RIDES Ultra-Tech Hyundai Genesis Gets Ready for SEMA

It's new, it's good looking, it's luxurious and it's a fully capable performance machine, so if you were even thinking for a second that the world's top tuners weren't going to do the Genesis right for this year's Specialty Equipment Market Association show in Vegas, otherwise known as SEMA, don't admit it to anyone.

Starting with the exterior modifications, this Genesis is totally tasteful. Starting with a respectful shade of metallic gray, RIDES added a customized front bumper, some clean ground effects from Extreme Dimensions and painted out the grille, giving it a sportier appearance, and then finished it off with a set of 22-inch MHT three-piece wheels filling out the wheel cutouts much more generously than the stock rims. The fact that the suspension is lowered doesn't hurt

A Mac-lover's dream car. (Photo: RIDES)

in this respect either. The rear end gets smoked taillights and quad chrome-tipped exhaust pipes, for a menacing look.

As great as it looks from the outside, RIDES will make tycoons in training everywhere foam at the mouth. Starting off with rich suede seat inserts, the rest is all tech, and mostly from Cupertino. Two Mac Minis are supplied while 8.4-inch VGA headrest monitors are integrated into the backs of the front headrests. A new MacBook Air floats on the pull-down picnic tables too, adding a different kind of style to the Genesis' rear quarters, while twin tray-mounted wireless keyboards deliver interface man and machinery. Full WiFi connects everything together, and no doubt Apple TV, while an iPhone and iPod touch rest on the centre console.

Centre

Suede inserts and a centre console make this car more Maybach than Hyundai. (Photo: RIDES)

console? Oh yeah, RIDES added that little feature, reducing rear seating room to two but making it much more Maybach-like back there. A Fahrenheit DVD player offers more conventional viewing, while fittingly named Genesis amps supply power to Morel Hybrid Ovation speakers that include twin twelve-inch subs.

For those tailgate (or trunk) parties prior to the local Nascar event, RIDES has added a 20-inch Apple Cinema Display monitor, although it comes with a keyboard and mouse delivered by a motorized tray, so this might actually be better for those who report on Nascar events.

A cool car? For sure. RIDES wins the award for creating a tuned ride that we'd actually like to own.

GM Officially Puts Hummer Up for Sale

With the high fuel prices we've experienced this year and resultant downturn in the mid- and full-size sport utility segments,

Hummer's three-vehicle lineup from 2006, with the H1, H3 and H2, from left to right. (Photo: Hummer)

not to mention the general downturn in spending on the whole it was only a matter of time before GM had to bite the proverbial bullet and spit out its Hummer brand.

The iconic 4x4 brand isn't all that old as far as vehicle manufacturers go. The M998 High Mobility Multipurpose Wheeled Vehicle (HMMWV) otherwise known as “Humvee” became a household name during the Gulf War (August 2, 1990 – February 28, 1991), after which then-actor Arnold Schwarzenegger teamed up with AM General, the truck's manufacturer, to build a civilian version that eventually became known as the H1 during General Motors's tenure.

GM created the Hummer brand in 1992 and concurrently gave the name H1 to the civilian version of HMMWV, a vehicle sold from 1992 through to 2006. The H1, the rights of which have always remained with AM General, is still sold through the South Bend, Indiana company incidentally, but only to the US military and heavy industry.

GM introduced the smaller, friendlier yet still extremely capable H2 for model year 2003,

The Hummer lineup is three-strong again with the introduction of the 2009 H3T pickup truck, shown here being assembled at GM's Shreveport, Louisiana plant. (Photo: Hummer)

but the honeymoon was already over by 2005 when sales slid to 23,213 units. For the same year, the H2, loosely based on GM's GMT820 truck platform, spawned a flexible cab/bed pickup truck version dubbed H2 SUT, an innovative design that has always been a niche player within a niche player.

In 2006 Hummer introduced the H3, also based on one of GM's truck platforms, this time the GMT355 architecture that underpins Chevy's compact Colorado and its GMC Canyon clone. Sales skyrocketed to 33,140 units, totaling 74-percent of total Hummer sales for 2006. Interestingly, the H3 is the only Hummer built in a General Motors facility; production takes place in two GM plants actually, the Shreveport, Louisiana factory as well as the Port Elizabeth plant in South Africa. The H2 and H1 models are built by AM General at a specially constructed facility in Mishawaka, Indiana.

Hummer updated the H3 with an Alpha designation for 2008, complete with an upgraded interior and V8-power, while the H2 was thoroughly revamped for the 2008 model year and fitted with the premium-quality interior it always deserved,

A new buyer would get the all-new H3T just in time to capitalize on its first year of sales. (Photo: Hummer)

but as the saying goes, timing is everything and the H2's time seems to have come and gone.

Unfair for Hummer fans, with the new H3T pickup truck just arriving for the 2009 model year, but GM appears to be wiping its hands of a brand that has transformed from the coolest of cool in Hollywood and the rest of the world's trend-setting communities, to the hottest of heated topics amongst environmental groups having unfairly branded it as polluter number one in their fight against global warming.

