Caption: Lada Priora

According to an Associate Press report in The Detroit News, OAO AvtoVAZ, the maker of Lada vehicles, has shut down its production facilities.

Company spokesperson Natalya Sidoruk told AP that the company made the move because of a parts shortage. The reason for the shortage is of some concern.

Apparently suppliers are withholding shipments because they will no longer accept the promissory notes AvtoVAZ has been using. Instead suppliers want to be paid in cold hard cash.

Suppliers are worried about the car makers’ liquidity, as the company’s current debt sits at 18 billion roubles, or $516 million. AvtoVAZ president Boris Alyoshin has however stated that up until the production stoppage the company was in the black.

Still, AvtoVAZ is suffering just like every other automaker in the world with just 29,000 cars sold in January, down from 50,000 to 60,000 in the same period the year before.

Credit problems are not expected to cripple the company for long, however, as industry analysts believe the Russian government will help out. The government has already assisted the Russian auto sector by imposing significant trade restrictions on foreign automakers, increasing duties on vehicles coming into the country.

[Source: The Detroit News]

Legendary Italian supercar-maker Pagani first showed us its track version of the Zonda at the Vienna Auto Show in January and now they have released full specifications and plenty of photos. Called the Zonda R, this track-only machine weighs just 2,359 lbs and makes 750hp!

Weight is kept to a bare minimum through the use of a carbon fiber body (as with all Zonda models), which sits over top of a new carbon-titanium composite monocoque. Cromoly parts are used for the front and rear suspension and all pieces are held together through the use of titanium bolts.

The engine is the same 6.0-liter V12 AMG powerplant that is the motivation behind all of Pagani’s model, except output has been increased to the 750 mark at 7500 rpm. Torque is rated at 524 ft-lbs at 5700 rpm. This is enough, says Pagani, to rocket the Zonda R to 60 mph in just 2.7 seconds.

Getting all that power to the ground is made possible thanks to an ultra-light magnesium Xtrac gearbox, operated by paddle shifters. Gear changes fly by in just 20 milliseconds. To put that in perspective, the current fastest gearbox in a street car is found int he Ferrari F430 Scuderia, which changes gears in 60 ms.

Making the car a true track machine is the fully adjustable suspension, as well as adjustable aerodynamics. Pagani says the Zonda R can be set up to produce as much as 3,307 lbs of downforce – which is, theoretically, enough to to allow the Zonda R to drive upside down and still stick to a surface.

Alternatively, the car can be adapted for high speed, with a top speed rating of 217 mph.

As this is a dedicated track machine, the Zonda R comes equipped with a roll cage and an FIA homolgated racing seats with five-point safety belts.

Other state-of-the-art items include Brembo carbon-ceramic brakes and an inconel exhaust – the same sort of exhaust used of Formula 1 cars.

The Pagani Zonda R will be produced in a limited number with Horacio Pagani signing each vehicle. The cost of ownership is extraordinary, with an MSRP of 1,460,000 Euros or roughly $1.9 million.

Pagani Zonda R:

Official release after the jump:

Continue Reading…

Thanks to a new low emissions diesel engine, BMW models equipped with the twin-turbo 3.0-liter diesel inline-six motor will qualify for a tax credit, valued at up to $1,800.

The Advanced Lean Burn Technology Motor Vehicle Tax Credit has just been confirmed by the IRS, and is awarded to vehicles that burn significantly less fuel and produce less greenhouse gas emissions. The credit applies to the new 335d and X5 xDrive35d models and is valued at $900 and $1,800 respectively.

“Qualification for these tax credits is further recognition of the remarkable efficiency of our new BMW Advanced Diesel models,” said Jim O’Donnell, President of BMW of North America, LLC.

The 335d and X5 xDrive35d share BMW’s high-performance, BluePerformance twin-turbo 3.0-liter inline-six diesel motor that makes 265hp and 425 ft-lbs of torque. Thanks to all that power the 335d can hit 60 mph in just 6.0-seconds and the X5 xDrive35d will do the same sprint in just 6.9-seconds.

Despite the performance figures the 335d gets a modest 23 mpg in the city and an incredible 36 mpg on the highway! The diesel X5 is slightly less impressive (although still great for an SUV) with a city/highway rating of 19/26 mpg.

See the AutoGuide complete reviews of the 335d and X5 xDrive35d here:

BMW 335d

BMW X5 xDrive35d

Official release after the jump:

Continue Reading…

News has just emerged that Mitsubishi will not be producing a Lancer EVO X for the 2009 model year. Meanwhile, VW has made a similar move stating that the Golf R32 model will also be put on hold until 2010.

The good news is that if you still want to buy one of these high-performance models you still can, but if it’s the R32 you’re after you had better act fast.

Due to a surplus of inventory the 2008 EVO X will continue to be offered throughout 2009 as an ’09 model. Company spokesperson Christine Jew said no major production changes were planned and that the 2010 model is not in danger. Sales of the 2008 EVO X were up 50.9 percent – not surprisingly considering ’08 was the first model year for all-new the car.

As for the R32, a company spokesperson has said that VW is down to it’s last few 100 models, so if you want one, now is the time to buy. The R32 did not fare so well in the sales department with just 35 vehicles being sold in the U.S. in January, as compared to 336 in the same period the year before.

