BMW's $300 Million Investment in its Dealerships

Woodcliff Lake, NJ - April 17, 2009... BMW dealer investment for the future continues, even in the current economic climate.

"Investments from our BMW dealers are proof of confidence in the future success of the BMW brand in the US," Jim O'Donnell, President of BMW of North America, LLC, said. "Today, our network is one of the strongest in the country and we are all working closely together to extend our leading position in the future."

O’Donnell delivered this message on the occasion of the Grand Opening of Rusnak BMW in Thousand Oaks, CA.

Over the last nine years, the BMW network has invested $2.2 billion as part of a comprehensive plan to develop the best facilities of any premium brand. The current $300 million investment continues this direction. By the end of 2009, most of the 338 dealerships will have undergone modernization of facilities. Other openings and expansions in 2009 include BMW Advantage (Houston, TX); Prestige BMW (Ramsey, NJ); JMK BMW (Springfield, NJ); Foreign Motors West (Boston, MA); and Bill Jacobs BMW (Chicago, IL).

In the current demanding and difficult automotive environment, BMW dealers have maintained their strong and stable franchises. “Our dealers have led the way with a stronger emphasis on the used car business and it has helped buffer the consequences of declining new car sales in the US,” said O’Donnell. “Early on, we and our dealers recognized this opportunity and the used car business has become an even more important part of our strategy for our US success.” O’Donnell also noted this action is bringing new and younger customers into the BMW family, even in the current economic climate.

In 2008, BMW sold more than 104,000 Certified Pre-Owned vehicles (16.4 percent more than 2007), making the brand the largest used vehicle operation within the premium segment and outselling its closest competitor by more than 60 percent. Results from the first quarter of 2009 indicate CPO sales are on track to increase an additional 15 percent for the full year.

Also important is top-of-industry customer retention through BMW’s Ultimate Service program that includes a 4-year / 50,000 mile vehicle maintenance plan with the purchase of any new BMW. As a result, through the first ownership period, 97 percent of BMW vehicles have all of their service performed at certified dealers, as opposed to the industry average of about 50 percent, helping to fully utilize BMW dealer service centers.

New Mercedes E63

Mercedes-Benz's AMG performance division chief, Volker Mornhinweg, offers this procedure for those who want to get the most out of the all-new 2010 E63 AMG:

Step 1. Fully depress brake pedal.
Step 2. Shift transmission to D.
Step 3. Switch electronic stability program to sport mode.
Step 4. Switch transmission to race-start mode.
Step 5. Click upshift paddle to confirm.
Step 6. Fully depress accelerator pedal.
Step 7. Release brake.

To that process, we might add a precautionary Step 8, "Hang on for dear life," because this version of the all-new E-class sedan looks like a rocket just waiting for someone to light the fuse.
Set for its global debut at the New York auto show, the high-performance E63 AMG will arrive in November, following the midsummer release of the 2010 E-class sedan and coupe. And while the new E-class is a surprise in itself, the E63 is more of a shocker — a statement that the E-class is leaping well beyond its staid past to establish itself as a clear alternative to BMW's M sedans and Audi's S models, among others.

Completely restyled sheetmetal — along with powertrain, suspension, interior and safety-equipment improvements — highlight the 2010 model. The E63 picks up much of the reborn E-class styling, taking it to an extreme level with wider fenders, side skirts, AMG-specific front and rear fascias and quad rectangular tailpipes. Inside, sport seats and a four-spoke AMG steering wheel with shift paddles and a center-console-mounted shift lever are among the special features.

