The US won’t be receiving the hatchback version of the forthcoming, front-drive Mercedes A-series, but we will be getting this “CLC” four-door coupe based on the same platform. But, if American owners can’t tell the difference between front- and rear-drive, will this CLC cannibalize the C-Class? According to AutoBild, it will be only 2cm shorter than the C-Class sedan, and its wheelbase is only 6cm shorter. In Europe, they say the CLC will be bought by 45-50 year-olds with two kids and enough money to spend €5k more than the average A-Class buyer. But in the US, where this will form the Mercedes entry level, and where shoppers tend to be more value-oriented, couldn’t you see a cheaper, front-drive/AWD CLS lookalike stealing sales from the rather subdued C-Class?

Just three weeks after Saab narrowly avoided being pushed into bankruptcy by supplier SwePart, SvD.se reports that three other suppliers have now initiated the bankruptcy process by requesting that Sweden’s national debt bailiffs pursue their debts. One Spanish supplier is reported to be foreclosing on €2m ($2.8m in debt), while two of the rebelling German firms are said to be owed at least €5m each. And though Saab says it is meeting with the Spanish firm to try to hammer out a deal,  SvD reports that four of the 14 outstanding claims against Saab have run out of time. Lars Holmqvist, head of the European Association of Automotive Suppliers argues that, by paying some suppliers and not others, Saab is de facto bankrupt, and that a trustee should be brought in to pay suppliers in order of priority, rather than order of Saab’s necessity. Meanwhile, Saab CEO Victor Muller has been in Brazil and the US, trying to bring new investors on board, as  its Chinese funding won’t be approved for two-to-three months, if ever. Meanwhile, “taxes and fees” must be paid by Friday, August salaries are due in just two weeks, and Muller cut his latest money-raising trip short to reassure workers back in Trolhättan. But according to thelocal.se, even the most optimistic of union leaders hope Saab will have a new CEO soon. Do I hear the fat lady warming up her vocal cords?

Chevy’s Cruze dominated the compact segment last month, racking up a 7k unit advantage over its next-closest rival, the Corolla. Corolla and Civic were the two biggest losers year-over-year, as tsunami related supply issues hold them back. Civic even dropped to sixth in its class, while Jetta (which could almost be classified as midsized) and Elantra snuck past it and towards the falling Corolla. Mazda3 beat Sentra, which in turn beat the Forte… so all in all, a strange month for a class that seemed to be lacking a real leader in the early months of this year. But if you look at the YTD numbers in the second chart (see gallery below, sadly not in “old codger-friendly” format), you’ll find that the Corolla is hanging onto first (for the moment), Civic is about 6k units behind the second-place Cruze and Elantra in fourth place. So there’s some familiarity left in the class that was once ruled by the Corolla and Civic… but don’t expect it to last too much longer, unless a lot of people are simply waiting for their Japanese brands to get restocked. In any case, the competition has never been more fierce.

To be perfectly honest, we don’t know if the forthcoming Opel Astra CC (shown here in mule form) will be brought to the US and sold as a Buick, but it’s certainly been rumored. C&D says that, in addition to an Astra/Verano coupe, which it says will “definitely” be coming to the US,

Buick’s lineup could be graced with another Opel model that is currently under development. Replacing the folding-hardtop Astra Twin Top in Europe will be a new model that won’t be badged Astra, but will be based on the car’s Delta platform and remain close to the current model’s dimensions. The new convertible will keep its pronounced trunk and shed its clumsy hardtop in favor of a softtop, which should increase luggage space and make for a far cleaner look. Opel believes the softtop will create a more premium image.

