Let’s face it. Pretty much everything happening within GM is big news these days. But when legendary racecar driver and business mogul Roger Penske says he wants buy Saturn from the bankrupt automaker — that’s a top of the fold, front-page story. But, just in case you haven’t been following this deal from day one, we’ve got you covered.

So here it is, Tuned.com’s guide to everything that’s happened, will happen and might happen between Penske Automotive Group and Saturn.

Ok, so what’s happened so far?

Penske Automotive Group and General Motors have signed a memorandum of understanding — basically a gentleman’s agreement on paper. MOU’s aren’t typically legally binding. In this particular case, the MOU says that if a deal goes through between Penske and GM, Penske will “obtain the rights to the Saturn brand, acquire certain assets including the Saturn parts inventory, and have the right to distribute vehicles and parts through the Saturn Dealership network.” Furthermore, GM will continue to produce the Vue, Aura and Outlook for an interim period that’s looking to be through 2011.

Just who is this Penske character anyway?

Really? You’re reading an automotive website and you don’t know who Roger Penske is? Shame.

Penske started out back in the late 50’s as a racecar driver. Competing and frequently winning in Sports Car Club of America (SCCA) events, Penske quickly made a name for himself as a talented racer. But, in 1965, much to the dismay of his fans, Penske announced his retirement from racing in order to focus on his car dealership.

From there, Penske expanded into ventures including tire sales and trucking. Ultimately his success grew into the automotive empire he heads today. Penske Automotive Group is the second largest automotive dealer in the world, with more than 240 dealerships worldwide.

But Penske is perhaps better known for his racing teams. Penske Racing currently competes in the Indy Racing League, American Le Mans Series and NASCAR. Racing greats including Mark Donohue and Mario Andretti have raced under Penske’s banner leading his teams to a plethora of victories including 15 wins at the Indianapolis 500.

So when will Penske’s purchase of Saturn be official?

Impossible to say for sure, but both parties are looking to have the deal finalized by the third quarter of this year.

But Penske doesn’t manufacture cars, how are they going to make Saturns?

As mentioned above, GM will continue to produce the Vue, Aura and Outlook for Saturn through 2011. After that — or perhaps during that time, Penske will look for existing automakers that want to expand in the American market.

According to Automotive News, Penske recently met with Renault-Nissan CEO Carlos Ghosn in Paris to work out details of a potential partnership that could result in Renault-Nissan importing Renault Samsung cars from South Korea to be sold under the Saturn brand.

(To clarify — Renault, a French carmaker, is in a partnership with Nissan, a Japanese carmaker. South Korean company, Samsung — you know, like the TV’s and cell phones — was purchased by Renault in 1998 and is now a subsidiary of the French-Japanese company. Globalization at its finest.)

But, Motor Trend blogger Todd Lassa said in a recent post that although Renault-Nissan is the most likely partner, he thinks Penske will look to Nissan’s North American facilities as opposed to importing cars from South Korea.

“Nissan, with its unused capacity able to build various vehicles in the U.S., would be a prime candidate for reskinned compact or midsize cars bearing the Saturn badge around 2012 or ‘13. There’s plenty of room in Nissan’s North American facilities to avoid having to source them from Renault’s Samsung plants in South Korea, as some have reported,” Lassa said.

What about all those Saturn dealerships?

Penske said he will extend offers to any existing Saturn dealers who want to continue to sell new cars. Though whether all 363 dealerships will remain when all is said and done is impossible to say.

A quick note: Unlike so many other companies and divisions, Saturn trended away from over-saturating the market with dealerships. In fact, those 363 dealerships are owned by only about 150 franchisees, so the transition should be relatively painless with respect to dealership closings.

Edward Whitacre, Jr., former chairman and CEO of AT&T Inc., has been named chairman of the General Motors. Whitacre will replace current interim chairman Kent Kresa when GM emerges from restructuring later this year.

Whitacre, four other board members, and a slew of new directors will act as the “nucleus” of the New GM, the automaker said Tuesday in a press release. The six other board members are expected to resign as soon as the company’s assets are turned over to the New General Motors.

DES MOINES, Iowa – If you’re looking for a new Chrysler, Dodge or Jeep, this just might be your weekend.

Chrysler dealers who will lose their right to sell new cars as early as Tuesday need to unload the remaining cars and trucks on their lot or face getting stuck with them.

Chrysler, which has filed for bankruptcy protection, has told 789 dealerships they’ll no longer have a contract to sell new cars after next week.

Those with cars still on the lot will not be able to take advantage of manufacturers incentives like rebates, which will make selling them uncompetitive with other dealers.

Car dealers in that position expect a very busy weekend as customers seek deep discounts, knowing that the dealers are in a bind.

“We’re obviously drastically discounting the vehicles,” said Jerry Lande, new car sales manager for Des Moines Chrysler. “We have lots of inventory and we expect a big weekend.”

Customers shouldn’t expect ridiculous deals, though.

Some dealers have reported customers calling expecting half off or $10,000 off. Lande said he has had a few such calls.

“Clearly we get some of that, but that’s not realistic,” he said.

