Autoblog

In the wake of the Chevy Beat news that started pounding the wires before the 4th of July weekend, the Wall Street Journal reached out to Bob Lutz for some commentary on the topic. Lutz, in an email to the Journal, said, "We always thought we'd do it at some point, but now it obviously enjoys a much higher priority." Based on what the Journal says, this loosely translates to "the 2012 timeframe." Unfortunately for GM, this is a car that its U.S. operation needs approximately yesterday. It would behoove the brain trust in the RenCen to stop debating this and simply end all the speculation by formally announcing a U.S. Beat and attaching a timetable, already (as in, now). We think that the car's appearance as an Autobot in next summer's Transformers follow-up will help create enough public interest for that GM will be forced to make some sort declaration if they haven't by then already (TF2 opens on June 26, 2009).

As we've suggested, GM would probably do itself a big favor by greenlighting production versions of all three Triplet concepts, sending the Trax (also featured in TF2) and Groove to showrooms, too. The argument that Americans aren't into small cars/econocars/hatchbacks is quickly losing water, as automaker sales numbers would attest. There's a reason the Civic now outsells the F-150 and that the Hyundai Accent saw a 70% jump last month. Toyota isn't adding the 5-door Yaris to the U.S. lineup on a whim, either. Market forces, in the form of elevated fuel prices, are altering the landscape, and people are a lot more willing to look at (and buy) something smaller and more economical. It's just reality. The longer General Motors deliberates, the longer it's going to get beaten by competitors who have product ready to go right now. Don't wait for for the popcorn-chompers to play focus group and beg for these cars next summer. Grow a set and make the announcement now. Who would've thought that Michael Bay has a better vision of the future than the General itself? In his, GM's cool, stylish minicars will be on the streets next summer. We know that's not possible in real life, but GM needs embrace the fact that a market now exists in the United States for the Beat (and its siblings) and make the obvious call.


[Source: Wall Street Journal]

After Merrill Lynch hinted bankruptcy concerns yesterday, and other Wall Street analysts spread additional gloom, shares of General Motors dropped $1.77 to close at $9.98 -- GM's lowest close in more than 50 years. While GM stock on Tuesday showed a bit of promise on the news that sales only dropped 18.2 percent in June (yes, it was supposed to be worse), nothing could slow the fall on Wednesday. Unfortunately for GM, the light at the end of the tunnel seems a far way off. Sales are plummeting, and those vehicles that do leave the lot are padded with generous financing and rebate offers (experts quickly point out that incentive-laden sales gains are often followed by slowdowns). With eight brands, 13,000 franchises, and a falling market share, many have begun (or continued) to question GM's ability to survive without insolvency.

[Source: Detroit News]

Here it is in all its glory, Episode #100 of the Autoblog Podcast. We've finally made it. There's a new graphic, a big group of five people all talking on top of each other, and new music. Stay tuned, as we've got an excellent giveaway coming up soon (i.e. when fearless leader Neff gets back from his nuptials). We'd thought that #100 might go 100 minutes, but for your sake, that's not the case and we occupy only 50 minutes of your time this week. Thanks for listening and keep the feedback, commentary, and questions rolling in to podcast at autoblog daught com. See you next week!

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Click image for a high res gallery of the Beat

GM knows it needs an economical, mass-market, mass-appeal small car -- badly. Yes, it has the Aveo, but it's underwhelming in all respects, and sure, it's currently pimping the Cobalt XFE, but that car's about as exciting as an episode of Antiques Roadshow. Corsa? Not engineering the current one to be U.S.-compliant probably wasn't the greatest idea. The answer? MarketWatch says The General has summoned its inner Janet and cried, "Gimmie a Beat!" GM has yet to make a formal announcement, but it seems the Chevy Beat is indeed coming to the U.S. market. The broader public will get a really good look at it next Summer in the Transformers sequel, and as was the case with the Camaro, they'll be looking at a car they'll (apparently) be able to buy. If GM is smart, the screen-to-showroom transition won't take two years as it has with Camaro. It seemed a bit dumb that GM chose New York as the launching pad for the Beat and its fellow Triplet concepts, only to say that the car would be a "global" vehicle (read: everywhere but here). Now, it would seem that global really means global. Hey General, it probably wouldn't hurt to make Trax and get your Groove on, too. Thanks for the tip, Matt!


[Sources: MarketWatch, Bloomberg]

Click above for a high-res gallery of the Opel Insignia.

GM's European branch is planning a big debut later this month at the British Motor Show in London for one of its most important mainstream models. The new Insignia is replacing the venerable Vectra and brings with it a whole new design language. We got our first preview of the new look on last years GTC and Flextreme concepts. In London, Opel will be displaying hatchback and sedan variants of the Epsilon II-based Insignia, with the sharp edged look of the Vectra replaced with smoother flowing lines and scooped out side panels. European drivers will have seven engines to choose from including four gas and three diesel models, all with six speed gearboxes. The four- and six-cylinder gas engines range from 115 hp to 260 hp, while the 2.0L diesel fours get 110-160 hp variants. The Insignia will also be available with a version of the Haldex torque vectoring all wheel drive system used on the Saab Turbo-X. GM plans to announce pricing for the new model on July 22 in London with sales later this fall, and don't be surprised if the Insignia makes the trip across the Atlantic and receives a Saturn badge in the process. The Opel press release is after the jump.


