But will the Obama administration find more money to continue the program?

By Brendan Moore

07.31.2009 

Until we can get a better accounting of the deals in queue, it seems that the program formally known as the Car Allowance Rebate System (CARS), which was supposed to be offered until Nov. 1, or as long as the money ($1 billion USD) was available, is already tapped out.

That happened in less than a week.

The Department of Transportation got nervous and told auto dealers late Thursday night that the program was suspended.

The CARS program offers owners of old cars and trucks $3,500 or $4,500 toward a new, more fuel-efficient vehicle.

Now, the Car Allowance Rebate System, usually referred to as “Cash for Clunkers” is  not suspended – despite news reports that it was, as a result of the Department of Transportation message.  It will still be available as Washington tries to get some more funds allocated to the program.

There was some confusion late Thursday night as to whether the program was suspended, with the Transportation Department telling auto dealers to stop taking deals at midnight under the program, but with White House officials saying the program had not been suspended.

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By Kevin Miller

07.31.2009

Last Autumn, I reviewed the 2008 Nissan 350Z touring, and I came away somewhat unimpressed. Fortunately, for 2009, Nissan has given their Z-car a much-needed and much-appreciated update. The visible changes for 2009 are a much more attractive exterior and significantly improved interior. Under the skin are a shorter wheelbase, less weight, and enlarged engine and a slick new seven-speed autobox.

The transmission in my test car was Nissan’s 7-speed automatic unit, with steering-column paddles for manual shifting. There is no “sport” mode, just Drive or Manual. I found myself using it mostly in Drive, though on my drive through Washington State’s Cascade Mountains I did downshift manually as I approached bends; the actuation of rev-matched downshifts is nearly perfect, and the exhaust note when those occur is addicting.

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By Brendan Moore

07.30.2009 – 21:21/9:21 PM ET

Reuters is reporting that the Obama administration will suspend the $1 billion USD program intended to spur auto sales and reduce emissions.

The sources Reuters mentions say that the program is approaching its funding limit several days after launch. The program was originally supposed to run until November 1, or, until the $1 billion ran out. Sources now say it may be suspended in the next 24 hours.

The program, called “cash for guzzlers” and “cash for clunkers” credited up to $4,500 to car buyers who traded in their gas guzzlers for more fuel efficient vehicles.

The program appeared to be an immediate hit with the public, at least according to initial reports from different regions of the US. If the program is cancelled, there will undoubtedly be some resentment from both automobile dealers and consumers that were interested in participating in the program.

Administration officials have not yet commented on the reports.

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By Brendan Moore

07.30.2009

Roger Penske, CEO of Penske Truck Leasing, owner of Penske Racing and chairman of the second-largest dealership chain in the US, told analysts and reporters on a conference call yesterday that he and a group of investors is on track to buy Saturn by the end of September.

The business magnate stated that the only hiccup in the process so far was GM’s bankruptcy proceedings, which have concluded.

Penske announced his intent to purchase Saturn in June, and GM exited bankruptcy on July 10.

Penske also noted that Saturn may be interested in selling their vehicles outside of North America in the future, but intends to have his future acquisition focus on North America in the short-term.

Saturn has an agreement to continue selling Aura sedans, Outlook crossover vehicles and Vue SUVs through 2011, and perhaps longer. The new Saturn will buy the complete inventory of parts now maintained by GM so as to be able to service the 3.5 million Saturns on the road currently.

Penske would not comment on what other manufacturers might supply vehicles to Saturn in the future.

Penske stated that the new Saturn would be a stand-alone company, and would offer new dealer agreements to all existing Saturn dealers, which, from his point of view, would all remain independent businesses.

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A true working class hero.

By Alex Kalogiannis

07.30.2009

Today, I am a baker, delivering exotic, towering cakes across the city. I am a carpenter, picking up works of art to be ornately framed at my Beverley Hills gallery. I am a florist, arranging elaborate set pieces and decorations for lavish events big and small.  Why the fluctuating vocations? Because today, I am in the Ford Transit Connect.

The Transit Connect is Ford’s newest addition to the commercial truck world, a place populated by various vans, pick-ups, and box trucks; all very useful, but all quite large and cumbersome. In some aspects, large is good. You need “large” when moving the contents of a house or delivering pianos. But what about when “large” is simply “too much”? That is to say too much wasted space, too big to get around and, regrettably, too much money? You’ll notice at this point ingenuity and compromise struggling to prevail as a family minivan pulls double duty transporting dogs for grooming or a station wagon is used for catering. Vehicles being stretched beyond their initial intended capabilities by hard working people making do.  The Ford Transit Connect answers this need by being a durable, efficient, high-capacity vehicle while remaining compact and affordable.

How does one test drive a work van? With work of course, as several Los Angeles business owners allowed myself and companions the opportunity to swing by in our Transit Connect and discuss how, if at all, the T.C. would be of use to them. Before setting out, we gave the Transit connect a once-over. Under the hood you will find a 2.0L I-4 engine giving you a max output of 136 hp. All this is married to the front wheels with a 4 speed automatic transmission. Seems underwhelming at first, but there’s more. The front sports an independent MacPherson suspension, but you’ll find leaf-springs in the back. As for brakes? The front wheels get discs while you’ll find drums in the rear. Continue Reading

By J. Smith

07.29.2009

1976 Buick Electra 225 (not the author's actual car)

Summer 1990.  The Soviet Union still exists.  China still slumps from the Tiananmen Square Massacre.  MC Hammer rides high on a karaoke exercise to the tune of “Super Freak.”  And I did my share contributing to global warming by endlessly cruising the mean streets of Grand Ledge, MI in my 1976 Deuce and a Quarter.