Despite making more hybrids than any other automaker and pushing numerous alternative fuel agendas from clean diesel to ethanol flex-fuel systems, the Hummer brand has smeared GM's overall image, so now that sales are at an all-time low, having dropped by 50-percent so far this year, and that compared to 2007 which wasn't particularly stellar as it is, the brand is up for sale.

While

Could GM be making way for Jeep? (Photo: Steven James Day, American Auto Press)

GM is saying it's not necessarily committed to selling the brand, knowing all too well that there may be few buyers interested in picking up Hummer in the current economic and environmental climate, it wouldn't have put out the for sale sign if it, one, didn't believe there were at least some interested parties that might snap it up, or two, wasn't prepared to cut its losses and kill off the brand if it couldn't be sold.

According to the Wall Street Journal, Hummer signified its intention to sell by sending out proposals to interested parties, which means that GM, at least, believes there are serious contenders. Jim Taylor, Hummer's new CEO, will be in charge of heading up negations with potential suitors.

GM certainly needs the cash, as it's burning through about $1 billion per month according to industry analysts, but the sale could also mean that it's feeling bullish about acquiring Chrysler LLC, and with that acquisition taking control of the Jeep brand, and its best-selling Wrangler.

We do live in interesting times.

Chrysler Could Be Split Up between GM and Renault-Nissan

Clearly the hottest talk in the auto industry right now revolves around Chrysler LLC. Privately owned by Cerberus Capital

The Dodge Grand Caravan is Chrysler's most valuable asset, and the only product GM is likely interested in. (Photo: Trevor Hofmann, American Auto Press)

Management LP, and suffering major losses so far this year with an overall car and light truck market that doesn't shed a particularly positive light on its fortunes changing anytime in the immediate future, it appears the latter portion of the “make or break it” scenario is all that's left.

And “break it” is what Cerberus may do, splitting up Chrysler in into chunks and selling these off to the highest bidders. GM has been in talks with Cerberus for more than a month, the exact details of which are still not known, while previous and concurrent discussions have been taking place with France's Renault-Nissan.

Such a move, while appearing like a classic corporate raider tactic that Richard Gere's character Edward Lewis in “Pretty Woman” might execute and Vivian Ward (Julia Roberts) would try to talk him out of, might be the best way to maintain Chrysler's brands intact, although it's difficult to see where the namesake brand, Chrysler, would fit into the scheme.

General

No doubt Nissan would like a piece of Dodge's light truck market. (Photo: Dodge)

Motors is reported to be most interested in the Chrysler/Dodge Town & Country/Grand Caravan minivans, but there really isn't anything within the Chrysler/Dodge lineup that GM doesn't already build a competitor to. No doubt the General is interested in Chrysler's $11 billion-plus in reserves, but it's already in the process of shuttering numerous plants of its own, so there's not much benefit in acquiring more North American production capacity, although Chrysler's the Mexican facility that assembles Dodge Ram trucks would be a bonus.

This is where Renault-Nissan comes into play, hoping to return to the world's largest automotive market with the French portion of the union. It will need North American production for its cars and will no doubt take back the Jeep brand that was once in the Renault fold as part of American Motors Corp. (AMC), which it sold off to Chrysler 20 years ago.

Nissan,

Last month Chrysler debuted an electric vehicle program that really shows forward thinking. (Photo: Chrysler)

on the other hand, stands to lose a production partner in small cars, with Auburn Hills no longer needing its rebadged Versa, but could gain full access to the Ram light truck lineup for its next generation Titan. The upcoming Titan replacement is already planned to ride on the Ram platform, so the fit makes a great deal of sense. Currently Nissan only builds a half-ton pickup, and doesn't offer diesel power, but Ram would give Nissan half-, three-quarter- and one-ton platforms, plus numerous cab and chassis configurations for a more competitive Titan, as well as potential access to the Cummins diesel.

Nissan doesn't have its own hybrid drivetrain either, but rather relies on Toyota's Hybrid Synergy Drive system to power its Altima Hybrid, so the access to the dual-mode system Chrysler co-developed with Daimler, GM and BMW could immediately transport it into the alternative powertrain era.

What's for certain is Cerberus desire for the remaining 49-percent of GMAC financial

Jeep would likely go to Renault, although GM has just put Hummer up for bids so they could be creating a void to be filled by the iconic 4x4 brand. Photo: Steven James Day, American Auto Press)

still in GM's hands. Cerberus currently owns 51-percent, and would likely be willing to give up bits and pieces of Chrysler for full ownership.

So how likely is the “merger” to occur? It looks likely, according to industry analyst Dennis DesRosiers who spoke to CTV News yesterday.

“Well, I think there's above average chance,” said DesRosiers. “If you go back a couple years ago when Daimler was shutting Chrysler and Cerberus ended up with it, the hot talk of the time was that General Motors was seriously interested. The timing was very bad. They had their own problems to deal with. They didn't also want to have to deal with Chrysler problems. So we've kind of come full circle, the private equity company don't buy a company like Chrysler to stay in, they buy it to fix it and then sell it, and given the downturn in automotive globally, they obviously see it's time to get out, and General Motors and Renault are two very viable players in this game.”

