The South Norfolk Regional Growth Fund has denied Lotus’s request for a £27.5m loan intended for expansion at its Hethel headquarters, reports Autocar. In a statement the sportscar firm, which is in the midst of a major turnaround, said
Despite the clear synergies between Lotus’s growth plans and the fund’s objectives to enable private sector organisations to invest in projects that would create jobs and secure long-term growth, the bid team decided that the money was better invested elsewhere
Now why would that be? After all, even Lotus’s own adviser, Bob Lutz, gives the firm a 60% chance of success. What investment could possibly offer better odds than that? But don’t cry for Lotus. The firm’s parent company, Indonesian automaker Proton, has secured some £270m in private loans from six banks with which to fund the brand’s turnaround. The only question now: will the funding shift from British taxpayers to Asian bankers mean a shift in production away from the UK, as Lotus had threatened might happen if the RGF loan didn’t come through? There’s no word on that yet, and based on Lotus’s desire to loft its brand into Porsche/Ferrari territory, we’d have to argue against leaving the country that birthed the brand.
Ford is finally waking up from sleeping through the fact that China became the world’s largest car market 2 years ago, and that China will most likely grow explosively for the next 20 years. Ford will introduce 15 new vehicles in China by 2015, the company told Automotive News [sub]. Ford will also more than double the number of its 340 dealerships in China by 2015. Ford furthermore is looking at doubling the work 1,200 strong workforce at its joint venture with China’s Chang’an.
With Fiat flying towards taking a majority stake in its Chrysler subsidiary, Reuters reports that the necessary private loans are very close to being arranged.
Goldman Sachs Group Inc, Morgan Stanley, Citigroup Inc and Bank of America Corp are in advanced discussions with Chrysler to finalize a deal that will replace all of its roughly $7 billion government loans with term loans and bonds, these people said on Thursday.
In addition, the banks will also arrange a revolving credit facility for the automaker’s future liquidity purposes that will remain undrawn, these people said. The revolver will not be used for paying down government loans.
Look for Chrysler to wrap up a deal sometime after it reveals its Q1 financial performance next month.
Under current Cuban law, only cars built before the 1959 revolution can be legally bought and sold. This has kept Cuba’s pre-revolution American cars running, creating the island nation’s unique automotive landscape. But now, reports NPR, proposed liberalizations of Cuba’s property laws might threaten Cuba’s fleet of classic American cars. Though reforms could bring much-needed investment to Cuba, they would also mean an end to the laws that have kept Cuba’s streets looking like a time capsule from the late 1950s. But luckily Cubans have come to feel deeply attached to their classic American cars, vowing to keep them running as symbols of Cuba’s history.
As for Cuba’s classic cars, mechanic Jorge Prats says he thinks they’ll be around for at least another 50 years.
“These cars are a part of our national identity now, like rice and beans, or roast pork,” Prats says as he shows off his two-toned, bright red-and-white 1955 Chevrolet Bel Air coupe. “We take care of these old American cars as if they were another member of the family.”
Users of the Dulles Toll Road in Northern Virginia filed a federal class action lawsuit yesterday seeking refunds from toll hikes imposed to fund a $7 billion mass transit project. Great Falls resident John B. Corr and Hillsboro resident John W. Grigsby argued that the Metropolitan Washington Airports Authority (MWAA) has no authority to set toll rates and that the diversion of over $130 million from motorists constitutes an illegal tax.
A few days ago, we looked at Volkswagen and said that “we expect a growth of group sales well over 10 percent in the first quarter” when Volkswagen does publish its Q1 data by the end of the week. Wolfsburg did not disappoint. Volkswagen sold 1.97 million cars globally in the first three months of 2011. In the same period of last year, it was 1.73 million vehicles, for a growth of 13.7 percent.
The “increase means Europe’s largest automaker also clearly outperformed the overall market, which grew 8.1 percent,” proclaims a statement emailed from Wolfsburg. Group sales in March were also respectable: 767,200 units, up 8.1 percent over March 2010, and a new record.
From the perspective of America, where Volkswagen has been relatively luckless ever since the success of the Bug, these numbers may look surprising. (Read More…)
The March 11 tsunami is having long term effects on Japanese car production. Toyota, the world’s and by far Japan’s largest car company, is severely impacted. Toyota just announced that vehicle production from May 10 to June 3 will proceed at approximately 50 percent of normal. (Read More…)
It was easily one of the best entries in the old CAR magazine “Good, Bad, and Ugly”: “Good: Her name is Rio… Bad: …and she’s crap.” Don’t look for this new-generation Rio to receive the same dismissive insult, at least not among the journalists who actually have a chance to drive and honestly evaluate the vehicle. (Read More…)
Back in November of 2009, when GM announced that it would repay its government loans, it didn’t take much investigation to realize that The General was simply shuffling government money from one pocket to the other and that true “payback” was still a ways off. The New York Times asked me to write an op-ed on the subject, and I took the opportunity to point out the reality of the situation and note
G.M.’s global interests are far too diverse for it to serve its taxpayer owners faithfully, and it can’t afford to subjugate its business prerogatives to the political needs of its major shareholder in the White House. So, unless Americans develop a sudden obsession with G.M.’s $40,000 Volt electric car just in time for an I.P.O., taxpayers will be stuck with tens of billions of dollars in losses.
