Ford will spend $550 million to transform it’s Michigan truck plant into a facility that bill be used to built the new Ford Focus, including an electric version of that vehicle.

By transforming the Michigan Trunk Plant into a compact car facility as many as 3,200 jobs will be saved as demand for large SUVs declines. The Truck Plant was the location where behemoths such as the Ford Expedition and Lincoln Navigator were manufactured.

The all new Focus will begin production next year with an electric version of the compact car due out in 2011. This zero-emissions Focus is being built in partnership with Magna International and will be powered by an electric motor mated to a Lithium-Ion battery pack and can be charged though a conventional household outlet.

Ford has made a commitment to bring three more EVs to market by 2012.

“The transformation of Michigan Assembly Plant embodies the larger transformation under way at Ford,” said Ford President and CEO Alan Mulally. “This is about investing in modern, efficient and flexible American manufacturing. It is about fuel economy and the electrification of vehicles. It is about leveraging our expertise and vehicle platforms around the world and partnering with the UAW to deliver best-in-class global small cars. It is about skilled and motivated teams working together in new ways to create the future of automobile manufacturing in the United States.”

Along with the Michigan plant, Ford will transform its Louisville, KY plant to also produce the new Focus, as well as modify the company’s Cuautitlan Assembly in Mexico, where the new Fiesta is to be produced.

“We’re changing from a company focused mainly on trucks and SUVs to a company with a balanced product lineup that includes even more high-quality, fuel-efficient small cars, hybrids and all-electric vehicles,” said Mark Fields, Ford’s president of The Americas. “As customers move to more fuel-efficient vehicles, we’ll be there with more of the products they really want.”

Official release after the jump:

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Several years ago Ferrari tuner Novitec released it’s first line of parts for the Maserati brand under the name Novitec Tridente. The minor modifications made available for the Quattroporte model didn’t, however, generate much excitement. The opposite will no doubt be true of the new Novitec Tridente line for the Maserati GranTurismo S…. due mostly to the car’s 600hp output.

With a supercharger, exhaust system and ECU tune the Italian tuning experts at the German Novitec facility have managed to increase output of the 4.7-liter V8 by 160hp. Other upgrades include a set of staggered wheels with an original set of 20×9-inch Novitec NM3 wheels up front and 12×12.5-inch wheels in the rear.

Other highlights include the Novitec//KW suspension system as well as a full aero kit, designed to keep the exotic Maserati planted on the autobahn at high speeds. The kit includes a front splitter, rear diffuser, side skirts and a subtle trunklid spoiler – all made from carbon fiber.

Novitec hasn’t officially released full details on the car so we’ll keep you updated on what else this package entails and just how fast it can go.

GALLERY: Novitec Tridente Maserati GranTurismo S

[Source: WorldCarFans]

The Fiat Panda is just one of several cars that will be sold in the U.S. under the Chrysler/Fiat alliance. It will most likely be badged as a Jeep.

There has been plenty of speculation as to which Fiat vehicles will make it on to North American roads as a result of the merger with Chrysler, but thanks to bankruptcy filings, the mystery has been solved.

In total, it looks like five or six Fiat and Alfa Romeo models will make their way over, as well as two engines and one impressive transmission.

Robert Manzo, the executive director of Capstone Advisory Group LLC, a company that is working with Chrysler during the Chapter 11 filings, stated clearly that the vehicles are the Fiat 500 and Panda, the Grande Punto and Alfa MiTo as well as the C-Evo based sedan and Milano 940.

The Fiat 500 and and Panda will fit into the micro-car category, although the Panda isn’t exactly micro. As more of a compact crossover, it will likely be branded as an entry-level Jeep.

The Alfa Romeo MiTo, will come over as a sporty sub-compact, and the Fiat Grande Punto will be a sub-compact hatchback.

From left: Alfa Romeo MiTo and Fiat Grande Punto

The only thing that isn’t entirely clear is the talk of the C-EVO platform and the Milano 940. While these two vehicles would be more mid-sized, they may actually only be one vehicle. The C-EVO is a platform, expected to underpin the successor to Alfa’s 147 (likely the 149), whereas the Milano 940 is a concept car based on the platform. We expect to know more when Alfa brings new products to the Frankfurt Auto Show in September.