Obviously

Renault needs North American plant capacity if it plans to sell in our market. (Photo: Renault)

Chrysler's auto workers are even more nervous than they would normally be in such dour financial times. On Friday United Auto Workers (UAW) President Ron Gettelfinger to the Associated Press that he is very concerned about even more workers losing their jobs if GM manages to take over Chrysler.

Gettelfinger added that there were step the union could take in an attempt to put a stop to the merger if it appeared likely to go through, but that it was just speculation until news of the talks was made public or the union was contacted directly.

Is This the 2010 Toyota Prius?

Prius gossip is alive and well, and along with the chatter come renderings of what the totally renewed 2010 model may look

Is this a leaked photo of the real 2010 Toyota Prius or someone's creative rendering?

like when it debuts at the North American International Auto Show in Detroit this coming January.

This seemingly real “photograph” might be a leaked image of the upcoming Prius, or for that matter a discarded design for a previous facelift of the current car. Then again it may just be the result of someone with excellent design skills and a lot of spare time on his or her hands.

The car shown integrates a number of current Toyota F1-inspired design cues such as the deep front valance with wide air foil-like air inlet and badge-capped protruding proboscis that extends up over the hood, mimicking the fuselage of the racing car. The recessed vertical fog lights also follow the brand's latest styling trends, while the Maxima-esque headlamp clusters are particularly creative.

Making us seriously question the validity of this rendering is the car's relative sameness to the current model in most every other way. It looks about the same size, and the 2010 Prius is to be larger, and its overall shape makes it look more like a well executed mid-cycle upgrade rather than a

Cool interior... love the floating centre console.

completely updated model. The remade 2010 Prius is expected to be a more dramatic visual statement, not an evolutionary design like this rendering. Still, it's possible Toyota doesn't want to “mess with success” and something less futuristic, like this example, is in store. Either way, we're not likely to find out until the cover comes off in Detroit.

As for the interior image, it certainly looks like a stock vehicle. A spacey looking dash-top organically forms into the instrument cluster, which from this angle appears to be centrally mounted, while the centre stack protrudes into the cabin like some other Toyota products have in the past, although this one floats above an open storage area below that also features dual-side access to power outlets, before connecting to the armrest-cum-storage bin to the rear. It's an innovative idea that adds credibility to this overall design.

Whether or not this version of the world's best-selling hybrid is real or just the figment of some creative soul's imagination can't be verified just yet, but stay tuned for any new information on what is turning out to be one of the more talked about new model introductions this year.

Russ Bond Motorsport Report: Alonso Again!

Renault's Fernando Alonso has won his second Grand Prix in a row. After winning

Have a good look at this photo and guess who is about to get a penalty. (Photo: Ferrari)

in Singapore, using luck more than anything, Alonso used speed and the brutal mistakes from the championship contenders to take the win at the Japanese Grand Prix in Fuji last weekend.

McLaren's Lewis Hamilton, who was on the pole, saw his race start to come undone as soon as the red lights went out. He was mauled on the way to the first turn and made a pathetic attempt to hold his position. He pushed out Ferrari's Kimi Raikkonen at the first turn – something he would be penalized for later on. It got worse for Hamilton when Ferrari's Felipe Massa, the other championship contender, clobbered him in an attempt to thwart and overtaking maneuver – something Massa got penalized for later on.

Just so you know, in F1 these days you can get penalized for pushing someone to the outside of the track – no contact is necessary any more. Oh, and it's purely biased. Why did Hamilton get penalized for his first turn move?

Fernando Alonso won his second race in a row in the surprisingly competitive Renault. (Photo: Renault F1)

He was taken down over the pit lane when he attempted to pass another driver, but that driver didn't get a penalty for that... how is it any different? Ahhh, the wonderful eyes of F1.

Anyhow, there is a championship to be won. If Ferrari wins, Massa should share the trophy with the FIA – they did just as much to let him win as he did... it seems only fair.

With Alonso winning, and Massa taking a brilliant seventh, and Hamilton out of the points, Massa is just five behind the Brit with two races to go. Alonso, also on the strength of his win, can now delay his decision on where to drive next year, as clearly Renault wants him back, Honda will pay big bucks, and Ferrari is still in the mix if you factor in Raikkonen's sub par performances as of late.

Next up is China, get ready for more penalties, more suspense, and yes, more idiotic moves from what are supposed to be the best drivers on the planet.

Montreal Gone for 2009
While we all follow the antics of the 2008 World Championship in Formula 1,

I like to go to the F1 race in Montreal as much as anyone else, but just who is to blame for the latest mess is anybody's guess. (Photo: Renault F1)

the organizers of the Canadian Grand Prix were in shock when they got a call from the Montreal media asking for quotes on the Canadian Grand Prix not being on the 2009 schedule.

That this came as a shock to the organizers is kind of a surprise in itself, as the word I hear is that they failed to make a payment on time. Bernie Ecclestone is not one to be messed with, and he promptly left the race off the schedule.

