General Motor’s decision to file for Chapter 11 bankruptcy has created a lot of uncertainty for both car buyers and owners of GM vehicles. While it’s too early to know how all of the variables will play out, both the company and the federal government are hoping for a relatively short restructuring period. Ideally, GM will emerge from this as a leaner, more streamlined automaker—with fewer brands, dealerships, and models—that is better positioned to compete in today’s automotive environment. In the meantime, the restructuring processes could be fairly transparent for most car buyers and owners. Exceptions include those who have a local dealership close its doors or discontinue carrying a certain brand. And for car shoppers in general, it could be a great time to buy. 1. Will I be able to get parts and service for my GM car? GM has said that it will continue to support their authorized dealerships with parts during this restructuring period, so that the dealers can continue to service your vehicle. Of course, common third-party replacement parts are also widely available through auto-parts stores. Keep in mind that you don’t have to take your car to a dealership for servicing, even if it’s under warranty. A good independent shop, especially one that specializes in your car’s brand, should be able to handle routine maintenance and many repairs. Moreover, independent repair shops are often less expensive than dealerships and, according to our Annual Auto Survey, generally provide a higher level of satisfaction. You will need to go to a dealership, however, for warranty and recall work. 2. Will GM still back my warranty? GM has said that it will continue to support its vehicles’ warranties during this restructuring period. In addition, the Treasury Department’s Warranty Commitment Program says that the federal government would back warranties for any GM vehicle bought during the restructuring period, should the automaker go out of business. The government would contract with a third-party auto-service provider to provide warranty repairs. Such a program might not run as smoothly as an automaker program, but it wouldn’t kick in unless the automaker is liquidated. 3. Will this affect the resale value of my GM car? With the uncertainty...

General Motors filed for bankruptcy this morning. (See report by the Washington Post .) President Obama will make a televised statement at 11:55 a.m., with GM President and CEO Fritz Henderson to hold a press conference immediately after at 12:15 p.m. We will cover the announcements and developing news here, as well as at twitter.com/CReporter . The Chapter 11 filing represents the largest corporate bankruptcy in history, and it was precipitated by federal government threats to cut off loans to the company if it didn’t meet specific restructuring goals. (Learn how bankruptcy works .) With this move, the federal government now deems GM’s plan viable and will provide an additional $30 billion into GM to keep the company afloat through the bankruptcy process. The government is expected to own 60 percent of the new company. The governments of Canada and Ontario will lend $9.7 billion and take on 12 percent of the new GM. As part of the further restructuring, General Motors will close 11 facilities and idle another three. However, GM is committed to building a new small car in an idled UAW factory, increasing the production percentage of American-made models sold in the United States from about 66 percent to over 70 percent. Under the bankruptcy plan proscribed by the Treasury Department, GM is expected to emerge from bankruptcy quickly, in about 60 to 90 days, while some unprofitable GM divisions, including Hummer, Pontiac, Saturn, and Saab will be closed or sold off. The new, leaner GM expected to emerge from bankruptcy will include the Buick, Cadillac, Chevrolet, and GMC brands. The company will close about 18 percent of its dealerships. Should the bankruptcy be similar to Chrysler’s Chapter 11 process, there may be concerns for consumers being left without recourse from the company for product defect, personal injury , or “ lemon ” claims. Consumers Union recently wrote a letter to the federal Autos Task Force urging the Treasury Department to make sure legitimate consumer claims do not become a casualty of the bankruptcy process. To get answers to the most common questions and concerns about Chrysler’s and GM’s bankruptcy, check out our Auto Crisis hub . — Eric Evarts and Jeff Bartlett Read the original: General Motors files for bankruptcy

In this episode of RoadTrip, Mark Fulmer is joined by Lori Hindman of MotherProof.com to take an in-depth look at the new Audi Q5 … Get the complete story at TheAutoChannel.com . Original post: New Audi Q5: Road Trip!

