Tom LaSorda sends a letter to the Chrysler troops about rumors...

BREAKING: Tom LaSorda spams the troops to pick up morale

Posted Feb 22nd 2007 12:33PM by Sam Abuelsamid
Filed under: Chrysler, DaimlerChrysler

There are plenty of reports today that morale at Chrysler is in a tailspin right now due to all of the rumors swirling about the potential sale of the company. Having been through several buyouts and mergers (both attempted and successful) in the past 15 years, I know that one of the worst things that can happen to productivity is rumors about the company's fate. Whenever this happens, people spend their days polishing resumes, calling headhunters and speculating about what's going to happen.

This morning Chrysler CEO Tom LaSorda sent out a mass e-mail to all employees trying to minimize this impact. He starts off by explaining that management cannot comment on anything that might happen, for legal reasons. He then goes on to tout the support given by the management board to the latest restructuring plan, all the new products in the pipeline and how this crisis is different from all the previous Chrysler meltdowns. It's understandable that LaSorda felt he needed to send this message, but the reality is that it will make no difference whatsoever. Anything short of a definite announcement that either a deal is done, or an unequivocal statement that Chrysler is not on the market, will likely only make things worse. The entire e-mail message can be read after the jump.

[Source: Chrysler]
Dear Colleagues,
I know you have many questions as a result of the DaimlerChrysler Annual Press Conference last week and the resulting rumors about the future of the Chrysler Group. I'm sending this letter because I want to provide you the information that I can, and share with you my personal thoughts.

Journalists and analysts have been busy conjecturing over what will happen. To a certain extent, that is the nature of their business and we need to keep it in perspective. I know that you've been reading and discussing these stories, but I want you to keep in mind that Dieter Zetsche and the Board of Management strongly endorsed the Chrysler Group's new Recovery and Transformation Plan. Dieter added that the company will look into "further strategic options with partners beyond that business cooperation" that I outlined in the Recovery and Transformation Plan, which set off the frenzy of rumors.

We simply cannot respond to these reports. The Board of Management has a duty to consider all options; but while this process is ongoing, the Board – including myself – can't comment on developments because of strict legal requirements.
It may take weeks or months before official comments can be made on some issues. However, I can tell you that further information on the voluntary separation and early retirement programs for employees will be communicated in the next few days.

Meanwhile, our job is very clear. Our mission is to produce great cars and trucks, to take care of our customers and to restore profitability. Whatever fork in the road we may take, we first have to make sure we're on the road – and the Recovery and Transformation Plan is that road. The plan is designed to make us profitable by 2008 and put us on solid footing to stay there. This is a sound plan that includes a substantial investment in our long-term competitiveness, and we must focus our attention on executing it.

The Chrysler Group has been around for more than 80 years and has been through difficult times before. We went through a restructuring in 2001, but our situation today is much different. For one thing, we're leaner. Another important difference is that we have a full product pipeline with at least 20 new and 13 refreshed vehicles on their way from 2007 to 2009.

We also have achieved areas of operational excellence that are the benchmark of the world. Capacity for the fuel-efficient, four-cylinder World Engine in Dundee, Michigan, will increase to 840,000 units a year over the next few years, compared to the 260,000 we built last year. Our improvements in manufacturing productivity lead the industry over the past four years. We've also made great strides in product quality – for example, the Chrysler Town & Country minivan led its segment in the 2006 Initial Quality Survey from J.D. Power, beating Toyota and Honda.

Importantly, we are continuing to invest in our future. In addition to the barrage of new products, we will invest $3 billion in new powertrains, including a new family of world-class V-6 engines and a new dual-clutch transmission that we are developing with Getrag.

To sum up, we are a much leaner and stronger organization than before, and we are continuing to make the necessary investments to be competitive into the future. We are a good company with great talent and a clearly defined plan of action. The best way to secure a successful future for the Chrysler Group is to focus on what we can control – that is the Recovery and Transformation Plan. Many of you may be familiar with the adage about accepting what you cannot change and taking charge of what you can control. We can learn a lot from this message.

We have an obligation to each other, to our shareholders, to our dealers and to our customers to make this plan successful. Your support and best effort have never been more important, and I thank you for your continued dedication to the job at hand. In the meantime, you have my promise that we will continue to communicate as openly and directly with you as possible.

Sincerely,

Tom

• 
  
• 
  

Could Magna buy Chrysler and put Bernhard at the helm?

This is one of the options that I mentioned in one of my earlier posts. Wolfgang will do a better job with Chrysler than GM would. Let's hope that something happens that won't destroy the Chrysler brand that Iacocca spent so much time and energy at rebuilding.

Brad
_____________________________________

Could Magna buy Chrysler and put Bernhard at the helm?

Posted Feb 22nd 2007 10:06AM by Sam Abuelsamid
Filed under: Chrysler

Toronto, Ontario based Magna International is the third largest automotive supplier in the world with 2005 sales of $22.8 billion. They have had a long relationship with DaimlerChrylser both in North America and Europe including running an assembly plant in Graz, Austria that builds various Chrysler models for the European market. Amid the flurry of speculation in recent days about the fate of the Chrysler Group comes a new one from Just-Auto: Magna buys Chrysler and hooks up Wolfgang Bernhard to run the show in Auburn Hills.

