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The government of the United States may be actively avoiding any direct involvement in the day-to-day management of General Motors, but that doesn’t mean it won’t have a say when the time comes for the automaker to go public again. According to The Detroit News, the U.S. Department of the Treasury has hired investment bank Lazard Frères & Co. to provide it with advice on the initial public offering process.

While both General Motors and the Treasury would obviously both like the latter to unload the majority stake it owns in the automaker as soon as possible, that process needs to be done carefully. Political and public perception considerations point to an early IPO, but that may not be the smartest thing to do from a business perspective. Selling before its clear that GM’s recovery is well underway could lead to getting too low a share price. The bank will reportedly also look at other options for disposing of the 61 percent shareholding.

According to the report, Lazard Frères & Co. will get paid $500,000 a month for the first year and $250,000 per month after that if the sale hasn’t yet been completed. Estimates from various sources are that the treasury will face losses of $25-30 billion on the bailouts of GM, Chrysler and GMAC.

[Source: The Detroit News Image: Stan Honda/Getty]

Report: U.S. hires lead bank for General Motors IPO

Memorial Day weekend is always a great for racing fans. Formula 1 typically has its Grand Prix of Monaco on that Sunday, (although this year it was the Turkish GP taking the calendar slot), NASCAR has the annual Coca-Cola 600 at Charlotte Motor Speedway, and “The Greatest Spectacle in Racing” takes the IndyCar Series to its namesake venue, the Indianapolis Speedway for the eponymous Indianapolis 500.

The 2010 Indy 500 is billed as part of the Centennial Era races, celebrating the birth of the track in 1909 and the first 500 held in 1911. The Indianapolis Motor Speedway was built by Indiana businessmen Carl G. Fisher, James A. Allison, Arthur C. Newby, and Frank H. Wheeler as a testing grounds to help bolster Indiana’s burgeoning automotive industry. It wasn’t long before racing became the raison d’être for the facility. The original tar and gravel surface was quickly replaced by 3.2 million bricks when safety became a concern.

The first 500-mile race took place on May 30, 1911, when Ray Harroun shocked everyone, unprecedentedly going solo in his Marmon “Wasp,” the rest of the field using ride-along mechanics. Harroun’s car was actually considered a safety risk without that passenger, but it made up for it by introducing a major automotive safety device. The Wasp, you see, was fitted with the industry’s first rearview mirror. The average speed in that first Brickyard endurance race was a stupefying 74.602 miles per hour. This year’s polesitter, three-time and defending race-winner Helio Castroneves, won last year’s Indy 500 at more than twice that speed, 150.318 mph.

While speeds are way up, much at Indy has remained the same. The 500 is about tradition as much as anything, and so on this Memorial Day, 33 cars once again lined up, set to challenge each other, the track, and fate – crossing the bricks 200 times to complete 500 miles around the2.5-mile-long squared oval. Follow the jump to see how the 2010 Indianapolis 500 went down in the history books.

[Images: Tom Strattman, Mike Groll, Darron Cummings, Jeff Roberson, Steve Metz (AP), Chris Howell, Nick Laham, Jonathan Ferrey, Robert Laberge, Chris Graythen (Getty Images)]

Continue reading 2010 Indy 500 filled with crashes, drama [SPOILERS]

2010 Indy 500 filled with crashes, drama [SPOILERS]

Honda has high hopes for China, as the automaker plans to increase sales from a projected 630,000 units in 2010 to 830,000 in 2012. Before it can focus on hitting those targets, however, Honda’s got to deal with a growing labor issue in China.

Automotive News reports that Honda shut down all four of its Chinese factories through at least yesterday, May 29 due to a labor strike. The latest problem arose when 1,850 Honda parts workers walked off the job on May 17. This ultimately forced Honda to temporarily shutter two plants in Guangzhou on May 24. On the 26th, the automaker followed suit with another factory in Guangzhou, as well as one in Wuhan.