As the clock ticks down to an expected GM bankruptcy filing on Monday, the pieces for a potentially smooth restructuring process are falling into place. Monday, we will cover the announcements from GM and President Obama here, as well as at twitter.com/CReporter . The President is expected to address the nation at about 11:55, with GM hosting a press conference at 12:15.  On Saturday, a majority of GM bondholders, holding a little more than 50 percent of GM’s debt, agreed to a plan to exchange their debt for an ownership stake in the company, according to the New York Times . The bondholders will initially get 10 percent, but will eventually be able to increase the stake to 25 percent. This is expected to streamline the bankruptcy process, with expectations that GM could emerge within about 60 to 90 days. (See: “ GM counts down to ‘B Day’ ” and “ Concerned about GM’s bankruptcy? ”) Meanwhile, across the Atlantic, an agreement was reached for GM to sell a majority stake of its European operations, including the German Opel and British Vauxhall brands, to a group led by the Canadian auto-parts manufacturer, Magna International. With this plan in place, Opel is expected to be placed under a trust, which will shield it from the U.S. auto bailout and, again, help make the restructuring process go more smoothly. According to Canada’s Globe and Mail , Magna will become Canada’s first major automaker since 1918 and has said that it wants to build Opel cars in Canada. While many Americans aren’t familiar with Opel, its cars have begun to trickle into our market in recent years as GM has been using them to develop new Saturn models. The current Saturn Astra and Vue , for example, are rebadged versions of the Opel Astra and Antara, respectively. (These links go to the model overview pages with ratings, road tests, and more, available to online subscribers.) How have they done? In our tests, we found the Astra agile to drive with good steering and a composed ride, but its acceleration is lackluster and fuel economy is so-so for its size. The Astra scored midpack in our hatchbacks ratings, but is not recommended because we don’t yet have reliability data on it.   While the Opel-based Vue is a big improvement over the previous version,...

The 2011 BMW 6 Series was video spied by the folks at Edmunds Insideline.  A 6er prototype shows up at the Nurburgring track for more testing and for the first time, judging by the engine sound, we believe we’re looking at test mule powered by the powerful 4.4 liter V8 twin-turbo engine. As we learned in the past, several powerplants will be available for the new 6 Series, starting with the the twin-turbo 6-cylinder 326 horsepower  engine, followed by a 6-cylinder diesel as well and as a surprise, the newly developed, but not yet released, Tri-Turbo 6-cylinder diesel which produces 354 horsepower. And since we’re moving towards more fuel efficient luxury sport cars, BMW will offer a model under the 655 naming convention which is powered by the hybrid powertrain from the X6 and 7 Series hybrids. A 6 Series rendering created together with Promotor.ro The 2011 BMW 6 Series will use the latest 8-speed transmission as well as the 7-speed DCT one. To make the new 6er appeal eve more to car enthusiasts, a new damping system will offer four different sport settings from Comfort right through to Performance , including an option for efficient performance. As far as the overall design, sources close to BMW confirm that the 2011 6 Series is slightly longer and wider than the current generation and that overall appearance will carry over, based on the idea of an evolutionary design which keeps the premium sport car image. As signaled by BMW’s new CS concept, the automaker will be abandoning its awkward trunk design features in favor of a more streamlined design. It will have shorter overhangs and a lower roofline which implicitly gives the car a more muscular look. The 2011 BMW 6 Series will launch in the first half of 2010, but more revealing test mules will be seen this summer. And the Youtube version for those of you outside the U.S. Click here to view the embedded video. More:  Spy video: 2011 BMW 6 Series

Another BMW X1 test drive came out, this time, the UK based Autocar published their X1 review. As we mentioned earlier today, last week, several auto publications were invited for press preview of the X1 before the official launch in June. So far, most of the X1 reviews we’ve seen were quite positive and Autocar gives the X1 a passing grade, even more, their last statement is quite powerful: “In simple terms, it takes all the likeable qualities of the 3-series and wraps them up in a higher-riding estate style body, also allowing you to head off-road when the need arises.” Before we let you read the entire review, we would like to applaud BMW for offering this press preview test drive, which turned out to be an effective marketing method so far. What is it? BMW’s new junior off-roader – the X1. UK sales are slated to get underway around October, with local BMW officials hinting at a starting price of £25,000 for the entry-level xDrive18i and rising to around £35,000 for the range topping xDrive28i. BMW is going for a broad reach with the X1, which will come with the option of three petrol and three diesel engines from the outset. The petrols include two 2.0-litre units with 141bhp and 168bhp, and a 254bhp 3.0-litre six-cylinder unit. On the diesel side there is a trio of 2.0-litre common rail fours producing 141bhp, 175bhp and 201bhp. We’re testing a prototype of the 201bhp xDrive23d here. A six-speed manual gearbox is standard on all but the xDrive30i and xDrive23d, both of which receive a six-speed automatic with remote shift buttons on the steering wheel. BMW X1 xDrive23d Full Review View original post here:  Autocar First Drive: BMW X1 xDrive23d

