VenSeattle

Considering I already have 240hp and a heavier car, I doubt the 3.0 will feel under powered... However, I have no objection to a 290hp AWD LaCrosse either. I do like the dual exhaust on the 3.6l. I'll need to check out packaging and pricing and weigh the pros & cons of each. I've got time.

I think I can pretty much guarantee what my next car will be... :AH-HA_wink: I get my HP, AWD, HID, LEDs, Leather wrapped dash, and HUD!!!!! Woo hoo!

Details on new Buick LaCrosse emerge New DI 3.0L V6 added Posted Oct 30th 2008 10:58AM Link to AutoBlog Judging from spy pics we've seen of the upcoming 2010 Buick LaCrosse, General Motors may have a winner on its hands, even if it is getting delayed. If specs from GM Inside News are accurate, Buick's new midsize sedan will have significant new powertrains, too. The big news comes from an all-new 3.0L, direct-inject V6 engine based on the larger 3.6L VVT powerplant that the General uses now. The small-displacement V6 packs some serious punch at 250 hp, and will be mated to the automaker's new 6T70 six-speed transmission for improved efficiency. The new 3.0L engine is likely to achieve a significant fuel economy gain over the 3.6, with highway economy estimated at close to 30 mpg. The new LaCrosse will also feature the same 3.6L powerplant that underpins the Chevy Traverse, with direct injection and an estimated 290 hp. Other details about the new LaCrosse include HID headlamps, a heads-up display, rear view camera and all-wheel-drive. We haven't received any details on the AWD system, but we're guessing it will be the same unit that currently drives all four wheels of the new Saab 9-3X. We're looking forward to getting more details on the Buick LaCrosse, and when we do, you'll be the first to know.

That wasn't my argument. I was talking about the Enclave... not Buick itself... However, you're incorrect. Buick is a "premium" brand. Buick's current portfolio "price range" is similar to Lincoln, Acura, SAAB, and Volvo. ($25k-$45k) Buick is not a mainstream brand. Buick is not and entry-level brand. Buick is not a Luxury brand in the US. Internationally, Buick is a luxury brand. The Enclave and the next Gen LaCrosse will be sold in the US and China relatively unchanged. We'll see how the market accepts the new LaCrosse and go from there. I don't think GM's attempt at the market repositioning of Buick is a mistake. Buick can not continue to allow the market to believe they only make retirement cars. Buick can not continue to be compared to Hondas or Toyotas. Buick should not overlap Chevrolet. That's Saturn and Pontiac. It takes time to change public perception. Public perception is changing gradually at Buick. China's success and the Enclave's success indicate this. The drop in buyer's age indicates this.

Notice that the Buick Enclave starting price less than $5,000 than the Lexus, and has managed to place 2nd in premium CUV sales. That's called success. Lexus RX350 Base MSRP: $37,700 Buick Enclave Base MSRP: $33,220 You're only fooling yourself if you think the Lexus RX350 is a premium/luxury CUV and the Buick Enclave isn't.

Approx 13% of Lucerne sales have gone to fleet. That's not a high percentage. There are other premium brands with higher numbers... including several direct import competitors to the Lucerne. By that definition, none of the Enclave competitors listed below should be considered luxury CUVs either - Base Prices - Lincoln MKX - $35,840 Volvo XC90 - $36,210 Lexus RX - $37,700 Cadillac SRX - $38,105 VW Touareg - $39,300 Acura MDX - $40,195 The Enclave overlaps the pricing of all the CUVs listed above and competes directly with them. The Pilot is not an Enclave competitor. The Pilot competes with the Traverse. The MDX competes with the Enclave.

