world’s second-largest automaker consisting of GM’s European operations and its new stake in Chrysler LLC.

Source said that Magna and GM are working out the final details of an agreement before they meet with Chancellor Angela Merkel and senior ministers.

“We have an agreement in principle between GM and Magna,” one source said.

Nonetheless, party-pooper German Economy Minister Karl-Theodor zu Guttenberg, who previously said that Fiat and Manga need to make their proposals more attractive and assume more risk, told reports that there is no guarantee a deal to save Opel could be reached Friday.

: Reuters

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Detroit Mayor writes letter to Obama urging him ensure GM stays in Renaissance Center

Yesterday, Warren Mayor Jim Fouts made an offer to GM CEO Fritz Henderson offering the company long-term tax incentives to move its headquarters from the Renaissance Center in Detroit to the GM Tech Center in Warren.

Now, Wayne County Executive Robert Ficano and Detroit Mayor Dave Bing are doing all he can to keep GM in Detroit. Bing and Ficano announced today that Detroit will offer GM big tax breaks that come with a “renaissance zone” designation to stay in Detroit.

“So in their bankruptcy case, they can say now they have a business case to stay at the GM building,” Ficano told Automotive news. “We got together and asked what tools we have in our toolbox to tell the rest of the world that we’re really open for business.”

Bing even wrote a letter to President Barack Obama urging him to ensure that GM stays in the Renaissance Center and that the city isn’t gutted.

“The possibility of General Motor’s headquarters leaving Detroit would have a devastating effect on not only the surrounding business community, but our residents, our economic viability and the overall turnaround of the city of Detroit,” he wrote to Obama.

- By: The Daily Auto Editor

Source: Free Press

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Lee Iacocca to lose pension and company car

We already know that Lee Iacocca, the man responsible for turning around Chrysler in the 1980s, is going to lose his life-long company car due to the Auburn Hills automaker’s bankruptcy filing.

Today, CEO Bob Nardelli told the U.S. bankruptcy court that Iacocca would also lose his pension since Chrysler will no longer have to pay it if gets bankruptcy court approval to sell itself as “Chrysler Group LLC,” which will be owned by Fiat, the U.S. and Canadian governments and its union.

Typically, Iacocca would be paid after secured creditors get their money but even secured creditors are not expected to get paid in full in the bankruptcy process.

Other former Chrysler executives will also lose their cars and pension.

Chrysler said it regretted the decision “in light of the many contributions these individuals have made to Chrysler over the years” and that Chrysler Group LLC does not expect to reinstate the car program.

- By: Kap Shah

Source: MSNBC

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Papa John’s going on a cross-country trip to find his 1972 Z28 Camaro

John Schnatter, otherwise known as “Papa” John, is the founder and chairman of Papa John’s International. He founded the company in 1984 with $1,600 dollars that was needed to pay for the initial equipment for his first store. Today Papa John’s has grown to more than 3,000 stores in over 26 countries and has a market value of $750 million.

Of course, it wasn’t all fun and success for Schnatter. Like every other business started from the ground up, there was a lot of blood, sweat and tear involved.

One of the many sacrifices Schnatter made was giving up his 1972 gold-and-black Z28 Camaro to get the $1,600 he needed to start his pizzeria dreams. Well, Papa John now wants his Camaro back and is willing to give whoever has it, or finds it, a $25,000 reward. Schnatter will be going on a cross-country search for his lost car in another Z28 he purchased a couple years ago (pictured above).

Of course, at this time you might think that this is some clever marketing campaign - and it is. The search for the Papa John’s Z28 Camaro has a website and everything - but at the end of the day, John just wants his baby back (believe us we know the feeling).

Recalling his emotions at the time when selling his original Camaro Z28 Papa John said: “it was so painful I had to look away so I couldn’t see it driving off.”

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UAW ratifies new GM labor deal, Fritz Henderson to hold press conference on Monday

GM has just dropped a short statement saying that “CEO Fritz Henderson will host a press conference on Monday, June 1.” The conference will be around mid-day at the GM Building, 767 Fifth Avenue, in New York.

After a whole week of GM heading towards bankruptcy news, we’re left wondering what possibly could Henderson have to tell us?