Media publications around the world were invited last week to test drive the not-yet released BMW X1. Gathered in the Mallorca region in Spain, auto journalists spent a day behind the wheel of the smallest Sports Activity Vehicle in the BMW line-up. We showed you yesterday Edmunds’ report on the car and overall, it was quite positive. We have to admit that the X1 is starting to grow on us and we finally see where the car will fit. An X3 sits in our garage currently, but looking at X1 photos, we definitely see ourselves “falling” for it. We love the overall size, interior space seems to be as spacious as the X3, but with a far better design. Sure, the next X3 is just around the corner and it is rumored to have been taken up a notch on the design scale, but at the same time, it carry a higher price tag. The BMW X1 will be available in four wheel drive, but in the future, a rear wheel drive option will be offered. With the initial launch in the European market only, the four-wheel drive will be the only option offered. The 2.0 liter 177 horsepower xDrive23d prototype in these images also features an M Sport Package which will be offered to enhance the front fascia. As reports are starting to flow in, we will keep you updated. Excerpt from: Photo Gallery: BMW X1 going off-road

The first crossover vehicle ever developed by the MINI brand has made another appearance. Developed under the internal name “Project Colorado”, the Crossover will be the first MINI developed outside the U.K and built by Magna Steyer, an Austrian company. MINI Crossover will be available in two versions: the regular front-wheel-drive and a higher-end all-wheel drive model using the xDrive train from BMW. It can hold up to four passengers and it will be longer than any existing MINI, 13 ft long (4 meters). The crossover also runs on higher wheelbase which should help bolster its off-road credentials. Even though no official information were released regarding the engine, it is fair to assume that some of the engines found in the Cooper and Clubman models will make their way into the new Crossover, starting with the four-cylinder 1.6 liter gasoline engine (120horsepower) and the latest 1.6 liter turbocharged engine built by BMW. The MINI Crossover, which is larger than the Clubman, will be first production MINI to measure more than 4 meters in length. Expect its exterior dimensions to be similar to the concept measuring around 4,050mm (159.5-in.) in length, 1,830mm (72.0-in.) in width and 1,598mm (62.9-in.) in height. The MINI Crossover or Crossman as some media likes to call it, is expected to arrive in the showrooms during the second half of 2010, but it will make its debut at the Frankfurt Auto Show this fall. [Source: Carscoop ] Read the original here:  2010 MINI Crossover caught again

Very few vehicles comfortably occupy the stratosphere of high-end luxury cars and local dealers Stewart Motors recently introduced one such – the 7 Series BMW. Sharing the rarified airspace is the Mercedes Benz S Class, handled locally by Eurostar Motors a division of Motor Sales. It is always interesting listening to people espouse attributes of one vehicle or the other and give reasons why one is preferred. One thing is certain both brands share meticulous German technology and are backed by a tradition of indulgence. But at the top end where the 7 Series and the S Class sit, it is almost redundant listing luxury features, for that is what they are built around. However, behind the luxury is also a level of performance and safety considerations that could boggle the mind. For instance, the BMW 7 Series employs radar technology to avoid rear-ending vehicles in front (incidentally not available in Jamaica). An integral active steering, a sort of four-wheel steering that alters the angle of the wheels, BMW says makes it world debut on the 7 Series. At Mercedes Benz, there is infrared night vision and claims of the first airbag supplemental restraint system along with electronic stability programme. All these features are presented and packaged in finishes fit for a King (think heads of state and diplomats). + 2010 BMW V-12 760i, 760Li Revealed + 2010 BMW 760i,760Li Debut at Shanghait Auto Show 2009 + 2009 BMW 750i 400HP Twin-Turbo Road Test + 2010 Mercedes E-Class/E550 Coupe First Drive + 2010 Mercedes-Benz E-Class Sedan and Coupe Pricing + 2009 Mercedes-Benz C-Class demands attention + 2009 Mercedes-Benz C63 AMG: BMW-Fighting Performance Sedan Remember, however, this opulence and performance comes at a price – and it’s high – consider starting at $12 million to own a 7 Series and upwards of $14 million to enter the S Class line. Mercedes S Class starts with the S320, offering choices of diesel or gasoline up to a V12 powertrain. BMW has its 730d (diesel), 740i, 740Li 750i and 750Lsi. Top speed in the Bimmer reaches 250 km per hour in the 750i and 245 km/h in the diesel. According to specs provided by Stewarts the 740i consumes 9.9 litre per 100km while a Benz S350 takes a bigger gulp at 10.2 Litres for every 100km. 2010 BMW 760Li Gallery...