Now all Montreal is up in arms, the city looking at loosing 100 million in tourist dollars that weekend, and even the Mayor is on the bandwagon. The bottom line on this is, a) pay the money you owe – forget the fact that they probably doubled the sanctioning fee for 2009... this is F1 after all, and b) pave that bloody track.

After the mess last year at F1, for sure they won't come back when drivers called it more of a motocross track than an F1 track.

Of course, it's not all bad news. The open date if F1 doesn't come back would be a great opportunity to try to get a Sprint Cup

If Montreal does go away on the F1 schedule, I'm quite happy to watch Mr. Fellows kick some Nascar butt at Montreal. (Photo: Jim Leggett, www.painkillerz.ca)

race there... you know those races, 43 cars, lots of action, fan friendly drivers and huge crowds.

I know that won't happen, but having a Cup race in Montreal would actually be a better idea than F1 in the first place. We can only watch 20 cars in a parade, with the race stewards dreaming up new rules every weekend for so long.

Burton Claims Charlotte
Jeff Burton, one of the better Cup drivers out there, took a win at Charlotte in the Bank of America 500 at Lowe's Motor Speedway. Jimmie Johnson's fast start to the Chase for the Sprint Cup, have left most on their back foot, but Burton hasn't been willing to concede the trophy to the two-time defending champion.

Burton held off Kasey Kahne for the win, and points leader Johnson was back in sixth after having a dominant car early on. Two of the top chasers had problems: Carl Edwards had a mysterious electrical problem that cost him 18 laps, and Dale Earnhardt Jr blew a tire that put him in the wall just one lap before a scheduled stop.

It seems that Johnson is already the master at running the chase, taking points where he can, and giving some up if the risk it too big. He, and crew chief Chad Knaus are on the same

Jeff Burton celebrates winning the Bank of America 500 at Lowe's Motor Speedway. The win moved Burton into second place in the standings, 69 points behind Jimmie Johnson. (Photo: Rusty Jarrett, Getty Images for NASCAR)

page when it comes to the chase, and even though we are only halfway through, it would be hard for anyone to catch Johnson.

The biggest hurdle for Johnson will probably be this weekend at Martinsville. Like Talladega, Martinsville is a crap shoot when it comes to luck, and really Johnson doesn't have a huge cushion, but even a 39th place finish would cost him the chase.

General Motors to Absorb Chrysler in AMC-Style Deal?

Twenty years ago in 1987, Chrysler purchased American Motors Corp. (AMC), the eclectic automotive oddity which brought

Could Chrysler be absorbed by GM like the Auburn Hills company eliminated AMC 20 years ago? Chrysler got Jeep and a few good car names like Eagle. (Photo: Chrysler)

us the infamous Pacer, a fishbowl on wheels, the Gremlin, which caused ‘70s era consumers to ask where the other half of the car went, and the Matador, little more than a full-size Pacer, as well as, on the positive, the Javelin muscle car, Eagle crossover, and the Jeep brand. Yes, it soon became apparent that Chrysler was only interested in the latter 4x4 icon, keeping Jeep and folding the AMC nameplate, although names like Eagle, Concorde and Spirit would end up in its lineup in years to come.

Now a similar scenario could play out amid our current economic crisis, but Chrysler is no longer the big fish capable of swallowing up an out-of-touch carmaker, but rather GM, one of the largest automakers in the world has been in talks with the Auburn Hills automaker's parent company Cerberus Capital Management LP, a private equity firm, for more than a month about undisclosed collaborative efforts.

Yes, we know that such talks could be as docile as the cooperative development of a new powertrain or small car platform, but yesterday well-respected Detroit News reported on one scenario that could prove much more in-depth.

It's all about timing. Cadillac's hot... (Photo: Cadillac)

The daily newspaper reports, from information gathered by an inside source, that General Motors Corp. might “swallow” up Chrysler LLC and in one fell swoop put an end to 83 years of automotive history.

Why would GM want to take on a money-losing automaker struggling with many of the same issues it is also dealing with only to kill off its brands? The obvious benefit would be the addition of 2.7 million in annual unit sales volume, without having to absorb the majority of Chrysler's costs. And then there's the element of cash reserves. Chrysler has, or at least had $11.7 billion at the end of June, according to the report, which could be used to buy out some of Chrysler's dealers and simultaneously boost GM's finances.

Such a deal would see the elimination of one or all of Chrysler LLC's brands, however,

....but other than minivans Chrysler is not. (Photo: Justin Couture, Canadian Auto Press)

although most analysts agree that GM would be better off to drop Hummer in place of the more relevant Jeep brand, considered to be Chrysler's crown jewel.

But while Jeep would indeed be an asset and Chrysler's minivan duo a solid answer to a segment the General never got quite right despite enjoying strong sales with its Chevy Venture (and slightly less so with the updated Uplander) and Pontiac Montana models, Chrysler doesn't have much else to interest GM as far as products go. As it is, both companies compete head-to-head in most segments, which would cause redundancies needing elimination. Such a buyout, therefore, would be an excellent way to remove a competitor from what all expect to be a very bumpy road ahead for the General, and most other automakers.

