Toyota has announced that it will lease 500 plug-in hybrid-electric Prius models starting this year. These will be the first plug-in version of the Prius on the road and will feature new lithium-ion battery packs, which hold more energy than the conventional nickel-metal hydride batteries used in other hybrid systems.

Of the 500 vehicles, 200 will be leased in Japan, while 150 units will be sent to the U.S. and 150 to Europe. Two-thirds of the European vehicles are earmarked for France. The vehicles will be leased primarily to corporations and governments.

Toyota hopes that by introducing these plug-in hybrids now it can raise awareness about the upcoming production model. For short distances the Prius plug-in hybrid will be able to operate on just electric power. Once that energy store has been depleted, the gasoline engine will kick-in to to charge the battery-packs, which in turn will power the electric motor. This will allow for the cars to be driven without the driver having to worry about a place to plug-in.

Toyota is currently considering expanding this project to include the United Kingdom, the Netherlands and Germany.

[Source: Edmunds]

The all-new Toyota Prius was the most popular selling car in Japan for the month of May, according to numbers just released by the Japan Automobile Dealers Association.

In total, Toyota sold 10,915 Prius models to take the top sales spot, which was held last month by rival Honda Motor Co. and its new Insight hybrid. For May the Insight dropped to third with 8,183 units sold. Honda did manage to grab the second spot as well, however, selling 8,859 Fits in May.

This marks the second straight month in a row that a hybrid has been the top seller in Japan. Hybrid sales have become increasingly popular in Japan due to government incentives as well as significantly reduced prices.

After Honda priced its Insight at $19,700 in Japan, Toyota responded by dropping the MSRP on the Prius to $20,900 – almost $3,100 less than the past model.

“I am very relieved about the sales, and I am excited to find out more about the customers’ response,” said top Prius engineer Akihiko Otsuka.

Despite the success of the Toyota Prius in the past, this is the first time it has ever clinched a monthly top-seller spot in Japan.

[Source: The Associated Press]

Porsche has reportedly asked the German government for a $2.5 billion loan, adding to speculation that the automaker is in financial trouble.

Much of Porsche’s money problems stem from the company overextending itself in its failed bid to take over Volkswagen, a move that, if successful, would have added $10 billion to Porsche’s coffers. As a result of the unsuccessful attempt the automaker now has a $12 billion debt load.

Like any other automaker these days Porsche is struggling with decreased sales. Profits will likely be high enough to make interest payments on the company’s debt, but not enough to pay it off.

Then again, according to German magazine Der Spiegel Porsche apparently skirted bankruptcy in March for three days by securing a $978 billion loan from VW.

Porsche is also likely to see a spike in both sales and profits in the near future as the Panamera arrives in dealerships. Perhaps it will be the company’s savior, like the the Cayenne was back in 2002.

[Source: LeftLaneNews and Autoblog]

Magna International will not be selling Opel cars in the United States or China, says company CEO Frank Stronach. The head of the Canadian auto parts supplier said that this was part of the deal he worked out with GM when purchasing its European Opel brand.

Interestingly, however, there is no indication that the agreement included the Canadian market.

Stronach has commented that he’d like to manufacture cars in Canada. “We want to build Opel cars in Canada… Canada should have its own Canadian company … a truly Canadian automobile industry.”

While the Canadian market is small, with the latest figures showing about 1.5 million units expected for 2009, it’s not unforeseeable that Magna could look into building Opel cars in Canada. It also makes particular sense as smaller European-style cars (like the Corsa GSi pictured above)  are much more popular in Canada than in the United States.

SMART began selling its fortwo in Canada several years before it even landed in the U.S. and currently Mercedes-Benz sells its compact B-Class in Canada. Honda has also had tremendous success selling a rebadged Civic Sedan as an entry-level luxury car called the CSX (formerly EL) under its Acura brand.

As for the Chinese market, Stronach did say that the deal may be flexible if GM (which still holds a 35 percent share in Opel) could see it as a profitable venture.

Stronach says he expects Opel to break even in just three years and furn a profit in its fourth. He also downplayed any interest in Saturn or Saab, indicating that one major acquisition might just be enough for now.

Additionally, Magna is seeking a $140 million grant from the Canadian government to assist in producing an electric car in Canada. Estimates put an electric car assembly plant at $280 million.

“If we get a loan we know we could speed it up. We could make sure it’s going to be in Canada,” Stronach told Automotive News.

[Source: Automotive News]

With news of a tentative deal to sell off Hummer coming yesterday, GM still hasn’t made any decisions about its Saturn or Saab brands – but apparently it has plenty of offers to entertain.

GM CFO Ray Young said that Saturn has as many as 16 suitors, while the Swedish Saab brand has three.

The list of Saturn buyers is reported to include Penske Automotive Group, Malcolm Bricklin, Mitsubishi, Nissan/Renault and investment firm Telesto Ventures.

Young did say that it is interested in working with the Saturn buyer when it comes to vehicle assembly.

As for Saab, Swedish business paper Dagens Industri is reporting that the three buyers are U.S. financier Ira Rennert and his Renco Group, Fiat and Swedish supercar maker Koenigsegg.

[Source: Detroit Free Press and Reuters]

According to a Hall & Partners survey performed on behalf of Hyundai, the delay in passing a “Cash for Clunkers” bill is costing the U.S. auto industry as many as 100,000 lost sales each month.

The survey results showed that 38 percent of potential new car buyers were aware of a pending “cash for clunkers” bill and that 11 percent of buyers were delaying their purchase until the bill is passed.