If the 4-year old Lucerne can beat the ES in sales during this traumatic climate, then why can't a brand new Buick sedan? Sept'08 sales: Buick Lucerne - 6,239 Nissan Maxima - 4,996 Chrysler 300 - 4,287 Lexus ES350 - 4,042 Toyota Avalon - 3,404 Acura TL - 3,017 Lincoln MKS - 1,814 Hyundai Genesis - 1,029 Mercury Sable - 783 Volvo S80 - 578 Hyundai Azera - 483 Kia Amanti - 163 Lucerne is less than 7k for the year to match the ES as well: Lexus ES Jan-Sept'08: 50,642 Buick Lucerne Jan-Sept'08: 43,839 ------------------------------------------------------------------------------ As for your Enclave comment... Enclave Sept'08 sales: 5,171 Lexus RX Sept'08 sales: 4,639 RX sales have regularly trumped everything in its class, but the Enclave has exceeded expectations as a newcomer in the Luxury SUV/CUV market and beats just about everything else in the market: 2008 YTD sales: Lexus RX - 63,219 Buick Enclave - 36,900 Acura MDX - 36,888 Mercedes ML - 25,498 BMW X5 - 24,663 Lincoln MKX - 23,977 Volvo XC90 - 15,292 Cadillac SRX - 12,863 Infiniti FX - 10,176 Audi Q7 - 10,107 VW Touareg - 5,477 The Enclave have been a GREAT success for Buick by any measurement. You're DELUSIONAL to believe anything else.

I think the way it all fell into place was like this: Fairfax, KS *Chevrolet Malibu continue until 2011 *Chevrolet large 4-door notchback beginning in 2010 (Impala on LWB Epsilon II/Epsilon +) This Impala is for the US market only. Detroit Hamtramck, Mich. *Global Epsilon Chevrolet beginning in 2012 (NG Malibu on SWB Epsilon II) This Malibu would be sold globally. ------------------------------- However, W-Platform production of the Impala has been extended from 2012 to '13. It's possible the W-Platform Impala will turn into "Classic" or "Caprice" and carry on as a budget/fleet large car once the Epsilon II Impala arrives in/around 2010.

Here's what I was thinking of... BMW may sell engines and transmissions to GM and Fiat Posted Feb 28th 2008 4:33PM Link to Autoblog Word out of Frankfurt from the Financial Times Deutschland is that BMW is in talks to sell engines and transmissions to both General Motors and Fiat. All three companies have declined to officially comment. The news is interesting, but not surprising. You may recall that GM has been selling transmissions to BMW for well over a decade for use in various 3 Series and 5 Series models (the current BMW 328i automatic uses a 6-speed GM 6L45 unit). So far, however, all have been automatic transmissions. Speculating about the details, our tipster suggests that BMW may be helping GM with their SMG-style transmission program. As for the engines? It is possible that BMW could be selling its 4.4L V8 for the Cadillac line or lending GM a twin-turbo to compete with Ford's twin-turbo direct-injected V6?

Didn't we see this coming? Didn't we all speculate this to be the reason behind GM's decision to cancel the Northstar V8 replacement (UV8)?

BMW to sell engines to Mercedes, others Posted Oct 24th 2008 7:01PM Link to Autoblog BMW, the Munich-based German automaker, is reportedly in discussion with other automakers -- rivals in some cases -- to sell their engines and transmissions. Klaus Draeger, BMW's head of development, told Auto Motor und Sport that the automaker is in advanced talks with Mercedes-Benz about licensing engines to its Stuttgart-based competitor. Specifics have not been announced, but one likely candidate would be BMW's new V-12, set to debut in the new 7 Series and baby Rolls-Royce sedan. Mercedes would drop it under the hood of their flagship S-Class and Maybach. There was no mention about the possibility of BMW's twin-turbo inline-six finding itself under the hood of a Mercedes (while BMW continues to refine their award-winning inline-six powerplant, Mercedes dropped their popular straight-six in the mid-1990's and replaced it with a V6), but Draeger did hint that other automakers have approached the company about diesel engine technology. Engine and transmission sharing isn't uncommon in the industry, but such a move would be a first for the two companies, each longstanding rivals with products selling in the identical segments.

IIRC, the original idea for the Chi platform was to use Lambda as the G-Platform successor. I could see FOG's idea of modifying Epsilon II to resurrect Chi. But, I believe the LWB Epsilon II (or Epsilon +) has already been officially selected as the platform for the next Impala.

It's only a delay in unveiling the production version... I don't see anything indicating production has been delayed. The LaCrosse still goes into production in February'09. I think it's better for GM to "unveil" the production vehicle closer to launch. Isn’t that something we've been criticizing GM for not doing??? Come on guys... can't have it both ways.

The weather this week has been cool in the NW but great, otherwise. Sun has been out for the past several days. Couldn't have asked for better!

Yep Yep... I no longer have B-Days... they're called anniversaries now :AH-HA_wink:

Thanks guys! Just got back home... Took a train trip and went to a B&B for a while to reduce stress and relax. We definitely enjoyed ourselves.