Reducing excess capacity in the North American market, where Chrysler sells most of its cars, would benefit more than just GM, of course, with Gerald Meyers,

Jeep would live on no matter what... (Photo: Steven James Day, Canadian Auto Press)

former chairman of AMC and currently a professor at the University of Michigan telling The Detroit News that automakers on the whole “...will be delighted to have Chrysler just die and take 1.5 million units out of the industry, which is about what the excess is."

Of course, reducing capacity would mean plant closures and even more job losses at Chrysler plants in the U.S. and Canada, as well as the slow elimination of white collar jobs in Auburn Hills, where The Detroit News reports morale is low.

They still have hopes of a merger with French automaker Renault, which also owns a majority stake in Nissan. Such a deal makes a great deal more sense if the ideal was to maintain the Chrysler, Dodge and Jeep brands, as Chrysler's retail outlets could make a convenient gateway for Renault to reenter the North American market,

....but the same can't be said for Hummer. (Photo: Trevor Hofmann, Canadian Auto Press)

while the three automakers complement each other from a product perspective, with Renault and Nissan offering strong small car lineups and very competitive midsize models, while Chrysler builds best-selling minivans plus competitive SUVs and trucks. Still, with today's global downturn it is unclear if Nissan is still interested in Chrysler, or even whether they could pull the finances together if they wanted to. The GM deal is more likely.

While Mopar fans will no doubt shudder to hear of such a prospect, Cerberus can't be blamed for wanting to cut its losses and dump the troubled automaker, but the abovementioned scenario is only one of many topics being discussed between the two businesses, sources familiar with the talks told The Detroit News.

One key ingredient on the table is shared ownership between GM and Cerberus in GMAC Financial Service. GM sold 51-percent of GMAC to Cerberus in 2006, and sources say that the private equity firm wants all of it. Once the financial division of GM, GMAC ventured into the mortgage market, a move that ironically kept the Detroit automaker in the black a number of years ago, despite the current downturn in real estate lending. GM is at odds with Cerberus about GMAC, however, wanting to realign the company's focus on the auto business for obvious reasons.

No matter what happens behind closed doors between General Motors and Chrysler's custodial parents Cerberus Capital Management, one thing is for certain, the auto industry is about to undergo dramatic change. Somehow, somewhere in the neighborhood of 1.5 million new vehicles need to be removed

Renault would make a better partner for Chrysler, if the French automaker could make it happen. (Photo: Renault)

from the North American market alone, and their removal is either going come from the elimination of a major player like Chrysler LLC, or the slow and painful attrition of sales felt by numerous automakers.

Dodge Challenger SRT10 Concept Coming to SEMA

What could be better than a new

Yippee!!! 600-horsepower Challenger SRT10 could be new King of the Road! (Photo: Chrysler)

Challenger SRT8? A Challenger SRT10, as long as someone else is paying the fuel bill.

Such sentiments are obviously not in sync with all consumers' attitudes, considering the current popularity of V8-powered muscle cars. The Challenger SRT8 has been selling well in top-line SRT8 trim and anticipation for Chevy's upcoming 2010 Camaro is high, while Ford's Mustang continues to attract buyers in all trim levels. Yes, also in V8-powered GT trim and especially Shelby GT500 and Shelby GT500KR guises.

These last two models make a stunning 500- and 540-horsepower respectively, which is substantially more than their pony car rival from Dodge, at 425-horsepower, or the expected 422-horsepower from the Camaro SS. Does this mean that Mopar will up the ante with a special higher output model of the Challenger?

If

Carbon fiber body work and retro "shaker hood" make the Challenger SRT10 stand out. (Photo: Chrysler)

Chrysler's skunkworks SRT division had any say in the decision, it would be a collective thumbs up, business case or not. And to prove this point the team concocted a one-off Challenger with Viper V10 power dubbed Challenger SRT10.

It was a no-brainer from the beginning, especially given that the Viper's 8.4-liter V10 had already been sandwiched into the engine bay of an original Challenger and shown on the auto circuit a number of years ago. That car didn't feature the revised engine, however, making 600-horsepower and 560 lb-ft of tire smoking torque, or for even more important the modern independently sprung undercarriage with specially fitted Bilstein shocks to make the most off all the power and upgraded four-wheel discs to improve stopping power.

The

Yowza! Not much room under the hood thanks to the Viper's 8.4L V10! (Photo: Chrysler)

Dodge Challenger SRT10 Concept, shown to SEMA participants this week, features '70 Hemi Cuda style “shaker hood”, giving the big lump some breathing room, which sticks out of a lightweight carbon fiber hood. The rear deck lid is carbon fiber too, contrasting beautifully with the Tornado Red paint scheme.

The SRT team has added carbon fiber trim inside to spice up the look, enhanced by a Viper-like red starter button to give the car a race-ready appearance.