Under the hood, the 6.3-liter V8 continues from the previous model, with improvements that increase horsepower by 11, to 518 hp (torque remains at 465 lb-ft). At the same time, fuel economy is up by 12 percent (to more than 17 mpg combined) thanks to more efficient engine management and reduced cylinder-wall friction, along with the shift to the multidisc wet-clutch AMG Speedshift MCT seven-speed automatic transmission. It's that tranny, previously offered only in the SL63 AMG, that promises the largest jump in the E63's fun-for-the-money ratio, featuring the race-start option, which provides maximum possible acceleration, along with four other settings: controlled efficiency, sport, sport plus and manual.Chassis upgrades include AMG's newly developed electronic ride and damping control, which uses air springs in the rear to maintain constant height and variable shock settings to reduce body roll. A new front axle, with a wider track and a design that migrates from the C63 AMG, improves grip, while a 22-percent-quicker steering ratio adds responsiveness and precision.

An optional AMG Performance Package adds 19-inch wheels and tires, a stiffer suspension, a partially locking rear differential and a three-spoke AMG steering wheel. Oh, and a revised top speed of 186 mph (up from 155 mph)

2010 Volkswagen Golf GTI

After more than a quarter-century and 1.7 million GTIs sold worldwide, the sixth-generation car poses alongside its glorious European forebear, introduced in 1976.

There was something perfectly right about the first GTI, which was introduced to the European market in 1976. This sporty version of the Golf hatchback was powered by a 1.6-liter engine that delivered 108 horsepower — a modest number by today's standards. Even so, it created a sensation back then and a new vehicle segment. U.S. enthusiasts had to wait until the 1983 model year for the GTI to land on this side of the pond. It was powered by a "federalized" 1.8-liter engine that developed 90 horsepower. Again, it was a hit.

Fast-forward more than a quarter-century as VW introduces a sixth-generation GTI. This new iteration of the archetypal pocket rocket has been subtly redesigned, with shrewd attention to quietness and traditional GTI cues. Gen 6 nonetheless makes strides in handling and performance, with a slightly more potent version of the brilliant 2.0-liter turbo engine. What the 2010 GTI lacks in outright muscle it more than makes up in balance, quality, refinement and ultimate poise.

Model Lineup
The 2010 GTI will be available in October and offered in two versions of a single trim: the standard 2-door hatchback (which starts around $24,000) and a 4-door hatch (available as a $500 option).

Although the new GTI's overall shape is quite familiar, most major body panels are changed. Most striking is a new front fascia that returns to a horizontal grille with a large VW badge dead center and red accent lines like its famous forebear. Full xenon headlights will be an option, with a directional feature that lets them swivel up to 13 degrees into a turn, in sync with steering inputs. The rear fascia is also new, with wider, elongated lights, a black "extractor" on the lower part and a single chromed exhaust tip on each side rather than a twin pipe. A more pronounced accent line runs the length of the car above the wheelwells for a broader stance, especially with the optional 18-inch alloy wheels and summer or all-season tires.

Among the other options are the DSG dual-automated-clutch 6-speed sequential gearbox; a tech package that includes Bluetooth connectivity and a Dynaudio audio system; an efficient navigation system with a clear screen and 80 GB hard disk drive; side airbags for rear passengers (on 4-door models); and an Autobahn package that adds leather, sport seats and a power sunroof.

One Euro-spec option that we strongly encourage VW to add to the U.S.-spec option menu is the Dynamic Chassis Control, which lets the driver choose among three modes (comfort, normal and sport) that change the shock absorbers' damping characteristics and add a bit of effort to the steering. The cars we drove at the launch had this system, and it works impeccably. The U.S.-spec car's suspension is set somewhere between the normal and sport modes, we are told.

On the safety front, the GTI comes with six standard airbags. It is also now equipped with active front head restraints and the latest electronic stability control system.

Under the Hood
The new GTI's turbocharged direct-injection 4-cylinder engine has the same 2.0-liter displacement (1,982 cc to be precise) as its multiple award-winning predecessor, but actually is an evolution of the EA888 engine that was previously seen in a limited-edition 30th anniversary Golf model sold only in Europe. With modified pistons, rings, oil pump, vacuum pump, fuel pump and mass airflow sensor, this new powerplant develops 210 horsepower at 5300 rpm — up 10 from the previous model — and delivers its 207 lb-ft of torque from a pleasingly low 1700 rpm up to 5200 rpm. The new engine returns a 32 mpg highway average versus 29 mpg for its predecessor with the standard 6-speed manual gearbox or the new model with the DSG gearbox.

