Fiat is about ready to walk away from a potential partnership with Chrysler says CEO Sergio Marchionne unless the U.S. automaker can significantly cut labor costs. While the United Auto Workers union has made it known that it is willing to work with Fiat and Chrysler management, the Canadian Auto Workers union isn’t.

“From what I can tell from a distance, the CAW may have taken more rigid positions,” said Marchionne in an interview with Canada’s Globe and Mail newspaper.

Currently Chrysler and the CAW do not see eye-to-eye. The automaker has asked the union to cut labor costs by $19 CDN to $55 to match hourly wages in U.S. plants but the CAW will only go as far as reducing hourly wages by $7.25 (an amount GM workers agreed to recently).

Marchionne did not mince words in his interview with the Globe saying that a sense of entitlement in an organization that is technically bankrupt was nonsense and that the involvement of the U.S. and Canadian governments in a bailout plan was a sign of last resort for Chrysler.

Marchionne said that there is currently only a 50 percent chance the deal could go through. Meanwhile Moody’s Corporate Finance recently said that Chrysler has a greater than 70 percent chance of going into bankruptcy.

Meanwhile the Obama administration’s April 30th deadline is fast approaching.

[Source: Globe and Mail]

A group of investors known as Telesto Ventures has put forward a serious proposal to purchase Saturn from General Motors and turn it into a network of retailers selling vehicles from foreign manufactures.

The business plan would have the Saturn continue selling GM-sourced products until 2011 at which point the dealer network would act more like a chain of retail stores, selling different economical and environmentally-friendly vehicles that would keep their distinct brand names.

John Pappanastos, a spokesman for Telesto, a group which includes private equity firm Black Oak Partners LLC, described the business model as being similar to the Best Buy electronics chain. “Customers deal with Best Buy because of the customer experience not because they are the only place to buy a Samsung or a Sony TV,” he said.

As that statement implied, the Telesto business model would permit these vehicles to be sold by other retailers as well.

Currently Pappanastos says Telesto is in talks with several foreign manufacturers.

As far fetched and unconventional as the proposal sounds, Telesto is quite serious and General Motors generally interested. GM spokesman Steve Janisse described the proposal as “very interesting and told Automotive News that, “I can tell you this is one of the interested parties with Saturn and we have been working with them throughout this process. There are other interested parties as well who we’re working with. But I can’t speculate on where all this will go.”

This news comes at a particularly interesting time as today a Saturn task force was scheduled to present a select group of Saturn dealers will a proposal to spin Saturn off as a separate company.

[Source: Automotive News]

For 2010 the Audi Q7 lineup of SUVs will receive several updates, as well as the addition of a new engine option.

Going on sale later this year, the 2010 Q7 will be available with two gasoline engines, as well as a clean diesel 3.0-liter TDI V6 powerplant. The move to bring clean diesel technology to North America comes as Audi has achieved Bin5 and ULEV II emissions standards in all 50 states.

The new TDI powerplant makes 225hp and 406 ft-lbs of torque at a whopping 23.2 lbs of boost. The engine itself is comprised of an iron block with aluminum heads and a variable turbine geometry turbo guarantees excellent delivery of power.

Performance is rated a 8.5 seconds to 60 mph, while the all-important fuel-economy is a big plus. The Q7 3.0 TDI is rated at 17/25 mpg (city/hwy) with a combined rating of 20 mpg. To put this into perspective, the V6-powered gasoline Q7 gets 14/20 mpg (or 16 mpg average), while the V8 gets 13/18 mpg or just 15 mpg average.

Audi says the Q7 3.0 TDI will be able to achieve 600 miles on a single tank and that when compared to the price of high octane gasoline (required on all Audi vehicles) the increased price of diesel will pay for itself over a few years due to the added fuel-economy. Other factors are sure to give added value to the diesels as well, such as a higher resale value and an expected tax credit from the federal government.

The new 2010 Q7 models (including the Q7 3.0 TDI) will be available starting in April.

GALLERY: 2010 Audi Q7 3.0 TDI

Keep reading after the jump for a full list of updates to the 2010 Audi Q7 models:

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German Mercedes tuner Carlsson has just completed its first full line of performance products for the new C-Class, giving the car a more dynamic drive, with a stunning new look and more than enough power.