While the UAW employees have ratified the modifications to the GM-UAW 2007 National Labor Agreement, there are no bondholders lining up to show support for the struggling automaker. We will be up bright and early Monday morning preparing for all the GM news - stay tuned.

You can read GM’s statement regarding the newly ratified GM-UAW 2007 National Labor Agreement after the jump.

Newly Ratified GM-UAW 2007 National Labor Agreement Modifications Eliminate Competitive Gap for GM

DETROIT, Mich. - General Motors today confirmed that its UAW-represented employees have ratified the modifications to the GM-UAW 2007 National Labor Agreement. The amended agreement covers approximately 54,000 hourly employees located in 46 U.S. facilities.

“The leadership demonstrated by UAW president Ron Gettelfinger and UAW vice president Cal Rapson, and the hard work from the members of the GM and UAW negotiating teams, resulted in an innovative agreement that will enable GM to be fully competitive and has eliminated the gap with our competitors,” said Diana Tremblay, vice president of GM’s Labor Relations. “We very much appreciate the support of our employees and retirees. Their shared sacrifices will enable GM to become a stronger, more viable company that will continue to deliver world-class cars and trucks.”

Key highlights under the modified agreement include attainment of cost and cash savings comprehended in the GM Viability Plan that will enable the company to eliminate the wage and benefit gap with its competitors. It also includes changes to the agreements regarding the Voluntary Employee Beneficiary Association (VEBA) trust for retiree healthcare. The agreement also highlights GM’s plan to utilize an idled assembly and stamping facility for future production of a compact/small car in the United States to meet future fuel efficiency regulations.

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Major GM bondholders agree to a new sweetened deal, creditors may get 25% of new GM

In its original offer to bondholders, GM was offering creditors a 10 percent stake in a new GM in exchange to reduce its $27 billion debt. That didn’t work out to well since GM failed to get the near 90 percent support of bondholders it needed to fight off bankruptcy.

Nonetheless, today a committee of major bondholders at GM and the U.S. Treasury Department have reached an agreement that would give creditors a larger stake in GM.

Revealed in a Securities and Exchange Commission filing by GM, the agreement says that bondholders would get 10 percent of the new company that comes out of bankruptcy but would also give creditors the rights to buy an additional 15 percent of the company’s stock at a low price.

While this is good news for GM, it will not help the struggling Detroit automaker avoid a Chapter 11 filing. The move, however, will clear potential obstacles for GM during its stay in court.

- By: Omar Rana

Source: CNNMoney

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New York’s Time Square closed off to cars

In attempt to reduce traffic and cut down on pedestrian accidents, sections of Broadway from 47th to 42nd streets and 35th to 33rd streets have been closed to cars making New York’s Times and Herald Square a little more people friendly.

The Department of Transportation has set up barriers around the two squares in Midtown Manhattan and Transportation Commissioner Janette Sadik-Khan says her group will monitor the closed-off area during the setup period of the block.

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Bentley to Reveal High-Powered Flex-Fuel Continental GT - Car News

What’s the fastest and most powerful Bentley ever? Currently, that crown is placed atop the Continental GT Speed, capable of a claimed 202 mph courtesy of its 600-hp twin-turbo W-12 engine. Bentley will have a new answer come March, though—we just don’t know what it is yet.

The folks in Crewe are calling this new variant “the extreme Bentley” (they’ve even set up a teaser site at www.extremebentley.com), a description we’re not likely to argue with. Details are scarce at this point, with the few facts accompanied by a lone teaser image and a nearly information-free video (viewable on the aforementioned site). What we do know is that the engine will top the Speed line’s 600-hp W-12—likely using a reworked-again version of that 6.0-liter 12—and that it will be able to reach velocities of at least 203 mph. And while it is claimed to be the most powerful, we doubt it will beat the torque output of the Brooklands and its top-down mate the Azure T—both of which use a 500-hp, 738-lb-ft twin-turbocharged 6.8-liter V-8—as the Speed-y Contis crank out a mere 553 lb-ft.