[Sources: Top Speed, Edmunds InsideLine]

After we reported on a story from Foliomag stating that the Anderson and Source Interlink (Motor Trend‘s parent company) distribution companies were exiting the magazine distribution business, both companies are vehemently denying the rumor and Source is even vowing legal action.

The complex situation came about after Source and Anderson asked for an additional 7 cent per issue distribution cost from publishing houses they distribute for, claiming that if the 7 cent fee was not agreed upon by the publishers that the two distribution companies, which handle 50 percent of all magazine distribution in the United States, would cease distributing as without the 7 cent increase profitability would diminish or cease altogether.

According to Mediaweek, Time Inc. and Bauer Publishing (which publish magazines like People, Sports Illustrated, Time, and National Enquirer) balked at the threat and have stopped delivering magazines to both Source and Anderson. Comag Marketing Group, which delivers for Hearst, Conde Nast, Wenner Media, as well as others has, however continued to ship magazines.

The story recently got a whole lot more interesting when Source Interlink CEO wrote a letter to retailers, in which he stated that Source would pursue legal action, reports Billboard. Billboard obtained a copy of the letter in which Source Interlink chairman and CEO Greg Mays writes that the company will take legal action against, “an unprecedented and unprovoked assault on this channel by certain publishers and a national distributor… “They are trying to lock out competition in the magazine distribution chain to the retailer’s detriment. To accomplish this scheme, this group has spread false rumors about Source and attempted to undermine us in the community.”

Presumably, the “certain publishers” are competing publishing houses Time Inc. and Bauer and the “national distributor” is either Curtis or Comag.

Source also alleges that rumors about the company’s liquidity problems are unfounded that that the company has available funds to the tune of $200 million. Source also recently paid down its magazines accounts payable by $100. Still, it’s no secret that the distribution side of the business is hurting with Source recently laying off 462 workers at it’s Coral Springs, FL, distribution center, according to a report in the Miami Herald.

The publishing side of the business (including Motor Trend, Automobile and dozens of other titles), which Source purchased from Primedia for $1.2 billion has also been a financial drain on the company and our sources inside Source say that recent layoffs and magazine closures (including Sport Compact Car and Modified Luxury & Exotics) were necessary to free up funds so that Source could meets its financial covenant.

[Sources: MediaBuyPlanner, MediaWeek, Billboard, Miami Herald]

According to a report by Edmunds InsideLine, Nissan will move production of the 2010 Quest and Titan, as well as the Infiniti QX56, outside the United States – a move that is sparking rumors that several Nissan models might be on the chopping block.

The Quest minivan and QX56 luxury SUV will be moved to Japan and production of the 2010 Nissan Titan pickup truck will be moved to a Chrysler production facility in Mexico. Currently all three models are manufactured at Nissan’s Canton, Mississippi plant.

Nissan spokesman Darryll Harrison said that the move is being made in order to create room for several new commercial platforms that will begin production at the Canton plant.

The move by Nissan has increased speculation about the future of all three platforms as well as Nissan’s Armada model. Motor Authority recently uncovered that the Armada (the sibling to the QX56) continues to be absent from the Japanese automakers future production list, a move that certainly hints that the model may be discontinued altogether.

[Source: Edmunds InsideLine and Motor Authority]

Nick Hogan, the son of Hulk Hogan, is back on the road despite a stipulation in his original plea bargain that said he would be banned from driving for three years. Nick was convicted of felony reckless driving with seriously bodily injury after crashing his father’s modified Toyota Supra and seriously injuring his friend John Graziano in August of 2007.

The deal also stipulated that Nick would lose his license and not be permitted to drive for another three years, however, a judge has just granted him a license that would let him drive only to and from work.

“The business-purpose-only license allows Bollea [Hogan's birth name] to drive to and from work, which his attorneys battled for after his license was revoked for three years,” said a report by ABC News.

[Source: Edmunds InsideLine]

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We recently reported that Mazda would officially unveil a new version of the Mazdaspeed3 at the 2009 Geneva Auto Show in March. First Mazda teased us with some pictures of the hot hatch and now we have this video.

We’ll be sure to bring you full details on the car from the Geneva Auto Show floor on  March 3rd.

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Just last week Porsche let out a solid list of details on the new 429hp 2010 GT3 and now the German automaker has released a video of the track-ready street car wildly lapping a circuit.

Behind the wheel is world-famous driver Walther Röhrl, and he appears to be enjoying himself.

The 2010 GT3 gets its additional horsepower thanks to a larger 3.8-liter boxer engine. It is also more-trackable than ever before thanks to improved aerodynamics, an even stiffer suspension and even larger and lighter brakes.

2010 Porsche GT3:

Official release after the jump:

Continue Reading…

General Motors is now offering a dealer-installed performance upgrade for the Pontiac Solstice GXP, Saturn Sky Redline and Chevy HHR SS, that will give the cars almost 300hp and more than 300 ft-lbs of torque.

All three vehicles share the turbocharged 2.0-liter direct-injection four-cylinder engine that makes 260hp and 260 ft-lbs of torque. Thanks to the new GM Performance package for the cars, power will increase to 290hp and torque will hit 340 ft-lbs on manual transmission versions of the Solstice and Sky. Automatic version will get slightly less, at 325 ft-lbs and the HHR SS will get 315 ft-lbs.

The kit consists of an ECU reflash and a new manifold air-ressure sensor. And at just $650 its a serious bargain.

A similar package for the Cobalt SS is expected soon.

[Source: Car and Driver]