Considering an average of 1 million monthly sales, this accounts for roughly 100,000 lost sales.

“With sales in the U.S. auto industry forecast at the lowest levels in 26 years, it’s imperative that we move forward with this stimulus bill,” said Hyundai Motor America President John Krafcik. “The auto industry makes up 10 percent of the consumer portion of the country’s gross domestic product. Any stimulus to the auto industry will make a major improvement in the overall U.S. economy, which remains severely depressed.”

“The longer this bill, which is so important to the U.S. economy, remains stuck in Congress the greater the pressures placed on all aspects of the U.S. automotive industry – from suppliers to manufacturers to dealers. We urge Congress to move quickly so that American consumers can benefit from this program during the peak summer selling season,” said Krafcik.

Yesterday results of car sales for the month of May were released showing a decrease of 33.7 percent as compared to the same period a year earlier.

Official release after the jump:

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In December Bentley announced that after 10 years it would cease production of its Arnage, but didn’t even hint at a replacement for the ultra-luxury sedan. Now word comes that the car’s successor might be revealed as early as this August, at a typical venue – the Pebble Beach Concours d’Elegance.

The car is expected to be even larger and more upscale than the current model, and be more than ready to take on the upcoming Rolls-Royce Ghost.

There is no word on what platform the car will use or what engines, and while a W12 or the 6.75-liter V8 are certainly the most likely options, Bentley has said it is working on an entirely new engine that will deliver 40 percent better fuel economy than it’s current engines.

The chassis will most likely be entirely aluminum in keeping with Bentley’s commitment to cut weight from its cars.

A close-to-production concept vehicle is expected to be unveiled at the Pebble Beach Concourse in Monterey, California on August 16th.

[Source: AutoTelegraaf via Autoblog]

Launched in 2005, the current Hyundai Accent model is in desperate need of an update (if not a complete overhaul). Looking to infuse a little interest into the sub-compact the Korean automaker just released its 2010 model in Korea (known there as the Verna), with a few minor technical changes and a significantly different new look.

The updated vehicle, now called the Verna Transform in Korea gets new headlights and taillights as well as completely redesigned front and rear bumpers. The front bumper design features redesigned foglights, larger air intakes and a new two-bar Hyundai grille with the company’s logo placed above it.

Inside the center stack has also been redesigned and better materials are used throughout the cabin.

The same 1.6-liter four-cylinder engine will continue to be used, but an ECO Lamp is included on the dashboard to help drivers operate the vehicle in a fuel-efficient manner. The light will turn green when the car is operating efficiently, and red when it is not.

The Verna Transform will be on sale in June in Korea, with the facelift  likely making its way to North America for the 2010 model year.

GALLERY: 2010 Hyundai Accent/Verna Transform

[Source: Hyundai-Blog]

Car sales for the month of May appear to show a certain level of recovery – at least for U.S. automakers Ford and General Motors.

Ford posted a loss of 28.5 percent, its best result since July of 2008. As for GM, it declined “just” 29 percent marking its best monthly performance since September.

In total, auto sales in the U.S. were down 33.7 percent, the smallest drop since the recession really got going in October.

Helping to bring the national average down were Japanese automakers Toyota and Honda, which suffered 40.7 and 41.5 percent sales declines respectively.

Jeff Schuster of J.D. Power & Associates attributes the larger declines for Honda and Toyota more to the unusually high sales both companies saw in May 2008. During that period Honda actually set a monthly sales record as skyrocketing gas prices saw consumers turning away from domestic automakers to buy fuel-efficient imports.

Compared to 2007, in 2008 Honda and Toyota saw increases of 15.6 and 4.3 percent, while Ford and GM fell 15.9 and 27.5 percent.

Meanwhile Chrysler’s sales were understandably low as the company filed for Chapter 11 bankruptcy protection on the 1st of May. Sales were down 46.9 percent, despite some industry experts claiming that dealership liquidation sales would provide a boost in sales.

That bump may yet occur, and may now include sales of General Motors vehicles. The drastically reduced inventory is also expected to have the most impact on U.S. automaker Ford, which plans to launch strong incentive programs to attract consumers interested in domestic products.

[Source: Automotive News]

Full sales numbers for all automakers in the U.S. after the jump:

Continue Reading…

Earlier today we reported that GM had reached a tentative deal to sell off the Hummer brand to an unnamed party. That company has now been identified as Chinese heavy machinery maker Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd. – or just Tengzhong for short.

Tengzhong will take control of the Hummer brand including the senior operational team and the company’s dealership network. It also plans to continue a relationship with General Motors in the immediate future while it looks to expand Hummer with new products.

“The Hummer brand is synonymous with adventure, freedom and exhilaration, and we plan to continue that heritage by investing in the business, allowing Hummer to innovate and grow in exciting new ways under the leadership and continuity of its current management team,” said Yang Yi, CEO of Tengzhong. “We will be investing in the Hummer brand and its research and development capabilities, which will allow Hummer to better meet demand for new products such as more fuel-efficient vehicles in the U.S.”

In an interview with Automotive News, Hummer CEO James Taylor said that long term the company will look to set up its own engineering and marketing offices in the United States.

Taylor also said that Tengzhong’s plans include expanding the Hummer product lineup and using alternative powertrains to help it meet with increasingly stringent environmental standards.

The Tengzhong company is the largest privately owned engineering company in China, specializing in heavy machinery for large scale construction projects, such as roads and bridges. It does not, however, have any experience in building passenger vehicles.

[Source: Automotive News]

Official release after the jump:

Continue Reading…