Chris Shunk

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GM recalling 53,000 Chevy Cobalt, Saturn Ion, and Pontiac G5 models over fuel leak concern

2009 Chevrolet Cobalt SS - Click above to view high-res image gallery

General Motors may have shed itself of much of its pre-bankruptcy problems, but the automaker still has to tend to its warranty and recall duties. As such, GM is recalling 53,000 Chevrolet Cobalt, Pontiac G5 and Saturn Ion models for a potential fuel leak problem that the National Highway Traffic Safety Administration says could lead to a fire. The problem involves 2006 Cobalt and Ion model models sold or registered in Arizona and Nevada and 2007 Cobalt, G5 and Ion models sold or registered in Arizona, California, Texas, Florida and Nevada.

NHTSA says the plastic supply or return port on the cars' modular reservoir assembly may crack, potentially leading to a fuel leak that could cause cause decreased efficiency and performance. Worse, if that leaking gasoline comes into contact with an ignition source of any kind, you could be looking at a Delta platform car-b-que.

To fix the fuel leak problem, company dealers will replace the fuel pump module of affected vehicles free of charge. GM is also providing a special coverage for 2006 and 2007 Cobalt, G5 and Ion models in other warm weather states, and you can hit the jump to read over the NHTSA press release to see if you live in a participating location. GM hasn't yet provided a time frame for owner notification, but if you have questions you can read the official press release after the jump or call 1-800-630-2438 (Cobalt), 1-800-972-8876 (Ion) or 1-800-620-7668 (G5).

[Source: NHTSA]

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REPORT: Chrysler again offering early retirement to 23k hourly workers



The Detroit Free Press is reporting that Chrysler is again offering early retirement packages in an effort to entice some of its 23,000 hourly employees to hit the road. The buyout packages are the first offered by post-bankruptcy Chrysler, though the terms of the buyouts are very similar to earlier offerings. The Freep is reporting that all workers with at least one year of service can walk away from their current job and receive $75,000 plus a $25,000 voucher. Those who wish to participate in this program will also continue to receive health benefits for an additional six months with the option to purchase coverage for a year after that.

Retirement-eligible workers age 55-59 with a combined 85 years of service or workers age 60 or older with at least 10 years of service can receive $50,000 plus a $25,000 voucher. A third package for workers between the ages of 55 and 62 with at least 10 years of service can receive immediate full retirement benefits. The workers have two weeks to decide whether or not to take the buyout/retirement packages, as the offer will be pulled from the table November 13.

Chrysler's newest buyout program comes as many facilities across the country are either closing or have already closed. Without a jobs bank to keep paychecks coming, we're guessing the take rate could be substantial in affected areas.

[Source: Detroit Free Press | Image: Bill Pugliano/Getty]

Oh, Canada! Great White North journos pick their cars of the year


Guess what boys and girls, the auto show season is ramping up and that means the constant flow of Car of the Year awards is upon us. The biggest auto show award in our quaint little hemisphere is likely the North American COTY award, which, we would have thought included Canada, Mexico and our United States. Well, not so much. The Canadians have their own international show and their own COTY, complete with car and utility honors from among 12 categories and 52 award-eligible vehicles of all shapes and sizes.

After pouring over vehicles ranging from the Mazda3 to the Porsche Panamera and everything in between, the Canadians have narrowed their focus to one vehicle in each of the 12 categories. Volkswagen is the best-represented automaker in the final 12, with three VW models, two Audis and the Panamera. The Mazda3 wins in two different categories and the Ford Taurus is the only finalist among Detroit automakers.

Also shut out – somewhat surprisingly we may add – are the Honda and Toyota brands, although the Lexus Lexus RX450h was voted the top crossover/SUV over $60,000. The 2010 Canadian International Auto Show begins February 12. Hit the jump to view the rest of the winners.

[Source: AJAC via Auto North]

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BREAKING: GM board opts to call off Opel sale



After months of negotiations with supplier Magna and its Russian partner Sberbank, General Motors has decided not to sell its Opel unit. The General mentioned in the post-jump press release that the new board of directors came to the decision to keep Opel due to GM's recovering financial situation coupled with an improving business environment in Europe. GM's move to keep Opel comes just one week after EU's Directorate-General for Competition began investigating the sale to Magna to be sure it was based on sound financial footing and not because of political influence from Germany.

GM CEO Fritz Henderson added in the company's release that the process was difficult for all parties but in the end "our goal has been to secure the best long-term solution for our customers, employees, suppliers and dealers, which is reflected in the decision reached today. This was deemed to be the most stable and least costly approach for securing Opel/Vauxhall's long-term future."