Although Magna is a big enough company that they may well be able to pull off such a large transaction, other suppliers are worried about the effects on them. If a company like Magna owned the carmaker would they lock out other competing suppliers like Lear, Johnson Controls, Collins and Aikman and others? Certainly, when GM owned what is now Delphi, it was a lot harder for outside suppliers to bid on contracts that Delphi also produced like brake and steering systems. The other big part of this speculation has Wolfgang Bernhard, now free of his VW obligations stepping in to run the show. This one evolves out of a previous rumor that Bernhard was going to be hired to succeed Magna founder Frank Stronach who may be ready to retire.

KTM X-Bow Concept Car powered by Audi is a real head turner...

2007 KTM X-Bow

Photo Credits » KTM » View the 2007 KTM X-Bow Image Gallery

KTM, Europe's second biggest motorcycle manufacturer, will introduce the first ever car in the company’s 50-year history: the X-Bow. Since the beginning of the new century, KTM, as the world market leader in the offroad segment has successively expanded its range of business activities into the street segment. The first step into the automotive sector is therefore a logical extension of this strategy. With the X-Bow, KTM can offer all those who do not have a motorcycle license a driving experience that is typical for the brand.

The Philosophy: Ready to Race

As different as cars and motorcycles may be, KTM has managed to transfer its development principles from two wheels to a sports car in every way. In this way the unique driving experience and the spectacular merits of the drive are not just dependent on the performance of the engine. Just as they have managed to do with motorcycles, the KTM developers have kept the weight of the vehicle extremely light by using the latest materials, an intelligent construction and a purist styling. The car will weigh only about 700 kg.

The interaction between the sophisticated aerodynamic concept and a motor sports-oriented chassis makes the X-Bow clearly superior to a far higher performance sports car. Thanks to its open form of construction, the just 70mm high windshield and the free standing wheels after the style of a Formula racing car, it is not only the appearance, but also the driving experience that is immediately evident as entirely unique.

Speed from every perspective: the design

Aggressive, edgy, dynamic, a personality from every angle: the design of the KTM X-Bow originates unmistakably from the house of Kiska. AustriaÂ’s biggest design studio has had close links to KTM for almost 15 years and is not only responsible for the design of the motorcycles, but also for the corporate image of the company. The design of a lightweight sports car is where passion and challenge meet, resulting in a product that fits seamlessly into the KTM brand family.

The stylish hallmark of the X-Bow is its light-footed, optical presence evoked by the apparent floating panels of the bodywork, the rangy wheels and the transparent area that allows a perspective of the vehicle technology, which for example makes parts of the suspension and damping visible. The technical elegance of the carbon chassis has been used as a design element for the graphic concept. The two outer mirrors which are fixed to double guided stays are symbolic of the lightweight construction.

The purist attitude of the X-Bow also finds its expression in the striking headlights and rear lights. The rear is dominated by a central silencer and a powerful diffuser which is an indication of the level of painstaking work on the aerodynamics of the vehicle.

And as the first ever KTM sports car, the X-Bow naturally comes in the Mattighofen fashion colours: black and orange.

Cooperation with Dallara: The carbon fibre monocoque
The core of the KTM X-Bow is the sophisticated carbon fibre monocoque. This high-tech solution was until now reserved for use in top class motor sport and for elite street sports cars. Through a new construction- and production process developed together with the Italian development partner, the tradition-rich racing car specialist Dallara, this technology can now be offered in a significantly cheaper version. The KTM X-Bow therefore takes on the role of a forerunner that can use new insights and production processes to its benefit.

These advantages are impressive everywhere: With an extremely light weight of around 70 kg, the chassis of the X-Bow offers a maximum amount of rigidity and safety. A crash box in the front nose of the monocoque absorbs collision energy, while the roll bars are integrated into the structure.

An options kit is available on request which increases the recognized safety levels to that of the motor sports authorities FIA: this includes having additional struts mounted at already designated points.

Intelligent Turbo Power

KTM was able to secure Audi AG as a partner for the engine, which when delivered from the company in Ingolstadt Germany, is a congenial extension for the slim concepts of the KTM X-Bow. The four cylinder engine completely made of aluminium is light, compact and includes the most modern engine technology: four valve technology, FSI direct fuel injection, high pressure injection valves, turbo charge, a smooth, adjustable intake camshaft and two balancer shafts.

With this engine, the basic version of the KTM X-Bow will achieve 220 hp. An additional version will have a performance in the area of 300 hp at its disposal. First simulations for the KTM X-Bow in any case demonstrate its superior characteristics; the acceleration to 100kph should be comfortably under four seconds.

The transmission versions also come from Audi AG. A manual six-gear transmission comes with the series production, while an optional DSG-transmission will also be offered.

Motorsports for the highway

Apart from the optimal distribution of weight with the engine mounted between the axles, a guarantee of high speeds in the corners comes from the chassisÂ’ high quality suspension and damping elements. In this area KTM can call upon competence in its own company: the KTM Netherlands subsidiary White Power has at its disposal chassis experts for both on road vehicles and motor sports.