Automotive News quotes Honda spokesperson Yasuko Matsuura as saying the striking parts workers seek a raise from about 1,500 yuan ($219 in U.S. funds) per month to somewhere between 2,000 ($293 U.S.) and 2,500 yuan ($366) – basically equivalent to the wages earned by workers at Honda’s Chinese auto-assembly plants. That’s a big jump on a percentage basis, but it’s still a fraction of what Honda pays in more developed markets. For perspective, if you include benefits the typical Honda worker in Marysville, OH likely costs the company over $366 per day.

The bigger problem for Honda and other automakers is that, according to Chang-Hee Lee of the Internal Labor Organization in Beijing, “China is experiencing a labor shortage that’s shifting the natural bargaining power to workers.” We’re thinking automakers that have invested billions of dollars in China will be pretty unhappy if a long-term worker shortage leads to steadily increasing labor rates.

[Source: Automotive News - Sub. Req.]

Report: Striking workers shut four Honda plants in China

Diving into an extremely competitive and capital-intensive business in which customers generally don’t appreciate having access to beta products is not a good way to enhance your personal fortune. In fact, if Elon Musk is being honest in the latest court filings related to his divorce proceedings, it looks like a great way to vaporize a fortune.

After selling Paypal to eBay in 2002, Musk and his partners netted $1.5 billion. An unknown portion of that went to Musk, who promptly turned around and invested several hundred million into not one, but three enterprises: Tesla, SpaceX and SolarCity. Neither Tesla nor SpaceX are generating enough revenue yet to be self-sustaining. The last we heard from someone inside Tesla, the company was selling about 20-30 Roadsters a month for likely revenue of under $4 million, plus whatever it’s getting from Daimler for Smart ED battery packs.

Apparently Musk isn’t personally self-sustaining either, claiming that he has $200,000 per month in expenses and $8,255 in income, presumably from his CEO salaries at Tesla and SpaceX. Musk’s filings also list only $650,000 in liquid assets. Given that disparity, it seems like there might be at least a bit of leeway to cut back a bit. At any rate, Musk claims that he has had to start taking personal loans from friends to make ends meet.

Needless to say, Musk’s estranged wife Justine sees the family finances a bit differently, and the reality is likely somewhere in between. If Musk’s financial position is, in fact, as strained as he says, he’ll want to complete the Tesla IPO as soon as possible just so that he can cash out some of his position.

[Source: CNN Money, Forbes]

Tesla’s Elon Musk says he’s broke

America’s greatest truck isn’t sitting in some showroom. It’s not the one that wins the latest Big Time Magazine comparo, either. Nor is it the one that ranks highest in some tailor-made-for-PR survey results. The best truck in America is the one you see above. Okay, not this one specifically. Think of this 108,000-mile 2004 Dodge Ram 1500 as an archetype: the friend’s truck, or more plainly, the truck you can always borrow.

I borrowed this one earlier today for a messy trip to the dump. Sure, all the filth-ridden junk would have fit in the family SUV, but cleanup would have been a nightmare, and my truck-owning buddy lives just around the corner. “Sure thing. Come on by,” he says every time I ask to borrow it. And every time I use that truck, I desperately want one of my own. But the truth is, another ride’s just not in the cards right now, so The Borrowed Truck is king. It is beloved. Long may it live.

And now, it’s reader participation time. Do you have a strong relationship with a borrowed truck yourself? Let’s hear about it.

The greatest truck in America?

The resounding successes of the iPhone and iPad have Apple shareholders dancing in the streets, but one area in which Apple hasn’t been as successful, however, has been business applications. In fact, until recently, Apple retail stores used Windows-based devices to ring up orders. Now, Mercedes-Benz aims to be among the first companies to change that paradigm by bringing the popular iPad tablet into its showrooms.

The program, called Mercedes-Benz Advantage, puts the iPad into the hands of the automaker’s sales force. With the iPad and Mercedes’ new sales tool app, associates will have lightning-fast access to the latest deals, while also providing a quicker turnaround time for customer credit application processes. Benz also says the iPad will help speed up the time it takes to turn-in a leased vehicle. Andreas Hinrichs, Vice President of Marketing for Mercedes-Benz Financial, contends the Apple tablet will “provide a competitive advantage to our dealers by increasing their service levels through a more flexible financing process.”

