Look, it’s even more good news out of Detroit. What with Ford actually making a profit, it looks like all the doom and gloom about the number of dealers set to be shuttered might have been estimated on the high side.

At least that’s the case if you believe David Cole, who is Chairman of the nonprofit Center for Automotive Research. Cole told federal investigators that he thought General Motor’s and Chrysler’s projected dealership cuts will reduce market share in small to mid-sized markets. Cole summed it up by saying, “These cuts didn’t make any sense to me.”

David Cole cautioned the investigators that he has no research expertise or experience working directly with dealerships, and that he was asked to come speak only after he sent a letter to the Obama administration’s auto task force earlier this month stating his case for fewer dealership terminations. Although Chairman Cole did agree that terminations in larger metropolitan areas were in fact justified, he made the case that the automakers would be harming their historical stronghold in rural areas as well as modest-sized markets with many of the planned dealership terminations.

“The dealer is the face of the manufacturer to the average customer,” Cole said in a letter to the chief of the auto task force, Ron Bloom. Cole later said to investigators that , “By pulling out, GM and Chrysler are giving a beachhead to Ford and some of the imports.” And then Cole added, “I would suggest that the distribution network for these manufacturers be revisited by the automotive task force.”

Currently Chrysler has closed 789 dealerships, and GM plans to cut 1,350 dealerships from its ranks. These closures represent roughly 25% of a given manufacturer’s dealership network.

Whether Cole’s number and idea does pan out is one thing, and whether the Obama administration acts on them is another thing entirely.

Source: Left Lane News

Interesting news from Mercedes-Benz when they announced that they are planning to open a new alternative powertrain technology center. Based on the campus of Mercedes’ Redford Township, Michigan facility, the German company made the announcement shortly after the township approved a tax exemption.

The Detroit Free Press said that Redford Township’s tax exemption would allow Mercedes-Benz to purchase $2.3 million worth of equipment for use at the Redford site. Located just 15 miles outside of the Detroit city limits, the move announced by Mercedes can only be seen as positive for an area struggling during the recent economic downturn.

Just how much of a positive impact the move by Mercedes-Benz will have is hard to say, specifically, at this point. The German car maker has yet to publicize just how much it will invest in its new research and development facility, although current estimates speculate that Mercedes new investment is expected to spawn 223 new jobs. And at this point in time, every job counts.

The new Mercedes-Benz facility will work on the automaker’s upcoming generation of transmissions, electronics and control software as well as conventional and alternative engine testing. There is no word, as of yet, whether Tesla, who recently announced a technical partnership with Merc will be involved. There are persistent rumors that Mercedes might also use the Redford Township facility to construct the company’s first diesel-hybrid powertrain.

Besides the obvious benefit this will have for the people of Redford Township and Michigan, the move by Mercedes points to a growing trend of outside auto manufacturers investing more and more in American based facilities. Whether factories or research centers, it seems like foreign auto manufactures know a good deal when they see one.

Disused facilities are cheaper to modernize than building from scratch, and the pre-existing base of talent, from line workers all the way up to trained engineers is also hard to ignore.

Source: Left Lane News

Photo from Flickr user Tomás Fano

Ford made a profit. Yes, you read that right, a car company, and not just that, but an American car company, actually made money in the past quarter. After all the doom, gloom, buy-outs, shotgun marriages, bankruptcies and the like, this is the last thing you’d expect to read, but it sure looks like it’s true.

And add to that that this is Ford Motor Company that we’re talking about. The only car company of “The Big Three” that walked away from the government bailout cash. They took a look at the terms of the deal, and said, ‘No thanks, we think we can make it on our own.’ And damn if they weren’t right.

To further put this into context, realize that in these seemingly austere times, look how Ford has gone about racing. Just the fact that they’re going racing (which far too many knuckle-draggers out there consider to be “frivolous”) says a lot about them, for one thing. But Ford continues to race worldwide in very high profile ways. They almost took down Sebastian Loeb in the WRC (which is probably impossible because he’s so good), they race like crazy in NASCAR (just ask anybody that tries to beat Jack Roush) and they keep turning out door-slammer dragsters left right and center.

Ford ain’t shy, in other words.

And world wide, Ford is selling cars as fast as they can crank them out. They are gaining market-share the way Krispy Kreme customers are gaining on the grim reaper. Ford dropped automotive costs by 1 Billion dollars during the past quarter, which added to the total reduction of spending to $4.6 Billion so far this year alone. That is 0.6 above Ford’s target numbers.