The General Motors Corp. bankruptcy filing expected Monday follows weeks of maneuvering and preparation. The government has said it wants GM’s trip through bankruptcy to be quick, and various stakeholders will have to accept sweeping changes. Still, the future of the auto giant — and its significant presence in Western New York — is shrouded in questions. The answers matter to everyone — active and retired workers, dealers and suppliers, and, most importantly, to car buyers. GM has an engine plant with more than 1,000 jobs in the Town of Tonawanda. Suppliers with a local presence, including Delphi Corp., American Axle & Manufacturing, and other smaller companies ship products to GM. In the eight counties of Western New York, 48 dealerships sell new GM vehicles. And retirees rely on the automaker for health benefits and pensions. Here is a look at what might unfold: 1. Employees Members of the United Auto Workers last week approved revisions to their 2007 labor contract with GM, with 74 percent voting in favor. If GM went bankrupt, the union felt, it was better to have an amended contract in place. A lot of local jobs are at stake. The Tonawanda plant has about 1,140 employees, including about 1,010 hourly workers. About 360 of the hourly workers are on layoff. The amended contract calls for suspending workers’ cost-of-living adjustments and suspending performance bonuses planned for this year and 2010. It also eliminates the chance of a strike against GM until 2015 and shortens workers’ break times. A new round of buyout and early retirement offers was included. Garry Graber, a partner in the Hodgson Russ law firm, doubts the contract will be altered in bankruptcy court. “A judge won’t change the labor contract unless the company asks them to,” he said. And he doesn’t expect GM to ask for changes, since the contract was just agreed to. 2. Retirees The revised contract calls for reducing retirees’ health benefits in areas such as dental and vision programs. The reduced benefits could lead to an “induced effect” on retirees, said George Palumbo, an economist at Canisius College. If they have to spend more on health care costs, they might cut back their spending in other areas, affecting the local economy, he said. Retirees will have...

Toyota’s three-generation Prius hybrid has made a booming 110,000 orders in Japan, turning out to be a rare bright spot in the gloomy auto market. The third-generation Prius officially rolled out in Japan just two weeks ago. But dealers are already flooded with orders, including some placed weeks in advance, according to the dealership. Toyota Motor Corp., the world’s biggest automaker, said two weeks ago that it received 80,000 advance orders, and has not updated that number. But the Toyota Tokyo Corolla dealer said Saturday that nationwide orders at Toyota dealerships in Japan, including those of rivals, have soared to 110,000. Dealers tally their customer orders differently from the way manufacturers do. But any way you slice it, the Prius is a hit. Toyota has set its monthly sales target for Japan at 10,000 new Prius cars — a figure that should make it the top-selling car in the country. As the orders stack up, the company looks on track to meet or even surpass its goal and take that crown — an astonishing accomplishment for a hybrid, although the Prius is fighting competition from another new hybrid, Honda Motor Co.’s Insight. Hybrids are in demand partly because the Japanese government began offering tax exemptions for the cars to encourage their sales earlier this year. Parliament gave consumers added incentive Friday when it approved a cash-back rebate for trading in cars 13 years or older for greener cars. Hybrids also promise savings on gas. In Japan, where frequent stop-and-go traffic lowers the fuel efficiency of gas-engine cars but actually raises it in hybrids, the Prius is promising nearly 90 miles per gallon (38 kilometers per liter). In heavy traffic, hybrids rely on their electric motors and thus burn no gas. The overall Japanese auto market has been languishing for years, with vehicle sales falling to their lowest level in more than three decades last year. Demand has worsened since the U.S. financial crisis sent this nation into a recession. Toyota, which also makes Lexus luxury models and the Camry sedan, has said it is increasing Prius production to meet demand. But it is still expecting a 550 billion yen ($5.7 billion) loss for the fiscal year through March 2010, its second straight year in the red, because of the global...

