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2010 Chevrolet Camaro

Chevrolet Camaro: An Automotive Icon Reborn

Penske to buy Saturn, Return Marque to its “Original Roots

General Motors Corp. has a tentative deal to sell its Saturn brand to former race car driver and dealership group owner Roger Penske, both companies said Friday.

Penske has signed a memorandum of understanding that would give his dealership chain, Penske Automotive Group, Saturn's 350 dealerships, the companies said. Penske said that he expects to offer all the dealers new franchise agreements and will retain all 13,000 Saturn employees for the immediate term.

"I would expect that the model that we're putting together, the distribution model, will be profitable day one," Penske said in an interview with The Associated Press. "We'll have less costs. We'll not be in the manufacturing side."

Neither Penske nor GM would say how much Penske is paying for the brand. Penske said he expects the deal to close in the third quarter. Initially, GM will continue to produce on a contract basis the Saturn Aura sedan as well as the Vue and Outlook SUVs. But Penske said he is in talks with global car manufacturers about building Saturn cars in the future.

The sale marks a new chapter for Saturn, which GM had been trying to sell since earlier this year as part of its turnaround plan.

GM Chairman Roger Smith first unveiled the Saturn brand in November 1983, describing it as a revolutionary new way to build and sell small cars in America. But the project was slow to develop and the brand did not officially launch until 1990. It featured the iconic tag-line "a different kind of car company."

GM's hope was that Saturn would attract younger buyers with smaller, hipper cars to better compete with Japanese imports. It built a new plant in Spring Hill, Tenn., devoted to Saturn production. The factory had more flexible work rules than traditional GM plants for the employees who built the cars.

Despite a cult-like following that drew thousands to annual reunions in Spring Hill, the brand never made money for GM. The factory stopped making Saturns in 2007 and currently builds only the Chevrolet Traverse.

As GM focused more on high-profit pickup trucks and sport utility vehicles, Saturn began to languish in the late 1990s. Then in 2006, car buyers began to find Saturn's new models more appealing. But after a good year in 2007, sales dropped 22 percent last year as the U.S. car market withered.

"Saturn was kind of an unpolished gem at GM," said Brad Coulter, director at the Bloomfield, Hills, Mich., turnaround firm O'Keefe and Associates. "They had never really fully exploited what they developed. Saturn is known for having some of the best-run dealerships. The brand is highly rated. It's a top notch sales organization."

Today, Saturn production is scattered at plants across the U.S. The Aura is built at GM's factory at Kansas City, Kansas. The Outlook is built in Lansing, Mich., while the Vue is built in Ramos Arizpe, Mexico.

The Saturn Sky roadster is built in Wilmington, Del., but that plant is scheduled to close in July and the model will be discontinued. The Saturn Astra was imported from GM's plant in Antwerp, Belgium, and was discontinued last year.

Penske Automotive will take over the separate Saturn parts factory in Spring Hill, which will continue to make Saturn components.

Penske in an interview said foreign automakers would be key to his making Saturn succeed, but they will have to match GM's quality standards before Saturn's dealer network will distribute their products.

"As people around the world look at that, they have the opportunity to tap us on the shoulder and say we have product that we'd like to bring into the U.S." he said.

Other foreign automakers who have succeeded in the U.S. began with a distribution network, then started manufacturing operations, he said.

Bloomfield Hills-based Penske Automotive owns the second-largest U.S. automobile retail chain by sales and consistently scores high in customer satisfaction surveys. The company also has race teams in the IndyCar, NASCAR and Grand-Am series. Penske received wide acclaim for heading Detroit's successful effort to host the 2006 Super Bowl.

Penske Automotive also distributes Daimler AG's Smart subcompacts in the U.S., but Smart has its own dealership network and Saturn dealers will continue to exclusively distribute Saturn vehicles, Penske said.

Carl F. Galeana, who owns two Saturn dealerships north of Detroit, said Friday he was thrilled that Penske would be the Saturn buyer.

"Roger Penske is an icon in the business world," Galeana said. "I've worked with him personally. Nobody works harder than Roger Penske."

Galeana said the fact that Penske is interested in Saturn means the brand has value.

"It allows Saturn to get back to its original roots, which is to be an independent car company," he said.

Shares of Penske Automotive rose 52 cents, or 3.6 percent, to $15.13 in midday trading on news of the sale. The stock has enjoyed a brisk rally this year, more than tripling from an annual low of $4.82 in March.

Detroit-based GM, which filed for bankruptcy court protection on Monday, has said it plans to shed its Saturn, Hummer, Pontiac and Saab brands. Earlier this week, GM said it found a buyer for Hummer in China's Sichuan Tengzhong Heavy Industrial Machinery Co.