The last Buick convertible? The 1990-91 Reatta convertible. But Buick’s probably hoping that nobody remembers those bad old days…

Having been asked by a certain newspaper to review the new book “American Wheels, Chinese Roads: The Story of General Motors in China [more info on that review coming soon], I’ve been spending my quiet moments over the last week or so looking into GM’s Chinese operations. The book’s author, Michael Dunne, documents GM’s rise in the Middle Kingdom from the perspective of a well-informed outsider, revealing just how delicate one of GM’s best-performing global maneuvers really was. But after following the rise of GM in China, Dunne notes the December 2009 announcement that GM was selling a 1% stake in its Shanghai-GM (SGM) joint venture to its Chinese partner SAIC (for the paltry sum of $85m no less), arguing that GM had made a dangerous leap of necessity. This sale, implies Dunne, could well have been the tipping point that leads to GM being surpassed by its erstwhile junior (in size, technology and global reach) partner, SAIC. And, in the words of “one GM executive who used to work in China,” GM would need

good luck getting that back.

But, back in June, GM CEO Dan Akerson told GM’s shareholder meeting that he wants to do just that, saying

We have an option to buy that 1 percent. It’s our intention to exercise that.

With Akerson’s announcement, the mystery of GM’s “golden share” sale deepened. At first the question was simply “why would GM sell its 1%?” but now there’s another mystery: why would GM want it back? After some digging, it seems that we are now able to resolve the first mystery, and report why GM sold its one percent. But the whole deal is still surrounded by several layers of mystery which conceal whether GM will in fact be able to regain its 50-50 partnership in SGM, why it would want to and whether its gambit was ultimately worthwhile. And given how important China has been (and continues to be) to GM’s global business, this is definitely an issue that GM- and industry-watchers will want to better understand.

(Read More…)

Our buddy Mark Whinton from Carquestions, who always manages to find the obscure problems with today’s complex automobiles, wonders: why can’t the new Jeep Grand Cherokee tell if it’s battery isn’t being charged? As he points out, this omission could leave drivers stranded if their accessory belt were to break, without ever warning them of the problem. Is Mark nit-picking? Possibly, but in this business, one lesson gets learned again and again: you gotta sweat the details. In light of Mark’s research we’re as curious as he is: did Chrysler simply overlook this, or is this a case of conscious decontenting? Over to you, ChryCo…

With Hyundai’s eye-catching “fluidic sculpture” design language working its way through the lineup, the Hyundai Elantra Touring was starting to look like the sensible but homely middle child of the family… according to my guide to codger-friendly pop culture references, the Elantra Touring had become something of the family “Jan Brady” (whatever that may have been). But as Michael Karesh found in his recent review, the Touring model, which is sold in Europe as the i30, is something of a hidden gem, as

no other car offers a similar combination of crossover functionality and hot hatch driving enjoyment.

And now that it’s joining the family at the fluidic sculpture salon, the new Elantra Touring brings some style to the table as well. Look for the new model to debut at the forthcoming Frankfurt show, and hope along with us that it’s new-found good looks don’t change its fun-meets-function personality.

The source of today’s Quote Of The Day, a BMW M Division engineer, is clearly not a native English speaker, but he reveals just where performance cars like the new M5 are going when he says:

More and more demand is from our test engineers from the referring(?) departments and they come over and 80%, 90% are only working on the electronic systems. The other 10, 20 percent are working at the car, under the car….

Of course, the M engineers aren’t developing a car from the ground up here, but it’s still amazing that the workload is so unevenly weighted towards electronic rather than, for lack of a better term, “greasy hands” work.

Carnewschina.com presents our first look at… no, that’s not a Jetta, it’s a stretched Polo sedan. What, you had a hard time telling the difference? That’s China for you...

When news hit late last week that one of Google’s driverless cars had been involved in a minor fender-bender, the anti-autonomous driver argument made itself. “This is precisely why we’re worried about self-driving cars,” howled Jalopnik.”Google’s self-driving car seems like the ultimate distracted driving machine.” But on the very same day, Google claimed that

One of our goals is to prevent fender-benders like this one, which occurred while a person was manually driving the car [emphasis added]

Before you know it, the other side of the debate, as epitomized by Popular Science flipped the argument, insisting that

this incident is yet another example — as if we need one — of the human capacity for error. Hopefully when cars do take over, they’ll be able to prevent these types of incidents on their own.