The brakes also come from the best possible source: KTM has had a long-term and fruitful partnership with the Italian specialists Brembo.

And for further improvements in the traction, KTM will offer a limited slip differential for the rear axle. This component part is particularly targeted at drivers who want to engage in certain activities on racing circuits.

Purism without compromise

The lightweight concept also demands some limitations. This is why the X-Bow deliberately does away with many comfort features which, because with their weight and the space need for construction have a negative effect on the performance of the vehicle. These include such features as a sound system and an air conditioner.

On the other hand, because of the X-BowÂ’s concept, it is not dependent on many weighty elements. Its lightweight makes power steering redundant; the narrow windscreen requires neither windscreen washers nor blowers; the sloping lines of the side of the vehicle and the seat height make it possible to get into the car without having a door; and lastly the carbon chassis together with the four-point safety belt create a safety package that makes airbags unnecessary.

It was also a conscious decision to reject any electronic driving aids. The KTM X-Bow is designed as a piece of high-tech sports equipment for experienced customers who prefer a filter less driving pleasure.

Innovative Accessories

By doing away with the roof, both the driver and passenger of the KTM X-Bow are exposed to the elements in a similar way to that of a motorcycle. For this reason a decision was taken concerning an accessories program that has parallels with the world of motorcycles.

Special overalls for use with the KTM X-Bow have been developed together with the northern Italian clothing experts Dainese. These garments will take over some of the comfort functions that are usually available with a vehicle with a roof – for example entertainment and communication systems. These functions are directly integrated into the clothing, which will also naturally serve as protection against cold and windy weather.

An important part of the custom-made driver equipment will be a helmet specially designed for this project. Wearing of the helmet is not required by law but is recommended by KTM. In this way the X-Bow also represents a bridge to a motorcycle. Special storage space is also provided for these two helmets.

A light, easy to install tarpaulin to cover the interior of the car will also be available.

Specifications

General Information Vehicle Type: 2-door convertible, concept car Price: Unavailable Fuel Mileage: Unavailable Drivetrain Configuration: Mid Engine/RWD Engine: Turbocharged Inline-4 Displacement: 1998 cc Horsepower: 220 bhp @ ---- rpm Torque: Unavailable Max RPM: Unavailable Transmission: 6-Speed Manual or DSG Dimensions Weight: 1545 lbs Height: Unavailable Length: Unavailable Width: Unavailable Wheelbase: Unavailable Track (f/r): Unavailable Performance 0-60 mph: 4.0 sec 0-100 mph: Unavailable ¼ mile: Unavailable Top Speed: Unavailable Lateral acceleration: Unavailable Braking 60-0 mph: Unavailable

Can the Demon Spark Sales At Dodge?

Jim Fets / www.fetsphoto.com The Demon incorporates strong Dodge cues (crosshair grille, chunky Charger-like sides), but still maintains a clean, simple style.

Demon’s in the Details

Can this simple Dodge roadster thaw Chrysler’s sales chill?

By BOB GRITZINGER AutoWeek | Updated: 02/20/07, 11:26 am et

CLICK BELOW FOR MORE:

>> Dodge Demon Concept Video

For a study in contradictions, consider Chrysler’s roadsters. On one hand, there’s the Dodge Viper SRT10, an immensely powerful and expensive all-American beast with a worldwide following. On the other, we have the Chrysler Crossfire, an underwhelming yet relatively costly cult-appeal two-seater built on a cast-off Mercedes-Benz SLK chassis.

Consider what’s missing and you’ll likely arrive at the same conclusion as Chrysler’s long-range planners: A small, affordable roadster. Enter the Dodge Demon concept, a Mazda MX-5/Pontiac Solstice-class roadster intended to attract Viper/Crossfire lovers who still have a nagging need to pay the rent and eat. Demon makes its world debut next month at the Geneva International Motor Show, a fitting venue given Chrysler’s Euro-ambitions for the Dodge brand.

“While the iconic Dodge Viper is a dream car for many, the Demon is designed to be an attainable dream car,” says Jae Chung, lead exterior designer on the project. Chung and interior designer Dan Zimmermann took on the project in late 2005 with marching orders to build a minimalist show car, but one with the potential to one-up the segment-leading MX-5.

“We wanted to target the best—and be better,” says Zimmermann.

Chung’s exterior incorporates strong Dodge cues (crosshair grille, chunky Charger-like sides), roadster proportion and stance, and enough artistic license to allow the concept to suggest where Dodge styling will fit in the future between sophisticated Chrysler and the boxy and rugged world of Jeep. The result is a clean, simple style, one that can be viewed as a whole or studied for its intricate detail, Chung notes.

Jim Fets / www.fetsphoto.com Trapezoidal shapes are scattered throughout the Demon's rear. The shape dictates the form of the exhaust tips, brake cooling vents, wheel design and roll bars.

For instance, in side view Demon’s main character line starts at the front fascia and wraps up over the front wheel well before slashing diagonally down the side of the car to the brake-cooling vent. From there, the line sweeps upward and back to create the trademark Dodge fender kick before terminating in the tail lamp and rear fascia. Trapezoidal shapes repeat in the details—the exhaust tips, brake cooling vents, wheel design and roll bars.