The engine is a marvel. It pulls strongly at any revs and will spin the tires at will, backed by a sweet exhaust bellow emphasized by a "sound generator" for the entertainment factor. Full-throttle upshifts with the DSG gearbox produce a characteristic "blap" that makes the driver feel like a racing star. VW could eliminate this sound by staggering the fuel cut-off to the cylinders by a few milliseconds, but ardent GTI fans want it, according to engineer Kai Schweingruber. We agree. VW North America expects more than half of all GTIs to be sold with the DSG transmission, a $1,200 option.

VW says the GTI will accelerate from zero to 62 mph in 6.9 seconds for both the 6-speed manual and DSG gearboxes. Compared with the GTI's direct rivals, this time is about equal to the MINI John Cooper Works with virtually the same horsepower (207 ponies), a few tenths quicker than the less powerful Honda Civic Si coupe (197 horsepower) and a few tenths slower than the more muscular MAZDASPEED3 (263 horsepower). Volkswagen also quotes a drag-limited top speed of 149 mph for the manual-equipped GTI and 148 mph for the DSG version.

Inner Space
The instrument panel's soft-touch, matte, finely textured surface ranks with the best. So do the narrow moldings inlaid horizontally across, with hair-width silver strands running over a dark gray background under a sheer coating. Aluminum and other metal accents abound, including on the leading edge of the power window switches and around the shift lever, the four larger vents and various control buttons. The aluminum-faced pedals are carryovers from the Gen 5 GTI.

The sport steering wheel also shows aluminum on all three branches. Its redesigned hub and redundant controls have more flair, and the shape and texture of the leather-draped, flat-bottom rim are just about perfect. Red stitching on the inner part of the rim, on the shift lever boot, the hand-brake handle, the sport seat bolsters and head restraints is pure GTI lore.

The seats are impeccably sculpted and provide an excellent blend of comfort and support. Our only gripe is a height-adjustment lever typical of VW that raises the seat in a diagonal arc rather than offering separate adjustments for height and angle. Driving ergonomics are nonetheless spot-on, as are most controls, with the exception of smallish buttons for the new electronic interface on the manual air conditioning, and archaic cruise-control buttons and switches on the turn-signal lever.

The new GTI has inherited its predecessor's superb cargo bay under the rear hatch, with a volume that goes from 12.3 to 46 cubic feet if you flip down the 60/40 seat backs. It also has a fantastic pass-through that is more than large enough for a few pairs of skis or a couple of snowboards.

On the Road
Carmakers don't typically brag about the quietness of their sport-focused models, but it was a crucial target in this redesign of the GTI and the techs in Wolfsburg nailed it. The overriding first impression in the sixth-generation GTI is one of quietness, indeed. VW claims a 3-decibel reduction in wind noise at 75 mph, which means half the noise, in logarithmic terms. There is barely a hush at this speed and little more as we sped up a bit during the intro drive in southern France. The engine is also said to be quieter by 3 decibels at idle and 5 decibels overall. For pleasant sound effects, simply press the pedal on the right.

The new GTI rides 0.9 inch lower than its predecessor in front and 0.6 inch lower at the rear. The springs, shock absorbers and rear anti-roll bar have all been retuned. There is also a new "electronic transverse differential lock" (XDS) that works through the stability control system to quash understeer and help the car pivot into a corner at speed by braking the inside wheel as needed while turning in. The GTI remains impressively stable, agile and composed, regardless of your pace or the curvature and surface of the road ahead.

Steering is precise, quick and well-weighted, with excellent self-centering. Take your pick of either gearbox; you can't go wrong. The DSG rattles off perfect full-throttle upshifts — with that addictive "blap" — and it will blip the throttle perfectly on every downshift, with either the steering-mounted paddles or the short, positive lever on the console. The manual gearbox is tight, quick and solid, with pedals made for heel-and-toe shifting. It adds a measure of directness to the GTI's demeanor that will please keen drivers who can look beyond numbers on a spec sheet.