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Mini Airstream caravan

The Mini Airstream caravan will be presented at the Milan Salone del Mobile (furniture design) event, though it is designed for “California dreamin” beaches, surf and girls. The Mini caravan design is as original as it is superfluous, designed to show off refined liberty.
Danish brand Republic of Fritz Hansen was employed to redesign the interior, and features include waterproof materials and the removal of the rear seats to make way for a scuba set.
© Source: eurocarblog

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Obama to unveil new fuel-economy standards tomorrow, calls for 35 mpg by 2016

Sources say that the Obama administration is ready to unveil a new fuel-efficiency policy that will resolve a dispute between California and the U.S. government over emissions.

The new proposal will run from 2012 to 2015 and will maintain a single national standard for fuel-economy. It will also give automakers flexibility for meeting the new standards.

Sources familiar with the plan say that the strategy calls for raising the fuel-economy standards of cars and trucks to 35 mpg by 2016.

Two months ago, the government said fuel-economy standards for U.S. light vehicles would increase 8 percent to an average of 27.3 mpg by 2011, costing the auto industry $1.45 billion to make the necessary changes.

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How To: Scandinavian Flick - Feature

Beginning in the 1960s, Scandinavian rally-car drivers popularized a technique that became known as the “Scandinavian flick.” The goal is to briefly unbalance the car enough to produce a spectacular drift. It’s done by inducing oversteer—the sliding of rear wheels—that in turn will carry the vehicle through a corner and scrub off speed in the process. The point of the technique, aside from looking cool, is to allow better car control by “steering” the car with the throttle. So here’s our Arthur Murray–inspired guide to the seven-step Scandinavian flick. One last thing, a mandatory mommy warning: It’s not a good idea for beginners to do this on public streets or in a nursing-home parking lot.

  

Keep Reading: How To: Scandinavian Flick - Feature

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Mayor Abolishes the Western Extension of the London Congestion Charge - Car News

Boris Johnson, the new mayor of London, has announced that the western extension of the London Congestion Charge will be abolished but not until 2010. The $12-a-day charge was introduced by his predecessor, Mayor Ken Livingstone, and at first, it applied to only the commercial heart of London. In 2007, the downtown area subjected to the charge was expanded to include the largely residential area west of London. The charge cannot be reversed immediately for administrative reasons. Johnson also has dismantled Livingstone’s scheme to increase the congestion charge for cars that emit too much carbon-dioxide, a plan that Porsche

fought in court until the new mayor took office.

Keep Reading: Mayor Abolishes the Western Extension of the London Congestion Charge - Car News

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Luso Motors reveals working LM23 prototype

Despite a plunging global economy and tough economic times for the car industry as a whole, there are small bright spots where innovation and development are still burning brightly. Luso Motors appears to be one of those, as it has recently unveiled a working prototype of its LM23 mid-engined track-day kit car. Ernesto Freitas, the design force behind Portugal's Luso Motors, released the design concept early in 2008, but instead of reviving the Ferrari Dino or the Avions Voisin brand, the new car was a self-branded track-focused two-seater.
Luso Motors LM23

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Honda tapped to supply racing bike engines for new Moto2 series

Could things be turning around for Honda’s racing department? The Japanese industrial giant began canceling its motorsport programs one by one when things took a turn for the worse economically, but after withdrawing from the AMA Road Racing motorbike series a few months ago, Honda is getting back in the saddle according to reports by supplying the engines to all the teams competing in the upcoming new Moto2 series.

Like GP2 is to Formula One - or the Nationwide Series is to the Sprint Cup in NASCAR - the new Moto2 championship slots in as a feeder and support series to the top-tier MotoGP. Currently the 250cc class (like the Honda example pictured above) serves that function, but like the organizers did with MotoGP and the pre-extant 500cc class, the new Moto2 bikes will be mixed into the field for next season before the new formula replaces the old one in 2011. The new Honda engines, however, will be 600cc, four-stroke units with over 150 horsepower on tap, potentially prepared by European Honda tuner Ten Kate. Who knows, maybe they can still bolt a couple of these together and get back on board with Brawn GP, too.