Carlsson hasn’t released specifics on the modifications made to the engine but you can be sure there are more than just simple bolt-ons and an ECU tune (as those modifications make up the standard CK63 package. The CK63S package makes a dramatic increase in power from 457hp to 565hp. Torque is also up significantly with 505 ft-lbs – an increase of 63 ft-lbs.

The result of all this power is a 0-62 mph time of just 3.8 seconds!

To help keep all the new-found power under control, Carlson employed the help of former DTM-racer and current Dakar rally driver Ellen Lohr. The modified C-Class now rides on a set of specially tuned springs and shocks.

Helping the car to achieve its maximum handling potential are a set of Carlsson 1/16 Ultra-Light wheels that measure 19×8.5-inches up front and 19×10-inches in the rear. And as for the straights, the Carlsson aero kit, (including front and rear bumpers and a small trunk spoiler) are made of both polyurethane and carbon fiber, ensuring maximum downforce at the car’s new top speed of 186 mph.

GALLERY: Carlsson CK63S

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Audi tuner MTM has just launched a new customization program called MTM Individual, allowing customers to personalize their cars to an even higher level. And to show just how particular some customers can be, the first vehicle to undergo full personalization is an Audi R8 that, among other things, has received a coat of bright green Porsche GT3 RS paint. (Is nothing sacred?)

Contrasting with the wild green paint are many gloss black accents, including the side blades, gas cap, brake calipers and wheels. And on the gas cap, the R8 stands out in bright green, as do the words “MTM Forged” on the “Bimoto” wheels, which measure 20×9-inches up front and 20×11-inches in the rear.

Additional exterior highlights include a gloss black front splitter, a black R8 badge on the rear, black mirrors and black finished MTM exhaust pipes.

To back up this wild exterior, MTM has equipped the R8 with it’s supercharger package that pumps up horsepower to 560 ponies and torque to 428 ft-lbs.

Other modifications include the MTM aero kit with a front splitter, side skirts and rear diffuser as well as a new “Lift-Up” suspension system that allows for the vehicle to be raised or lowered by as much as 40mm (1.6-inches) at the push of a button.

With the launch of the MTM Individual program, this R8 might just be the tip of the iceberg, so expect to see more wacky creations in the near future.

GALLERY: MTM Individual R8

Official release after the jump:

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With the official launch of Aston Martin’s four-door Rapide set for later this year, the luxury British automaker has already started teasing us with bits of info. Most important for many is the powerplant.

As expected the Rapide will use the 6.0-liter V12 engine that motivates most of Aston’s lineup. Power is rated at 470hp and 443 ft-lbs of torque and will be accessible through the company’s new Touchtronic automatic gearbox, which first debuted on the DBS.

In terms of design elements, the rear doors will be what Aston calls “swan wing” doors. The doors open upwards and outwards, much like the doors on Aston’s coupes. This will help ease access to the two rear seats.

By the sounds of the press release, however, those rear seats won’t be overly spacious. On the other hand, Aston does claim that cargo space for luggage will be sufficient.

“Rapide will exceed expectations to deliver elegance and practicality in a form that will allow driving enjoyment and comfort beyond anything that exists today,” said Aston Martin CEO Dr. Ulrich Bez, “The Rapide will exist in a class all of its own, a true Aston Martin with the high performance and dynamic excellence that defines the brand, and a luxurious sporting grand tourer without equal.”

GALLERY: 2010 Aston Martin Rapide

Official release after the jump:

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With a notable absence at many auto shows this year, Porsche did make it to New York and finally got around to giving the reworked GT3 a proper U.S. debut.

The engine’s new output is up 20hp for a total of 435hp, thanks to an increase in displacement from 3.6 to 3.8-liters. The engine also receives Porsche’s VarioCam variable valve technology on both the intake and exhaust side. Porsche hasn’t release torque numbers but it has said that mid-range torque is up.

The result of this power-boost is a 0-62 mph time of 4.1 seconds and a top speed of 194 mph!

The design of the new GT3 is also updated with a new aerodynamic kit that increases downforce on both the front and rear of the car to more than double that of the outgoing model. Aesthetic changes include bi-xenon headlights, LED rear lights and modified air intakes and outlets.

