As we reported last week, General Motors has indeed made the decision to kill the Pontiac brand. The news comes as a part of a new viability plan (yes… another one) submitted to the federal government today.

The new plan will see Pontiac eliminated by the end of 2010, but that’s not all… not by a long shot. Also included in the new proposal is a long list of drastic and sweeping changes that General Motors says are much needed in order to stay in business. Among the list of big changes is the fast-track dissolution of Saturn. Originally scheduled to be dismantled by the end of 2010, the plan now states that the niche brand will be eliminated by the end of this year.

Also on the chopping block are half of all current U.S. General Motors dealerships. Not surprisingly, GM’s previous viability plan wasn’t pessimistic enough, calling for 34 percent of the current 6,246 dealerships to close. That number is now a solid 50 percent.

Other major cuts include the closing of three plants and the loss of 7,000 more hourly workers. This would put the number of hourly workers at 40,000 – 7,000 less than the last viability plan said there would be and 21,000 less than there were in 2008.

In total GM will cut 14 models from its lineup, with just 34 different vehicles being offered in 2010.

Most importantly, however, is that General Motors will offer current debt holders stock in order to reduce the company’s debt. But if too few debt holders cash in, then GM will go bankrupt. And that is looking quite likely as GM says it needs approximately 90 percent of its unsecured debt covered or else it believe the U.S. Treasury will not see the company as viable.

General Motors still faces the likelihood of filing for Chapter 11 but in the mean time it will run with its new viability plan and concentrate on its core brands: Chevy, Buick, Cadillac and GMC. With just over a month to go before the Obama Administration’s June 1st deadline, however, nothing is really certain. Maybe there will be another viability plan? Maybe more will be cut…

[Source: Automotive News]

Over the past two days there has been a constant stream of info coming from Audi about all sorts of changes in the product lineup for 2010. And here’s another one… the S8 is dead.

That’s right, the Lamborghini V-10-powered testosterone version of the A8 is destined for the history books after 2009. In the S8 the 5.2-liter engine was toned-down significantly from the Lambo, making less power but more torque for better every-day use. In total, output in the S8 is rated at 450hp and 398 ft-lbs of torque.

Another power-house Audi is also scheduled for termination, the W12-powered A8 model. Apparently Audi only sold about 100 off them last year in the United States, so it’s not likely to be missed.

Audi hasn’t commented on the reason for the changes but considering the extremely low sales volumes of these models it isn’t hard to guess that keeping production going was just wasting money and that the company is searching for ways to keep the books balanced and profits up.

The A8 is do for a (badly needed) complete overhaul in the next few years.

In related Audi news, yesterday the company announced that the 3.2-liter V6 engine would no longer be offered in the A4, TT or A3.

And on a positive note (especially for ballers-on-a-budget), Audi also said that the A5 would be offered with the 2.0 TFSI engine for 2010.

[Source: Edmunds]

Porsche has announced that its new and improved GT3 ran an impressive 7:40 second lap around the Nürburgring. A company spokesman also didn’t miss out on the opportunity to reiterate Porsche’s stance that Nissan fudged the GT-R’s lap times.

Andreas Preuninger, the head of High Performance Cars at Porsche, said that the time was technically unofficial (as there was no third party to verify the time) and that the lap was run with other vehicles on the track.

The driver was ‘Ring ace Walter Rohrl, who set a 7:42 second time in the previous GT3 for a test by Sport Auto Magazine. Preuninger did say that had Rohrl been going full-out he would likely have shaved two seconds off that time.

Even at a 7:38, however, the GT3 times still rate well-off the pace of Nissan’s GT-R, prompting Preuninger to once again state that Porsche believes Nissan isn’t being truthful with either its numbers or its car. Porsche cites the 7:54 lap time they managed with a GT-R as being very far off the 7:29 time Nissan claimed. Nissan has since, however, improved upon that time with a 7:27 run.

[Source: MotorTrend]

Chevrolet has decided to bring back the Corvette Grand Sport for 2010 and thanks to a long list of track-ready features, it certainly lives up to the historic name.

The Grand sport replaces the Z51 model and offers performance closer in line to the Z06, thanks to a revised suspension, wider tires, bigger brakes, shorter gear ratios and a few other toys as well.

Suspension upgrades include new spring, shock and stabilizer bar specifications, helping the Grand Sport to achieve 1.0 g under cornering. Also helping out in that department are some 18-inch front and and 19-inch rear wheels with 275/35/18 front and massive 325/30/19 rear tires.

Inside those wheels is a big surprise as well, with a serious brake kit that includes six-piston front calipers with 14-inch rotors and four-piston rear calipers with 13.4-inch rotors.

Power comes in the form of an LS3 V8 with 430hp and 424 ft-lbs of torque. An optional exhaust system will up those numbers slightly to 436 and 428. The Grand Sport will be offered as a six-speed manual or automatic and thanks to new gear ratios for the manual and a new rear axle ratio for the automatic, Chevy says the Grand Sport will shave 0.2 seconds off the 60 mph sprint of a standard LS3 Vette.

Automatic models will come with paddle shifters, but for those who want to take their car out on the track, the manual is the only option… thanks to a few added goodies. Six-speed stick-shift models will get a dry-sump oiling system, a differential cooler and a rear-mounted battery for better weight distribution.

As for the exterior, the Grand Sport is distinguishable by wider front and rear fenders, as well as a large rear spoiler and Z06-style front splitter. And for those who want that extra-special look, a Heritage Package will be available in one of four colors with “hash-marks” on the front fenders, two -tone seats and Grand Sport embroidery.