“I wanted the car to have one nice line first, and then the rest of the details just fall into place,” says Chung.

The simple theme continues inside, where gauges, vents and the radio fit in a single cross-car piece of brushed aluminum trim. Secondary controls, such as heat/air conditioning knobs, are located lower on the dash. The center console houses a short gearshift handle, while a three-spoke steering wheel (think Triumph) completes the interior.

“In the manner of timeless British sports cars, the interior of the Dodge Demon is purposely functional, not frivolous,” says Zimmermann. “Everything relates back to the driving experience—there’s nothing to distract the driver.”

Interior and exterior styling merge in some places, such as the inner door panel which mimics the exterior character line by wrapping around the speaker housing and then slashing rearward, creating a map pocket. Dash-mounted speaker grilles also bring the shape of the exterior hood cooling vents inside the car.

Demon’s designers point out one more benefit to their economy of purpose: If Chrysler’s leadership gives the go-ahead to build the car, its simple styling could easily be put into production.

Designers kept it simple inside, with gauges, vents and radio mounted inside a single piece of brushed aluminum trim.

“We were trying to make it affordable, and so this is an exercise in execution,” says Zimmermann.

Underneath, Demon is a collection of off-the-shelf parts, the key piece being Chrysler’s global 2.4-liter 172-hp, 165-lb-ft inline-four engine, hooked to a six-speed manual gearbox. In production, the car would use 1.8- to 2.4-liter engines, with a 300-hp turbo engine at the top of the range.

But with Chrysler on the ropes and cutting jobs, it remains to be seen whether an affordable sports car in the Demon mold will fit the company’s future portfolio.

Design chief Trevor Creed hopes so: “The small sports car market would be ideal for Dodge. It’s a market that is relatively untapped and I would think there are opportunities there.”

GM, DCX talks serious

Nation's top automaker could absorb Chrysler

Bill Vlasic And Christine Tierney / The Detroit News

General Motors Corp. has been in talks for two months with DaimlerChrysler AG about acquiring all of the troubled Chrysler Group and folding its operations into GM, according to people familiar with the discussions.

The first contact occurred in December, when GM Chairman Rick Wagoner and DaimlerChrysler Chief Executive Dieter Zetsche met in Detroit to discuss the blockbuster idea of GM buying Chrysler from its German parent company.

While a deal is far from certain, at least four meetings have taken place involving Wagoner and GM's chief financial officer, Fritz Henderson, and Zetsche and DaimlerChrysler's CFO Bodo Uebber. Talks are said to be ongoing, primarily between Henderson and Uebber.

Both companies declined comment Sunday.

The underlying rationale for the deal is the need for major consolidation in the intensely competitive American auto industry, said people with knowledge of the talks.

GM, the No. 1 U.S. automaker, is said to be interested in absorbing Chrysler's revenue, production volume and brands, while cutting duplicative labor costs, management and overhead.

DaimlerChrysler, for its part, is intent on dissolving the 1998 merger that brought together the former Daimler-Benz AG and Chrysler Corp.

A GM acquisition of Chrysler would essentially reduce the Big Three to a Big Two, with only GM and Ford Motor Co. surviving from the dozens of American automakers that once existed in the 20th century.

As the deal has so far been discussed, Chrysler would cease to exist as a company or a corporate subsidiary. Instead its factories, brands and products would become part of GM's organizational structure.

But industry experts say such a deal would be fraught with risk for GM, which is in the midst of its own turnaround.

"They're not far along enough, in my assessment, to take on something as gigantic as absorbing Chrysler," said Gerald Meyers, a business professor at the University of Michigan and former chairman of the AMC automaker acquired in 1987 by Chrysler.

Wall Street analysts also have been skeptical about whether this would be a good deal for GM, ever since last Wednesday when the talks were first reported in Germany's Manager magazine.

"GM already has too many brands that cannibalize each other," said analyst Brad Rubin at investment firm BNP-Paribas. "If you add three more, there's going to be more cannibalization."

The talks, according to one source, could take months to complete. Also, other bidders are likely to emerge for Chrysler, which lost $1.5 billion in 2006 on revenues of $62 billion.

But there is growing momentum in the discussions between GM and DaimlerChrysler.

At DaimlerChrysler, the negotiations are being handled in great secrecy, at the highest levels. Company insiders say the management concluded that it needed to sell Chrysler during the annual 10-year strategic review of its operations, which took place in the fall.

DaimlerChrysler sources said it would be beneficial to sell the Auburn Hills unit as a whole rather than in parts because of the health care liabilities, which are estimated at $18 billion. Without liabilities, Banc of America Securities puts Chrysler's value at $5 billion.

There are two crucial issues that could prevent a GM purchase from happening: what price GM would pay for Chrysler and how the United Auto Workers union will react to two of the Big Three automakers joining together.

After losing $10.6 billion in 2005, GM is in the midst of a historic turnaround that includes slashing more than 30,000 jobs and closing several U.S. plants.

Chrysler last week announced its own broad restructuring that will eliminate 13,000 jobs and downsize vehicle production to match its shrinking market share.