However, any such deal would require Chinese Commerce Ministry approval, and reports in state-run newspapers Friday said Sichuan Tengzhong had not yet obtained such an approval.

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GM to sell Saab to Koenigsegg

Sweden's Koenigsegg, a niche manufacturer of some of the world's fastest and most expensive sports cars, has struck a deal to buy loss-making Saab Automobile from General Motors, the companies said on Tuesday.

In one of the most unlikely pairings in automotive history, the tiny sports car firm of 45 staff is expected to take over a company that employs around 3,400, a cherished Swedish brand that became a national icon for stability and reliability.

GM Europe said on its website the deal, set to close by the end of the third quarter, includes an expected $600 million of financing from the European Investment Bank, guaranteed by the Swedish government. Other terms were not disclosed.

"Additional support is to be provided by GM and Koenigsegg Group AB to fund Saab's operations and product program investments. This includes plans to launch several new products that are in the final stages of development," GM Europe said.

Like its U.S. parent, Saab has been in bankruptcy protection. It has said it needs $1 billion to see it through the crisis and has asked creditors to write off 75 percent of its 10.6 billion crown ($1.4 billion) debt, most of which is owed to GM.

Koenigsegg, which produces powerful roadcars that cost around $1 million, came out of nowhere to emerge as a front-runner to buy Saab.

But analysts are skeptical a tie-up makes sense, noting that Christian von Koenigsegg, founder of the firm bearing his name, has no evident experience owning or running a firm so large.

Last year Koenigsegg made 18 cars, Saab more than 93,000.

"There are no economies of scale between Saab and Koenigsegg. This is a constellation of buyers that probably have different interests than GM, which was driven by volume," said Mikael Wickelgren, an automotive expert at Skovde University, in southwestern Sweden not far from Saab's headquarters.

"This will be a business where one would assume that the owners want to chisel out a personality for Saab. The logic would be in the special and unique. Otherwise I cannot understand this deal."

Koenigsegg has backing from Norwegian entrepreneur Bard Eker, whose holding company owns 49 percent of the car maker.

Halldora von Koenigsegg, spokeswoman for the company and wife of its founder, said a memorandum of understanding had been signed but declined to comment further.

TWO DECADES UNDER GM

The deal would see Saab, which was put up for sale earlier this year, emerge from two decades under its U.S. parent. GM is already in the middle of offloading two other brands -- Saturn and its Hummer SUV line -- as it works to restructure its operations in bankruptcy.

Saab's roughly 220 U.S. dealerships have until Friday to sign an agreement which allow their franchises to be transferred to a new owner, a person familiar with the matter said. Dealers have been asked to prepare for an orderly wind-down should the automaker be unable to close a deal to sell the brand.

While Saab is known for its appeal to safety-conscious but slightly sporty family drivers, Koenigsegg caters for clients who arrive in private jets at the firm's factory, which boasts its own airstrip.

Christian von Koenigsegg, who founded his firm 15 years ago when he was 22, is known in the industry as a quality-obsessed car enthusiast as opposed to a businessman.

But Saab and Koenigsegg do share a history of technological innovation. Koenigsegg has patented some of his own gadgetry while Saab created a sensation in the 1970s with the use of turbo technology in everyday cars.

Now Saab plans to overhaul production and launch new models while absorbing expected losses of about 3 billion Swedish crowns ($382 million) this year. GM plans to narrow its focus to the Chevrolet, Buick, GMC and Cadillac brands under a plan that would transfer majority control to the U.S. government.

An EIB official said its board needed to have key information some six weeks before a meeting. "That means we will not be able to have it ready before the meeting in July, and the next meeting is in September," said Mats Gunnarsson, senior adviser to the EIB management committee.

Joran Hagglund, state secretary for Sweden's industry ministry, told Reuters: "We do not yet know if Koenigsegg group will need loan guarantees or not."

Nonetheless, Industry Minister Maud Olofsson welcomed the news as did Saab worker representatives. She said Saab staff and other residents in the town of Trollhattan, where Saab is headquartered, had been waiting for just a development.

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Chrysler moves to eliminate 789 of 3,200 dealers

Chrysler wants to eliminate roughly a quarter of its 3,200 U.S. dealerships by early next month, saying in a bankruptcy court filing Thursday that the network is antiquated and has too many stores competing with each other.

The company, in a motion filed with the U.S. Bankruptcy Court in New York, said it wants to shed 789 dealerships by June 9. Many of the dealers' sales are too low, the automaker said, with just over 50 percent of dealers accounting for about 90 percent of the company's U.S. sales.