The 2010 Grand Sport will be available as both a Coupe and Convertible.

More on the Corvette Grand Sport after the jump:

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As the saying goes, “It’s all over but the crying.” Edmunds is reporting that its source inside General Motors has let slip that the Pontiac brand will officially be eliminated. The announcement is expected to be made next Monday as a part of a more thorough reorganization of the struggling automaker.

General Motors PR rep Tom Wilkinson told Edmunds that he could not share any information but that media should keep an eye on the company’s news website for updates.

Rumors have circulate since the initial stages of GM’s viability plan that both Pontiac and GMC would be cut and it looks like the Pontiac rumors may finally be true – despite GM’s continued insistence that the brand is safe.

Pontiac is well-known as the most exciting of GM’s brands with cars like the GTO, Firebird, Grand Prix (GTP) and now the G8 achieving iconic status.

The loss of the brand might be a necessary evil for General Motors but it could also come back to haunt them if another manufacturer purchased the name.

[Source: Edmunds.com]

We reported earlier today that Audi has cut the 3.2-liter V6 engine from much of its lineup and now it seems the company is expanding the use of the impressive 2.0 TFSI engine.

Starting this summer Audi will offer the A5 with the turbocharged 2.0-liter four-cylinder powerplant. Output will be rated at 211hp and 258 ft-lbs of torque. This should give the car a 0-60 time of roughly seven seconds.

News of the product change comes via Autoblog and Audi has yet to officially confirm the news. As such , it is unclear if Audi plans to offer the 2.0 TFSI A5 with its dual-clutch DSG transmission as well as a six-speed manual. Currently Audi does not offer the 2.0-liter A4 with a DSG transmission but that is likely to change with the absence of the V6.

As for the future of the V6 in the A5, it will continue on in this model as the top engine choice.

[Source: Autoblog]

Each year Hagerty, a major insurer of classic cars, releases its “Top 10 Cars We Can’t Live Without,” aiming to point out which current vehicles will become the classics of the future. This year’s list has some big surprises.

Despite trouble in the American auto sector, the top 10 are all American machines, with the usual suspects like the Corvette and Mustang rating highly. The new Camaro and Challenger are also on the list, as is the Chrysler 300.

Some surprises include the Cadillac CTS, Saturn Sky and even Hummer vehicles. (Really?) Also included are two iconic pickup trucks, the F-150 and Dodge Ram.

As though the listing of Hummer wasn’t a clue, the list isn’t what you would call a scientific experiment. For starters, Hagerty polls its own customer base and to make the poll completely invalid the list is compiled based on voluntary responses.

[Source: Forbes]

Ferrari may be planning a Scuderia version of it’s 599 flagship. At least that’s according to a report on WorldCarFans, whose spy photographers snapped a few pics of a modified 599 running on the prancing horse’s Fiorano test track.

The car noticeably sports an exhaust system similar to the one found on the 599xx monster track machine, which made it’s debut at the Geneva Auto Show, but there’s no evidence to suggest anything more.

It seems unlikely that Ferrari would strip down the 599 into a raw track machine, like it did with the F430 Scuderia. Then again, it seemed unlikely that Ferrari would build a drop-top version of the F430 Scud… and they did that.

[Source: WorldCarFans]

While bankers and stock market gurus go bankrupt, there doesn’t seem to be any shortage of money over in Dubai. Case in point; the crazy Mercedes tuner ASMA Design has released yet another over-the-top creation, custom built for someone who obviously has cash to spare.

Called the PhantASMA (get it?), this widebody Mercedes CL65 has received a complete makeover, with an all new carbon shell that has been painted chrome. The fenders are 35mm (roughly 1.4-inches) wider than stock and, of course, the PhantASMA features ASMA’s signature cow-catcher front grille.

Inside those fenders are a set of ASMA’s own 22-inch wheels, measuring 9.5-inches up front and 11.5-inches in the rear. Wrapped around those wheels are a set of rather modest 255/30/22 (front) and 295/25/22 (rear) tires.

ASMA also got under the hood of the CL65 and tinkered with the twin-turbo 6.0-liter V12 engine so that it now produces 725hp and 870 ft-lbs of torque. ASMA claims a 0-62 mph run in 3.8 seconds with a top speed of 205 mph.

Full specifications aren’t yet available, however, in ASMA’s initial press release they did think it important to include the vehicle’s average fuel economy rating, which, by the way, is 19.8 liters/100 km (or roughly 11.9 mpg).

GALLERY: ASMA Design CL65: The PhantASMA

Audi CrossCoupe Quattro Concept, which will inspire the Audi Q3

Audi has just confirmed production of the Q3 starting in 2011. The news comes as Audi AG announced the selection of the SEAT facility in Martorell, Spain as the location where the upcoming crossover will be built.

Little is known about the Q3 other than that it will slot in under the new Q5 in Audi’s lineup of SUVs. Audi describes it as a “coupé-like five-door SUV with seat positions, wheel size, and ground clearance characteristic of a typical SUV.” It is expected to be a versatile platform and yet have a sporty driving dynamic. As for the design, it is expected to be influenced heavily by the Cross Coupe Quattro concept vehicle (pictured above).

The new Q3 production facility will create 1,200 jobs in Spain. Unfortunately, however, this decision means that any plans to produce the vehicle in the United States have been put on hold. Currently it is not yet confirmed if the Q3 will be sold in North America.

With production starting in 2011, Audi will also begin sales of the car in Fall of the same year, with an expected sales volume of 80,000 units annually.

Official release after the jump:
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