[Source: Autosport]

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The White Coats Say 'Trust Hormone' Makes Us Hoard Terrible Old Cars

You know how your friends all laugh at you because you can't bring yourself to get rid of that rattly-ass, decades-old junker you love so deeply? You're just a slave to your hormones, buddy!

That's what Times Of London writer Anjana Ahuja tells us, quoting Professor Paul Zak of Claremont Graduate University; it's all about the oxytocin, also known as the "trust hormone." It turns out that one's attachment to an inanimate object- say, an early-60s Vanden Plas Princess 1300, for example- can trigger a release of oxytocin… and, next thing you know, you can't bring yourself to get rid of a car that breaks down approximately once every two months. Ms. Ahuja, however, triumphed over her body chemistry and ditched her Vanden Plas for… no, we can't say it. It's just too painful. One of these things.
So let's get this straight: you get rid of a seriously cool example of classic British coachbuilding- to which you've given an affectionate name and everything- and you replace it with a Fiat Multipla? The horror! We think Ms. Ahuja needs to start mainlining oxytocin and stockpiling Humber Sceptres!
[Times Of London]

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Subaru Announces Pricing on 2010 MY Forester

Subaru of America, Inc. today announced pricing on the 2010 Subaru Forester. The newly redesigned Forester - introduced last spring - hit an all-times sales record for the company as it was the right vehicle, at the right time, for people looking to downsize from larger SUVs without giving up valuable cargo room. Among its [...]

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Apex GT3 Jaguar kicked off the 2009 Season at Silverstone

Qualification on Saturday morning produced a good result for Ellis, who would start that race in pos. 11.  At driver changeover, it became apparent that the new soft “A” tyres were showing considerably more wear than expected, as a result, Dymond struggled with reduced traction together with slow traffic during the second half of qualification, [...]

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AutoGT Racing Morgan Aero SuperSports at Silverstone

Dimitri Enjalbert and Johan-Boris Scheier celebrated the maiden win for the AutoGT Racing Morgan Aero SuperSports in the opening round of the FIA GT3 European Championship at Silverstone. The Morgan Aero Super Sport of Maxime Martin and Gael Lesoudier scored a lights to flag victory in the second round of the 2009 FIA GT3 European [...]

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KW enters the WTCC as serial partner

KW starts as serial partner of the World Touring Car Championship (WTCC). The world-wide successful running gear manufacturer supports the entire championship and its logo will be represented on the number plates of all race cars. On its stony path, the WTCC has developed into on of the most successful and renowned championships in motor sports [...]

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The Sapphire Black convertible Volvo C70 has reached its 50 000 owner

Number 50,000 of the second generation of Volvo C70 has been handed over to its German owner, Harald Kirschey from Olpe. The Sapphire Black convertible is featuring a D5 turbocharged diesel engine with 180 hp (132 kW) and automatic transmission, including Geartronic function. It was handed over at the dealership Autohaus Mohag in Recklinghausen. Harald Kirschey, [...]

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What does Chrysler’s restructuring plan have in store for the Viper?

Long before factors like bankruptcy and Fiat’s involvement, Chrysler was looking to offload the Viper line. Several potential buyers were reportedly being considered, but months down the line no deal has been announced. In the meantime, of course, Chrysler has announced it will be filing Chapter 11 before restructuring in a new partnership with Fiat. But what of the Viper at this point?

According to emerging reports, it could face the axe. Chrysler says it is still considering offers on the Viper line, but an in-depth analysis of the company’s restructuring strategy suggests that the Viper would fall into “OldCo”, the term applied to Chrysler’s liabilities and bad assets that will be shed during the bankruptcy process. The Conner Avenue Assembly plant where 115 workers build the Viper is one of several earmarked for potential closure, along with Chrysler’s facilities in Newark, Twinsburg, Kenosha, two plants in St. Louis and the Detroit Axle factory. Although the Viper is an entirely different beast to the exotica built by Fiat subsidiary Ferrari, considering what the Dodge  supercar represents, we couldn’t imagine Fiat being too eager to keep the Viper alive.