Will Dodge build it? There are no doubt many, cash in hand, that would say they'd be crazy not to, but the car business isn't quite that simple anymore and therefore it might not get the nod. Then again, Chrysler did name it the 2009 Dodge Challenger SRT10 Concept, giving it a model year that's different than the year it's hitting the show stand. Either way, kudos to the SRT team for dreaming this one up.

General Motors and Chrysler in Merger Talks

When a story gets raised from internet blogs and forums to mainstream television networks it gets some respect it might

Could you imagine how bowtie faithful... (Photo: GM)

otherwise not enjoy, or at least most peoples' perceptions of TV networks lends credibility to the subject matter. In the case of General Motors and Chrysler LLC's Cerberus being in regular talks about a possible merger, such credence is necessary to make it believable at all.

The two automakers have been after each others' customers for decades, with Ford Motor Company also in the hunt as part of the Big 3. And as odd as it may be to hear of GM and Chrysler, two automotive powerhouses potentially uniting to become the world's largest automaker without question, it was equally strange to learn of GM and Ford working together to make a common six-speed automatic transmission, which they did years ago and now use in many of their front-drive midsize models, or for that matter GM, Chrysler, Mercedes-Benz (the latter two DaimlerChrysler at that time) and BMW coming together to develop a new hybrid-electric drivetrain, also currently in use by Chevy, GMC, Chrysler and Dodge. Desperate times cause for

Would deal with Mopar loyalists? (Photo: Justin Couture, American Auto Press)

desperate measures, and if there were ever two automakers more in need of unorthodox answers to complex questions it would be GM and Chrysler.

On Friday, at the tail end of what might arguably be named the most turbulent week in modern financial history unless the worst is not over yet, New York Times regulars Bill Vlasic (Detroit) and Andrew Ross Sorkin (NY) broke the GM-Chrysler story to an already shell-shocked population. With most traditions out the door and the majority of people just hoping they'll hold onto their jobs and homes, attitudes are almost nonchalant about something that would have rocked the automotive world a few months ago.

After a week that left GM's shares below the $5 mark and Chrysler's parent company Cerberus Capital Management, a private equity firm, continuing with a different set of talks designed to unload the Auburn Hills automaker on France's Renault-Nissan

Truck people might take issue with a merger like this... (Photo: Justin Couture, American Auto Press)

So how real is it? Even the NYT columnists couldn't get any clear, concise information about the talks, or even that they were officially taking place, with GM's spokesman Tony Cervone quoted as saying, "Without referencing that specific rumor, as we've often said at GM, officials routinely discuss issues of mutual interest with other automakers." Obscure is too accurate a description, but par for the course.

Likewise, Lori McTavish, Executive Director, Communications at Chrysler submitted an official statement that's equally obfuscating, stating, “Chrysler LLC as a matter of policy does not confirm or disclose the nature of its private business meetings. As we have said, the Company is looking at a number of potential

....but reality is reality, and truck sales are stuck in the mud. (Photo: Dodge)

global partnerships as it explores growth opportunities around the world. Beyond those partnerships already announced however, Chrysler has not formed any new agreements and has no further announcements to make at this time.”

As tight lipped as automaker officials are, the NYT reporters are sure of their sources, but not of a deal going through, with the article stating that “the negotiations are not certain to produce a deal. Two people close to the process said the chances of a merger were “50-50” as of Friday and would most likely still take weeks to work out.”

Still, one has to ask what the two automakers could offer one another in such a deal, at least from a product point of view. The reason both are struggling, other than significant resources in the very money markets that took a beating this week and a dependence on artificially lowered in-house leasing rates that are no longer part of their strategies (ok, there are other problems too) comes

Jeep brand, and this Wrangler Unlimited model in particular, are Chrysler's crown jewels. (Photo: Trevor Hofmann, American Auto Press)

down to a lack of fuel efficient models to meet current demands, and as problematic, big car, truck and SUV images that cause many new car buyers to look to the imports before, or even instead of checking out a domestic brand.

Chrysler's smallest North American car is the Caliber compact, plus its Jeep Compass and Patriot spinoffs, and compared to some others in the compact class they're not particularly small. GM, at least, offers its Korean-made Chevy Aveo and Pontiac G3 Wave subcompact models in four-door sedan and hatchback configurations, and they sell well, plus a variety of small sedans, from the top-selling Cobalt sedan and coupe (Pontiac G4 and G5 respectively) to the European-made Saturn Astra. Both GM and Chrysler sell compact wagons too, although the HHR and PT Cruiser, the latter slated for the axe after the 2009 model year, are niche market retro models that only compete with each other. Chrysler is seeing some of its strongest sales from 4x4 brand Jeep, considered by most to be its most saleable asset, but ironically

Chrysler's minivans are still the hands down dominant segment sellers. (Photo: Trevor Hofmann, American Auto Press)

GM's Hummer brand, targeting a similar demographic, continues to hit the automotive gossip columns as the brand most likely to get unloaded due to a lineup of slow-selling SUVs that, while stylish, very capable off-road and soon to include fuel-efficient diesel powertrains, have become symbols of excess for negative campaigning by environmental groups.