Just by coincidence, I looked at Buick's press releases and one of them discussed a new LEED-certified dealership in Highland Township, Michigan. Guess what? It's the same dealership design as the one in Vancouver WA: Link to Press Release Michigan Family Spends Millions on 'Green' GM Dealership Sounds pretty good to me! Maybe this is a sign of things to come?

Lexus to launch compact in Europe, targeting 1 Series and A3 Posted Oct 20th 2008 2:02PM Link to Autoblog Europeans will get another premium compact car not bound for U.S. shores and this time it comes courtesy of Lexus. The automaker is targeting the BMW 1 Series and Audi A3, vehicles that its rivals have offered in the United States market. Lexus, though, only plans the vehicle for markets outside the U.S. where sales of smaller cars outpace their larger siblings. Apparently, Lexus has set a goal to sell 150,000 vehicles in Europe by 2015 and believes the new model is necessary to meet that number. At this point, we have no idea what platform the compact car would be based on, but Toyota certainly has a number of options, most notably the Auris, which is offered in the European market in hatchback form. There is also the possibility that the new entry-level Lexus could be based on an upcoming small hybrid model from Toyota that would slot beneath the Prius, a version of which the automaker plans to debut in the Lexus line.

Boomers: 3 ways the crisis whacks your retirement 10/17/2008 12:01 AM ET Link to MSN Money For the generation of Americans born between 1946 and 1964, the worst financial crisis since the Great Depression comes at the worst time imaginable. Baby boomers are nervously trying to navigate their nest eggs to a safe port in a stormy sea of wild stock market swings, falling home values and a weakening job market. It can take years for nest eggs to recover from heavy investment losses. But time is something baby boomers -- the oldest of whom turned 62 this year -- just don't have enough of. Here are the problems near-retirees now face and what (if anything) baby boomers can do to cope. Stock market declines Retirement accounts have lost $1.6 trillion, or 18.3% of their value, in the last year, according to the Urban Institute. The Congressional Budget Office puts the loss at $2 trillion in the last 15 months. Individual 401(k) participants' average losses ranged from 7.2% to 11.2% in the first nine months of 2008, according to an Employee Benefit Research Institute analysis. These losses disproportionately affect baby boomers because they have less time to recover before retirement. But pulling your money out of the stock market isn't the answer if you want to have enough cash to finance 30 years of retirement. "The goal should always be to have a balanced portfolio that reflects the time horizon and taste for risk of the household," says Mauricio Soto, a research associate at the Urban Institute. The typical retirement account for a worker age 50 or older has 50% of its assets in stocks, the Urban Institute found. "The common advice is for households to reduce their exposure to stocks as they approach retirement," says Soto. As always, it's still important to contribute at least enough to your 401(k) to take advantage of your employer's match. Falling home prices Older adults were major beneficiaries of the housing boom. Between 1998 and 2006, the inflation-adjusted median home equity for adults age 55 and older increased by 42%. But now baby boomers are feeling the pinch of housing declines. The average home price fell 3.9% between January 2007 and May 2008, the Office of Federal Housing Enterprise Oversight says. In 20 select metropolitan areas, prices fell 16.7% over that period. Most seniors don't tap their home equity to finance retirement, but it can be an option when times are tight. If all homeowners ages 62 and older took out reverse annuity mortgages and chose a lifetime annuity option, their median annual retirement income would increase by 18%, based on 2006 home values, the Urban Institute found. A 10% decline in home prices would reduce this gain to 16%. But reverse mortgages also have high costs -- about 18% of the loan value for a 62-year-old -- which needs to be repaid, plus interest, if a senior wants to move. Deteriorating job prospects The easiest solution to declining 401(k) balances and falling homes values is to work longer. Working one additional year typically increases annual retirement income by 9%. But contracting credit markets could weaken the labor market, thus limiting employment opportunities for older adults. The economy lost 159,000 payroll jobs in September, after losing 73,000 jobs in August. "Retailers have been hit hard over the past year, and more older people work in retail than anywhere else, says Richard Johnson, principal research associate for the Urban Institute. "So many older people with limited skills could find themselves out of work." Job loss typically comes unexpectedly, and if you do manage to find a new job, it's likely to pay less than your old one. Highly educated workers should fare slightly better. "Going forward, the economy will add some jobs for college graduates with technical specialties in finance, health care, education and engineering," predicts Peter Morici, a professor at the University of Maryland School of Business and former chief economist at the U.S. International Trade Commission. "However, for high school graduates without specialized technical skills or training and for college graduates with only liberal arts diplomas, jobs offering good pay and benefits remain tough to find," Morici adds. "For those workers, who compose about half the working population, the quality of jobs continues to spiral downward." So there's no better time to go back to school and make sure your skills are up to date. Many baby boomers would like to scale back to part-time work, start a business or take an extended break from the work force instead of retiring completely. But opportunities to try these creative forms of retirement could become scarcer. In 2006, 37% of employed men and 22% of employed women ages 65 to 69 worked for themselves, but the effect of the credit crunch could mean it will become more difficult to start and sustain small businesses. It may be a good time to hold on to the job you have now. "Lots of people in their 50s and 60s experiment with retirement, find out they don't like it or can't afford it, and then go back to work," says Johnson. "If they try that these days, many won't be able to find new jobs." As more older Americans have to work full time to pay for living expenses, part-time and flexible work arrangements may also be harder to find. "People need to think carefully before they retire from their full-time jobs," says Johnson. "Because the part-time retirement jobs may be drying up."

