Due to a predicted decrease in output at General Motors for 2009, it is expected that the U.S. automaker will be surpassed by German rival Volkswagen AG by the end of this year.

The news comes from industry market research firm R.L. Polk Germany and is based on overall production numbers. Polk envisions an annual decline in production for General Motors to be approximately 31 percent, as compared to a decline of just 15 percent to Volkswagen, which won’t take as hard a hit due mostly to it’s limited involvement in the U.S. market.

If Polk’s estimates are correct then GM will slip to third position overall with Volkswagen taking up the second-place spot behind Toyota. The General appears to be standing on a slippery slope, as up until this year it laid claim to being the world’s largest automaker for 77 straight years. Then in January came the news that Toyota had out-produced GM with 8.97 million vehicles compared to 8.36 for GM.

[Source: AutomotiveNews]

Looking for a real piece of American automotive history? Sure, you could saunter down to the Barrett-Jackson auction in Palm Beach, Fla. this weekend and bid on a classic Corvette that speaks to all that General Motors once was, or… you could bid on a vehicle that was made just last year and is one of the greatest products to ever roll off a GM assembly line.

Yup, a Cadillac CTS-V.

Wait… not “a” CTS-V, but “the” CTS-V; the very car that John Heinricy piloted around the Nürburgring to a record-setting 7:59 lap time. With a 556hp supercharged 6.2-liter V8, this all-American sedan trounced its German competitors (the BMW M5 and Mercedes-Benz E63) in their native land.

Oh, and like any great American car, it knows how to hustle in a straight line with a 3.9 second 0-60 mph time.

See our review of the CTS-V here:

2009 Cadillac CTS-V First Drive

GALLERY: 2009 Cadillac CTS-V

[Source: Barrett-Jackson]

General Motors is heading back to the block. No, not the chopping block (not yet)… the auction block. In an effort to trim costs and create a little petty cash, the struggling automaker will send 100 vehicles to the Barrett-Jackson auction in Palm Beach, Fla., which starts this Thursday and runs through the weekend.

In January GM parted with 230 vehicles though Barrett-Jackson, including some truly terrible automotive catastrophes.

Included on that list was a highly modified 2003 Chevy Aveo Xtreme in bright green, a 1989 Geo Metro Zonker, a 1986 Presidential Limo from the film The American President staring Michael Douglas and a 1998 Popemobile that was never used by the Pope.

The new lineup of cars promises to be more compelling and includes a 1920 Chevrolet Model T truck, a 1999 Camaro Z/28 from the movie “Runaway Bride,” and one of four 1978 Corvette Indy 500 pace cars.

“Every little bit counts. It costs a lot to house that many vehicles,” Greg Wallace, manager of GM’s Heritage Center “corporate” museum told the LA Times.

Car collectors will do doubt jump at the opportunity to buy a piece of GM’s history but we’d advise them not to spend all their cash at once. When GM opened the Heritage Center in 2004, they filled it with 350 of the most important vehicle’s in the company’s long history. This, however, left a lot of other vehicles standing idly by (pun intended).

Of the remainder, roughly 450 have been earmarked for auction, so if you take away the 230 that already sold and the 100 from this weekend’s Barrett-Jackson event, there are still 120 models left.

[Source: LATimes]

General Motors will be putting the focus on its GMC brand at the New York Auto Show, with the launch of the Yukon Denali Hybrid  – as well as the new 2010 Terrain.

Using GM’s two-mode hybrid system the “green” Yukon Denali boasts city fuel-economy that has been improved by more than 50 percent. Unfortunately in a vehicle as massive as this (with a 6.0-liter V8 engine) the result is just 21 mpg.

Wait a minute.. that is pretty good.

“The eight-passenger GMC Yukon Denali Hybrid goes just as far on a gallon of gas in the city as a much smaller, V-6 Toyota Camry sedan,” said Susan Docherty, vice president of Buick-Pontiac-GMC. “And in terms of fuel savings, the GMC Yukon Denali saves about 250 gallons of fuel a year over the Lexus GX 470.

