Wednesday, April 22, 2009
Lola considering Formula One return in 2010
British race car makers Lola have commenced a major evaluation project aimed at developing a car to compete in the 2010 FIA Formula One World Championship and could formally lodge an entry within the next few weeks. It follows March’s confirmation of FIA plans to introduce of a ‘cost capping’ option to teams next year.Lola’s previous Formula One involvement dates from the 1960s through to the late ‘90s and now the Huntingdon-based company is in discussions with a number of parties with a view to designing, manufacturing and developing a new F1 car, subject to final confirmation of the 2010 regulations. “The announcement that Formula One teams may opt for a prudent, financially responsible ‘cost capped’ regime from 2010 has resulted in us deciding to fully evaluate the opportunity to develop a car to compete in the FIA Formula One World Championship,” said Martin Birrane, Executive Chairman of Lola Group.“The current necessity for Formula One to adopt a responsible approach in times of economic uncertainty has created the ideal conditions for us to consider developing a car for the World Championship.”Lola, whose last F1 entry came at the 1997 Australian Grand Prix, have appointed new key staff to the project and allocated some of their top engineers to the evaluation. The company already has at its disposal a Formula One standard wind tunnel, latest Computational Fluid Dynamics and Finite Element Analysis equipment and a seven-post dynamic chassis rig.“Lola possesses the technical resources, capability and know-how to develop cars capable of competing at the very highest levels of international motor sport, including Formula One,” added Birrane. “We are therefore embracing the WMSC’s timely announcements and assessing a relevant programme for F1 with a view to making formal entry in the coming weeks.”In addition to Formula One involvement spanning the 1960’s, 70’s, 80’s and 90’s, Lola’s racing heritage includes production of championship-winning and one-make formulae cars for Champ Car in America, Formula Nippon in Japan, Formula 3000, Formula 3 and A1GP in Europe. The company currently produces the race-winning LMP1 and LMP2 sports cars competing in both the Le Mans Endurance Series and American Le Mans Series.
UK Scrap Cars
Drivers with cars and vans at least ten years old will qualify for a £1,000 government grant towards a new one under a scrappage scheme designed to prop up the ailing motor retailing industry.
Alistair Darling, the Chancellor, angered environmental groups by allowing drivers to buy any type of car or van under 3.5 tonnes rather than limiting the grants to greener models with low emissions.
Mr Darling claimed that the scheme would be worth £2,000 per car because car companies would be required to match the Government grant with a £1,000 discount on the list price. In reality, companies already offer discounts of at least that amount on most models and therefore many buyers taking part in the scheme will save only £1,000.
The scheme will start in mid-May and end by March 1 next year, or earlier if the £300 million earmarked by the Government is used up before then.
A maximum of 300,000 drivers will be able to take advantage of the scheme. An estimated 9.5 million cars in Britain are at least ten years old. More than 90 per cent of the new cars purchased under the scheme are likely to be imported. Drivers will have to prove that they have owned the car being scrapped for at least a year and that it has an MoT certificate.
Car dealers will do all the paperwork and arrange for the old vehicle to be scrapped. The grants will be available only for new cars despite requests from dealers for the scheme to include much cheaper one-year-old cars.
The RAC Foundation said that many cars scrapped would be in good condition.
The AA welcomed the scheme but said that drivers would pay for it at the pumps. Edmund King, the president, said that the 2p a litre increase in September would cost drivers £590 million a year, double that being spent on the scheme.
Alistair Darling, the Chancellor, angered environmental groups by allowing drivers to buy any type of car or van under 3.5 tonnes rather than limiting the grants to greener models with low emissions.
Mr Darling claimed that the scheme would be worth £2,000 per car because car companies would be required to match the Government grant with a £1,000 discount on the list price. In reality, companies already offer discounts of at least that amount on most models and therefore many buyers taking part in the scheme will save only £1,000.