A combination of the two would lead to deeper cuts, according to Meyers. "If you think the layoffs you've seen today are large, well, it's going to be a bloodbath in Detroit and in the Midwest."

He said the Chrysler assets that would be most valuable to GM were the Jeep brand, which could be paired with the Hummer nameplate, and its minivans.

"You could make the case that it's a good defensive move (for GM)," Meyers said. "But it's a huge risk. There's a lot more to be lost than to be gained."

On Wednesday, Zetsche stunned the automotive world when he said that "all options are on the table" regarding Chrysler, including alliances with other automakers or a possible sale.

In fact, Zetsche had begun discussing the plan of selling off Chrysler with Wagoner in December, according to people with knowledge of the meeting.

The talks were said to be of a serious nature from the start.

Zetsche was coming under heavy pressure from German shareholders to dump Chrysler, which has ridden a roller-coaster cycle of profits and losses since it was acquired nine years ago.

The initial meeting with Wagoner established that GM was interested in a Chrysler deal.

While GM had hit bottom with its own losses and painful restructuring, Wagoner and his management team had growing confidence that its turnaround plans were on track.

Buying Chrysler would boost its volumes and revenues significantly, and ensure that GM remained ahead of Toyota Motor Corp. as the world's biggest automaker. In the process, Chrysler's management structure would be eliminated and much of its staff functions taken over by GM.

GM would add the Chrysler, Dodge and Jeep brands to its corporate lineup, and save money by spreading engineering and vehicle development costs over a larger and broader range of products.

Together, GM and Chrysler accounted for 11.8 million vehicles sold in 2006. Their combined U.S. market share would exceed 35 percent. And their status as American icons would make a combination of the two a historic event in the history of the U.S. auto industry.

GM's board of directors was said to be supportive of the discussions continuing. DaimlerChrysler's supervisory board has already publicly endorsed exploring "far-reaching strategic options" for Chrysler.

The wild card in any deal, however, will be the UAW. Bringing Chrysler into GM's organizational structure would likely require union cooperation on health care costs and staffing levels.

You can reach Bill Vlasic at (313) 222-2152 or bvlasic@detnews.com.

GM Close To Buying Chrysler...

Reports: GM in talks to buy Chrysler Group

Sources say the No. 1 automaker may buy DaimlerChrysler's struggling auto unit, according to reports.

February 16 2007: 4:05 PM EST

NEW YORK (CNNMoney.com) -- General Motors is in talks to buy DaimlerChrysler AG's struggling Chrysler Group in its entirety, according to several reports.

According to the reports, sources in Germany and the United States said high-level talks between GM (down $0.14 to $36.30, Charts) and DaimlerChrysler (up $2.83 to $73.08, Charts) executives are taking place.

Its German parent confirmed Wednesday it is looking at strategic options for the North American unit. When asked if those options included a sale or spin-off of the unit, DaimlerChrysler Chairman Dieter Zetsche responded "this means all options are on the table."

Chrysler Group announced Wednesday it would be cutting about 13,000 workers and closing plants over the next three years as a part of a restructuring plan aimed to restore profits by next year.

Talks of an alliance between GM and DaimlerChrysler was first reported recently in Germany's Manager-Magazin.

Other unnamed sources said to be familiar with the discussions confirmed the reports Friday for Reuters and the industry newspaper Automotive News.

DaimlerChrysler employed J.P. Morgan Chase & Co. to consider options for the Chrysler Group, to help the automaker explore strategic options, according to trade newspaper.

But others are also skeptical on whether the discussions are real.

"This would be an at least $5 billion plus deal and GM is not that liquid right now," John Casesa said, an automotive analyst with Casesa Strategic Advisors, told CNN. "I'm not convinced at all and I think it's unlikely."

Other experts contacted by CNNMoney.com said that while a GM purchase of Chrysler appeared unlikely, they could see other buyers emerging.

"The challenge is who would be a buyer," David Cole, chairman of the Center for Automotive Research, said Wednesday of a possible sale of Chrysler. "Maybe a Chinese company that really wants entrance into U.S. market or Renault-Nissan would see it fit with its strategy. But it's tough."

Carlos Ghosen, the CEO of both French automaker Renault and Japanese automaker Nissan (Charts), had expressed interest in finding a North American partner to join the alliance between his two companies. Talks between GM and those two automakers last year were abandoned without any agreement.

Kevin Tynan, auto analyst at Argus Research, said Wednesday he believes Chrysler will end up being sold due to pressure from DaimlerChrysler's shareholders to undo the 1998 merger, but he thinks a sale to a private equity group is more likely than a combination with another automaker.

"There's value to those brands," he said. "I think relative to Ford Motor (Charts), there's less dead weight. Nine years later, it's probably the right thing to do. I think there's a feeling in Germany that it's time to cut bait."

Officials for DaimlerChrysler and GM issued no comments on the reports.

DaimlerChrysler has long tried to reverse the drop in sales with previous cost-cutting moves but slipped into the No. 4 spot last year behind Toyota (up $0.21 to $136.98, Charts) in the United States.