We dig that Mercedes is thinking outside the box to deliver an expedited shopping experience, but even better, we love the fact that the Apple iPad might help customers avoid the dreaded trip to dealership’s finance room. Hit the jump to read over the press release.

[Source: Mercedes-Benz]

Continue reading Apple iPad to be used as sales tool by Mercedes-Benz dealers

Apple iPad to be used as sales tool by Mercedes-Benz dealers

For years , Buick has produced the GL8 minivan for the Chinese market. It’s based on the late-1990s Pontiac Trans Sport. With that van being severely outdated for the better part of a decade now, Buick’s just about ready to replace it with an all-new design. The new GL8 (we don’t yet know if the name badge will carry over) has been spotted out testing and it looks very much like the Buick Business Concept that debuted last year in Shanghai.

One of the more interesting visual elements of the concept was its dipped beltline, similar to those on the Hyundai Genesis coupe and the more recent Honda Odyssey concept. The interior of the Buick van looks very upscale, in keeping with what we’ve seen in the new LaCrosse and Regal.

Considering that the prototype in the spy photos still doesn’t have completed light clusters, it’s likely that the GL8 replacement won’t officially debut until next year’s Shanghai show.

[Source: auto.163.com]

Spy Shots: China-only 2011 Buick GL8 minivan spotted

In its latest newsletter update, Carbon Motors has revealed that it’s received over 14,000 reservations from over 400 police agencies for its new purpose built E7 police car. However, it’s best to bear in mind those are just reservations for slots in the production schedule. As of yet, no one has placed a firm order for the E7 because Carbon hasn’t even announced pricing. While the concept of a vehicle built specifically to meet the needs of police forces certainly sounds good on paper, the E7 will undoubtedly be expensive.

Besides using plenty of bespoke hardware that won’t benefit from economies of scale, it will be powered by a BMW 3.0-liter turbodiesel engine – a phenomenal engine and much more fuel efficient than anything else currently available in the police market, but coming from Munich will certainly elevate the price.

It will be very interesting to see how many reservations get turned into firm orders once pricing is announced. Make the jump for the full details.

[Source: Carbon Motors]

Continue reading Carbon Motors claims 14,000 reservations for E7 police car

Carbon Motors claims 14,000 reservations for E7 police car

The fate of small pickup trucks in America is rather shaky. There haven’t been any major new entries into the segment as of late (save the Suzuki Equator, of course, even though it’s not much more than a rebadged Nissan Frontier). And though we’ve spied Ford Ranger prototypes testing abroad, it doesn’t necessarily mean that a new model is slated for U.S. consumption. Small trucks do well in other markets, and the trucklets seem to be a dying trend here in the States.

Today, though, our spies have not only caught a new Ranger mule (above), but a small GM pickup (right) – the replacement for the aging Chevrolet Colorado and GMC Canyon twins. Both mules look a bit larger than the models currently on the road, though still more manageable than the top-dog F-150 and Silverado.

Still, though, it’s unclear what the future has in store for these new trucks. The fact that Ford and GM are testing these new mini-pickups in and around their respective headquarters in southeast Michigan leads us to believe that there may, in fact, be U.S.-spec replacements in the works. Ford has often spoke of a smaller F-100-style F-150 to replace the Ranger, and reports have shown that GM is working on a new truck to hopefully rekindle the success that the original Chevy S10 and GMC Sonoma had.

Spy Shots: Next-gen Ford Ranger and Chevy Colorado replacements spotted in the U.S. – but where will they end up?

Gordon Murray has long been considered one of the most innovative engineers and designers in the automotive world. The latest project from the mind that created the McLaren F1 supercar is the new T.27 electric city car. The T.27 is the battery powered variant of the T.25, a model that will debut shortly with a gas engine. Both models use the same basic architecture, and like the seminal supercar, they feature a three seat layout. That’s largely where the similarities end, however.