The scheme will start in mid-May and end by March 1 next year, or earlier if the £300 million earmarked by the Government is used up before then.
A maximum of 300,000 drivers will be able to take advantage of the scheme. An estimated 9.5 million cars in Britain are at least ten years old. More than 90 per cent of the new cars purchased under the scheme are likely to be imported. Drivers will have to prove that they have owned the car being scrapped for at least a year and that it has an MoT certificate.
Car dealers will do all the paperwork and arrange for the old vehicle to be scrapped. The grants will be available only for new cars despite requests from dealers for the scheme to include much cheaper one-year-old cars.
The RAC Foundation said that many cars scrapped would be in good condition.
The AA welcomed the scheme but said that drivers would pay for it at the pumps. Edmund King, the president, said that the 2p a litre increase in September would cost drivers £590 million a year, double that being spent on the scheme.
Britain adopts scrappage incentive as U.S. debates
Britain approved a 10-month program enticing consumers to scrap older vehicles, becoming the latest European country to adopt a sales incentive that's stalled in the U.S. ...
GM Decline
General Motors, battling a 49 percent decline in U.S. sales through March, plans to shutter most U.S. factories for as long as nine weeks this summer, the Associated Press reported, citing two people familiar with the plan. UAW plant officials say GM plant managers and human resource personnel will meet with the union on Thursday and Friday at some factories to discuss changes in production, according to the AP. 7:11 pm U.S.
Wednesday, April 8, 2009
Ford Focus RS
Ford Focus RS.........
Ford may add a 300-plus-hp Focus to its U.S. lineup.
The Focus RS, a three-door hatchback sold in Europe, is powered by a turbocharged 2.5-liter five-cylinder Volvo engine with 305 hp.
Hermann Salenbauch, Ford Motor Co.'s director of advanced product creation and global performance, says the decision to sell the Focus RS here will depend on reaction from U.S. car enthusiasts, such as Focus SVT owners.
Ford is looking for "feedback from the media and customers," he says. "How much do they like it? Is it really what they want? We are pretty confident that it is."
The restyled, Europe-engineered 2011 Focus goes on sale here in late 2010, replacing the current model. The car will be assembled in North America. The RS model for the United States would be based on that platform, Salenbauch says. He did not say when it would arrive.
The three-door Focus SVT, a high-performance model, was discontinued during the 2004 model year. It had a $19,205 sticker, including shipping. Salenbauch says an RS model would be priced higher.
British magazine AutoCar published a gushing review of the Focus RS: "Remortgage the house, rob a bank, sell yourself, sell your own grandmother, just do whatever it takes to put an RS on your drive."
Content provided by AutoWeek.
Ford may add a 300-plus-hp Focus to its U.S. lineup.
The Focus RS, a three-door hatchback sold in Europe, is powered by a turbocharged 2.5-liter five-cylinder Volvo engine with 305 hp.
Hermann Salenbauch, Ford Motor Co.'s director of advanced product creation and global performance, says the decision to sell the Focus RS here will depend on reaction from U.S. car enthusiasts, such as Focus SVT owners.
Ford is looking for "feedback from the media and customers," he says. "How much do they like it? Is it really what they want? We are pretty confident that it is."
The restyled, Europe-engineered 2011 Focus goes on sale here in late 2010, replacing the current model. The car will be assembled in North America. The RS model for the United States would be based on that platform, Salenbauch says. He did not say when it would arrive.
The three-door Focus SVT, a high-performance model, was discontinued during the 2004 model year. It had a $19,205 sticker, including shipping. Salenbauch says an RS model would be priced higher.
British magazine AutoCar published a gushing review of the Focus RS: "Remortgage the house, rob a bank, sell yourself, sell your own grandmother, just do whatever it takes to put an RS on your drive."
Content provided by AutoWeek.
GM in 'intense' preparations for bankruptcy
General Motors (GM) is making "intense" and "earnest" preparations for bankruptcy, which is now seen as the best option, according to a source familiar with the company's plans. The company is operating under a June deadline from the U.S. Treasury to reduce debt and slash costs as part of its $13.4 billion loan and request for an additional $16.6 billion.