Chevy Camaro Gets Super-Tuned

Hennessey Performance HPE550 Camaro

The 6.2-liter V8 in the 2010 Chevrolet Camaro SS cranks out 426 hp or 400 hp, depending on the transmission choice.

But there are some people out there who want more. With a higher-performance Z28 Camaro from the factory on the back shelf as General Motors battles for survival, aftermarket tuners are ready to fill the void.

Among the first out of the gate is Hennessey Performance Engineering of Houston, Texas, with its HPE550 Camaro.

Bolting a Magnuson/Hennessey supercharger and Corsa stainless-steel exhaust system onto GM's LS3 V8 enables Hennessey to crank up the output to 562 hp at 6,200 rpm and 557 lb-ft of torque at 4,200 rpm.

Hennessey says that powertrain will rocket the Camaro from 0 to 60 mph in 3.9 seconds, compared with runs in the 5.0-second range in the stock Camaro SS with a manual transmission. Hennessey says the reworked Camaro will cover the quarter mile in 11.9 seconds with a top speed of 119 mph.

How much damage does this do you to bank account? Hennessey says the parts for the HPE550 Camaro — which include high-flow fuel injectors, air induction, aluminum wheels and an aerodynamics package — will sell for $18,950 plus shipping charges, but that leaves the installation up to you.

Hennessey will create the HPE550 for you for $24,950 plus shipping (plus the $31,000 base price of a Camaro SS.) Buyers also get a half-day class at the Lonestar Motorsports Park drag strip, next door to Hennessey's facility. There also is a menu of upgrade options, which include brake and suspension changes and an automatic transmission. Hennessey plans to build a maximum of 500 units for the 2010 model year.But wait! You say the HPE550 still isn't enough? Then Hennessey will steer you toward dropping in a 705-hp version of the LS9 V8 from the Chevrolet Corvette ZR1. The company hired racer and retired GM engineer John Heinricy as developer and test driver. The LS9 upgrade will set you back a mere $39,500.

Mustang Turns 45

1964 Ford Mustang

Few cars have the universal appeal of the Ford Mustang. Few have been as accessible yet alluring, attainable, yet powerful and still romantic. From its humble beginnings as a "secretary's car" — as Carroll Shelby once famously sneered — to the muscle-bound bruisers of today, The iconic pony car has been a rolling piece of modern Americana.

Forty-five years ago today, the Mustang launched and became an instant overnight sensation. Ford projected modest sales of 100,000 and was overwhelmed by 22,000 orders on the first day and an astonishing total of 417,000 in the first year. More than 9 million cars later, the 'Stang is a runaway commercial success and one of the Blue Oval's most-consistent sellers.

Along the way, the Mustang has become more than just a car — it's a cultural icon, the subject of numerous movies, songs and the daydreams of pony-car enthusiasts.

And the history of the car has mirrored that of America. When the Mustang debuted in 1964, Detroit's Big 3 automakers were on top, and its risky, almost European design won praise the world over. As the '60s wore on and the pony-car and muscle-car wars ramped up, the 'Stang grew more powerful, with Shelby and Boss versions (just to name two) tearing up boulevards and strips across the nations.

But like Camelot, that golden age of speed proved fleeting. In the 1970s, Americans were beset by an oil crisis; the Mustang shrank, in size and cultural stature, with the V8 engine disappearing for a spell as consumers shifted to fuel-sipping, diminutive rides. The '80s marked the return of some 'Stang synergy — including the revival of the GT and convertible models, though that was still a fairly bland period for automotive design.

The Mustang began to rediscover its mojo in the 1990s, riding the success of the post-Cold War boom and cheap fuel prices. The comeback was complete with the 2005 model — a dead ringer for the original with all the trappings of a modern sports car.

The latest generation is launching straight into the teeth of yet another recession, but with its buff design and affordable options, it may be one of the best ever in the 'Stang stable.