In terms of engines, the agreement would see two Fiat motors travel across the ocean. The first is a 3.0-liter diesel and the second is a 1.4-liter gasoline powerplant. The deal will also see a new state-of-the-art double-clutch transmission come over for use in many of these new models.

[Source: Edmunds]

Our team over at GMInsideNews is reporting that the judge overseeing the Chrysler bankruptcy proceedings has thrown out the arguments made by the hold-out bondholders. By removing the only objection to the process, the bankruptcy proceedings can now be fast-tracked and the Fiat merger can go ahead.

During President Obama’s press conference last week, when he announced that Chrysler would file for Chapter 11, it was made clear that the proceedings would be quick. Obama also spoke out against the group of bondholders who refused to accept the government’s cash-for-debt deal that would see the companies receive just a third of what they have lent Chrysler.

The group of bondholders, comprised of several hedge funds that hold just 10 percent of Chrysler’s debt, made the argument that as the major bondholders who had agreed to the government’s deal (including J.P. Morgan) had accepted bailout funds from the government, they should be excluded from the process.

That argument was reportedly thrown out this morning in what must be record time for a bankruptcy case. Yesterday Judge Arthur Gonzales sped up the process by threatening that the unnamed debt holders had to reveal themselves publicly – something they were uncomfortable doing as may had complained of death threats.

The next part of the process will be the sale of assets, which has essentially already been outlined by the parties involved in order to expedite the process. It is expected that the U.S. government will purchase the majority of the assets in order to set up the New Chrysler – which is reported to be called Chrysler Acquisition Corporation.

With the major objectors removed from the process, Chrysler could be out of bankruptcy court by the end of the month!

Apparently President Obama was not bluffing when he said the Chapter 11 proceedings would be “quick and surgical.” That seemed unlikely considering the parties involved and the how the legal system works, but President Obama and the legislative branch seem to have a willing partner in the Judicial branch and Judge Gonzales.

[Source: GMInsideNews and The Globe and Mail]

The Democrats have proposed an incentive program to help-out potential car buyers and the U.S. auto industry. The only problem is, the gas-for-guzzlers legislation isn’t aimed at boosting car sales in the general sense.

The bill would provide up to $4,500 for people who trade in low mpg cars and trucks, to spend on a more fuel-efficient vehicle. Those who trade in a vehicle that gets less than 18 mpg for one that achieves more than 22mpg would get a $3,500 voucher, while $4,500 would be offered if the new vehicle gets 10 mpg (or more) than the vehicle being traded in.

All the terms of the bill are not yet available and it’s not yet clear if a vehicle would have to be a certain age to quality.

Michigan Democrat John Dingell said that if the bill was passed by Congress and approved by President Obama it could lead to as many as one million new car sales.

“This program will spur consumer demand for new vehicles, thereby injecting much-needed cash into our ailing domestic automakers,” Dingell said, adding that it would also lead to “meaningful reductions in energy use by American drivers.”

That final point does, however, seem to be more of the focus of the cash-for-guzzlers bill, which by both its name and content is aimed at promoting the sale not of vehicles in general but of fuel-efficient vehicles.

Earlier today we reported that the German government’s incentive program continues to be a huge success. That “scrappage” plan has produced near-record car sales in Germany by offering incentives to those who trade in old vehicles for new ones, regardless of where the vehicle is built or how much fuel it consumes.

[Source: Automotive News]

Recently we ran a story reporting that the Rhys Millen Racing Hyundai Genesis Coupe that competed in the first round of the Formula D series was actually powered by (ghasp!) a Nissan motor. That won’t be the case from now-on, however, as Rhys Millen himself has just confirmed that for the second race of the season, the Hyundai drift car will in fact be powered by Hyundai, with a turbocharged version of the company’s 3.8-liter Lamdba V6.

Currently the car is making 480hp at just 4500 rpm and 570 ft-ls of torque at 3800 rpm.

The reason for the initial run with the Nissan engine was due to a timeline that proved to be too tight. Rather than forfeit the race, Millen chose to run the car with whatever motor was available.

Unfortunately (or fortunately, depending on how you see things) Millen and his Nissan-powered Hyundai did not perform well, and didn’t even make it past the first round.

We’ll be watching to see if he has better luck as round two of the Formula D series visits Road Atlanta this weekend.