GM exploring sale of aftermarket parts business October 22, 2008 11:05 AM ET Link to Article DETROIT (Reuters) - General Motors Corp is exploring the sale of ACDelco, its global aftermarket parts business, to raise cash, the No. 1 automaker said on Wednesday. GM, which also has its Hummer all-SUV brand and a manufacturing center in Strasbourg, France, on the auction block, has retained Merrill Lynch to assist in the potential sale of ACDelco. In July, the automaker laid out a plan to boost its liquidity by $15 billion by end of 2009. The plan included costs cutting and sales of assets that are expected to raise $2 billion to $4 billion. ACDelco, which provides light-duty maintenance and repair parts for both GM and non-GM vehicles, is based in Grand Blanc, Michigan, and has about 600 employees worldwide. GM is also in talks with Cerberus Capital Management, which owns Chrysler LLC, about combining the two automakers at a time when both are struggling to survive a deep downturn in sales and shore up cash. General Motors Explores Potential Sale of ACDelco 2008-10-22 Link to Press Release General Motors (NYSE:GM) announced today that it is exploring a potential sale of ACDelco, its global independent aftermarket parts business, a brand of GM Service & Parts Operations. A sale is expected to promote more rapid growth of ACDelco globally. As the company announced in July, GM is undertaking a number of initiatives to bolster its liquidity position by approximately $15 billion through year-end 2009, including the sale of assets which are expected to generate approximately $2-4 billion of liquidity. In addition to the ACDelco business, GM previously announced it is exploring the potential sale of its Hummer brand and its technical and manufacturing center in Strasbourg, France. ACDelco provides light-duty maintenance and repair parts and associated services for both GM and non-GM vehicles in more than 100 countries. Part of GM Service & Parts Operations, ACDelco is headquartered in Grand Blanc, MI, with approximately 600 employees worldwide. GM has retained Merrill Lynch to assist in this initiative. About ACDelco With over 100 years of experience in the automotive aftermarket industry, ACDelco is a global leader in automotive replacement parts and related services. Products include maintenance parts commonly replaced during the lifetime of a vehicle (e.g., batteries, oil filters, air filters, wiper blades, shocks and brakes), as well as repair parts (e.g., alternators, radiators, chassis and heating/cooling components). ACDelco is among the world’s best known comprehensive All Makes, All Models providers, featuring high quality auto parts for both GM and non-GM vehicles and services, with the brand’s “genuine OE” reputation signifying high quality replacement parts, support and training in the automotive aftermarket. In the United States, ACDelco offers 37 full product lines with over 100,000 part numbers, comprised of both GM original equipment and All Makes, All Models product.