It started for the agreeable price of $2,368 in 1964, and today, the base car is still a decent bargain at less than $22,000. And it's endured. For nearly half a century. Longer than all of its pony-car competitors — and longer than most cars, period. The Chevrolet Camaro has been the most worthy competitor and built up its own legions of loyalists, but it did take a breather for a few years before coming back this spring. The Dodge Challenger was a shooting star in the '70s, before its own recent return.

All of this nostalgia and enthusiasm will come to a head this weekend at the Barber Motorsports Park in Birmingham, Ala., as more than 2,500 'Stang fans are expected to gather to mark the car's milestone.

Forty-five years later, the Mustang remains a quintessential American car. It's not a Ferrari or a Lamborghini, cars reserved for the rich and connected. It's a pretty steep task to find someone who hasn't driven in a 'Stang. It's not pretentious, but it still strikes a stoplight presence. And it's still a looker — for everyone from teenagers scrapping together money for their first car to celebrity enthusiasts.

Jack Roush, owner of a racing and performance empire, could drive anything. But his car of choice remains the same as in 1964, when like many others, he pulled together cash to buy his first car out of college: one of the original Mustangs.

Saturn Overseas

An investor group called Telesto Ventures says it wants to acquire Saturn's retail operations and provide dealers with vehicles from General Motors through 2011 and mostly overseas manufacturers thereafter.

A GM spokesman said today the group's proposal is legitimate and "very interesting."

"I can tell you this is one of the interested parties with Saturn, and we have been working with them throughout this process," said spokesman Steve Janisse. "There are other interested parties as well who we're working with. But I can't speculate on where all this will go."

Telesto spokesman John Pappanastos says his group is in discussions with several unnamed foreign manufacturers.

He says Telesto includes a private equity firm, Black Oak Partners LLC, based in Oklahoma City, and several other investors. It's not clear how much money is backing Telesto and what auto experience the group has.

2010 Ford Mustang.

With the launch of the 2010 Ford Mustang and the car’s 45th anniversary coinciding neatly, it was obvious Steve Saleen, who is synonymous with all things ‘Stang, would have something up his sleeve.

His new company, SMS Supercars today released a sketch of its new go-fast Mustang. It comes in two versions, the 460 and the 460X. Fittingly, he released them at the Mustang anniversary party at Barber Motorsports Park in Birmingham, Ala.

Saleen paid special attention to the air induction, fascias, splitters and diffuser to customize the new Mustang. It also gets new suspension geometry and brakes. Inside is Alcantara and leather, with hand-stitching on the interior panels.

The 460 comes with a 4.6-liter V8 making 470 hp and 427 lb-ft of torque. The 460X makes 655 hp and 600 lb-ft from a 5.0-liter V8. They both employ the SMS 296 supercharger.

2010 Ford F-150 SVT Raptor

2010 Ford F-150 SVT Raptor starts at $38,995

Mike Levine of PickupTrucks.com is currently embedded in an F-150 SVT Raptor R with the Ford Racing Team at the "Terrible 250" in Primm, Nevada. Being that close to the action, Levine has managed to wrest some hard info about the upcoming production SVT Raptor from Ford. The off road-ready half-ton will start at just $38,995, which may sound like a lot until you consider this desert flier will be only about $3,000 more than a well-equipped F-150 FX4. The SVT Raptor will launch with Ford's 5.4-liter V8, but soon after will be joined by the company's new 6.2-liter V8, as well. The truck certainly isn't for everyone with its huge tires, high suspension and compensating-for-something "FORD" grille, but those who do go for that kind of thing will at least not get gouged at the checkout counter.

Are fuel prices effecting consumers?

How Fuel Prices are affecting consumers

A new report by traffic information company INRIX highlights how fuel prices influence consumer driving patterns, congestion and public transit use and how to predict such changes for the future.