So yeah, there’s a pretty wide range of opinions on the issue. And with Nevada’s legalization of driverless cars, it’s only a matter of time before something happens that busts the debate wide open again. So, how do you feel about our new robot overlords? I, for one, could live with the technology for freeway/expressway use… but not without drawing some kind of clear lines around legal liability. Off-freeway? No thanks. Too few benefits from packing traffic tighter and too many other variables in traffic. What say you?

With GM’s share price currently hovering below $25, well under its $33 IPO price, The General is holding its second annual Global Business Conference in hopes of encouraging investors the world over to buy into its turnaround. A webcast is currently streaming over at the GM Investor Relations website, but the key points are available in slides available in PDF here. The presentation involves nearly every level of GM’s business, so listening in and reading the entire PDF is going to be the best way to make sense of what GM is trying to communicate… but if you just want an overview, check out the gallery below for a few hand-picked slides, illustrating some of the more important points.

Honda, long a fixture in the upper reaches of rolling YTD sales charts, has been well and properly knocked off its pedestal by now, with its best-seller, the Accord, just barely making it into the top ten at number nine. Civic came in at 11th, while CR-V was 14th. And Honda’s not the only long-reigning volume champ that’son its way down: compared to last year, Toyota’s Corolla and Camry have shed about eight percent of their volume, and right below them the Altima and Fusion are both growing at around 17.5%. By the end of this month, Toyota could easily have only one vehicle in the top five (and could even be knocked out altogether), Honda could be completely out of the top ten, and Ford, Chevy and Nissan could be dominating the upper reaches of our YTD chart. Ch-ch-ch-changes…

[UPDATE: Old Codger-friendly version in gallery below]

By late 2012, BMW will be showing the world a facelifted version of its current 7-Series flagship, in hopes of extending its new dominance in the luxury thermonuclear wars. But, with Mercedes determined to retake the throne, it’s developing an all-new S-Class, to debut in early 2013. Known as the 222, this new S-Class will reportedly be styled with an eye towards the 2007 F700 concept, and will debut in Detroit rather than Beijing, where the updated 7er will launch. For now though, it’s rolling around in heavily-camouflaged mule form, practicing the fine art of luxury before going into battle with the Bavarians. With all the hopes of the Mercedes brand on its back, this next-generation luxury warrior has a lot to live up to.

About a minute into this clip, the auto industry’s most ubiquitous reporter John McElroy reveals that he’s seen three future Lincoln concepts and insists that they

definitely signal that a big change is coming.

What he doesn’t say: what they look like or what the “big change” is… which is enough to make any inveterate skeptic wonder whether McElroy is shooting straight or if saying what he did was a condition of being shown the “future products.” What McElroy does reveal is that Lincoln now has

its own unique design studio located within Ford’s product development center in Dearborn Michigan, with its own unique design team. That has not been done in modern times.

Unfortunately, as Cadillac’s recent history proves, new design is just part of the successful luxury brand equation. Unique platforms are another. Strong marketing is another. Lincoln may be taking the first steps in the right direction, but it’s got a long, long way to go…

Welcome back to ongoing coverage of the latest transcontinental tale of romance and betrayal, in which Volkswagen and Suzuki’s young-but-troubled relationship is put to the test while the world watches. Last time we checked in, a piece of pricey gossip suggested what the rumors had been saying for weeks: VW and Suzuki were headed for Splitsville. But despite the angry blogging outbursts and talk of “reviewing the relationship,” Volkswagen is standing by its Japanese bride, telling Automotive News Europe [sub] that the latest gossip that the “relationship is headed for dissolution” is “nonsense.” Suzuki joined the show of support, saying it had no plans to leave. But all the while, an Italian temptress is putting even more pressure on this relationship, as Bertel reported last month: (Read More…)