Other reports have suggested that talks between Chrysler and GM were more limited in scope than a full merger. The Wall Street Journal reported Thursday that the two were in talks to jointly develop a large SUV that would be similar to the Chevrolet Suburban, a product that Chrysler Group doesn't have in its lineup. The New York Times had a similar report Friday. Neither publication had their own reports on the potential merger talks as of mid-day Friday.

CNN's Katie Byron contributed to this report

For sale: A smaller Chrysler

Lessons from Chrysler's Valentine's Day massacre

Bugatti Veyron Videos

This car is in a class all its own... at least until Caparo comes to the US.

Enjoy!

Veyron vs Ruf Porsche Turbo

Track testing a Veyron and making a journalist cry...

Top Gear making a top speed run in the Veyron

Top Gear racing a Veyron versus an airplane cross country

Classic Bugatti's and a Veyron

Road & Track's test of Veyron vs McLaren SLR & Porsche Carrera GT

Motor Trend testing the Bugatti Veyron

Bugatti vs Ferrari F40

Acura Rumored To Be Going Back To The Drawing Board With The NSX

This is absolutely no surprise to me and just proves to me how out of touch Honda has been for the last few years. Did they truly think that they could walk away from the rear mid-engine design of the NSX's heritage and steer everyone into a front engine rear drive turd?

The idea people at Honda have completely lost their spines. They are in dire need for a change and some direction (as much as the Big 3 in Detroit). There is absolutely nothing emotionally stirring about the design... Ken Okuyama might as well have signed off on this.

On top of this Honda is at a loss for a decent powerplant. At this point they don't even have a decent V-8. How could anyone call this an exotic car?

I would enjoy hearing your thoughts on this.

Brad

Here is a link to their video on the car that they are calling the successor to the NSX

RUMOR: NSX development halted, Acura going back to drawing board

Posted Feb 21st 2007 6:01PM by Chris Tutor
Filed under: Concept Cars, Tokyo Motor Show, Acura, Honda

We (and many of you) were blown away by Acura's Advanced Sports Car Concept when it was unveiled at NAIAS in January. Though we were a bit disappointed the concept was only a non-running turntable tease, Honda assured everyone that an improved, closer-to-production show car was in the works for the October Tokyo show.

Winding Road says its sources have heard the contrary, that Honda is going back to the high-performance drawing board to come up with a more super supercar. Word is the ASC just isn't impressing as many people as it needs to be. Perhaps Honda management saw the ASC wasn't its company's best effort, and instead of dumping the project entirely (like Chrysler did with the ME Four-Twelve or Ford with the GR-1), it's committing the resources needed to create something truly special in the $100,000+ sport coupe segment. As such, we're not quite sure what we'll see in October at the Tokyo Auto Show, if anything at all.

At least this is what we hope they're doing. Honda could have scrapped the whole thing and reallocated the funds to development of the next generation Pilot. Eeek!

[Source: Winding Road]

Camless Engines of the Future Are Closer Than You Realize...

Look for this in the very near future… I know that McLaren is working on this for production applications. It is definitely a glimpse into the future that is rooted in F1 technology.

Here is the article from Autoblog:

Behold the cam-less future

Posted Dec 22nd 2006 1:34PM by Dan Roth
Filed under: Trends, Etc., Tech

Mechanically actuated valves may soon be a thing of the past. We've made over a century's worth of improvement on the same basic combination of a camshaft, followers (or lifters), a poppet valve and a spring. We've gone from using pushrods and rocker arms to actuate the valvetrain to direct-acting buckets motivated by an overhead camshaft with variable phasing and lift. While engineering ingenuity has managed to wring incredible performance and flexibility out of these setups, there's only so far you can go before bumping into the laws of physics. French automotive supplier Valeo SA has been working on camless engine technology for quite some time and they expect to have their system on the street by 2010 or 2011. Valeo is working with several automakers to implement the camless technology. Eliminating a traditional valvetrain is expected to yield efficiency improvements nearing 20 percent. An increase in performance and emissions decreases will also be realized from the system.

More after the jump


[Source: Valeo via Autoweek]

The Valeo system uses electromagnetic actuation. Where a typical valvetrain uses a spring to hold the valve closed until the camshaft lobe overcomes the spring, the camless system uses a pair of springs, and the valves default to a partially open position. There's a pair of electromagnets above the valve assemblies with an armature in between. The armature is what the electromagnetic fields move to actuate the valve. The upper electromagnet pulls the valve shut, and the lower electromagnet fully opens the valve. This system eliminates entirely the camshaft and its associated drive system such as belts, tensioners and bearings. High performance engines with variable timing and lift valvetrains will be easy to accomplish with the Valeo system, as opposed to the complex mechanical systems currently used to accomplish those functions. Think of Valeo's system as operating much like a fuel-injection system. Each valve event can be discrete and optimized. Low end torque will be increased, and cylinder head design can use more radical valve and port angles without having to fit rotating machinery above and around the cylinder head. Depending on the size of the hardware, packaging could approach the compact size of pushrod engines.