Murray’s firm is collaborating on the T.27 project with Zytek Automotive, a UK-based engineering consultancy with vast experience in electric and hybrid powertrains. The 7.9-foot long car has a 12 kilowatt-hour battery pack mounted under the seats and a 25 kilowatt electric motor driving the rear wheels. Zytek has managed to package the motor, single-speed transmission and power electronics into one tidy little unit. The system is claimed to give the car a range of 80-100 miles and with the current UK electricity generation mix (mostly coal) the CO2 emissions are a combined 48 grams / kilometer.

The T.27 is claimed to have a turning circle of just 19.7 feet and with its width of 4.3 feet, three of them can fit into a single parking space perpendicular to the curb. The program started in November of 2009 and the first running prototype is due to be completed in April 2011. Official press release after the jump.

[Source: Gordon Murray Designs]

Continue reading Gordon Murray’s forthcoming electric T.27 city car in detail

Gordon Murray’s forthcoming electric T.27 city car in detail

How many bad drivers can you spot every day on your drive to work? Five? Ten? All of them? We feel your pain, and apparently the alarming truth is that one-in-five motorists – which, for those interesting in the gory details, equals roughly 38 million Americans – are unfit to drive on our nation’s highways.

This data is according to a test administered by GMAC Insurance that asked motorists 20 questions taken straight from your local DMV’s written driving test. About 20 percent of currently licensed drivers would have failed the test, and the average score of 76.2 percent is down slightly from that of 2009.

Some interesting factoids: Male drivers scored better than females on both average scores (78.1 percent male versus 74.4 percent female) and failure rates (24 percent female versus 18.1 percent male). New Yorkers ranked dead last (70 percent average score) and Kansas drivers ranked highest (82.3 percent average score). Want to know more? (Perhaps not…). If so, click here for a further breakdown from our friends at TheDetroitBureau.com.

[Source: TheDetroitBureau.com Image: timsamoff C.C. 2.0]

Obvious: Survey says nearly one-in-five motorists “unfit” to drive

Even though we won’t be seeing the next-generation U.S.-spec Honda Civic until sometime in 2011, we must remember that the European model is a wholly different vehicle. Our spies have just captured these photos of a Euro Civic test mule, showing that Honda is making good progress with updating its best-selling compact in other markets.

Our spies indicate that the new front bumper is already in place under the camouflage on this jimmied-up Civic, giving it a larger stance, though the wheelbase looks about the same as the current car, meaning the overall size probably won’t change too much. Out back, slightly wider rear fenders mimic the larger proportions up front. As for what’s under the hood, we assume that the standard range of both gas and diesel engines four-cylinder engines will be offered in Europe, and the hybrid setup from the CR-Z hatch could possibly find a home in the redesigned Civic, as well.

No word has been given as to when the new Euro Civic will make its debut, but we’re willing to bet that the Honda hatch will hit the streets before the delayed American model debuts. See the full set of spy shots for yourself in the gallery below.

[Source: CarPix]

Spy Shots: Next-gen Euro-spec Honda Civic hatchback caught playing in the rain

Often imitated, never duplicated. We’re talking about the Maybach Exelero, the high-speed test bed commissioned from Daimler by Fulda tires. Unfortunately, only one was ever made, and it was subsequently sold for nearly $8 million, reportedly to an African diamond tycoon named André A. Jackson.

Since then, the Exelero has prompted a few wannabes in various forms, from the Brabus-tuned Maybach 57 Nardo top speed test vehicle to the “Black Ruby” and the latest Xenatech coupe. Now a company in Switzerland is apparently offering replicas of the original Exelero based on the Dodge Viper.

Little in the way of details is available at this point, save for the Viper’s 8.3-liter V10 and 23-inch wheels. The manufacturer is offering the replicas – made to order to the buyer’s specifications – on luxury classified site JamesList for €550,000 (about $670k). That may seem like a lot, but it’s still a far cry from the eight million asked for the original.