Actually, the news is even better than that. If you check out Toyota’s website, it lists the automatic V6 Camry at 23 mpg city and the 4-cyl automatic at 21 mpg city.

GM’s hybrid system not only reduces the need for gasoline in the city, it provides regenerative braking and powers both the electric power steering system and the air conditioning compressor.

Unfortunately, where fuel-economy doesn’t show much improvement is on the highway, with a rating of 22 mpg.

Then again, the Yukon Denali Hybrid does make 332hp and 367 ft-lbs of torque, can tow  5,800 lbs and can seat 8 in perfect luxury. Standard features include 12-way power, heated and cooled leather front seats with leather for the first and second rows.

It will cost you, however, two-wheel drive models start at $59,185, with 4WD models at $62,030. That price does include a freight charge of $950 and there is a tax credit of $2,200 available.

The Yukon Denali Hybrid goes on sale in may and joins the Yukon Hybrid and Sierra Hybrid Pickup, all of which come with an eight-year 100,0000 mile hybrid powertrain warranty.

GALLERY: Yukon Denali Hybrid

More on the 2010 GMC Yukon Denali Hybrid after the jump:

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Ford Motor Company has announced huge strides in its efforts to become economically viable. And whether through magic or some sort of wacky accounting that involves proper management of finances, it has done this without federal government aid (aka your tax dollars).

Today Ford announced that is has reduced its $25.9 billion debt by more than a third with a payment of $9.9 billion. The payment was made in 2.4 billion in cash as well as 468 million shares of Ford Common stock.

Reducing the company’s debt so significantly puts FoMoCo in a much-improved financial situation moving forward. This one-time payment will reduce Ford’s annual interest payments by $500 million.

“By substantially reducing our debt, Ford is taking another step toward creating an exciting, viable enterprise,” said Ford President and CEO Alan Mulally. “As with our recent agreements with the UAW, Ford continues to lead the industry in taking the decisive actions necessary to weather the current downturn and deliver long-term profitable growth.”

Official release after the jump:

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It has long since been rumored that BMW would use the New York Auto Show to drop a bomb on the crossover market with an M-powered version of the X6 CUV, but the luxury German automaker has more in store than just that.

Set to debut alongside its 555hp X6 M brother, the equally-powerful X5 M will come equipped with the same twin-turbo direct-injection 4.4-liter V8 engine. Not only does this new M engine outdo the old V10 in terms of horsepower, it drags it out back and beats it with 500 ft-lbs of torque at just 1500. Better yet, that torque stays constant until 5650 rpm.

BMW says it has all but eliminated pesky turbo-lag through a new invention it calls CCM (which stands for Cylinder-bank Comprehensive Manifold). This new manifold is a one-piece unit and has been designed with every cylinder working together to minimize “charge cycles.”

Both X5 and X6 M cars will feature BMW’s M Sports Automatic transmission, which BMW claims is much faster than previous unit – although no shift times are available. Gear changes can be made by using the automatic stick shift, the paddle shifters on the steering wheel or automatically in the default setting.

Both models will continue to use BMW’s xDrive all-wheel-drive system, making them the first AWD M models. Also standard is the Dynamic Performance Control system that first made its debut on the X6. It allows for power to not only be distributed between the front and rear wheels, but between the left and right rear wheels.

As a result of all this power and grip both the X5 and X6 M can hit 60 mph in just 4.5 seconds.

That speedy sprint is achieved in the Power mode (and likely with the Launch Control.. but we’ll get to that later), which can be activated by hitting the M button on the steering wheel. The M button can not only activate this “Sport” program for the engine and transmission, but also an “Efficiency” program, allowing for earlier upshifts and improved fuel-economy.

In terms of the look of the SUVs, both stay mostly similar up front but feature special front fenders and a distinctive rear diffuser with quad tailpipes. A set of 20-inch wheels is also standard with 275/40/20 front tires and massive 315/35/20 rear tires.

As braking is always an important part of every M-car, and these bruisers no doubt weigh triple what some of the original Ms did, both SUVs get four-piston calipers with 15.6-inch front rotors and 15.2-inch rear rotors.