Dealers were told Thursday morning through United Parcel Service letters if they would remain or be eliminated. The cuts are likely to devastate cities and towns across the country as thousands of jobs are lost and taxes are not paid.

Chrysler Vice Chairman Jim Press called the cuts difficult but necessary. He said the list of dealers is final and there will be no appeal process.

"This is a difficult day for us and not a day anybody can be prepared for," Press told reporters during a conference call.

A hearing is scheduled for June 3 in U.S. Bankruptcy Court in New York for the judge to determine whether to approve Chrysler's motion. Judges often rely on companies in bankruptcy to help determine what is in their best business interest, such as the closure of dealerships or cancellation of contracts.

Chrysler executives said the company is trying to preserve its best-performing dealers and eliminate ones with the weakest sales. More than half of the dealerships being eliminated sell less than 100 vehicles per year, they said, and account for 14 percent of U.S. sales.

The company is also trying to reduce the number of single-brand dealerships to bring all three Chrysler brands — Jeep, Chrysler and Dodge — under a single roof, they said. It also wanted to limit competing dealerships.

"We recognize in the short term we will see some loss of sales," Press said. "But based on the long term ... the dealer (network) is key and it's going to be very strong, powerful, with a much better financial viability."

The 3.5 million customers who purchased vehicles from the affected dealers will be notified about the closures and their warranties will still be honored, said Vice President Steven Landry.

Don Burk, co-owner of Heritage Chrysler Jeep in Ozark, Mo., said he found out that Chrysler plans to get rid of his dealership when he opened his UPS letter Thursday morning.

"Right now I'm processing the information," he said shortly after reading the letter. "I'm sure I'm going to get with my partner and we'll decide what to do from here."

The dealership, in a city of about 10,000 near Springfield, Mo., is involved in the community, sponsoring sports teams and even buying championship rings for the Ozark High School girls basketball team when it won the state championship several years ago, Burk said.

"If you're a good-sized business, kind of by default you're involved a lot," he said.

Chrysler dealerships aren't the only ones scheduled to get bad news this week. General Motors Corp. says it is notifying 1,100 dealers that it will not renew their franchise agreements when they expire at the end of September of 2010.

In its motion, Chrysler said it has many dealerships that sell one or two of its brands, with Chrysler-Jeep dealerships competing against Dodge dealers as well as other automakers' stores across the country.

"We understand there's going to be a consolidation of dealers, said John McEleney, a Clinton, Iowa, auto dealer who serves as chairman of the National Automobile Dealers Association. "We just think the process needs to be slowed down."

He said about 187,000 jobs could be lost from the closing of GM and Chrysler dealerships.

Even for dealers that were not included on the list, Thursday's news was not easy to handle.

"It's heart-wrenching," said Chuck Eddy, a Youngstown, Ohio, Chrysler dealer that was not cut. "I've grown up in this business. My dad's been with Chrysler since '57. I've grown up with a lot of these families. That's all I've ever known — Chrysler."

Chrysler said in its filing that dealers are not competitive enough with foreign brands. Chrysler sold an average of 303 vehicles per dealer in 2008, according to its filing. By contrast, Honda Motor Co. sold about 1,200 vehicles per dealer, while Toyota Motor Corp. sold nearly 1,300 per dealer.

Chrysler said its dealer network "needs to be reduced and reconfigured in a targeted manner to strengthen the network and dealer profitability and to achieve optimal results for the dealers and consumers."

Chrysler has received $4 billion in federal loans and has been operating in bankruptcy protection since April 30. Its sales this year are down 46 percent compared with the first four months of last year and it reported a $16.8 billion net loss for 2008.

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Fiat eyes new company with GM Europe, Chrysler

ROME – Fiat Group SpA confirmed Sunday it was in talks to acquire General Motor's European operations with the aim of possibly creating a new company to also include its newly acquired Chrysler automaker.

Combined, the new automaker would have euro80 billion ($105 billion) in annual revenues, Fiat said in a statement.

Fiat said it was evaluating the possible spinoff of its auto business to form the core of the new company. Fiat Group Automobiles includes the Fiat, Alfa Romeo and Ferrari brands.

The statement was issued on the eve of a meeting in Berlin between Fiat Group CEO Sergio Marchionne and the German economy and foreign ministers to discuss Fiat's offer for GM's German unit, Opel.

GM Europe also includes the British company Vauxhall and the Swedish carmaker Saab.