[Source: JamesList/JamesSpotting]

Viper-based Maybach Exelero replica available for order, yours for only $670k

The new 2011 BMW 530d has easily passed its first crash test evaluation while using active emergency brake intervention. Like a number of other cars to come to market recently, the 5 Series is available with a radar-based active cruise control system that can use the brake system to manage vehicle speed and keep the car a safe distance from the vehicle in front. Recently these systems have been enhanced with emergency brake intervention that allows full braking force to be applied if crash is imminent – even when the cruise control is not being used.

However, current crash test procedures don’t allow for the activation of such systems. For example, in the European 40 mile per hour frontal offset test, the vehicle is expected to crash at 40 mph. In the real world, active braking would reduce the speed of the impact, likely reducing severity as well. However, applying full brakes also causes the nose to pitch down and the cars occupants to shift position can alter the test’s results.

As more cars get these types of systems, they need to be accounted for in crash testing, and BMW is working with German testing agency DEKRA to develop new procedures. Check out the official press release after the jump.

[Source: BMW]

Continue reading BMW 530d passes crash test using emergency brake intervention

BMW 530d passes crash test using emergency brake intervention

Secrets Revealed: Germany’s Das Neue Motorrad set to release all new production motorcycle

Upon reading his own obituary, Mark Twain once famously quipped, “The report of my death was an exaggeration.” Turns out, with apologies to the famous poet, that the same could be said of the Alfa Romeo MiTo GTA. The project may or may not be dead, but what we can tell you for certain is the spy shots that surfaced a couple of weeks ago were not of the GTA.

What we were actually looking at is a tuning kit by Magneti Marelli. Those who recognize the name may know it as Fiat’s electronics division and a major OEM supplier, which produces everything from ECUs to headlights. It worked with Ford and Microsoft on the development of the Sync and Blue&Me in-car computer systems, and developed the Kinetic Energy Recovery System for Ferrari. In fact, the company’s scope reaches so far that they claim their parts are in just about every new car on the road today, wherever it’s made. Now the company is launching its own tuning division called Magneti Marelli Elaborazioni. The MiTo spied – as astute commenter “adpb” pointed out – was actually their first product, called the Kit-One.

The modification package is comprised of stiffer springs than lower the car by 30 millimeters, the “Parco Chiuso” dual-exit exhaust system with bypass valve, 305mm Brembo disc brakes, a competition ECU good for an extra 31 horsepower, 18-inch matte black wheels and a rather divisive body kit made by Carrozzeria Castagna Milano (who you might remember for their Aznom Corvette and various Fiat 500s) of which only 200 sets will be made. Each item can be ordered separately, and the division has also got packages in the works for the Fiat 500 and Grande Punto. And with their new facility going up in Auburn Hills, Michigan, we wouldn’t be entirely surprised to see them modifying Chryslers, Dodges and Jeeps in the near future. In the meantime you can check out the MiTo with the Kit-One in the gallery below.

[Source: Magnetti Marelli Elaborazioni]

Alfa MiTo Kit-One from Magneti Marelli Elaborazione isn’t the GTA

In a completely expected move, General Motors has just recalled 2010 Cadillac SRX crossovers that are equipped with the turbocharged 2.8-liter V6 engine due to the possibility of engine failure. The problem stems from the misuse of gasoline with lower than the required 91 octane rating. If driven aggressively with non-premium fuel, pre-ignition may be induced.

Such cases of pre-ignition can be very serious, with broken pistons or connecting rods standing out as possible results… as was found out not long ago by Automobiles De Luxe after mistakenly filling Caddy’s latest ‘ute with 88 octane fuel instead of the required 91 octane.

Owners of the 547 affected vehicles are being directed to get their Engine Control Modules reprogrammed free of charge from their favored dealer. More information can be found in the National Highway Traffic Safety Administration’s notice after the break.