[Source: General Motors]

Click above image for a gallery of the Corvette S-Limited

In celebration of GM's 100th Anniversary, GM Asia-Pacific has unveiled the Corvette S-Limited, a 30-car special for the Japanese market. priced at ¥7,980,000. The allotment is split evenly by color -- 15 in Arctic White and 15 in Black. All the cars get the full leather-wrapped interior package; a rear spoiler, mesh grillework , and screened inserts for the side coves and the plate between the exhaust outlets. 'Vettes in Japan are probably scarce enough that they still draw plenty of attention. Hey, in the land where the best-selling car's engine displaces 660cc's, a thundering, 430-horsepower American pushrod that displaces 6.2 liters is always gonna make people look. Appropriately, the Corvette S-Limited officially goes on sale on the Fourth of July.


[Source: GMAP]

Look quickly, and you'll miss the changes, but GM's got some subtle exterior tweaks in store for its Heavy Duty trucks in 2010. Development doesn't stop even though the practice of using a pickup truck as a commuter car is no longer popular, so GM is plugging away at a new Silverado to avoid being passed up by its competitors.

Competition aside, there's also the issue of federal regulations to comply with, so changes were necessary no matter what. Most noticeably, the bumper changes, gaining a strip of trim that extends across the top, doing away with the overemphasized corner look of the current cow catcher. Looking more closely at the bumper, the air intake in the middle appears to have grown in size. That opening feeds the transmission cooler, so the speculation is that the Allison transmission has picked up extra ratios. Of course, it could just be bigger to gain an edge on thermal management underhood, but we're going to jump on the bandwagon of being excited for more cogs spun by the heavily revised 6.6-liter Duramax diesel with urea injection. That'd be just the thing to tow the Alero.

[Source: PickupTrucks.com, Photo: Priddy]

Automakers had until July 1st to plead their case to the NHTSA overlords before the government agency set off to finalize the 2011-2015 CAFE standards. After hearing comments from Detroit automakers, Toyota, Daimler, and others, it seems that the new standards are going to have a sweeping effect on both consumers and auto industry employees. The Auto Alliance states that the cuts would hasten the exit of 82,000 jobs, cost $29 billion for consumers, and raise the cost of your favorite truck by $4,000 or more. The added cost of vehicles will also cut annual production by up to 850k units industry-wide.

Complaints from automakers are in stark contrast to claims from NHTSA, which says the added fuel economy will result in 9,000 more jobs. The two sides do agree that the new standards will cost a lot of money, as NHTSA estimates that the new rules could cost $47 billion by 2015, though automakers estimate it will cost even more. While the Alliance wants some slack in the new rules, Congress wants to see even tougher regulations. The wise guys and gals on the hill say the proposal doesn't reflect $4-per-gallon gasoline, and automakers feel the regulation doesn't reflect common sense. Since the new rules begin to take effect in late 2010, automakers contend that the product cycle is already baked in, and changing at this stage in the game would be like moving an Egyptian pyramid with Two Guys and a Truck.

Whether automakers can meet these stringent deadlines on time or not, the industry is being turned on end. With gas approaching $5 a gallon, automakers don't need the government to tell them that they need more efficient vehicles. Cash-carrying customers are doing that just fine, thank you.

[Source: Detroit News]

This Independence Day might be the time for waving the red, white, and blue, but GM wants to nab some green, too. The automaker is extending its 0-percent financing sale, which it kicked off on June 24th as the "72-hour sale," until July 7th. The extension of the special financing offer allows dealers to capitalize on the increased floor traffic that GM's advertising onslaught generated. The sale and advertising frequency get people in the door, but many car buyers hem and haw, making it tough to close a deal in just a week's time. The extension gives salespeople a reason to ring up prospects and offer them the sweetest deal they can muster on a new General Motors vehicle. While we'd love to get a C6 Corvette for $20,000 off invoice and 0 percent terms on the loan, our blogging income likely supports a Certified Used vehicle instead. On that end, GM is also offering financing between 2.9 and 4.9 percent on a raft of used models like the Impala, Malibu, Envoy, G6, and Lacrosse. These are the most favorable terms you're likely to ever find, until someone starts desperately handing out -1% financing whereupon they pay you to take the car.

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

Back in the late seventies and into early eighties, Chrysler had gotten itself into such horrid financial shape that the U.S. government decided to step in and fix the situation itself. Considering the sorry state of affairs that all three of the Detroit automakers find themselves in today, some may wonder if a government-funded bailout is in the cards. Not so much... at least according to John McCain. "Frankly I just don't see a scenario where the federal government would come in and bail out any industry in America today," says the Republican.

So, what plan does McCain have in store for the Detroit 3? More Chevrolet Cobalts and Pontiac G5s for one, as the Arizona Senator said the above words after touring the plant in Lordstown, Ohio where the GM compact cars are made and a where third shift has just been added. "I am convinced that what is being done at the Lordstown assembly plant is the future of the American auto industry," added McCain.

In more related good news for the U.S. automakers, McCain says he supports nationwide CO₂ standards and would oppose any state's individual plans -- California, we're looking at you. The Presidential hopeful also wants to see more fair-trade standards implemented with the other various auto-building nations and quicker violations for unfair practices. We await a response from the Democratic side.

[Sources: The Detroit News, Automotive News - sub. req'd]