Afterward, while our government contemplates its runaway deficit and getting rid of its 8 percent of Chrysler’s equity, perhaps we’ll get an admission that General Motors still owes the American people. Without one, the relationship between the public and the automaker, and the Obama administration as well, may never be the same.
And now that our government finds itself “contemplating a runaway deficit and getting rid of its 8 percent of Chrysler’s equity,” would you believe that a similar federal money-shuffle is under way? Believe it.
Who are the anthropomorphic robots in this latest bit of engine porn from BMW (highlighting its new TwinPower modular engine), and why are they installing engines transversely? Oh right, we’ve been through the BMW-FWD thing before. Well, carry on then, you ruthless, mechanical-yet-somehow-almost-human heralds of an alien but inevitable future.
It seems that my recent article on Citroën’s anti-retro retro-inspired car, the DS3, provoked two kinds of reactions: admiration and understanding, but also rejection and some even thought Citroën was simply being cynical in its use of the much storied DS moniker. What was hinted at with the DS3 becomes much more evident in the DS4’s case. With it Citroën may well have stumbled on a modern classic, not to mention a way forward for retro-inspired cars. (Read More…)
Everyday for the past 6 months I’ve been reading TTAC, usually on my phone between actual “work” at work. I find it very informative and enjoy it immensely. In the next 2-6 months I will be looking to “upgrade” my current car (Corolla S) to something a bit more sporty and fun to drive (which compared to a corolla leaves a lot of options out there) but, as usual, I am having difficulty deciding what to consider. The possibility of buying a outright fun car and keeping the Corolla is a possibility. I should also mention that I travel quite a bit (400 miles/week) with 75% highway use.
Engineers living in southeastern Michigan have had a rough go of it these past few years. As the US automakers bled money, lost market share, retrenched and in the case of GM & Chrysler eventually went through bankruptcy, they shed more and more engineers. The talent, skill and many, many years of experience was jettisoned as successive layers of fat, muscle and then bone were cut out of the domestic automakers in their restructurings (Ford under Alan Mullaly went through what was effectively a restructuring financed by mortgaging the company for $26 billion).
The first tentative signs of the Big 3’s recovery have been based on some pretty decent product so it’s clear that the automakers and their vendors still have a well of in-house talent from which to draw, but with GM & Ford currently banking substantial profits and Chrysler appearing to approach profitability (according the Sergio), the auto industry as a whole is gearing up by going on a hiring spree. Engineers, particularly electrical and chemical engineers (see EVs, hybrids and batteries) are once again in strong demand in Detroit. Companies looking for mechanical and software engineers were actively hiring as well.
As of this moment, Audi has no plans to bring its Q3 “Crossunder” into the MINI Countryman/BMW X1/Nissan Juke/Mitsubishi Outlander Sport battle for the hearts of downsizing CUV-lovers brewing here in the US market… and yet Audi of America is teasing the thing on its Youtube channel. Does this mean we can expect this 3,300-ish lb CUV, offering 48.2/16.24 cubic feet of storage (rear seats down/up) to arrive stateside at some point? We’d certainly be surprised if that didn’t happen somewhere down the line…
Ticket quotas seem to be one of those facts of life that exists, unexamined, in law enforcement departments around the country. But this week the concept has been dragged out into the light of the justice system, as two LAPD officers have won a lawsuit against their department’s ticket quota system. The LAT reports:
Officers Howard Chan and David Benioff, veteran motor officers with the LAPD’s West Traffic Division, sued the department in 2009, alleging that their captain mandated each motor officer to write 18 tickets a day, according to the suit.
In addition to the quota, officers were told the tickets they gave out had to be for “major movers” such as speeding, lane straddling or running a red light — offenses that could each generate revenue of several hundred dollars each.
The civil court jury sided with the officers by a vote of 11 to 1. The damage award [of $2m] was for loss of reputation and specific employment actions against the officers by the department affecting their careers after they reported the misconduct and refused to meet the quotas.
The department defended itself by arguing that, rather than a specific quota, the department had broad goals intended to reduce injuries and fatalities. That argument was roundly rejected by the jury, which found in favor of the suing officers 11-1, after a former LAPD commander testified that gas prices and paramedic response times had far more to do with injury and fatality levels. With any luck, this ruling may even create precedent to eliminate quota systems around the country. Meanwhile, MyFoxLA reports that the LAPD is appealing the ruling.
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