No, while there may be opportunities for GM and Chrysler to produce common components in order to save research, development and production costs, like they've already done with respect to the two-mode hybrid drivetrain, or other strategic business opportunities, a merger doesn't make a great deal of sense. The thought of controlling more than 35-percent of the US vehicle market is no doubt tempting, but having to sort out which full-size pickup truck to cut, the Chevy Silverado, GMC Sierra or Dodge Ram, or which muscle car was redundant, the Dodge Challenger or upcoming Chevy Camaro would not only prove painfully difficult, but cause such tumultuous

Chevy's done its midsize sedans very well, where Chrysler's have missed the mark. (Photo: Justin Couture, American Auto Press)

fallout from brand loyalists that amalgamating the two automakers could actually do more harm than good. And we haven't even ventured into how government and labor relations would factor in, or if any potential antitrust issues could be overcome by stabilizing two of North America's largest employers.

Either way, Cerberus will soon have to figure out how to cut its losses in Chrysler and GM will need to stop the bleeding before it burns through all $21 billion in cash reserves at a reported rate of $1 billion per month.

Certainly, if the auto execs running these two companies manage to pull this deal together, or alternatively just keep these two automakers afloat in such troubling times, they deserve the ridiculous bonuses they'll probably receive at year's end. GM has firmly stated that it's not even considering Chapter 11, so fans of its numerous brands can rest assured, and it would be highly unlikely for Cerberus to fold Chrysler after billions in investments, but the chances of our automotive landscape looking the same after this week's financial fallout, coming months of almost certain aftershocks and possible years of reconstruction, is slim to none.

Industry Report: Toyota USA Lobbying Japan for Multi-Model Prius Brand

If you were a major CEO trying to sell cars into today's automotive market would you be considering starting an all-new brand?

Could Toyota build a new brand on the back of its best-selling Prius? (Photo: Toyota)

Sounds crazy, for sure, until factoring in that “Prius” would be the new brand's name.

There isn't a hotter nameplate in the auto industry thanks to high fuel prices and tightening financial belts, and Toyota has experienced so much success with the standalone hybrid-electric vehicle (HEV) that it's contemplating whether a business case can be made for a separate Prius brand selling multiple models. How much success has the Prius had? It makes up 75-percent of HEVs sold in the US, and that includes its own Toyota and Lexus hybrid offerings.

Yes, Toyota already offers a number of HEVs covering a broad spectrum of market segments, such as the Camry Hybrid in the midsize sedan class and Toyota Highlander in the mid- to full-size crossover category. While these models would probably continue forward under the Toyota nameplate, as would the RX 400h, GS 450h and LS 600h L under the Lexus brand, with potentially more HEV models added, a separate Prius brand would allow Toyota to create unique hybrid-only offerings in segments it doesn't yet offer HEVs,

Toyota's Lexus brand offers three hybrid models. (Photo: Lexus)

such as the subcompact and compact sedan and hatchback classes (the current Prius hatchback is EPA certified as a midsize car), plus the compact crossover category and others, or even compete directly with its Toyota branded models in segments the automaker already occupies. It also would allow for separate plug-in and series hybrid models, such as Saturn's upcoming Vue plug-in hybrid and the much talked about Chevrolet Volt series hybrid or possibly even hydrogen-fueled cars in the future.

While rumors about a separate Prius brand have been floating out in cyberspace for some time, an interview between Micheline Maynard of The New York Times and James E. Lentz, president of Toyota Motor Sales U.S.A., lends some credence to this particular bit of internet gossip than mere speculation, innuendo and hearsay. To be fair, Lentz first made mention of his idea for a separate Prius brand at the Detroit auto show last January, but in the Times interview he has offered more details, saying that he is in the process of “lobbying Toyota officials in Japan” for the spinoff Prius brand and that his US operations were steadily working on future hybrid models to fill out the range.

One of those models could be an ultra-efficient Yaris-sized subcompact model while another might be a Prius on “steroids,” Lentz obviously referring to the potential for a larger and/or more powerful model than the current Prius. Lentz didn't offer any hints about other prospective models within a Prius range, but did go on to say that if he got the go-ahead Prius models would be retailed from within Toyota dealerships similarly to how it sells its US-only Scion brand, and not separately like the automaker's Lexus luxury nameplate.

Lentz is

Toyota's next Prius will be easily recognizable as an alternatively powered vehicle. (Photo: Toyota)

off to Toyota HQ next month to get approval, and feels bullish about his prospects. Should he? The NY Times interviewer thinks so.

“Having covered Toyota for years, I can say that executives rarely talk this much about an idea unless it is under active discussion, so the chances of a Prius brand are probably pretty good,” said Maynard.

In the meantime, the all-new 2010 Prius will be unveiled at Detroit's North American International Auto Show in early January, along with a dedicated Lexus hybrid. Nothing is known about this latter model, other than the fact its very existence shows that Toyota understands the need for unique hybrid models and not just hybrid-powered versions of existing cars and crossovers.
According to Lentz, the next-generation Prius will be larger than the current model, and initially will hail from Japan just like the current car. Lentz is targeting 2010 for US Prius production in its Mississippi plant.