Think of it, your engine could switch run in the Atkinson cycle with cylinders deactivated at cruise and save a lot of fuel, switching over to the traditional Otto-cycle and all cylinders when more power is needed would be fast and seamless. While some engines can currently pull off cylinder deactivation, they can't switch cycles from the more fuel-efficient but less powerful Atkinson Cycle (or Miller-cycle when teamed with forced induction) and the "standard" four-stroke cycle. The biggest stumbling blocks for Valeo to overcome are developing sensors that are accurate and durable enough to make sure valve events occur exactly when they should and the system has a reasonable MTBF. Cost of the system will likely see it installed on premium and performance vehicles at first. Valeo has a "half-camless" configuration that offers eighty-percent of the benefit at half the cost of the full-camless system. We're excited to see this system hit the street. We're even more excited to see what the DIY aftermarket can do with this hardware - just imagine, a "camless retrofit-kit" for your classic car. You build and program the system, much the same as a MegaSquirt. That'd be great under the rear decklid of the Porsche 912 I lust for.

Audi's New Diesel Website

Do you think that they have committed to this as their future alternative fuel? They were the first to take diesel to Le mans with their LMP R10 and were undefeated. Next year they will be campaigning a bio-diesel R10.

Thye will also be the first to take diesel to the exotic car and the luxury sedan markets (BMW tried it several years ago with a 7 series and failed miserably). The biggest difference is that Audi has established performance thresholds never seen in European diesel and the ability to develop emissions friendly Blutec diesel technology in conjunction with Daimler Benz... the results are 740 ft-lbs of torque and over 500 hp in their street version V12 turbo-diesel.

Click here for their new diesel web site

Alfa Design Chief Wolfgang Josef Egger Named Audi Group Head of Design

Feb 14, 2007

source: Audi AG

Wolfgang Josef Egger (44) will become Audi Group Head of Design on 1 May 2007. Egger will thus be succeeding Walter Maria de’Silva, who took over as Head of Design at the Volkswagen Group on 1 February. “In refilling this position, the company with the four rings is strengthening its independence in matters of design and is thereby confirming the significance of this Audi core competence”, commented Rupert Stadler, Chairman of the Board of Management at AUDI AG.

Egger’s appointment means that the Audi Group design team is again complete. The Audi brand Design department is headed by Stefan Sielaff, who was appointed to this position in March 2006.

Wolfgang Josef Egger began his career in 1989 as a designer at Alfa Romeo. Management roles in design took him to Seat nine years later and to Lancia in 2001. Most recently, Egger was Head of Design at Alfa Romeo.

Biography

Wolfgang Josef Egger was born on 13 February 1963 in Oberstdorf, Germany.

After completing his school-leaving exams in Sonthofen, he studied Design at the International College of Arts and Sciences in Milan, Italy. In 1989 he graduated as an industrial designer.

Egger began his professional career in 1989 in the Design department at Alfa Romeo. In 1993 he was appointed Chief Designer.

In 1998 he became Chief Designer at Seat, where he was able to input his personal style in, for example, the Seat Ibiza, Cordoba and Altea.

In 2001, W. J. Egger was appointed Head of Design at Lancia. In the same year, however, he returned to Alfa Romeo as Chief Designer.

May 1st 2007, Egger will succeed Walter Maria de Silva as Head of Audi Group Design. He will be responsible for the Audi and Lamborghini brands.

Audi S5 Revealed Among Leaked Photos

Hi Friends:

Take a peak at what looks to me like an 2-door S6... I really like the way this car looks. IMO Audi is doing everything right. I don't see any company out there that can compete with them (including Ferrari)...

Images of the Audi A5 have been traveling around the internet at light speed since they were discovered some time yesterday, but this afternoon five more images of the high performance S5 model showed up to steal the spotlight. According to the Audi experts at Fourtitude.com, the S5 will likely feature a version of the A5's 4.2L V8 with FSI, Audi's Valve lift technology and a corresponding bump in power. Clearly the styling has been tweaked to be more aggressive with a modified front fascia that includes the string of LED daytime running lights that have become trademark ware for these models. A strip of what appears to be polished aluminum now adorns both the center of the front chin spoiler and the bottom of the rear bumper where, out back, it's flanked by a pair of dual tailpipes. The interior also appears to gain additional silver and carbon fiber accent trim. Will this hotted up A5 have the cajones to take on the BMW M3 Coupe? That remains to be seen, but we're left a little underwhelmed by the subtle visual modifcations apparent in these pics.

Click here for some beautiful images

The Audi R8 Is Getting The Lamborghini V-10

One of my favorite cars just got better… check out the more aggressive fender flares and improved handling is in the works. This one is definitely on my target screen in any engine variant (but a V-12 turbo diesel or the W12 gas engine would be nicer). Therre is even talk about putting in a turbocharged V-10 and doinga RWD version just so they can race it at Le Mans in the GT Classes.

http://www.audiworld.com/news/07/audi-a8-test-mule/

Portuguese Barn Treasures

Hi Friends:

If you ever wondered whether these things are still possible to find, here is a barn that was welded shut. The new owners opened it to find 180 classic cars in it. You can see, Alfa’s Porsche, Datsun’s, Austin Healey’s, Mercedes’, Lotus’, Aston Martin’s, and more (even a couple of open wheel race cars). I hope that you enjoy these photos.