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Renault Unveils Z.E. (Zero Emission) Electric Vehicle Demonstrator

Kangoo be bop Z.E. is derived from the production version of Kangoo be bop and is instantly recognisable by its ‘Energy Blue’ body colour, while the Renault logos on the grille and wheels are picked out in satin-finish blue-hued chrome. Inside, the satin-finish chrome and metallic acid green trim ensure a unique ambience, further expressed [...]

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fahrmitgas.de Presents Custom Autogas Systems for Opel Insignia

Good news for all owners of gasoline-powered Opel Insignia sedans or sports tourers: The new fahrmitgas.de autogas systems, developed in cooperation with Dutch world market leader Vialle, can cut fuel costs by half and simultaneously reduce CO2 emissions by some 12 percent. In addition, fahrmitgas.de also upgrades the Insignia visually, with a striking 3D film [...]

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Chrysler Introduces Special Edition Grand Voyager

Chrysler UK Ltd is pleased to introduce a special edition model to its successful Grand Voyager range. Celebrating 25 years as the world’s best selling MPV, and with over 12 million vehicles sold worldwide, the Grand Voyager special edition comes with significant amounts of extra interior and exterior equipment that help makes the award winning [...]

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Lexus Cuts Driver Distraction With New Head-Up Display

Lexus targeted an advanced, yet user-friendly design for the cockpit of the new RX 450h with a focus on making key vehicle data and controls easy to access with minimum driver distraction. A key element in Lexus’s innovative approach is the new Head-Up Display (HUD), which projects essential information on to the base of the [...]

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Volkswagen Scirocco GT TDI 170PS

The new performance diesel variant of the Scirocco GT equipped with a 2.0-litre TDI 170PS engine is now available to order. Combining effortless acceleration, made possible by 258 lbs ft of torque delivered from 1,750 rpm, and the ability to return 53.3 mpg on the combined cycle, the new model mixes style, economy and [...]

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Stunning Seat Ibiza Bocanegra Is Ready For The Road

SEAT is wowing the crowds at this week’s Barcelona International Motor Show with the debut of a road-ready version of its stunning Ibiza Bocanegra. Staying remarkably true to the headline-grabbing Bocanegra concept car unveiled at the Geneva Motor Show a little over 12 months ago, the production version is today making its world debut at SEAT’s [...]

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Uk Debut For Land Rover’s Latest Product Range At 2009 London Motorexpo

The new 2010 Range Rover, the 2010 Range Rover Sport and Discovery 4, recently launched to the world at the New York International Auto show, will all be showcased for the first time in the UK at the 2009 Motorexpo - set in the business district of Canary Wharf - from June 8-14, 2009. The significant [...]

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King’s car used to ferry Hitler, Mussolini and Franco to go under the hammer

A car used by the King of Italy to chauffeur Adolf Hitler, Benito Mussolini and General Franco around Rome on State visits is to be auctioned in Monaco next week. The 1939 Fiat Torpedo, which will be sold by International Auction House, COYS, is expected to fetch more than £250,000. It was delivered to the [...]

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A “flying B” now also from Arden

Since 1972 Arden is specialized in the refinement of British automobiles. We have made ourselves a worldwide name particularly as ennobler for Jaguar and Range Rover. Now we decided to dedicate ourselves to one of the most exclusive automobiles in the world. Arden extended its refinement program by the British traditional brand Bentley and starts the [...]

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2010 Dodge Charger, Chrysler 300C: Profiled! [Spy Photos]

Another peak at Chrysler's Viability Plan gave us two profile views of the 2010 Dodge Charger and 2010 Chrysler 300C we missed the first time around. Time for a new-vs-old comparison!

Thankfully we decided to take another peak at the documents because we found two profile views we'd missed previously. The first is of the 2010 Chrysler 300C, of which we've already seen the front 3/4 and the interior; the second is of the 2010 Dodge Charger, which we have not seen yet. We've put together a couple of comparison images for you to see the differences in both models, but we'll explain for those that think they're the same.

The 2010 Chrysler 300C remains fairly similar to the current '09 model, but has a much more pronounced forward rake to the entire vehicle stance. The front end has a much more fluid design with headlights that wrap around the front corners. The top surface of the headlights visually meets the character line on the shoulder of the car and runs towards the rear corners. The biggest and most noticeable change is the rear profile. The rear bumper is now executed without a protrusion and it appears similar to the 2010 Ford Taurus in its forward sweep.