The dealership, which sells only Chrysler models will sell only used cars after next week.

It had 140 Chryslers still on the lot on Friday after selling 70 in 12 days, the result of a liquidation sale announced when Chrysler said it was one of the dealers to be cut.

So, if you’re in the market for a Chrysler, what can you expect?

With the understanding that prices and incentives vary from market to market, here’s an example of a realistic deal you might be able to negotiate this weekend.

Say you were interested in a $30,000 Chrysler Town and Country minivan, a popular family vehicle these days. Buyers may be able to negotiate as much as $6,000 off the price, said Jeremy Anwyl, chief executive of Edmunds.com, a Web site that provides detailed auto information for consumers.

A manufacturer’s sticker price of around $30,000 would give you a minivan with a few nice options like a DVD player, running boards and flexible seats. It should be noted that you should rarely pay a manufacturer’s suggested price unless it’s a very popular or hard to get model.

In this example, the dealer invoice — the price the dealer pays the manufacturer for the car — would be about $28,000.

Incentives you could capture vary. Chrysler is offering buyers $1,500 cash back on the minivan.

Buyers can get another $1,000 if they currently own a Chrysler, a reward for brand loyalty. By financing through a credit union, you could get another $500 off and members of the military get another $500 credit.

Source: AP

Photo: Don Ryan

After filing for bankruptcy protection, General Motors is pushing a new ad campaign promising it will emerge from its financial troubles leaner and stronger.

Is this a good marketing approach? Will it allay consumer fears about buying from a carmaker with an uncertain future?

Advertising experts say GM — and fellow Chapter 11 filer Chrysler — should move past the negative and focus on their brands as they try to get car sales rolling again. Consumers are staunchly loyal to their car brands, they say.

GM says its brands are key to emerging from these tough times. But first it has to tell consumers how it will remake itself and what to expect, Jay Spenchian, GM executive director of corporate advertising strategy, said Tuesday.

“There are lots of questions,” he said. “The best thing we can do is quickly get out there and assure them.”

Here’s a look at what GM is saying to consumers right now and how it’s delivering the message — think social media — followed by some thoughts by marketing experts on whether the company’s approach will likely work.

What GM is doing
Detroit-based GM wasted no time acknowledging its problems to consumers. Shortly after it filed for bankruptcy protection on Monday, GM launched a Web site with a message built into its address: www.gmreinvention.com. The site is forward-looking, showing videos of satisfied consumers — like a former Jaguar owner who never thought he’d own a GM product — and engineers talking about new technologies.

But it doesn’t ignore the company’s current situation. There are links to financial filings under the header “progress,” and articles with headlines like, “What happens to my warranty if GM files for bankruptcy?”

The company has released a 60-second ad on the site that will air nationally on TV starting Wednesday, pledging a “reinvention.”

“Let’s be completely honest, no company wants to go through this,” the ad begins. “But we’re not witnessing the end of the American car. We’re witnessing the rebirth of the American car.”

Among the images in the ad: city skylines, shots of Detroit, a sun rising, plants growing, people raising a house’s frame, athletes commiserating — and later celebrating.

Also on Wednesday, GM will print a letter to customers from chief executive Fritz Henderson in major newspapers in markets including New York, Cleveland, San Francisco and Miami. He tells customers the company cannot afford to lose their business, “or your trust. You have our word.”

Key to the pledged “reinvention” will be an effort to leverage social media, GM’s Spenchian said. The company has links to social media staples like Twitter and Facebook on its new site, which will also host a Web chat later this week with Henderson.

One major advantage of this approach: It’s a lot cheaper than traditional advertising.

Badder Boys: When Police level the playing field

By Charlie Turner

Stopped at a red, you look to your right. A jet-black Mustang GT with white racing stripes glares back. You rev the engine and the light flashes green. White smoke billows as rubber meets pavement and you take off screaming through the open intersection. As you shift into second, you glance at the rear view mirror. The Mustang is keeping up. It’s also pulling you over.

Just another day for traffic enforcement officers in the Detroit suburb of Harper Woods, Michigan.

From the left, the car appears as nothing more than your everyday Mustang — no markings or badges indicative of a police vehicle. But cross to the right and the word “POLICE” printed in bold lettering stares back from the fender along with a police insignia and the phrase “traffic enforcement” scrolled down the side.

Deputy chief of police James Burke said the car is frequently mistaken for a potential racer.

“We’ve had a lot of people wanting to drag race our officers,” Burke said. “They’ll pull up and rev their engine.”

“They didn’t know it was a police car until too late,” added officer Tom Silva.

And if you’re unlucky enough to make that mistake, expect to be immediately greeted by an array of blue and red lights cleverly tucked in at the top of the front and bottom of the back windshields, beneath the side-view mirrors and between the two strobe fog lights on the grill.

Pop the hood, however, and the surprises end. Although this writer may have hoped for a supercharged 5.4L pony mill — stock in Ford’s beefier Shelby GT-500 – the cruiser sports the GT’s standard 4.6L V8 powerplant. Though 300 hp is nothing to shake a stick at, especially among a fleet of tired Crown Victoria Interceptors.