And here’s the really good news. The combination of sales added to the cost savings means that world wide , Ford’s 3rd quarter pre-tax profits came to $1.1 Billion. Yes, billion with a “B”. In profits. In North America alone the pre-tax profit was $357 million. Which gave Ford their first profitable quarter since early 2005. And Ford says they are expecting to be fully profitable by 2011.

Source: The Garage Blog

Photo from Flickr user Refracted Moments

Hyundai’s Genesis Coupe garnered a lot of good press and gearhead interest from the get go. And it seems to be fully justified and also understandable. The Hyundai Genesis is well styled (enough), rear wheel drive, and above all, reasonably priced. It’s a car that a young tuner-oriented kid can sink their teeth into, and there’s already a pretty decent aftermarket for the car.

And Hyundai just added a new wrinkle to the mix with its announcement that it will be making a Genesis Coupe 2.0T R-Spec for 2010. With a starting price of just $23,750 and hitting the dealer showrooms fairly stripped down, that way being all the better for future customization by the end user, the R-Spec promises to be even more of what the aftermarket tuner wants.

Photo gallery of R-Spec after the jump

That stripper equipment list for the R-Spec includes a 2.0-liter turbocharged engine that cranks out 210 horsepower, not bad as a starting point. The Coupe also comes with a six-speed manual transmission only, there is no automatic option. There are also 19 inch alloy wheels mounted with Bridgestone Potenza RE050A tires, and in back of the wheels are Brembo brakes; 13.4 inchers up front and 13.0s out back. The 2010 Hyundai Genesis Coupe 2.0T R-Spec also has a ‘track-tuned’ suspension (whatever that might be) and Torsen-type limited-slip diff that isn’t in the standard Coupe. Naturally there’s R-Spec badging so everyone knows how cool you are.

The R-Spec Coupe isn’t totally stripped down, however. It does include keyless entry, front, side and side curtain airbags, active front head restraints, air conditioning, leather-wrapped steering wheel and shift knob, power windows and door locks, an MP3-capable six-speaker stereo system with iPod/USB connectivity and projector beam headlamps.

The R-Spec package is said to offer as much performance as Hyundai’s Track model, but at a $3,000 less, which will give the prospective buyer more headroom, cash-wise, to spend wherever they’d like. With an extra $3K in your budget, things like larger turbos, aftermarket intercoolers, bigger than necessary audio/video systems and the like.

The R-Spec exists to attract the tuner market. The new for 2010 Hyundai Genesis Coupe 2.0T R-Spec will make its official U.S. rollout at the upcoming 2009 SEMA Auto Show in Last Vegas, and will go on sale nationwide soon after.

Source: Motor Authority

Following on the heels of the Cube Krom, Nissan has decided to release a Rogue SUV Krom Special Edition version of its 2010 Rogue SUV. The factory-prepped Cube Krom, that came out earlier this year, was enough of a hit for Nissan to justify the presentation of a similar special edition version of its Rogue crossover. Going on sale at Nissan’s U.S. dealers in December 2009, the upcoming Rogue Krom will feature a host of cosmetic upgrades such as a unique grille treatment and a new front bumper with fancy side air-inlets. It will also get 17-inch brilliant finish alloy wheels with P225/60R Continental 4×4 Contact tires and a new rear bumper that has been restyled with integrated center-exit twin tail pipes.

Other goodies include a body-colored rear spoiler and exterior mirrors. Nissan has tinted windows and added Krom emblems as well as installing steering wheel-mounted audio controls to complete the equipment modifications. The Krom Special Edition Rogue which is based on the ‘S’ trim model.

No pricing on the 2010 Rogue Krom Edition has been announced by Nissan yet, but the extra gee-gaws shouldn’t set you back that much.

Pat Steiner, director, Specialty Vehicles Group, Nissan North America had this to say about the upcoming Rogue model, “The new Krom edition expands Rogue’s already strong appeal, bringing its unmistakable sporty and active design to buyers seeking to stand out from the crowd of ordinary compact SUVs. Just as our NISMO models add enhanced performance straight from the factory, the Krom lineup offers intriguing, customized design right off the showroom floor.”

So what does that mean, exactly? Does this mean that Krom will be an appearance package tweak that Nissan will add to other vehicle lines? Maybe. Maybe the Krom versions of the Cube and the Rogue are just testing the waters, and if the Rogue follows on the Cube’s success, then expect to see more Krom packages become available straight from the factory.

Source: CarScoop

Son, you’re gonna drive me to drinkin’, if ya don’t stop drivin’ that hot rod Lincoln. Yeah, way back when, Lincolns were not cars to be trifled with. They had big enough plants and there was enough go fast goodies out there that you wouldn’t treat them the way … well, the way you’d look at a Lincoln today.