It appears the plan to split the company in two is gaining momentum. Known as a "363 sale" because of the relevant section of the Chapter 11 bankruptcy code, this would see GM divided into one company containing healthy brands like Chevrolet and Cadillac and another holding troubled units like Saturn.
Officially, GM continues to work toward an out-of-court restructuring, which is something Ford (F) has been making great progress on. The catalyst for the apparent change of heart is the ongoing difficultly new chief executive Fritz Henderson and his counterparts at Chrysler are having negotiating with bondholders and the labor union. Creditors are holding out for better terms, secure in the belief that a sympathetic Obama administration won't allow a bankruptcy judge to force unattractive terms on the United Auto Workers. Moreover, these secured debt holders have rights to factories and other assets should their stonewalling force a full liquidation.
It is likely that Tuesday's revelations are nothing more than theatrics designed to shake up bondholders -- many of which are recipients of the government's financial rescue money. Currently, GM maintains $62 billion in debt and is looking to cut this down to more manageable levels by slashing commitments to a health benefits fund for retirees ($20.4 billion) and by convincing bondholders to accept a debt-for-equity swap ($27.5 billion).
Discussions hinge on the size and terms of the debt swap and the depth of job cuts. Last month, GM offered bondholders 8 cents on the dollar in cash, 16 cents in new unsecured debt, and a 90% equity stake in the company, according to Reuters. This is a sweeter deal than the one Ford's senior convertible debt holders agreed to.
Previous concessions by the union, including the jobs bank program that paid for idled workers, will help save about $1.1 billion. But these reductions were made with an eye toward profitability at an industrywide annual production rate of 11.5 million cars and trucks. Things have slowed significantly since then: March deliveries clocked in at an annual rate of just 9.9 million vehicles. To survive in this environment, deeper cuts are needed. A recent proposal targeted 47,000 jobs this year, the closure of five U.S. assembly plants, and the elimination of thousands of dealerships.
If there is a silver lining to this story (although it doesn't seem like one to me), it is that the lawyers at Weil Gotshal & Manges are set to earn an estimated $230 million in legal fees should GM file for bankruptcy protection. This will set a new record, surpassing the $209 million the firm earned by guiding Lehman Bros. through the largest bankruptcy filing in U.S. history. Overall, it is estimated that a GM filing would generate $1.2 billion for all types of service professionals, including bankers and accountants.
Anthony Mirhaydari is a contributor to the Strategic Advantage investment newsletter.
It appears the plan to split the company in two is gaining momentum. Known as a "363 sale" because of the relevant section of the Chapter 11 bankruptcy code, this would see GM divided into one company containing healthy brands like Chevrolet and Cadillac and another holding troubled units like Saturn.
Officially, GM continues to work toward an out-of-court restructuring, which is something Ford (F) has been making great progress on. The catalyst for the apparent change of heart is the ongoing difficultly new chief executive Fritz Henderson and his counterparts at Chrysler are having negotiating with bondholders and the labor union. Creditors are holding out for better terms, secure in the belief that a sympathetic Obama administration won't allow a bankruptcy judge to force unattractive terms on the United Auto Workers. Moreover, these secured debt holders have rights to factories and other assets should their stonewalling force a full liquidation.
It is likely that Tuesday's revelations are nothing more than theatrics designed to shake up bondholders -- many of which are recipients of the government's financial rescue money. Currently, GM maintains $62 billion in debt and is looking to cut this down to more manageable levels by slashing commitments to a health benefits fund for retirees ($20.4 billion) and by convincing bondholders to accept a debt-for-equity swap ($27.5 billion).
Discussions hinge on the size and terms of the debt swap and the depth of job cuts. Last month, GM offered bondholders 8 cents on the dollar in cash, 16 cents in new unsecured debt, and a 90% equity stake in the company, according to Reuters. This is a sweeter deal than the one Ford's senior convertible debt holders agreed to.