“It’s just so damn fast!” Burke said.

Fortunately for lead-footed motorists, it’s unlikely you’ll be seeing many more of these stealthy speed extinguishers. Apparently, due to the low ground clearance, poor handling in icy or even wet conditions and the almost non-existent back seat, the Mustang is not exactly the ideal police car.

But at least it looks cool.

As we gear up for an exciting 2009, Tuned has dispatched its staff to the NY Auto Show to cover some of the decade’s most interesting novelties. We will keep you updated as the day goes on and new pictures will be added by the hour! Stay Tuned!

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DETROIT – General Motors Corp.’s chief financial officer says the company will not need the $2 billion loan installment for March that it requested from the U.S. government in February.

CFO Ray Young said Thursday in an interview with The Associated Press that GM told the Obama administration it won’t need the money so soon because its cost cuts are starting to take hold.

GM borrowed $13.4 billion from the government earlier this year. Last month, it said it would need up to an additional $16.6 billion to keep operating, including $2 billion in March and $2.6 billion in April.

You heard it right, the 2007 Guinness World Record holder Aero SSC is now for sale on eBay. Only a few bids have been posted but with the highest bid nearing the half million dollar mark we expect this thing to soon hit its reserve. The vehicle broke the world speed record at 257 mph and has only 24 other sister cars scattered around the globe. The Aero SSC is a supercar built with the intention of offering hypercar performance at a tenth of the price of similar vehicles like the Bugatti Veyron or the Koenigsegg CCX.
We expect the car to sell near the million dollar mark due to its storied history and World record holder status. Whoever does purchase the car will be reported by Tuned in a follow up update.
Stay Tuned for more.

Link to auction: http://cgi.ebay.com/ebaymotors/Other-Makes-2007-SSC-Ultimate-Aero-Worlds-Fastest-Production-Car_W0QQcmdZViewItemQQ_trkparmsZ72Q3a1205Q7c66Q3a2Q7c65Q3a12Q7c39Q3a1Q7c240Q3a1309Q7c301Q3a1Q7c293Q3a1Q7c294Q3a50QQ_trksidZp3286Q2ec0Q2em14QQhashZitem400036942961QQitemZ400036942961QQptZUSQ5fCarsQ5fTrucks

Yep, you heard it right. General Motors is recalling 1,800 Hummer H3Ts for dealer service in order to upgrade the fuel tank straps to make the setup more sturdy.
Reports from the National Highway Safety Administration suggest that the front tank supports could disconnect, making the tank rely on its shield to hold it up. Ultimately, this could result in total failure where your fuel tank could be left behind as you happily cruise along the highway. If you are a Hummer owner with a 2009 model year H3T, you may contact HUMMER directly at 1-800-732-5493 for further information.

Ford Motor Company has announced that it expects annual savings of $500 million through a wage deal with its union while the White House revealed that U.S. automakers have not yet presented specific viability plans to President Barack Obama

Obama expects the industry will face some form of restructuring, the White House said on Wednesday.

The US President believes “we need an auto industry in this country but the auto industry is likely to be one in the future that is restructured and re-imagined from where it is today so that Americans are buying cars that are built by and for Americans,” the White House said.

Earlier this week, members of the Obama administration’s autos task force visited the Detroit area where they again met with executives of General Motors Corp (GM.N) and Chrysler. The two companies are seeking up to $39 billion in federal aid.

GM and Chrysler received a $17.4 billion government bailout in December and have asked for nearly $22 billion more. The government has until March 31 to determine if the automakers can become commercially viable, and if they should get additional public funds.

Unlike GM and Chrysler, Ford is trying to restructure its finances without a government bailout as the industry is battered by the economic recession.

Through a deal with the United Auto Workers, Ford expects its hourly wages would now be in the “ballpark” of foreign-based rivals, the company said.

The agreement, which was ratified by Ford-UAW members, trims average wages and benefits for UAW hourly workers to about $55 per hour this year, while the U.S. operations of foreign-based automakers — or what executives call “transplants” — pay workers on average $48 to $49 per hour, Ford said.

Meanwhile, Toyota Motor Corp (7203.T) warned that it is developing contingency plans to deal with any disruption in the U.S. automotive supply chain.

Jim Lentz, Toyota’s top U.S. executive, said the company has concerns with about 100 suppliers, but is particularly worried about 20 to 30 within that group. He did not identify the suppliers.

Auto suppliers have asked the U.S. government for $18.5 billion in assistance to offset credit woes and slowing production at automakers, which has led to a sharp decline in payments.

Separately, German auto parts giant Continental (CONG.DE) wants to cut nearly 2,000 jobs and close production at two high-cost European tire manufacturing sites.

Shares in Continental, now controlled by smaller rival Schaeffler, closed down 4.3 percent at 13.30 euros while the DJ Stoxx European car sector index .SXAP rose 2.9 percent.

Also, Russia’s biggest car maker, AvtoVAZ (AVAZ.MM) is cutting production by at least 36 percent this year as the global financial crisis takes its toll on demand for cars.

AvtoVAZ is targeting output of 590,000 cars in 2009 against 920,000 in 2008.