The INRIX National Traffic Scorecard Special Report takes an aggregate analysis of fuel prices, traffic congestion and an open survey of consumer opinions to create a predictive model for driving patterns. These results make implications that could potentially aid specialty-equipment manufacturers in developing strategies to understand fuel prices and their impact, ultimately selling car parts more suited to the market.

The study found that traffic congestion fell significantly during the first half of 2008, but was less dramatic in dense urban cities, such as New York City, Washington D.C. and Chicago. Nearly two-thirds of consumers changed driving behaviors. Of those, 69% took fewer driving trips; 34% made shorter trips; 9% carpooled; 8% began riding bikes or motorcycles; and 7% used public transportation.

In SEMA-conducted surveys, the results were similar. The most common strategies used to cope with high fuel prices were to drive less, combine errands or reduce recreational trips. The INRIX study showed a $4.50-per-gallon tipping point for road trips and leisurely driving with general consumers claiming they would significantly reduce the frequency of trips at this level.

Fuel prices are beginning to drop to lower levels, but in the instance that they begin to rise again, this level should be watched. When enthusiasts do drive, 64% claimed to change their driving habits.

“Although we can’t predict the future price of fuel, we can predict the potential impacts to traffic congestion,” notes Bryan Mistele, INRIX founder and CEO. “As a whole, the population appears to have made lasting changes to their behavior, which we expect to persist at some level even if gas prices revert to pre-2007 levels.”

The top cities with a negative correlation between fuel prices and traffic flow include Atlanta, Miami, Las Vegas, New Orleans, Springfield (Massachusetts), Daytona Beach, Orlando, Memphis, Charlotte and Riverside (California). Commuters in these cities reacted the most significantly as fuel prices increased.

Two other noteworthy details spring from this study. Atlanta, which topped the list, had a large swell of public transportation use. In order to meet the expanded demand, the city absorbed the rush by greatly expanding the capacity of public parking lots. In cities that heavily depend on vacation or leisure travel, such as Miami and Las Vegas, the decline in traffic congestion was attributed to fewer families being able to visit these destinations.

With any dominant social shift in behavior or spending fluctuations come consequential changes in the retail markets. Studies are suggesting that consumers are beginning to transform the way they view transportation and manufacturers of custom auto parts and accessories need to stay abreast of such shifts in order to stay competitive.

Hand-Built Wooden Ferrari Engine On eBay

Bill Dietz is amazing guy. He has an amazing passion when it comes to cars. And to prove it, check out this special Ferrari 365GTB/4 V12 Daytona engine. A piece of art made from eleven different woods (from oak to Philippine mahogany) he managed to recreate everything from the valve covers to carburetors and from the velocity stacks to the bolts holding the pressure plate. With an accent on details and a lot of talent and passion for cars, Bill definitely managed to come up with a unique piece of craftsmanship. It’s now at $2,650 so get in fast if you want to bring it home.

TuLesto Supercar

Novitec Plans to Build TuLesto Supercar

The wicked tuners at Novitec, have put together a pretty daring plan to build a supercar. Renowned for their ability to make Ferraris even better than they are, the new TuLesto (why such a bad name?) is expected to sport a 4.4-liter four-valve V8 with two superchargers that output 777 hp and send it 0 to 60 mph in 3.4s before reaching a max speed of 350 km/h. With a lightweight body frame made of carbon-fiber and aluminum, some 20- or 21-inch Novitec wheels and a lot of resemblance with Ferrari 430, the new TuLesto is definitely worth a look. We’d only wish they’d build more than 11 units.

2011 Toyota 4Runner Spotted in California

2011 Toyota 4Runner Spotted in California

Spotted on the streets in California under a thick camouflage armor, the new 2011 Toyota 4Runner comes with a revised hood-line and headlights. With off-road capabilities and a very aggressive body work, the new 4Runner is actually refresh upgrade rather than just a re-work. Aren’t we all happy that Toyota is still building trucks (real trucks) that will go heavy at the gas pump? I thought we were after hybrids and efficient engines and not Jurrasic SUVs. No?