VW CEO warns 2009 will be tough for industry October 22, 2008 8:36 AM ET Link to Article WOLFSBURG, Germany (AP) - The chief executive of Volkswagen AG warned Wednesday that the auto industry faces a difficult business climate next year, but added that his company — Europe's biggest carmaker — still expects to reach this year's goals. "The world economy is going through tough times," Martin Winterkorn said on Wednesday. "We don't know the full impact on our business yet, but VW is doing better than the competition so far." Winterkorn added that "2009 will be difficult for the entire industry." He made the remarks during a meeting with civic and business leaders from Chattanooga, Tenn., where the company plans to open a new manufacturing plant in 2011. The visit to Germany, led by Tennessee Governor Phil Bredesen, is part of an effort to persuade auto parts suppliers to locate production facilities near the new plant, which is projected to cost about $1 billion and employ more than 2,000 people. Speaking about the Chattanooga plant, Winterkorn said "I'm confident we'll build another great example of German and American partnership." Volkswagen's brands include VW, Audi, Lamborghini, Bentley, Bugatti, Seat and Skoda. Winterkorn reiterated that Volkswagen expects to surpass the 6.2 million cars it sold in 2007, which was an increase in sales of 4 percent on the previous year. Earlier this month, European automakers and several European units of their American competitors announced plans to cut production and jobs because of flagging demand from customers rattled by uncertainty amid the global financial crisis. BMW AG, Daimler AG, General Motors Corp. subsidiary Adam Opel AG and the German unit of Ford Motor Co. all announced production cutbacks. GM said its other subsidiaries in Europe were also affected. Italy's Fiat and Renault of France likewise said they would curtail production. Volkswagen, however, has managed to avoid such a move, as has its Audi subsidiary, although its Spanish-based Seat unit planned to produce 13,000 fewer cars by stopping assembly lines at three plants for a week. Volkswagen announces its third-quarter results on Oct. 30 and analysts expect it to report a profit on the back of solid sales and because it is less exposed to the U.S. market than its competitors. The company saw its second-quarter net profit rise 35 percent to 1.6 billion euros ($2.11 billion) on sales of 29.5 billion euros ($38.89 billion), pushed up by improved demand in India, Russia and China. Shares of Volkswagen were up more than 3 percent to 250.13 euros ($329.77) on Wednesday even though the DAX index was down 3.6 percent.

Rumormill: Chrysler cancels development of Phoenix V6 engines Posted Oct 21st 2008 1:28PM Link to Autoblog The Chrysler rumormill is running at full steam for obvious reasons, and the latest talk surrounds Chrysler and its $3 billion Phoenix V6 engine program. Word on the street is that the project has been canceled, which makes abundant sense if in fact a Chrysler merger is imminent. If a deal to merge Chrysler with either General Motors or Renault/Nissan materializes, both potential mates have V6 engines that are vastly superior to anything nestled under the hood of a Chrysler, Dodge or Jeep. Why would either automaker want to spend $3 billion for something it already has? There seems to be little doubt among analysts that Chrysler will merge with another automaker, and the only question at this point is whether it will be GM, Renault/Nissan or some mixture of the two. Continuing to spend money on projects like a new V6 engine or a new dual clutch transmission doesn't make much sense at this point, especially since Chrysler's suitors already have or are working on these technologies. Thanks for the tip, Jason!

Chrysler deal with Getrag reportedly dead Posted Oct 19th 2008 9:31AM Link to Auto Blog Things were just starting to look up for Chrysler's upcoming powertrains. The Phoenix V6 will hopefully return competitiveness to the engine bays of Pentastar vehicles, and a dual-clutch automated manual transmission joint venture with Getrag was nearly off the ground before both companies started shoving lawyers at each other. A joint venture plant has been built in Indiana, but the deal fell apart over money for tooling. Chrysler's shot a lawsuit at Getrag, alleging that the transmission specialist hasn't ponied up for tooling and equipment to build the gearboxes. For its part, Getrag contends that it had backing from German banks provided that Chrysler put the $300 million needed into escrow, and is prepared to sue Chrysler to get reimbursed for its investment plus damages. If Getrag and Chrysler can't come to terms, it doesn't look good for the future of Chrysler's clever gearbox which would offer increased performance and fuel economy. Chrysler's statement after the jump Statement in Response: Chrysler v Getrag Auburn Hills, Mich., Oct 8, 2008 - On October 7, after months of negotiations, Chrysler filed a lawsuit in Oakland County Court charging that Getrag and its U.S. subsidiary Getrag Transmission Manufacturing LLC misrepresented its ability - and failed to use good faith efforts - to secure financing to support the joint development of a manufacturing plant in Tipton, Indiana, to build dual clutch transmissions, which would be purchased principally by Chrysler for use in its vehicles, in breach of their agreements with Chrysler. Getrag was obligated under these agreements to obtain debt financing. Contrary to Getrag's representations to Chrysler, Getrag knew that it could not obtain debt financing within the required time frame, and also knew that unless Chrysler was willing to assume significant additional obligations, debt financing could not be obtained at all. Getrag also failed to use good faith efforts to secure the financing. Despite this conduct, Getrag expects Chrysler to reimburse costs Getrag has incurred in connection with the project. Chrysler brings this civil action to recover all damages it has sustained as a result of defendants' wrongful conduct and to obtain a judgment declaring that it has no obligation to reimburse defendants' costs related to the Tipton plant. Chrysler is evaluating its range of possible options to meet its needs for fuel efficient transmissions in future products.