GM has been trying to find investors for its noncore and unprofitable assets as part of a restructuring in which it has sought billions of dollars in aid from the U.S. government to avert collapse.

Opel has said it needs euro3.3 billion ($4.3 billion) to get through the economic crisis. The German government has said it doesn't foresee giving direct state aid. Chancellor Angela Merkel has suggested the government could help an Opel investor with loan guarantees.

Fiat said that over the next few weeks, Marchionne will be looking "to assess the viability of a merger of the activities of Fiat Group Automobiles (including the interest in Chrysler) and General Motors Europe into a new company."

"As part of this process, the group would evaluate several corporate structures, including the potential spinoff of Fiat Group Automobiles and the subsequent listing of a new company which combines those activities with the activities of General Motors Europe."

In an interview Sunday with Corriere della Sera, Fiat Chairman Luca Cordero di Montezemolo called GM's Opel an "ideal partner" and a possible takeover by Fiat an "extraordinary opportunity."

Fiat is not the only suitor for Opel, however. Last week, Canadian car parts maker Magna International Inc. presented German Economy Minister Karl-Theodor zu Guttenberg with what the minister called a "rough concept for a commitment with Opel."

Guttenberg has said the German government would wait to determine its role in any full or partial Opel sale until after the U.S. government had weighed in.

Fiat, meanwhile, has pressed ahead with a takeover of Chrysler, with attorneys for the U.S. auto manufacturer saying the company would file a motion to sell substantially all of its assets to the Italian automaker.

In addition to Fiat Group Automobiles, the Fiat Group also includes its agricultural vehicles branch CNH and its Iveco trucking unit, as well as a media arm.

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Chrysler files bankruptcy, inks Fiat partnership

 

In the wake of Chrysler's announcement that it plans to file Chapter 11 bankruptcy, the automaker has reached an alliance with Fiat SpA to form a new company.

"It will allow Chrysler and Fiat to fully optimize their respective manufacturing footprints and the global supplier base, while providing each with access to additional markets," states a news release.

Fiat powertrains and components also will be produced at Chrysler manufacturing sites.

"This partnership transforms Chrysler into a vibrant new company with a wealth of strategic advantages,” says Bob Nardelli, chairman and CEO of Chrysler. “It enables us to better serve our customers and dealers with a broader and more competitive lineup of environmentally friendly, fuel-efficient high-quality vehicles. Benefits to the new company include access to exciting products that complement our current portfolio, technology cooperation and stronger global distribution."

Chrysler initiated discussions with Fiat more than a year ago to develop plans for a global product alliance. Over the past several months, these discussions have evolved and expanded.

“We want to personally assure everyone that the new company will produce and support quality vehicles under the Jeep®, Dodge and Chrysler brands as well as parts under the Mopar® brand," Nardelli adds. "Chrysler employees will become employees of the new company. Chrysler dealerships remain open for business serving our customers. All vehicle warranties will be honored without interruption and consumers can continue to purchase our vehicles with complete confidence."

Chrysler today filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in U.S. Bankruptcy Court for the Southern District of New York.

“Even though total agreement was not possible, I am truly grateful for all that has been sacrificed, on the part of many of Chrysler’s stakeholders to reach an agreement in principle with Fiat,” says Nardelli.

Chrysler also will file a motion under Section 363 of the Bankruptcy Code requesting the swift approval by the court of the agreement with Fiat and the sale of Chrysler’s principal assets to the new company.

Nardelli, who has been leading Chrysler since August 2007, also announced to Chrysler LLC’s Board of Management and the U.S. Treasury his plan to leave the company following the emergence of the new company from Chapter 11 and the completion of the alliance with Fiat.

He plans to return to Cerberus Capital Management LP as an advisor.

During the restructuring process, the government will provide sufficient debtor-in-possession (DIP) financing to allow continuation of “business as usual.” Also, The Obama administration has referred to a “surgical bankruptcy,” a process that could potentially only take 30 to 60 days to complete. The automaker plans to use Section 363 of the bankruptcy code to sell assets, rid the company of liabilities and restructure its debt, creating a new Chrysler.

Chrysler’s Mexican, Canadian and other international operations are not part of any bankruptcy filing.

As part of the restructuring and with the backing of the U.S. Treasury, we have reached an agreement in principle with GMAC to become the preferred lender for Chrysler dealer and consumer business. GMAC will be able to offer the best long-term finance options for Chrysler dealers and customers with standard rate installment products.

When the transaction is completed, the Voluntary Employee Beneficiary Association (VEBA) will own 55 percent of the new company and the U.S. and Canadian governments will own proportionate shares of a 10 percent stake.