Whether Toyota moves forward with its Prius brand or just contents itself with an all-new Prius model, expect the “P” word to remain fixed to the rear of the global hybrid sales leader despite major headlines from GM with its upcoming plug-in Volt series hybrid and Honda with its reinvented Insight HEV.

Volkswagen: Most Valuable Automaker Worldwide

It wasn't too long ago that Volkswagen was struggling to turn a profit. The brand was criticized for holding too many brands,

Volkswagen's building the cars today's consumer wants. (Photo: Trevor Hofmann, American Auto Press)

and for this reason often compared to General Motors which also held too many brands. Its share prices were in the dumps and shareholders were calling for the heads of management. Truly, the automaker was ripe for a takeover.

Well, the takeover has more or less happened, with Porsche now deeply entrenched and looking to take full control with more than 50-percent ownership before the end of November. The difference between when Stuttgart began courting Wolfsburg and now is that VW, and its many brands, is in extremely good shape.

So strong are global sales that the German manufacturer has just overtaken Ford for the number three position. It should be noted that Ford has just relieved itself of the Aston Martin, Jaguar and Land Rover brands, smaller players but nevertheless affecting Dearborn's overall global production output, yet still, numbers are numbers and VW is on top.

Better

Porsche has played a big part in VW's rise on the markets. (Photo: Porsche)

than total volumes is Volkswagen's market capitalization, mind you, which has just surpassed Toyota on a dollar-converted basis. Yes, to an auto news follower it's the equivalent of waking up one morning and finding out that Apple's Mac has just outsold Windows-powered PCs! What happened? Toyota's heavy investments in the beleaguered US market, affected by a sales slump amongst its larger vehicles (and it has a larger portfolio of large vehicles than many of its rivals), has forced its share value to drop some 5-percent in recent months, its lowest point in four years, while VW AG's share value has skyrocketed by 87-percent due to improved sales, and more so due to the very fact that Porsche is actively buying up a majority stake in the company.

This, of course, means that Porsche, long the biggest money maker in the car industry on a car-per-car basis, will now effectively be the most valuable automaker too. And the fact that this has been achieved with less than a hundred thousand total Porsche brand vehicles sold last year makes it a classic case of David slaying Goliath.

So will Goliath stay down after just one stone to the forehead? Unlike the Bible story Toyota is far from dead, and will most likely rebound to reclaim top spot in short order. Then again, there are no rules in today's volatile market.

Are Bentley and Bugatti Teaming Up to Build a Rolls-Royce Killer?

Rumors are fun, especially when they involve two of the greatest brands the automotive world knows. And this rumor only exists because it makes so much sense. Bentley, maker of the world's fastest four-door sedan, and Bugatti, creator of the world's fastest production car, both owned by VW AG, would make a seemingly unbeatable team if they put their collective heads together to build the best sedan in the world.

But Bentley already builds the best sedans in the world, you say? There are many who would agree with that statement without question, and then there are others who would point to the Rolls-Royce Phantom, Maybach's Landaulet (or is that one a convertible... better go with the 62), or for that matter Lamborghini's upcoming four-door coupe, the Estoque (oh, discount that one too as it's still, ahem, a concept). Still, as good as Bentley's cars are, even the Arnage is quite the bargain compared to a Roller or Maybach. And using one of Crewe's chassis architectures for a Bugatti Royale, per se, such as the expectedly larger upcoming Arnage replacement, might just be a more effective way to request the million-plus price tag top-tier luxury cars are getting these days than trying to

Bugatti has made four-door concepts in the past, this one 1993's EB 112. (Photo: Bugatti)

pull Bentley up to that level. After all, despite building some of the best cars in the world, Bentley's brand image was in Rolls-Royce's shadow for decades under Vickers management, therefore some might take issue with a Bentley priced higher than a Rolls.

Of course, we're only hypothesizing about this because someone creative has whipped up a fresh new rendering of what this ultra super sedan might look like, and while a little bold in its application of trademark Bugatti design cues it's a might more attractive than some cars in this rarified class. There have been many renderings made in this vein, as well as some depicting a Bugatti grand

The Bugatti EB 218 concept from 1999 showed what a future Royale interior might look like. (Photo: Bugatti)

touring model based on the Bentley GT, while Bugatti created two four-door concepts, the EB 118 and EB 218, prior to Volkswagen's ownership.

And to those gossipers who think that this Bugatti is targeting the lower end of the ultra-premium set, don't hold your breath. Remember, Bugatti boss Josef Paefgen has been very clear that no inexpensive Bugatti will be made. VW AG already has Bentley targeting the $200,000 to $500,000 range, and it's doing a very, very fine job. The Bugatti four-door would have to sticker north of that, and most likely above the million dollar mark in order to wear the badge, putting it into a rarified league that hardly exists yet. Then again, million plus supercars didn't exist until the Veyron came along, and now with Aston's One-77, Lamborghini's Reventón and the Veyron, in coupe and Grand Sport forms, it's starting to look a bit crowded up there.