Chrysler may be sold in pieces to other companies October 22, 2008 9:46 AM ET Link to Article DETROIT (AP) - A person briefed on discussions about selling Chrysler LLC says the automaker could be sold in pieces to other companies. Chrysler's majority owner, Cerberus Capital Management LP, has been talking with General Motors Corp., the combined companies Nissan Motor Co.-Renault SA and other companies about selling Chrysler. The person said Tuesday night that many combinations are being discussed. The person asked not to be identified because the talks are private. Nissan seeks about 20 percent of Chrysler: paper October 22, 2008 6:07 AM ET Link to Article TOKYO (Reuters) - Nissan Motor Co is proposing to buy about 20 percent of Chrysler and bring the troubled U.S. automaker into the Franco-Japanese alliance with Renault SA , the Detroit News reported on Wednesday, citing sources familiar with the situation. The offer is now before private equity firm Cerberus Capital Management , which holds 80 percent of Chrysler, the paper said. Citing another source close to the talks, the paper also said Cerberus founder and chief executive Stephen Feinberg still favors a deal with General Motors Corp . Nissan declined to confirm or deny the report. "This is more of the same noise and we have no comment to make on any of the recent speculations," Simon Sproule, head spokesman at Nissan, said. GM, looking for a lifeline to replenish is depleted coffers, has been pushing ahead with talks to acquire Chrysler, people briefed on the talks have told Reuters. Although it does not report financial information, Cerberus has said Chrysler ended June with $11.7 billion in cash. The Financial Times reported earlier, however, that GM was looking for a large investment from outside investors as a possible alternative to a deal with Chrysler. Citing unnamed sources, Detroit News said Carlos Ghosn, chief executive of both Renault and Nissan, had sent a proposal in recent days that included revisions to a draft agreement prepared by Cerberus. Since 2006, when Nissan and Renault studied a possible three-way link-up with GM, Ghosn has held to his position that a trans-continental alliance that includes North America would benefit the existing one. Since forming their equity tie-up in 1999, Nissan and Renault have enjoyed billions of dollars in cost savings every year. Led by Executive Vice President Carlos Tavares, Nissan has held ongoing talks with Chrysler over the past year that have so far led to three separate projects for the mutual supply of vehicles under original equipment manufacturing (OEM) deals. While Renault would be part of any partnership with Chrysler, Nissan would acquire the stake because it has cash on hand, Detroit News said. Renault's debts have mounted, especially after buying a 25 percent stake in Russian automaker Avtovaz for more than $1 billion. Investors, who balked at the three-way talks with GM two years ago, are likely to react similarly this time. "It's hard to see the benefit when the global auto market is slowing down," Takeshi Osawa, senior fund manager at Norinchukin Zenkyoren Asset Management said. "I'm not sure Nissan can afford to make such a move. It's likely to be negative on its shares." Shares in Renault were down 4.8 percent in Paris, underperforming the 2.7 percent fall in the CAC-40 index. Nissan's shares ended down 9 percent in Tokyo before the report, mirroring sharp falls in other auto stocks as the yen surged. Owner said to weigh selling Chrysler in pieces October 22, 2008 1:59 PM ET Link to Article DETROIT (AP) - Chrysler LLC could be sold in pieces to other companies as its majority shareholder Cerberus Capital Management LP seeks to exit the auto business, according to a person briefed on the discussions. Cerberus, the New York-based private equity firm, has been shopping the beleaguered automaker to General Motors Corp., the combined Nissan Motor Co. and Renault SA and other companies. Many combinations are being discussed, said the person who has been briefed on the talks. The person asked not to be identified because the discussions are private. Chrysler spokeswoman Shawn Morgan and Cerberus spokesman Peter Duda declined to comment. Cerberus's efforts to exit the automobile industry have been widely reported in recent weeks, though speculation has swirled over what shape the final deal might take. One deal being discussed reportedly calls for Cerberus to hand over