Sure, for the past however long, they’ve been very nice and luxurious Fords, but performance cars? Not so much. Lincoln is looking to change that with three customized rides rolling out at this years SEMA show.

Lincoln will be displaying a trio of customized versions of its MKS flagship sedan, MKT crossover and MKZ saloon at next month’s 2009 SEMA Show in Vegas. The three project cars were developed in cooperation with Raceskinz, Rick Bottom Designs and 3dCarbon.

“Lincoln as a brand is continuing to attract younger customers to the showroom with products like the MKS, MKZ and the new MKT luxury crossover. These customers place huge importance on style, design and technology, and these are areas where Lincoln plays well. SEMA gives customizers the opportunity to push the boundaries of design, while still focusing on the core strengths of the Lincoln brand,” said Amy Marentic, Ford North American Car and Crossovers group marketing manager.

Lincoln calls the 2009 Lincoln MKS Elite by Raceskinz “a perfect example of what happens when you merge beauty and technology.” Sure, why not? Raceskinz slathers the thing with carbon fiber inside and out and adds a high-powered LIIV entertainment system.

The Rick Bottom Designs 2010 Lincoln MKT “Panache” will have luxury and high style in abundance. The flamboyant exterior has been shaved of its door handles, antenna and rear reflectors, and features a custom-made beltline molding in chrome to further accent the body line. The paint treatment is striking and the interior ambience is improved with two-toned leather and matching floating armrests. Rick Bottom Designs worked over the audio system as well as the nav system.

The 2010 Lincoln MKZ by 3dCarbon aims for refinement and elegance of the standard 2010 Lincoln MKZ. The company calls it “a realistic and beautiful take on a new classic Lincoln car.”

Source: CarScoop

2010 Lincoln MKZ concept design by 3dCarbon

2010 Lincoln MKT by Rick Bottom Designs

2010 Lincoln MKZ by Raceskinz

You can call this a good news/bad news sort of thing. The bad news is that Chrysler’s two-mode hybrid joint development program has been disbanded, and the good news is that the hybrid Ram pickup is coming in 2010.

The joint development program, which was a very big deal for a while, was created several years ago between Chrysler, General Motors, Daimler, and BMW to work out a two-mode hybrid system for light duty vehicles, is now effectively over. The four automakers involved have either launched or are about to introduce versions of the two-mode hybrid system, so the program is being wound down and the engineering office will be closed by the end of this year.

But the Ram pickup hybrid should be in dealerships by 2010.

Although Chrysler is now going with a straight hybrid for the upcoming ram, they did briefly build a version of the Aspen and Durango SUVs with the dual-mode hybrid system last year. Chrysler says that they are dedicated to re-launching the hybrid system in the Ram pickups in 2010, possibly even a follow on development of the two-mode (depending on who you ask). Also depending on who you’re listening to, in this case the Detroit News, there is speculation that it is “unlikely the planned light duty hybrid will launch anytime soon in the Ram 1500.” So, this might come down to who do you believe, Chrysler, or the Detroit News.

On other two-mode news, the Mercedes ML450 hybrid and BMW X6 ActiveHybrid are both going into production at this very moment, both of which will be using a version of the two mode transmission built by Daimler and designed under the now-ended joint partnership.

There’s a way of looking at Chrysler’s move, accounting-wise, for making a pickup into a hybrid, rather than making a smaller hybrid instead. If you look at the whole fleet’s fuel economy, if you raise the lower end, which is where the MPGs for pickups live, it has a greater overall effect than raising the top end.

Source: AutoBlogGreen

It looks like Ford will be moving the production of its Kuga small (-ish) SUV to a plant in Kentucky. Yes, this will be good news for those needing jobs in Kentucky (which would seem to be a lot of people), but it also has some interesting ramifications in a larger sense.

For starters, a lot of you might be asking, “What’s a Kuga?” Good question. The Kuga is an SUV primarily sold in the European market. So how can making a car in Kentucky, which is sold in Europe, make sense? And also, if they’re going to build it here, will they sell it here?

Thanks to the U.S. dollars drop against the Euro, falling 18 percent against the continental currency this year, Ford has decided to move production of the Kuga compact SUV from its factory in Saarlouis, Germany to Louisville, Kentucky in the U.S. starting from October 2011. An 18 percent shift sure makes it seem economically viable, if you ask me.

If the story does pan out, and so far there’s been no official word from Ford, this story comes via Bloomberg News, it looks like Ford will be producing as many as 80,000 examples of the Kuga a year that will be exported to Europe.