Now that GM plans to keep Opel in its brand portfolio, the next move is to proceed with a painful restructuring that could see the loss of 10,000 jobs and the elimination of 30% of the Euro unit's structural costs. The reported tally for the restructuring could cost GM upwards of $4.4 billion, and some of that could come courtesy of cash received as part of the company's $50 billion US government bailout.

Now that GM is out of bankruptcy, the company is reportedly no longer barred from using bailout funds for countries or regions outside of the US. It's also possible that GM could get loans from Germany and or Great Britain to finance the restructuring. The Detroit MI-based automaker also intends to work with European unions to develop a plan that contributes to Opel's restructuring. Hit the jump to pour over GM's press release.

[Source: Detroit News]

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GM awarded DOE money to research Shape Memory Alloy heat engines


General Motors has been awarded $2.7 million by the Department of Energy to create a working prototype engine using Shape Memory Alloys (SMA). The idea is for the prototype to use SMA tech to capture heat energy from engine exhaust gasses via an electric generator and transfer that energy to recharge batteries for hybrids or electric vehicles.

SMA tech can also theoretically power electronic devices like power seats and windows in a standard gas- or diesel-powered car, perhaps even replacing the power-sapping alternator. The GM press release, which is pasted after the jump, doesn't go into much depth explaining how memory alloys work, but the basic principle is easy to understand.

"When you heat up a stretched SMA wire, it shrinks back to its pre-stretched length, and when it cools back down it becomes less stiff and can revert to the original shape" said Jan Aase, director of GM's Vehicle Development Research Laboratory. "A loop of this wire could be used to drive an electric generator to charge a battery."

While $2.7 million isn't a lot of coin in the realm of GM finances (the General seemed to shed about $2.7 million every ten minutes pre-bankruptcy) the grant was significant in that it was the only monies awarded by the DoE given to an automaker. GM is working with partners from outside the auto industry to make the concept a reality, a practice that the General says is imperative to get breakthroughs like this to market. No timetable was given as to when GM's SMA concept would see the light of day.

[Source: GM]

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VIDEO: 0-60 pits Ford Raptor against BMW X6 M in winter issue

Raptor vs. X6 M: Click above to watch the video after the jump

The Ford SVT Raptor and the BMW X6 M are alike in that both vehicles represent the most extreme versions of their base forms. The Raptor, with its the triple-bypass Fox shocks and 35-inch tires, is a Baja-ready version of the F-150 right off the showroom floor. Meanwhile, the BMW X6 M is the 550-horsepower speed-demon version of the mild-mannered X6 luxury crossover. The two rides have little in common other than their extreme, top-tier positioning, yet 0-60 Magazine has found a way to put the two together for its Winter 2010 issue.

We don't know what the gang at 0-60 actually did with the Raptor and the X6 M, but the magazine has managed to slap together a teaser video to whet the palette. Hit the jump to watch 0-60 have a bit of fun with the X6 M and the SVT Raptor. And if you're not a big fan of the vid, you can simply sit back and enjoy the 1:21-minute excerpt of Motley Crue's "Kickstart My Heart" that sets the aural backdrop to the onscreen mayhem.




[Source: 0-60 Mag]

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REPORT: Omaha Toyota dealer employee accused of selling $282,000 in parts on eBay



James Norwood was hired on at Old Mill Toyota in Omaha, Nebraska in 2000, eventually working his way up to parts and service director. At the same time, Norwood reportedly sold over $548,000 in goods as a hard-working eBay business owner, praised by customers for being dedicated and a fast shipper. Norwood sounds a lot like a man living the American dream, except prosecutors in Omaha allege that the entrepreneur has been stealing parts from his day job to sell on eBay.

The Omaha World-Herald reports that Norwood has officially been charged with theft, a crime punishable by up to 20 years in prison. Old Mill Toyota became suspicious of Norwood's actions when a co-worker allegedly witnessed him creating fictitious parts tickets using other employees' names and then later canceling them so the body shops weren't charged. Prosecutors also claim that Norwood would help his co-workers unload the parts truck, creating a separate pile of items that were intended for auction.

Authorities later seized Norwood's home and work computers and discovered the former parts and service director's blossoming eBay business. Among the stolen items Norwood's allegedly sold online were 798 bed extenders, 375 skid plates and 363 roof racks; parts that fetched $226,000. While authorities say Norwood's eNay operation netted $548,000 in sales since 2000, it appears he is only being charged with the theft of $282,500 in merchandise reportedly stolen from Old Mill Toyota after he became the dealership's parts and service director. Hat tip to Bob M

[Source: Omaha.com | Image: Old Mill Toyota]

VIDEO: Buick Regal sneak peek shows face we already know

Click above to watch the video after the jump

A couple of weeks back, General Motors officially announced that its next new Buick will carry a very familiar name: Regal. Two days later, the apparent U.S. spec Regal was added to Buick's Facebook page, revealing that the Regal sold here in the States will essentially be the same as the China spec Buick sedan, which is itself essentially a rebadged Opel Insignia. Got all that?