As promised, one last tid-bit of technology that is sure to make these M monsters fun is Launch Control. Here’s how it works:

To activate Launch Control, the driver stops the vehicle, moves the gear selector into the M/S position and activates the Sports Power mode, as well as the M Dynamic mode, or respectively, the DSC-Off mode. Then, with the transmission in stage M1, the driver presses down the brake pedal and moves the accelerator to at least 60% throttle, setting Launch Control to standby. Standby status is confirmed by “starter’s flag” symbol in the instrument cluster. As soon as the driver releases the brake pedal, the vehicle will accelerate with full power in “genuine racing style.” In the process, the M Sports Automatic transmission automatically upshifts at the ideal points, with the fastest possible shifts and optimum wheelspin control. The driver may terminate the Launch Control process at any time by reducing the throttle position.

GALLERY: BMW X6 M

GALLERY: BMW X5 M

More on the BMW X6 M and X5 M  after the jump:

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On Friday we brought you news that the 2010 Chevy Equinox will be priced at $1,800 less than the previous model and today we can tell you the Equinox’s sister SUV, the GMC Terrain, is set to launch at the New York Auto Show. There is no official word on pricing but you can expect the almost $2,000 in savings to be carried over to this model as well.

Much like the Chevy model, the Terrain will come with two engine options, a standard Ecotec four-cylinder and an optional V6 powerplant. Thanks to direct-injection technology, the 2.4-liter Ecotec engine is capable of powering the Terrain with 182hp and 174 ft-lbs of torque – but don’t expect stellar acceleration.

For more power, the optional V6 is a 3.0-liter unit that also receives direct-injection for a total output of 254hp and 222 ft-lbs of torque.

Both engines come with a six-speed automatic transmission for optimum fuel efficiency. Models equipped with the V6 engine are expected to get 25 mpg on the highway and 18 in the city, while four-cylinder models should achieve an impressive 30 highway mpg with a rating of 21 in the city.

These ratings are also for FWD models only, with AWD models achieving 17/24 mpg and 20/27mpg respectively.

To help the Ecotec hit that impressive 30 highway mpg rating, GM has equipped 4-cyl models with an “ECO” mode that is activated through a button on the dash. The “ECO” model will ensure the torque converter lockup speed is reduced to 1125 rpm keeping the vehicle in the highest possible gear.

While it may share much of its underpinnings with the Equinox, the Terrain has its own unique exterior, with a bold, elegant (and very masculine) new design. Helping to project that image is a big three-segment GMC grille surrounded in chrome. And while all that chrome is very truck-like it also helps this crossover exude luxury, as do the optional 19-inch wheels (with 17- or 18-inch wheels standard depending on trim model).

“We wanted to carve the GMC Terrain away from the pack and establish its identity as a powerful, fresh crossover SUV with a confident and strong stance,” said John Cafaro Jr., director of exterior design for Global Crossover Vehicles at GM. “Everything about the Terrain communicates a sense of tailored toughness and passionate craftsmanship.”

The 2010 Terrain also comes equipped with plenty of luxury amenities, with a back-up camera, OnStar and XM Satellite Radio standard. Other optional features include a power rear liftgate, Bluetooth capability, remote vehicle start, a seven-inch touch screen navigation system and a two-screen rear DVD entertainment system.

Back seat passengers will also enjoy the standard “MultiFlex” rear seat that can move up to 8-inches, providing either optimal cargo room, passenger room or a healthy balance of both

“The new Terrain brings GMC’s history of innovation and engineering excellence into a smaller, fuel-efficient package for today’s buyer,” said Susan Docherty, Buick-Pontiac-GMC vice president. “The capability attributes that make a vehicle a GMC are ingrained in Terrain, making it an appealing choice for existing traditional SUV customers who are looking for distinctive styling and increased efficiency.”

“GMC is a strong, core brand for GM and the Terrain crossover SUV is the latest example of how we’re adapting to changing market conditions,” said Docherty. “As we first demonstrated with the Acadia crossover, GMC is committed to offering the capable vehicles customers seek, with the personal technologies they expect.”