[Source: Autoblog]

German Audi tuner PPI Design has released several versions of its R8 Razor GTR over the past 18 months and has now completed the project. The official unveiling happened at the Top Marques Monaco show and there really aren’t many words for the exotic other than “impressive.”

Thanks to a supercharger kit mated to the 4.2-liter V8, the R8′s new output is 580hp at 7400 rpm and 443 ft-lbs of torque at 6200 rpm.

Weight has also been decreased significantly due in part to an all-new carbon fiber body – and a set of carbon/aluminum wheels. In total the PPI Razor GTR weights 551 lbs less than the standard R8 for a total curb weight of just 3,483 lbs. PPI claims the added power and light weight translate to a 0-62 mph sprint of 3.7 seconds with a top speed of 206 mph.

GALLERY: PPI Razor GTR

More on the PPI Razor GTR after the jump:

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Roger Penske and Daimler Chairman Dr. Dieter Zetsche take a ride in a SMART car. Penske currently distributes SMART cars for Diamler in the U.S. and is rumored to be interested in purchasing Saturn from GM.

A day after General Motors released a vague statement declaring that it is moving to “the next step” in the sale of the Saturn brand it appears as though Roger Penske is one of the interested buyers.

Penske, a former race car driver and now the man at the top of an automotive empire is no stranger to the business, owning numerous dealerships. In fact, Penske’s dealership chain is listed as the second largest in the United States, accounting for 171,872 vehicles sold in the U.S. in 2008.

The Penske dealership network is not immune to the current economic climate, with Q1 profits down roughly 50 percent from the year previous. Still, the company managed a 16.2 million profit.

The Penske Automotive Group even distributes the SMART car for Mercedes/Daimler throughout the United States.

Currently Penske oversees three major racing initiatives in the NASCAR Sprint Cup, the American Le Mans Series (ALMS) and the Indy Racing League (IRL). He is also a well-known supporter of the city of Detroit and the U.S. auto industry, having helped bring the racing back to Detroit’s Belle Isle in recent years as well as assisting in bringing the Superbowl to the struggling city.

The Wall Street Journal cited an unnamed source in regards to Penske’s interest. The individual said that while Penske is interested, no offer has been made.

[Source: Automotive News]

[Photo Credit: TheAutoChanel]

Stoking the rumors that Ford is planning to bring its impressive Focus RS to the U.S. are some amateur spy photos of the hopped-up compact, taken just outside Detroit.

Forum user 2004SVTAutoXer took the photos in the up-scape Royal Oak neighborhood and posted them on FocusFanatics.com.

The 2009 Focus RS is powered by a turbocharged 2.5-liter Duratec five-cylinder engine with 295hp and 302 ft-lbs of torque. It also makes use of a Quaife limited slip differential and a unique-to-the-RS suspension setup.

Ford has already declared that it will bring it’s European Fiesta to the United States and while it is possible that a Focus RS may eventually make it over as well, it is unlikely in the current economic climate. Ford may, however, be planning for a turnaround in the economy and with Chrysler’s future uncertain and GM cutting its high-performance division, Ford might be the only post-recession U.S. automaker capable of delivering a compact performance car.

GALLERY: Ford Focus RS

[Source: FocusFanatics.com]

The German government’s incentive plan to get its citizens buying cars continues to be a success with sales of new vehicles up 19 percent over the same period last year.

In total 380,000 units were sold, as people cashed-in on the government’s scrappage plan that provides 2,500 Euros (or roughly $3,200) towards a new vehicle when you send your 9-year-old (or older) car to the scrap yard.

The 19 percent increase follows an even more impressive 40 percent surge in sales in the month of March, bringing the yearly total to it’s highest level since 1999 – the current sales record.

Meanwhile, Germany’s European neighbors suffered losses, with Italian and French car sales down 7.5 and 7 percent respectively, while Spanish car sales plummeted 45.6 percent. Both Italy and France are offering incentives while the Spanish government has so far refused to.

The German government launched its scrappage plan in February and has since increased funding for the project from 1.5 billion Euros to 5 billion Euros, to ensure it can run until the end of ’09.

The Obama administration has repeated that it is looking in to a scrappage plan to boost U.S. auto sales but no plan has yet to be put in place.

[Source: Automotive News]