The second in the mix is the 2010 Dodge Charger and it receives a much larger design refresh in its profile design. The most noticeable change is the lack of the rear quarter panel kick-up that previously ran along the car's shoulder line. This kick-up is now much more gradual and appears to start from the front doors and softly runs rearward executing into the deck lid surface. This change has also adjusted the form of the day light opening and it now features a much more generic form. Unlike the 2010 300C, the 2010 Charger's rear appears to have lost its forward sweep and now appears to be more upright likely increasing usable trunk space as a result. The tail lamps no longer wrap around the rear corners. The front design appears to be similar to the current model with the exception of a much smoother bumper surface that no longer protrudes from the front surface. It's likely that the 2010 Charger will receive an all-new front end design, it's hard to tell any details due to the low resolution/size of the image.

We'll keep you up to date when we receive more information regarding Chrysler's 2010 model range, until then keep on wishing, hoping and crossing your fingers that they'll make it until then.

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Chrysler co-president: You can either help us or burn us all down

Chrysler has come out with its second sales plea in as little two weeks, urging dealers to order more than 15,000 cars by Monday to keep the company viable. Not one to mince his words, Chrysler co-president Jim Press told dealers over a conference call that they basically have two choices: "You can either help us or burn us all down." The Chrysler exec also warned dealers: "If you decide not to do that, we've got a good memory of who helped this company make it." Roughly 70% of Chrysler’s dealers took action following the company’s first plea late last month to order 78,000 vehicles they had been allocated for February.

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100mpg Axon Automotive X Prize entry gets funding

Last year Axon Automotive, creators of 2007’s Eco-M super lightweight speedster, entered the $10 million Automotive X Prize with a new hatchback aimed at city dwellers. The vehicle features a full carbon-fiber chassis and will likely be powered by a compact turbodiesel engine. Today the company revealed it has secured funding to move forward with construction of that vehicle. The UK's Technology Strategy Board, which has previously funded advanced technology projects at Jaguar and Land Rover, among others, provided £2 million ($2.9 million) to Axon for construction of the hatchback.

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Cash for Clunkers program scrapped in Senate

Earlier this month Congress was considering a plan to offer incentives to get older, gas-guzzling vehicles off the nation’s roads. As part of the stimulus package now being built in Washington, legislation was introduced in the House and Senate called the 'Cash for Clunkers' program. Under the plan, drivers would have received vouchers of up to $4,500 for turning in their old fuel-inefficient vehicles for scrap and buying vehicles that get good mileage. The program was slated to operate for four years and involve retiring nearly one million vehicles per year, allegedly saving between 40,000 and 80,000 barrels of fuel per day by the end of the fourth year. Instead, Democratic Senator Thomas Harkin of Iowa pulled the amendment, despite strong support from domestic car building states, reports Reuters.

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ARK ReDesign reveals two-door Range Rover Sport conversion

If you can't wait for Land Rover to eventually launch its own coupe-crossover but are still burning with desire for a two door premium SUV, then tuning firm ARK ReDesign may have the solution. The British workshop currently has a two-door version of the Range Rover Sport SUV under development that it hopes to have on sale very soon. Initially offered to a factory level specification, the two door vehicle will have standard factory trim and paint options. In addition, there will also be the option to individually tailor a vehicle to meet any specific requirements.
ARK ReDesign two door Range Rover conversion

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Mitsubishi planning hot trio of cars including Evo X FQ400

Factory-upgraded versions of typically sedate sedans and hatchbacks have become de rigeur for most major carmakers. Mitsubishi's have been largely hit-or-miss, but the company's next trio of factory specials promise to be on target. The much-lauded Lancer Evolution X gets FQ400 treatment, pushing output to 400hp (298kW) and taking its demeanor further into the hardcore. Unfortunately, like other FQ variants, the model isn't slated for U.S. sale. Pricing is expected to nose up against the £50,000 mark when it hits UK streets around April. The Lancer Sportback is also due for a Ralliart variant, already confirmed for the U.S., as is the GTS version, which shares specs with the GTS sedan.

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