[Source: National Highway Traffic Safety Administration]

Continue reading GM recalling select 2010 Cadillac SRX crossovers over engine failure fears

GM recalling select 2010 Cadillac SRX crossovers over engine failure fears

With production of the Veyron coming to an end, speculation has been rampant over what Bugatti will build next. A super-sedan based on the 16C Galibier concept could still get the green light. A 1,200-horsepower “Super Veyron” has also re-entered the rumor mill of late. Even an entry-level roadster was mooted at one point. But a new project could give us a clearer (and more radical) picture than ever before.

According to the rumormongers over at Auto Express, Bugatti is currently working on a massively powerful electric supercar that could eclipse the notions of what was previously thought possible with battery power. A test mule based on sister-company Bentley’s ubiquitous Continental GT is reportedly undergoing testing at present, powered by two giant electric motors and an advanced lithium-ion power cell to deliver the equivalent of 800 horsepower and some 1,600 lb-ft of torque, all available instantly from a standstill. Yowza!

Such technology would doubtlessly draw from the work sister-company Audi has been doing with its successive e-Tron concepts. But as AE points out, this wouldn’t be the first time Bugatti has experimented with electric power: Back in its heyday under founder Ettore Bugatti’s direction, the original company built the Type 56. Originally built as a one-off, public demand prompted the Molsheim marque to bring it to market.

The rumored Continental-based prototype may be strictly a one-off at the moment, but if demand could force the Type 56 to market in the 1930s, it certainly could do the same today.

Photos by Drew Phillips / Copyright (C)2010 Weblogs, Inc.

[Source: Auto Express]

Rumormill: Bugatti developing secret Continental GT-based electric supercar

When you think about all of the truly iconic supercars that have been produced throughout history, not many carry the same mystique and world-renowned praise as the McLaren F1. Exactly 20 years ago, a team of engineers and designers came together in an attempt to build the automaker’s vision of “the finest sports car the world had ever seen.” And even though the official F1 road car was not launched until May 1992, McLaren is celebrating 2010 as the 20th anniversary of the F1 project. After all, this car changed how the world thought about lightness, packaging and supercar design.

Over the course of four years, McLaren produced 64 F1, five F1 LM and three F1 GT road cars, along with 28 F1 GTR racers and six test prototypes. At the end of its lifespan in 1998, the F1 became the world’s fastest production car, and while that title is now reserved for the almighty Bugatti Veyron, the McLaren still holds the record for fastest naturally aspirated road car. (Tricky, tricky!) Beyond that, the F1 garnered a healthy amount of respect for dominating Le Mans – these cars took first, third, fourth, fifth and thirteenth place at the 1995 24 Hours of Le Mans, as well as winning that year’s GT1 championship.

McLaren Automotive celebrated the F1’s 20th anniversary by inviting owners, past and present, to a dinner at the automaker’s technology center in Woking, England, which included a display of 21 road and race F1s. Looking to the future, McLaren will begin production of the MP4-12C supercar, followed by an entire range of performance cars, all built in-house. Will any of these new creations be able to hold a candle to the iconic F1? Only time will tell, but for now, we raise our glass to the original McLaren F1. Three cheers, indeed.

Follow the jump to read more about the F1 and the 20th anniversary celebration in McLaren’s press release.

[Source: McLaren Automotive]

Continue reading McLaren Automotive celebrates 20 years of the pulse-quickening F1 supercar

McLaren Automotive celebrates 20 years of the pulse-quickening F1 supercar

There’s a difference between being rich and being downright wealthy. And while the 2011 Audi A8L W12 can only be afforded by anyone who falls into the very top tax bracket, the style, refinement and technology built into Audi’s newest flagship will make anyone feel like they’re worth a (couple) million bucks.

You thought your S Class made you a high roller? Think again.

Put on your best Italian suit and hand-made cuff links, and follow the jump to watch what the latest twelve-cylinder luxury barge has to offer.

[Source: YouTube]

Continue reading Video: 2011 Audi A8L W12 reminds us that we aren’t rich enough

Video: 2011 Audi A8L W12 reminds us that we aren’t rich enough