http://www.interclassico.com/index.php?action=pach&id=89

Jeremy Clarkson and Carroll Shelby on the Dodge Viper

Hi Friends:

I hope that you enjoy these videos:

Jeremy Clarkson on the GEN I Viper

http://www.youtube.com/watch?v=CspJwEC3_JM

Carol Shelby on GEN I Viper:

http://www.wheelstv.net/channels/drivein...bctid=138982975

Carol Shelby on GEN II Viper, vintage racing, Cobras and Cobra replicas:

http://www.wheelstv.net/channels/drivein...bctid=138982976

Dan Gurney on Shelby and the Cobra:

http://www.wheelstv.net/channels/driveintheatre.html?bcpid=79489179&bclid=143931364&bctid=138982975

GM's Lutz speeds into last turn

Hi Friends:

Here is a good article on the only car guy left at GM and who is also the guy responsible for getting them back on their feet and back into the business of selling cars. I truly believe that Bob Lutz is one of the last car guys left in the Big 3 that hasn’t been killed off by the bean counters and the union appeasers.

http://www.detnews.com/apps/pbcs.dll/article?AID=/20070212/AUTO02/702120341/1148/

Top Gear Meets Rednecks

This is the full redneck video

Exotic Speed Comparisons

Between Ferrari Enzo, F360 and Lamborghini Gallardo Check out this video!

Acceleration Comparison between a Ferrari 599 GTB and a Porsche Carrera GT click here.

Will GM Buy Chrysler?

I truly hope that this doesn't happen for several reasons:

First and foremeost, GM is hurting in the quality department and is finally designing cars that are staring to move... thanks to Bob Lutz (ex-President of Dodge). The two cars that Lutz has his personal hands in (the Solstice & Saturn Sky) are the only cars on back order. The Soltice was actually Lutz's personal design that he wanted to build when he was at Chrysler. Lutz would have a field day dishing out pay-back for firing him before the merger with Daimler.

Lutz was the man that Iacocca passed over to hand the keys to Bob Eaton... who sold Chrysler's soul to Dainler. Lutz wanted to merge with BMW, which was a much better proposition than Daimler (who was struggling financially). Chrysler was an easy target for Daimler because they had cash in the bank and manufacturing expertise that Daimler didn't. If you are interested in reading more about this story, read the book called "Taken For A Ride" by Bill Vlasic and Brad Stertz .

At this point in time GM is just turning the corner in eliminating duplicate cars that compete with one another. All they need now is to bring in Chrysler and to start axing their overlapping lines. It would also mean that GM would be eliminating the competition... which historically has never been good for American business. David Howell's article runs pretty true to form, but fails to mention a relevant solution on who Chrysler should merge with... please don't mention Hyundai who just sent their CEO to jail and the fact that they are a car company without a personality... just like Yugo.

Secondly, if Chrysler needs help in competing on the world markets. I would recommend that they talk to a ideologically struggling Asian manufacturer like Honda. Handa has some of the best engineering on the planet. Unfortunately, they are getting their butts kicked by Toyota because the got beaten at their own game in the luxury markets.

If you recall (not so long ago) the folks at Acura released the very first luxury sedan called the Legend. It sold well but it's achillies heal was that it was a front wheel drive car trying to compete against the RWD world of Daimler & BMW. Lexus and Infiniti learned from this strategic error that Honda has yet to recover from. Think about this, that the NSX was the ONLY RWD car in Honda's inventory. To this day, Honda has absolutely no RWD car that they can showcase.

How can a company (like Honda) that competes in the Formula 1 world not have a car to showcase this technology? Why can't that very same company campaign a car at Le Mans of on the SCCA circuit... the answer is that they have NO RWD cars!

On the other hand Chrysler can make cars and does know what style means to sell cars. Chrysler's history (old and new) is about performance and style (note: that I didn't mention anything about interior design). They need Honda's engineering, eye for detail and innovation to compete.

Other options that Chrysler needs to explore are formidable (IMO). First they need to consider bringing in a personality like Wolfgang Bernhard (ex- Daimler, Chrysler and recently VW) to shake this company ou tof their old tobacco chewing accounting paralyzed Chrysler. He is a true car guy and was the man behind the developments of the SRT program and the soon to be legendary Viper powered motorcycle called the Tomahawk. Wolfy would absolutely have no tolerance for the unions or for their crappy build quality. Bernhard above all else is a car guy who brings German standards for quality, style and engineering to the table.

The final Chrysler option that will only happen if Santa comes early to the car industry is that they be bought out by Roger Penske. This is the consumate American car guy who has the Midas touch in almost all of his business ventures. He brings the knowledge and the passion of his rich history in automotive racing. You would be hard pressed to name anyone who has meant more to post WWII automotive racing than Roger Penske.

I believe that Roger has always had his finger on the pulse of America's car industry. He is not only a successl business man, but he is also an evangelist that hasn't forgotten the old addage "racing cars on Sunday and selling cars on Monday". The bean counters of the Big 3 have whittled these wonderful companies down to the bone. People like Penske are business builders (versus morticians). Let's all hope that Christmas come early for Chrysler.