There was some encouraging news for the UK’s hard-pressed car industry yesterday when the Government confirmed that 35,000 cars have been ordered as a result of its car scrappage scheme. The numbers equate to one scrappage scheme order in every five new car orders since the scheme – which offers a £2,000 subsidy for people trading in vehicles 10 years or older for new models – went live earlier this month. Business Secretary Lord Mandelson was present as Prime Minister Gordon Brown welcomed six new car buyers who had benefited from the scheme to Downing Street. Mr Brown said: “I am determined to do everything I can to see Britain through the downturn quickly and build a stronger Britain for the future. That is why I am delighted that over 35,000 people have already taken up the Government’s offer of help to buy a new car when they scrap their old one. “This scheme not only helps hard-pressed consumers, it also helps protect British jobs by stimulating demand for new cars.” The scheme, with £300m from Government and matched funding from manufacturers, is designed to provide immediate support in the short-term for the car industry and its supply train in the wake of falling sales. The £2,000 grant, made up of £1,000 from Government and the same from vehicle manufacturers, will run until March next year. Chief executive of the Wales Automotive Forum, Tim Williams, said the scheme was starting to have an impact on sales, but a full recovery was still some way off. In the past 10 months the automotive component industry has haemorrhaged some 4,500 jobs in Wales. In 2007 the sector employed 25,000, but now has just more than 20,000. However, the majority of job losses have been among temporary staff. Mr Williams said: “The large companies bring in temporary workers for given contracts or when there is a upturn in demand. However, unfortunately, they are the first to be hit in a downturn, but we have also lost core workers in Wales as well.” The automotive components sector is dominated by the big international firms such as Ford, which employs 2,000 at its engine plant in Bridgend and the Toyota plant at Deeside which employs 700. In total there are 40 international firms in Wales, which employ the bulk of the current workforce with 16,000. Some...

Although it can’t be classed as a runaway success, Honda’s Accord Hybrid was a harbinger of things to come. Sold in Canada from 2005 through 2007, it was the first V-6-propelled hybrid vehicle put into production by the Japanese company and, according to Honda, it signified “a significant shift in drivetrain technology.” In this case, that translated into better performance. With 255 horsepower on tap, the Accord Hybrid accelerated from 0 to 100 km/h in the seven-second range, which made it a smidgeon quicker than the regular V-6, not exactly a slouch in the pedal-to-the-metal department. In fact, the Accord Hybrid seemed to be as much about performance as fuel economy and lower emissions. Utilizing a slightly modified standard-issue Accord V-6 engine and a beefed-up version of the same powertrain setup as the Civic Hybrid, it featured Honda’s Integrated Motor Assist (IMA) system, which consisted of a thin electric motor sandwiched between the engine and transmission. This arrangement supplied 10 per cent more supplemental horsepower than its Civic counterpart and 26 per cent more torque. And like the Civic and original Insight hybrids, the whole setup essentially acted as a boost when more power was required – during hard acceleration and hill-climbing, for example. Although more powerful, the Accord Hybrid’s nickel metal-hydride battery pack was actually smaller than that of the Civic Hybrid. Like most hybrids, the Accord “harvested” electrical power during braking and recharged itself when the vehicle decelerated. The electric motor had different power intervals than that of the Civic and Insight, and used different magnets and filaments, but was essentially the same unit. Interestingly, the Accord Hybrid also had a hybrid air conditioning system – two separate compressors provided the cooling power; one connected to a small electric motor, the other running off a conventional drive belt. The idea was to provide instant relief when the vehicle was parked outside on a hot summer’s day, or cool air if you were sitting in traffic with the engine not running. As far as fuel economy was concerned, the Accord Hybrid’s IMA system shut the engine off at idle or any speed below 13 km/h, and automatically...