And I loved it.  Until the first time I filled the tank.  It had a massive 26 gallon stomach and demanded to be fed.  Often.  My driving habits did not help.

The 455 ate via a Rochester Quadrajet.  Having supped on Iron Duke-powered Chevy Citations up to this point, I exercised the Rochester often.  Behind the wheel of the Battle Buick, I drove as if possessed.  Every stoplight met with screeching brakes and every green light greeted with a stomp of the pedal.  When that proved insufficient to melt my rear tires-which was often, given the archaic emissions piping sprouting here and there like IVs from he body of an intensive care patient-I learned the art of brake torquing.  Press the brakes down, hit the gas to build up RPMs and thus power, and move your foot from the brake.  Worked every time. Continue Reading

By Roger Boylan

07.29.2009

The 2010 Camaro is an instant classic. It’s fast, affordable by you and me, and comfortable. It’s solidly built, on the chassis of the soon-to-be late lamented Pontiac G8. It’s quiet at speed. It’s one of the best-looking cars on the road. It’s economical; the V6 gets nearly 30 mpg on the highway on regular fuel, so it would make a fine commuter car. And most of all, it’s not boring. Yes: On the basis of a week’s exposure, I proudly proclaim myself a Camaro guy-and I was driving the “base” V6 model. In a word, I loved the damned thing.

“That’ll be the day,” I’d have said, if you’d told me, way back when, that I was a future Camaro fan. I’d always thought the previous iteration of the Camaro was loud and ill-bred, like the boy racers in Woodlawn and Passaic who drove them down Main Street on Saturday nights (regulation pack of smokes tucked into T-shirt sleeve, of course, and hairgel duly lathered on) and the suds-swilling oafs who congregated around them on state fair days and at tailgate parties. Camaros? No thanks, I sneered; not for this member of the urbane urban elite. Well, that’s over. I’m sub-urbane now, decidedy suburban, and a member of no elite; and man enough to admit I was wrong. And more than man enough to whine I WANT ONE. Continue Reading

By Brendan Moore

07.28.2009

The NADA (National Automobile Dealers Association) stated yesterday that over 16,000 dealers in the US have signed up to participate in the federal government’s “cash-for-clunkers” program and that public interest in the program seems to be much higher than forecast.

Since there were approximately 19,000 new-vehicle dealers in the US at the end of June, that means that around 80% of all dealers have signed up for the program.

Under the federal program, people that trade in eligible older trucks or cars when they buy a new, more fuel-efficient vehicle can receive as much as $4500 USD in credits.

The law took effect on July 1, but since the U.S. didn’t publish rules for the program until July 24, it was difficult to gauge just how much interest there was in the program. But in the last four days since the rules of the program were defined, it has become obvious that the program is a bona fide hit. Some dealerships wrote up deals weeks in advance and had the eligible trade-ins from customers sitting on their back lots, waiting for the rules to be published so that they could pull the trigger on the deal itself.

It looks as if some dealerships will have post some great sales numbers in July and August, at the very least.

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By Chris Haak

07.28.2009

All-new Ferraris don’t show up just any day, so it’s a somewhat momentous occasion today that Ferrari has released four photos, plus specifications, on its newest model, the 458 Italia.

The V8-powered, rear-mid engine car will make its public debut at the Frankfurt Motor Show in September, but its auto show debut will be something of a non-event since we have seen everything but the interior and know how it stacks up on paper (though obviously none of us has yet driven the car).  And, I must say, the spec sheet is an impressive one. Continue Reading

By Chris Haak

07.28.2009

For the period between January 1 and June 30, 2009, Toyota Motor Corp. continued its sales dominance over the global automotive industry. However, relative to its first-quarter pace, the rest of the industry has begun to catch up.

Toyota reported today that it sold 3.56 million vehicles in the first half of 2009, while GM sold nearly as many – 3.55 million – during the same period.  During the second quarter of 2009 – from April 1 through June 30 – Toyota sold 1.80 million vehicles while GM sold 1.94 million.  Toyota’s units include its Daihatsu and Hino subsidiaries.

Meanwhile, Volkswagen – which has aspirations to itself become the world’s largest automaker over the next several years that I’ve previously scoffed at – managed to sell a strong 3.1 million vehicles in the first half of the year.  Helping VW is minimal exposure to the US market (while Toyota and GM are obviously heavily exposed to the US), so the company’s 16.4% US sales decline through June 30 in the US (including Audi) is not only better than the overall US market’s 35.1% decline, but also only costing the company a loss of 26,665 sales against the same period in 2008.  Meanwhile, Toyota sold 469,640 fewer units in the US during the first half of 2009, while GM sold 641,717 fewer vehicles.  Instead, VW has been able to capitalize on Germany’s scrappage plan in favor of small cars, and incentives in China designed to spur sales of fuel-efficient new vehicles.  GM’s China sales were also a bright spot for the shrinking giant. Continue Reading