But the real meat to the story here is that if the Kuga is being produced in Louisville, Kentucky is could also likely mean that the compact SUV would finally make its way to North American dealerships.

Over in Europe, the Kuga goes head to head against VW’s Tiguan in the small SUV market. In Europe the Kuga is offered with a 200HP 2.5-liter turbocharged inline-five gasoline engine, and a 2.0-liter turbo diesel putting out 136 horsepower. Both plants come with both automatic and manual gearbox options.

Those engines might not make it into the American version of the Kuga though. Ford has a new powertrain coming on line for the near future. This would be the already announced new family of 1.6-liter and 2.0-liter turbocharged petrol units, that would be ideal for a North American version of the Kuga.

Source: CarScoop

Mercedes Benz has spent the last two years trying to figure out what the next generation A and B-class compacts should be. Traditional gas and diesels? Hybrids? EVs? A mixture of all of those? The stakes are high in the this segment of the automobile game and MB has a lot riding on it. And Merc’s parent, Daimler, has just announced that it is going to obligate €600 million in updates and expansion to the factory that builds the A and B-class compacts.

Mercedes has yet to announce which platform, whether the A- class or the B-class, it will use for the upcoming small cars, but we do know that they will start production at the Rastatt factory in late 2011. Mercedes is adding a 710,000 square foot body shop to produces the shells of the new models at the factory and they have already started construction of a new stamping facility in nearby Kuppenheim to produce the body panels that will be welded at the Rastatt body shop.

In addition to the current hatchback body styles, the next-generation compacts will also add two new body configurations, although Mercedes is playing their cards close to their vest as far as details on the new models. The current speculation is that the most likely candidates are some sort of taller wagon/MPV sort of ride to contend against the likes of the VW Touran or Ford C-Max style of Euro-boxes (think a continental version of a Scion xB), or possibly a sedan.

If it is a sedan, then the word has it that model will actually make it to the North American market. There has long been a desire for the current A-Class to be sold over here. It’s a car sort of like a Mercedes version of the latest Honda fit; sort of a mini, minivan, one box design. Mercedes produces them with a range of engines, and even had fuel cell demonstrators running around in Europe for a time.

This, of course, had various green car enthusiast salivating at an American A-Class for some time, but to no avail, as of yet.

The CEO of Daimler, Dieter Zetsche, also revealed that a low-volume production run of the battery electric A-Class, dubbed the A-Class E-Cell, would start late next year. There is speculation that Tesla, who is now in a technological partner shim with Daimler, will be supplying batteries or other components for the electric A-Class, but the California-based company would not confirm this.

Source: AutoBlogGreen

Lingenfelter Performance Engineering, a name that should really need no introduction to serious American hot rod enthusiasts out there, will be bringing a version of the latest Trans Am to this year’s upcoming SEMA show. It’s got all of the Trans Am goodies you remember:

Duck-tail spoiler, fender vents, twin-port front grille, raised white-letter tires, a 445 cubic inch V8, honeycomb wheels and that hideous screaming chicken hood decal.

Wait a second, the Trans Am was a Pontiac, and Pontiac is now, officially, sadly, dead, you say. Indeed you are right, but that’s didn’t stop Lingenfelter, now did it?

Now, for those of you that don’t know, or are too young to remember, the Firebird Trans Am was Pontiac’s version of the Chevy Camaro Z28, the hottest option you could get. And as is GMs want, under the sheet metal, the difference between the Firebird and the Camaro was essentially zilch.

Hence, even though Pontiac is now history, the new Camaro is very much alive and kicking. So turning the latest Camaro into a “new” Firebird Trans Am would be a snap for an out fit like Lingenfelter Performance Engineering.

Built up on a current Camaro body, the Lingenfelter 455 TA features a GM LS-based, aluminum-block V8 plant under the hood that cranks out a healthy 655-horsepower. It sports 11.5:1 compression ratio and has ported and polished LS7 heads (better fill it up with premium, huh?). The clutch is a version of the Corvette ZR1′s twin-disc flywheel/clutch deal, and the wheels are custom 20-inch honeycombs wrapped with Nitto tires.

The 455 TA will roll out at the SEMA show in early November is inspired by the second-generation 1971 Pontiac Trans-Am with the huge 455 engine.

The only word on the insides is that Lingenfelter guarantees a “custom classic interior” to match the exterior style. Yeah, this is just a one off, but Lingenfelter says, they will be gauging whether there’s enough interest to build a run of customer cars.

Source: Inside Line