Two German states on Sunday agreed to support a euro1.5 billion ($2.11 billion) bridge loan for General Motors Corp.’s Opel unit, putting the final touches on a deal with Canada’s Magna International Inc. to acquire the automaker. Under the deal, pushed through to protect Opel before GM’s likely bankruptcy filing on Monday, Magna will take a 20 percent stake in Opel and the Russian-owned Sberbank will take a 35 percent stake, giving their consortium a majority. GM will retain a 35 percent holding, while the remaining 10 percent will go to Opel employees. “The time of uncertainty is over,” North Rhine-Westphalia governor Juergen Ruettgers said of the deal. “The main components of Opel’s future remain in Europe.” The German government and four state governments where Opel has operations have now pledged to provide a euro1.5 billion ($2.11 billion) bridge loan for the deal, part of which will be available immediately. Following agreement on the plan early Saturday after talks through the night, the governors of Thuringia and Rhineland-Palatinate immediately approved their respective shares of euro52 million ($73.31 million) and euro100 million ($140.98 million). The state parliaments in Hesse and North Rhine-Westphalia, where coalition governments are in control, voted Sunday to approve their respective shares of euro447 million ($630.18 million) and euro150 million ($211.47 million). “We’ve decided that there is to be a new European company,” Hesse governor Roland Koch said. “I think that for Opel and its employees it is an unbelievable chance.” Opel employs 25,000 people in Germany, nearly half of GM Europe’s work force. http://horisly.blogspot.com/atom.xml Original post:  Opel close to Magna as funnding approval by German states

Toyota and Lexus vehicles dominated a recent large-scale U.S. customer satisfaction survey, although GM’s Cadillac luxury brand achieved the top brand marks for overall owner happiness for the second straight year. The Lexus LS full-sized sedan garnered the highest satisfaction rating of any vehicle surveyed, car or truck, while Toyota had the most wins of any manufacturer, with six in total: three for the Toyota brand (Prius, Venza and Sienna), two for Lexus (LS and ES) and one for Scion (tC), the youth-oriented brand of small cars that are scheduled to arrive in Canada next year. Cadillac snagged the highest-rated truck with the Escalade. Hyundai was the fastest rising auto maker in the survey, its overall score higher in 40 of 48 satisfaction categories. California consulting firm AutoPacific released its 2009 Vehicle Satisfaction Awards this week, after surveying more than 25,000 American owners and lease holders during the fourth quarter of 2008. ***** Satisfying vehicles PASSENGER CARS Premium Luxury Car: Lexus LS Aspirational Luxury Car: Hyundai Genesis Luxury Large Car: Lincoln Town Car Luxury Mid-Size Car: Lexus ES Premium Mid-Size Car: Hyundai Sonata Mid-Size Car: Ford Fusion Image Compact Car: Toyota Prius Compact Car: Mitsubishi Lancer Economy Car: Honda Fit Sports Car: Porsche 911 Sporty Car: Scion tC ***** LIGHT TRUCKS Large Pickup: Dodge Ram 1500 Compact Pickup: Ford Explorer SportTrac Luxury Sport Utility: Cadillac Escalade Large Sport Utility: Chevrolet Tahoe Premium Mid-Size Sport Utility: Ford Explorer Mid-Size Sport Utility: Jeep Liberty Luxury Crossover SUV: Land Rover LR2 Large Crossover SUV: Mazda CX-9 Premium Mid-Size Crossover SUV: Toyota Venza Mid-Size Crossover SUV: Volkswagen Tiguan Compact Crossover SUV: Kia Sportage Minivan: Toyota Sienna Source: AutoPacific’s 2009 Vehicle Satisfaction Survey http://horisly.blogspot.com/atom.xml Go here to see the original:  Cadillac, Toyota, Lexus Top U.S. Customer Satisfaction Survey