Porsche has tuned the suspension to be stiffer than the outgoing model with higher spring rates and more rigid anti-rollbars. The car is also more user-friendly as Porsche has decided to offer the GT3 with an optional height-adjustable suspension. A driver would be able to raise the height of his car by as much as 1.2-inches to enter or exit parking garages or when driving on rough roads.

As the GT3 is known for its trackability, Porsche has outfitted this new model that will make it even more appealing. For starters, it will be offered with a new version of PSM (Porsche Stability Management) that will allow a driver to turn of Stability Control and Traction Control in different steps. Other performance improvements include larger and lighter brake disks (and the option of a special PCCB ceramic disk set. For racing applications Porsche will even offer the GT3 with single lug center-locking wheels.

The 2010 GT3 will go on sale in North American this fall and will be priced at $112,000 ($138,000 CDN).

GALLERY: 2010 Porsche GT3

More on the 2010 Porsche GT3 after the jump

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One of the two GMC debuts at the NY Auto Show was the 2010 Terrain crossover. (The other was the Yukon Denali Hybrid).

The new Terrain comes with a bold and stylish new look, as well as some fuel-efficient new engines.

Much like the Chevy Equinox (also new for 2010), 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

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As promised, Subaru debuted its 2010 Legacy model at the New York Auto Show and there’s a lot to talk about. 

The car is based on an entirely new platform that has a 3.2-inch longer wheelbase than the previous model for a total of 108.3-inches. Height and width are also up by 3.2-inches and 3.6-inches respectively. Vehicle length has increased by just 1.4-inches.

The benefits of the platform are seen mostly inside, with rear seat legroom increasing by 4-inches.

Also new for 2010 are several of the engines.

The Legacy 2.5i models (the 2.5i, 2.5i Premium and 2.5i Limited) will all get a 2.5-liter boxer engine that makes 170 horsepower at 5600 rpm and 170 ft-lbs of torque at 4000 rpm. A new six-sped manual will come standard with a“Lineartronic” CVT transmission optional. Subaru says both trannies will offer better acceleration and fuel economy.

Legacy 2.5GT models (2.5GT Premium and 2.5GT Limited) will come equipped with a new turbocharged 2.5-liter boxer engine with the turbocharger mounted below the engine for better response, improved emissions and a better center of gravity. Power is rated at 265hp and 258 ft-lbs of torque, an increase of 22hp and 17 ft-lbs of torque over the outgoing model. Subaru says the 2.5GT will be able to hit 60 mph in under 6 seconds.

The 2.5GT models will also come standard with a new 6-speed manual transmission that is more than 50 lbs lighter than the one in the 2009 Legacy 2.5GT spec.B.

As for the top level 3.6R models (3.6R, 3.6R Premium and 3.6R Limited), they will feature a new 3.6-liter boxer engine that makes 256hp and 247 ft-lbs of torque – an increase of 11hp and 32 ft-lbs over the ‘09 model. All 3.6R models get a five speed automatic transmission and only require regular octane fuel (not premium).

The suspension setup for the 2010 Legacy also gets an adjustment – as promised. The front maintains it’s MacPherson-type strut setup, while the rear gets a double-wishbone setup (as opposed to the old multi-link design). This, says Subaru, gives the 2010 Legacy a better ride, along with improved stability and handling.

GALLERY: 2010 Subaru Legacy

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As promised, Hyundai drew back the cover on the Nuvis HCD-11 Concept at the New York Auto Show. As the name suggests, the Nuvis is the 11th concept to come from the company’s North American design center.

The Nuvis, which follows closely in the footsteps of the ix-onic Concept, which debuted in Geneva, is further from a production model and intended more as a design (and technology) study.

The Nuvis features a prototype of Hyundai’s upcoming Blue Drive hybrid system, which uses lithium polymer batteries. This new type of battery for a hybrid powertrain is innovative because it is not only much lighter and smaller than nickel metal hydride systems used in current mainstream hybrids, but it has (according to Hyundai) safety advantages over the lithium-ion units that other manufacturers (like Toyota and GM) are coming out with.

Another advantage of the lithium polymer setup is that it allows for significantly greater flexibility, allowing the batteries to be shaped according to how the designers want to create the car, rather than the other way around. 

GALLERY: Hyundai Nuvis Concept

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