The only changes we noticed in the photo include a slightly larger and more rounded-off version of Buick's chrome waterfall grille and redesigned lower openings below the grille and headlamps along with the new squared-off fog lamps. After seeing a new "viral" video from Buick, we're more sure than ever that the FB Regal is the U.S. model.

Hit the jump to check out Buick's latest tease of the new Regal. The video was shot guerrilla hand-held style and it reveals nothing other than the front end of Buick's newest sedan. We do see, however, that the grille, badging and lower fascia shown in the video appear to be a match to the photo shown above. Judging by the uptick in Regal info emanating from the General, we're guessing the information floodgates will be opened up very soon.



[Source: Buick via YouTube]

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Empire Strikes Back: White House calls out Edmunds on Clunkers story, Edmunds responds



The facts in the case of the White House versus Edmunds are essentially indisputable – but they are open for interpretation. The federal government's $3 billion Cash for Clunkers program generated 690,000 sales by providing $3,500 and $4,500 vouchers to car buyers who turned in their eligible car or truck in exchange for a more fuel efficient ride. From here on in, Edmunds and the White House seem to be at considerable odds.

Edmunds recently claimed that its statistical analysis shows that only 125,000 of the nearly 700,000 vehicles purchased under C4C were sales that wouldn't have come in 2009 if it weren't for the much ballyhooed government program. And since the program cost $3 billion to implement, Edmunds came to the conclusion that each incremental sale achieved by C4C cost taxpayers $24,000 per vehicle. As you might imagine, the White House has a problem with that.

The White House starts its quite literally otherworldly retort by noting that that motor vehicle sales increased America's overall economic growth in the third quarter by 1.7%. That's the industry's largest contribution to that metric in over a decade. The WH blog post then states that Edmunds is ignoring the assertion that overall car sales were also positively affected by the Clunkers program above and beyond the 690,000 C4C units sold. To add insult to assault, the White House accuses Edmunds of covering auto sales on Mars.

While the government doesn't have hard facts here, anecdotal evidence certainly shows that August's seasonally adjusted annual rate (SAAR) of 14 million cars and trucks sold means there were considerably more sales generated by C4C than the 125,000 number would suggest. The WH blog also notes that analysts from Global Insight and Moody's suggest that there has been little payback from the Clunkers program.

The White House also states that C4C will have benefits beyond the third quarter, as production has been bumped at Chrysler, General Motors, Ford and Honda in the fourth quarter. That should mean that GDP will get still another big shot in the arm from the auto industry. The White House then goes on to add that C4C generated 70,000 jobs. We're tempted to call shenanigans on that one, especially considering that divvying up $3 billion between 70,000 jobs only comes out to $42,857 per – and that doesn't account for the actual cars themselves.

Edmunds CEO Jeremy Anwyl took time to respond to the suddenly hostile situation, arguing that government subsidy programs are always expensive when looked at on a per-unit basis. Edmunds adds that it is strictly working with the facts to come up with the $24,000 per vehicle number, and that anecdotal evidence like indirect sales isn't based on concrete data.

[Sources: White House Blogs; Edmunds Auto Observer | Image: Gabriel Bouys/Getty]

VIDEO: GM offers sneak peek at mystery crate engine headed for SEMA

Click above to watch the video after the jump

General Motors is getting ready for SEMA 2009, but the Detroit-based automaker has a little over a week before it can show us anything official in Las Vegas. That isn't stopping the General from teasing us, though, as this 40-second YouTube clip clearly demonstrates. One of GM's new tuner specials comes in a box and figures to be packed with power. It's a crate engine, but unfortunately the company isn't giving us much in the way of details.

Hit the jump to watch a pair of technicians bolt the mystery engine onto an unknown frame that already sports four Corvette-badged wheels. We're no trained eye, but the engine looks an awful lot like GM's 5.3-liter mill, which is made at the General's Canadian St. Catherines engine plant. To make us feel even more strongly about the mystery motor being some variant of the 5.3, there is even a Canada sticker at the belt wheel. And since the end of the video says "A new kind of crate engine is coming," at least one Autoblogger is further hypothesizing that the 5.3-liter could be a flex-fuel variant. But like we said, we're just thinking out loud here, so if you have a better guess, let us know in the post-jump comments section. We'll likely know for sure once SEMA begins on November 3.

[Source: YouTube]

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Autoblog Podcast #151: With Car & Driver's Eddie Alterman

Eddie Alterman wades in with Sam, Chris, Dan, and Jonny to talk about SEMA and other recent events.

 
 

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