Chrysler to GM in exchange for GM's 49 percent stake in GMAC Financial Services. GM sold a 51 percent stake in its finance arm to Cerberus in 2006. Cerberus also would get an equity stake in GM, hoping to get a good return should GM recover when U.S. auto sales bounce back from a serious slump. GM is said to be interested in Chrysler for its cash. Chrysler, whose sales have dropped 25 percent during the first nine months of the year, reportedly has about $11 billion available. It also has debt, but the amount hasn't been disclosed because Chrysler a private company. Cerberus bought an 80.1 percent stake in Chrysler from Germany's Daimler AG in a $7.4 billion deal last year. Chrysler's cash may not be enough for GM to take on its money-losing rival, though, and the federal government may be involved in an effort to inject cash to prop up the deal. "All GM really wants out of this deal is the money that Chrysler is sitting on," said John Wolconowicz, auto analyst for the consulting firm Global Insight. "They really don't want any of the rest of it." Wolconowicz said breaking Chrysler into multiple pieces is a viable scenario, with Nissan-Renault possibly getting a piece of the company. Such an arrangement would make sense, he said, because Chrysler and Nissan are already cooperating on several car-making ventures. "Nissan has existing agreements with Chrysler that go both ways," he said, referring to a deal announced earlier this year in which Nissan would build small cars for Chrysler, while Chrysler will make a full-size pickup truck designed by Nissan. Whatever the final outcome of the negotiations, analysts agree that it will have to involve widespread factory closures and layoffs for some of Chrysler's 66,409 employees, resulting in a leaner, more efficient — and significantly downsized — automaker. Michigan Gov. Jennifer Granholm told reporters in Lansing on Wednesday that a GM-Chrysler merger could lead to as many as 30,000 job losses, with Michigan being hit harder than any other state. "If GM and Chrysler merge in a way that costs thousands of jobs, it will hurt Michigan, there's no question about it," she said. "If Nissan-Renault is involved, it may be a different scenario." Granholm said she has been speaking with executives involved, adding, "I think something is going to happen." Other analysts note that financing for the deal remains a key element to any final deal. Citi Investment Research analyst Itay Michaeli said in a recent report that a combined GM and Chrysler would require at least $10 billion to $12 billion in fresh liquidity. However, this could pose a problem given the turbulence in the capital markets, Michaeli said, making it "feasible that the government could step in to provide support." Detroit-based GM is itself burning up cash, going through more than $1 billion per month. Several analysts have predicted it will reach its minimum operating cash level of $14 billion sometime next year. GM's sales were down 18 percent for the first nine months of this year. The company has lost $57.5 billion in the past 18 months, although much of that comes from noncash tax accounting changes.

Chrysler dropping AWD on Avenger, Sebring and Caliber Posted Oct 20th 2008 9:27AM Link to AutoBlog If you didn't know all-wheel drive was an available option for the Dodge Avenger, Chrysler Sebring and Dodge Caliber, you're not alone. Only 1.5% of Avenger buyers checked the AWD option box, and the Sebring take rate was an abysmal .7%. The Caliber fared only slightly better at 4.4% for the 2008 model, but that's not nearly enough to keep Chrysler from canceling the option for the 2009 model year. AWD was fast becoming a mainstream option when those models were being developed, but the ability to move all four wheels at once drives down fuel economy. The MSRP goes up, too, and Chrysler and Dodge dealers are having enough trouble selling less expensive base models, much less a $35,000 Sebring with AWD. While Chrysler may be struggling to sell AWD as an option on its cars, Ford is reporting take rates of up to 20% for the option on the Ford Fusion and Mercury Milan. The Blue Oval says AWD is popular in northern climes, and it probably helps that the automaker actually advertises its midsize offerings' AWD capability. Chrysler is quick to point out that its Borg Warner-sourced AWD system isn't the problem, though, as it's also available on the Dodge Journey, which has a 20% take rate for AWD.