Previous concessions by the union, including the jobs bank program that paid for idled workers, will help save about $1.1 billion. But these reductions were made with an eye toward profitability at an industrywide annual production rate of 11.5 million cars and trucks. Things have slowed significantly since then: March deliveries clocked in at an annual rate of just 9.9 million vehicles. To survive in this environment, deeper cuts are needed. A recent proposal targeted 47,000 jobs this year, the closure of five U.S. assembly plants, and the elimination of thousands of dealerships.
If there is a silver lining to this story (although it doesn't seem like one to me), it is that the lawyers at Weil Gotshal & Manges are set to earn an estimated $230 million in legal fees should GM file for bankruptcy protection. This will set a new record, surpassing the $209 million the firm earned by guiding Lehman Bros. through the largest bankruptcy filing in U.S. history. Overall, it is estimated that a GM filing would generate $1.2 billion for all types of service professionals, including bankers and accountants.
Anthony Mirhaydari is a contributor to the Strategic Advantage investment newsletter.
Tuesday, April 7, 2009
Free Car Show In London UK
Maybe we should take note. The car manufacturers are struggling but they are out to make money and still keep churning out the Hollywood commercials. I love cars, I love economical ones, fast ones and the cars that are now concepts but a vision in someones eyes. Here's what I think is wrong with the US manufacturers, they're late, they've been sleeping, they've been to focused on the big trucks, the looks and not on what the rest of the world is doing.
I watched Top Gear on BBC America a couple of weeks ago and saw the new Diesel Golf. This vehicle was getting up to 75MPG! The second was a big, road hugging, diplomatic looking Jaguar Diesel and third was a Suburu Forestor. Where's the American contingent. The most powerful nation in the world, city names that everyone in the world has heard of, Mc D's hamburgers that rule every corner of the globe, but yet, the big gas guzzling truks are still being produced!
As we say in America, Go Figure!
Mark................CCAP
Check out what's happening in the UK with the latest car show news........
Several key car manufacturers have confirmed they will be taking part in a free motor show in London this year.
Despite the British Motor Show being cancelled for 2010, the Motorexpo event in Canary Wharf will run, and is promising to be bigger and better this year.
Last year 19 new vehicles made their UK show debuts, including the Alfa Romeo Brera S and Aston Martin DBS.
This year, Mercedes-Benz, Volvo, Aston Martin, Hummer, Jaguar, BMW and Porsche are among the manufacturers already signed up to display their cars.
Land Rover is planning to use the show to debut its 2010 line-up.
The organisers are expecting 325,000 visitors to this year’s show, which takes place from 8-14 June.
I watched Top Gear on BBC America a couple of weeks ago and saw the new Diesel Golf. This vehicle was getting up to 75MPG! The second was a big, road hugging, diplomatic looking Jaguar Diesel and third was a Suburu Forestor. Where's the American contingent. The most powerful nation in the world, city names that everyone in the world has heard of, Mc D's hamburgers that rule every corner of the globe, but yet, the big gas guzzling truks are still being produced!
As we say in America, Go Figure!
Mark................CCAP
Check out what's happening in the UK with the latest car show news........
Several key car manufacturers have confirmed they will be taking part in a free motor show in London this year.
Despite the British Motor Show being cancelled for 2010, the Motorexpo event in Canary Wharf will run, and is promising to be bigger and better this year.
Last year 19 new vehicles made their UK show debuts, including the Alfa Romeo Brera S and Aston Martin DBS.
This year, Mercedes-Benz, Volvo, Aston Martin, Hummer, Jaguar, BMW and Porsche are among the manufacturers already signed up to display their cars.
Land Rover is planning to use the show to debut its 2010 line-up.
The organisers are expecting 325,000 visitors to this year’s show, which takes place from 8-14 June.
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