Fiat will initially hold a 20 percent ownership stake in Chrysler and will have the right to increase its ownership stake an additional 15 percent in three increments as it meets the following criteria: 5 percent for bringing a 40 mpg vehicle platform to Chrysler to be produced in the U.S.; 5 percent for providing a fuel-efficient engine family to be produced in the U.S. for use in Chrysler vehicles; and 5 percent for providing Chrysler access to its global distribution network to facilitate the export of Chrysler vehicles. Fiat cannot become a majority owner until after all U.S. government loans have been completely repaid, Chrysler adds.

As a part of the restructuring, most manufacturing operations will be temporarily idled effective Monday, May 4. Normal production schedules will resume when the transaction is completed, which is anticipated within 30 to 60 days.

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Chevrolet Announces Pricing for the 2010 Camaro

Lineup Includes Fun and Efficient V-6 models rated at 27 mpg and High-Performance Camaro SS

Chevrolet today announced pricing for the all-new, 2010 Camaro. It starts at $22,995 MSRP for the V-6-powered LS model, and $30,995 for the V-8-powered Camaro SS (all prices include $750 destination charge). Customer ordering opened on Oct. 13, with production scheduled to start in the first quarter of 2009.

Camaro made its big-screen debut as the Autobot named Bumblebee in the blockbuster 2007 movie, “Transformers.”

“The wait is almost over,” said Ed Peper, GM North America vice president, Chevrolet. “The return of the Camaro gives sports car enthusiasts a reason to rejoice. It’s a 21 st century sports car with a distinctly American legacy.

More than 600,000 enthusiasts have requested information on the Camaro since its production was announced. Chevrolet is reaching out to give them the opportunity to be the first to order one.

The Chevy.com/Camaro Web site carries information regarding early ordering, along with vehicle packaging information, a specification sheet and anticipated frequently asked questions about the ordering process.

Production is scheduled to begin in mid-February at GM’s Oshawa, Ontario production facility, with dealership deliveries shortly thereafter. Complementing the Camaro’s introduction is a range of performance, appearance and convenience accessories – including 21-inch wheels and tires; ground effects and stripe kits; and even a classic-styled Hurst shifter – that customers can order and have installed at their dealership. In some cases, the cost of the accessories and their installation can be rolled into the monthly payments.  

World-class performance, American heritage

Built on GM’s new, global rear-wheel-drive architecture, the Camaro is offered in V-6-powered LS and LT models, as well as the V-8-powered SS. All models and powertrain combinations are matched with fuel-saving six-speed transmissions. Advanced technologies, including engines with direct injection and Active Fuel Management, enable a satisfying balance of exhilarating performance and good fuel economy.

Camaro product highlights also include:

 

• Sleek styling with heritage cues and 10 available exterior colors
• Four-wheel independent suspension system, including a 4.5-link rear suspension
• Four-wheel disc brake systems standard on all models, including four-piston Brembo calipers on SS models
• StabiliTrak stability control system and traction control standard on all models
• Family of 18-, 19- and 20-inch wheels
• Six standard air bags, including head curtain side-impact air bags and front seat-mounted thorax side air bags
• RS appearance package available on LT and SS, including HID headlamps with integrated halo rings, spoiler, specific taillamps and 20-inch wheels
• Bluetooth phone connectivity
• USB connectivity
• Remote vehicle starting system
• OnStar
• XM Satellite Radio

Under the hood, Camaro LS and LT use a 3.6L engine with variable valve timing to optimize performance and fuel economy. It is rated at an estimated 300 horsepower (224 kW) and 273 lb.-ft. of torque (370 Nm). A six-speed manual transmission is standard with the 3.6L engine; a Hydra-Matic 6L50 electronically controlled six-speed automatic, with TAPshift control, is available. LS and LT models are estimated at 27 mpg in highway driving, for great fuel economy to complement their fun driving experience.

The high-performance Camaro SS is equipped with a powerful 6.2L V-8, with a choice of a six-speed manual or six-speed automatic transmission. Manual transmission-equipped models receive the LS3 engine, estimated at 422 horsepower (315 kW) and 408 lb.-ft. of torque (553 Nm). It is paired with a TR6060 six-speed transmission.

A new, L99 V-8 engine is used on automatic transmission-equipped SS models. It is based on the LS3, but also includes GM’s fuel-saving Active Fuel Management feature. It is estimated at 400 horsepower (299 kW) and 395 lb.-ft. of torque (535 Nm). It is matched with a Hydra-Matic 6L80 six-speed transmission that helps delivers an estimated 23 mpg on the highway.