The 2010 GMC Terrain will be offered in SLT and SLE models in both FWD and AWD and will be available late this summer.

GALLERY: 2010 GMC Terrain

Official release after the jump:

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Suzuki doesn’t have a new vehicle for the New York Auto Show, but it’s resurrecting some SEMA Show cars that are so old old we had forgotten all about them and thought the company’s press release was about some new tricked out versions of the SX4.

But how can you forget a name like Zuk?

That’s right, the Suzuki-sportbike inspired Zuk has been dusted off and polished up for the Big Apple, this after it made it’s initial debut in Sin City back at the SEMA Show in 2006. The Zuk is based off the SX4 Crossover and features a Road Race Motorsports turbo kit, bolted to the factory 2.0-liter engine to make 300hp.

The car also features a complete aerodynamic overhaul, some big fart cans, a sizable rear spoiler and some 19-inch wheels. It reminds us of a more nostalgic time and makes us long for a copy of Modified Mag and Paul Walker on the big screen (the more things change, the more they stay the same…).

The exterior bodywork and paint is inspired from Suzuki’s GSX-R and Hayabusa sport bikes, while inside the motorcycle theme continues with a roll-cage that has a definite motorcycle-frame look to it.

The second SX4 is the SXForce, based on the SX4 Sport sedan version of the popular Suzuki model, and it first debuted at the SEMA Show in 2007. With 250hp and a carbon fiber body, the SXForce looks like it’s ready for track duty, and Suzuki claims it has been “track tested.”

It features Tein coilovers, a roll-cage, 18-inch Enkei wheels with 255/45/18 Toyo T1-R tires up front and 235/40/18s in the rear. It also features a Rotora six-piston calipers with 355mm rotors.

The sportbike theme continues on the SXForce with a motorcycle instrument cluster and controls, as well as Hayabusa handlebars instead of a traditional steering wheel.

Be sure to check out our coverage of the New York Auto Show starting Wednesday, April 8th.

GALLERY: Suzuki Zuk

GALLERY: Suzuki SX Force

More on these models as well as other past Suzuki SEMA Show cars after the jump:

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Suzuki is getting the word out that it plans to launch a mid-sized sedan by the end of this year. The new vehicle is aimed at the ultra-competitive family sedan segment, which includes the Honda Accord, Toyota Camry, Ford Fusion and Chevy Malibu.

Suzuki recently released one teaser image of the car as it tacked the Nürburgring.

Even with the body camo on, the car bears a striking resemblance to the Kizashi concept car, which is expected to inspire the styling of this yet unnamed sedan.

Suzuki PR boss Jeff Holland says the new vehicle will go on sale in December but did not comment on if other body styles will be released. The Kizashi concept, after all, has been shown as a sedan, wagon and crossover.

The new vehicle is expected to come with a standard four-cylinder engine with an optional V6 and the potential for all-wheel drive.

GALLERY: Suzuki Kizashi Concept

[Source: AutoWeek]

Steve Saleen to the rescue!

That’s right, Steve Saleen, the former owner of Mustang-tuner and manufacturer Saleen Inc. has announced that his new company SMS Supercars will honor the warranty on any Saleen product purchased before February 2nd, 2009. Now that’s standing behind your product!

“The ones who have been left out in the cold are the loyal customers of Saleen products,” said Steve Saleen in a statement. “While my new company, SMS Supercars, has no legal or moral obligation to take up any of the warranty claims against Saleen Inc. or MJ Acquisitions, Inc., I would like to make a bold statement on the right way to treat customers.”

The news comes roughly a month after Saleen Inc.’s new owner, MJ Acquisitions, announced that it would not support the warranties on Saleen vehicles and parts sold before the Feb. 2nd date.

We predicted in that story that the new Saleen Inc., wouldn’t be long for this world and that prophesy seems to be playing out. First MJ Acquisitions scared off all it’s customers (and infuriated the Mustang community) and now Steve Saleen has made a move that will likely see all current Saleen product owners driving their American muscle straight into his open arms.

[Source: AutoWeek]