The word ‘compromised’ is an essential verb in the supercar road test lexicon, but nowhere is it less useful than here. Meet Mazda’s 3 and Volkswagen’s Golf. The former has, in just one generation, become a third-place regular in the Aussie passenger car sales charts, and even climbed to number one in January this year. The latter has built a devoted following and iconic status in its native Europe over five generations, and has a smaller, but no less loyal following here.

They’ve both done so by firmly establishing themselves as do-it-all hatched-back (and sedan, in the case of the Mazda), four-door, five-seat transport with enough driver appeal to satisfy the enthusiast. In short, by demonstrating a remarkable absence of that nasty ‘c’ word. Just $200 separates the list prices of this newly-released pair, the sixth-generation Golf 118TSI Comfortline manual ($30,690) and the second-generation Mazda 3 SP25 manual hatchback ($30,490). You’re buying a lot of car for your $30K in either case, but in the Golf you trade-off some of the equipment you get in the richly-appointed Mazda.The Japanese hatch gets a mild bodykit, 17-inch alloys, metallic paint, front foglights, six-disc in-dash CD, sat-nav and Bluetooth phone/audio. Its German counterpart charges $700 extra for metallic paint and to get 17s and front foglights (with cornering function) you need to tick the $2000 Sports pack option as worn by our test car, which also buys you sports suspension, front sport seats, tinted windows, and a low tyre pressure indicator system.In its favour, the Golf scores some desirable standard features not found in the SP25, including a driver’s knee airbag, rain-sensing wipers, a chilled glovebox, auto up/down on all windows, and adjustable a/c vents and overhead reading lights in the rear.In addition to the Sports pack and metallic paint, as tested our Golf featured the $1500 adaptive chassis control pack (including three-stage adaptive dampers), and the $1800 Dynaudio premium sound system, taking its total price to $36,690.The 3 was fitted with the Luxury pack, which adds leather trim and Bose sound, and also had the optional glass tilt/slide sunroof. This combo costs $4000, bringing the SP25 to $34,490.Continuing the value comparisons, the Golf’s 62.5 percent three-year Redbook resale rating is almost identical to the Mazda 3 SP25’s 63 percent figure.In the fuel-cost stakes they’re remarkably even, too. The Golf (at 7.6L/100km) drank around 13 percent less than the Mazda (at 8.7L/100km) but calls for 98 octane juice, at about 13 percent more expensive (on test) than the Mazda’s required 91RON. Where 98 isn’t available, the Golf will accept 95 octane premium.Their paths to power, however, set them apart. The Golf uses supercharging and turbocharging to pump its 1.4-litre four up to 118kW. The Mazda’s big 2.5-litre twin-cam four inhales air at atmospheric pressure and produces 122kW.Despite their differences, the 80-to-120km/h in-gear acceleration times we recorded were close, the only noteworthy difference being in sixth, where the VW was around six percent quicker. However, the Golf’s at an advantage in urban driving, making peak torque from 1750rpm to 4500rpm. The 3, meanwhile, builds progressively to a peak of 227Nm at 4000rpm. The fact the Golf’s in that sweet, torquey zone so early in the rev range makes it feel faster in day-to-day driving, and that’s something you appreciate often.If their different modes of aspiration aren’t evident in the performance numbers, they come through in each engine’s distinctly different character. The SP25’s 2.5-litre donk is a revvy operator. Good thing it sounds decently rorty, because in the Mazda the engine’s an ever-present companion, allowing lots of noise to filter into the cabin.However, it’s as though the SP25’s accelerator pedal is mapped via the electric throttle system for a non-linear relationship with the actual throttle – lots of throttle at small pedal angles, and only a bit more throttle at larger pedal angles. Although this makes the car initially feel lively, it can make the accelerator hard to modulate, and can make wide-open-throttle acceleration seem slightly disappointing. But despite confusing the senses, the Mazda actually pulls heartily from low revs and spins freely to peak power at 6000rpm.The Golf’s twin-charged four is near silent by comparison, so much so it’s possible to get to fourth or fifth and forget you still have another cog or two to play with. Loaded-up at low-rpm (like, say, when doing a hill-start), there’s a subtle diesel-like clatter, but progress into the meat of the rev range and it’s all smooth, refined thrust and distant rort. The VW is also possessed of a well-damped gearshift action, with what feels like a shorter throw than the Mazda’s. The 3 counters with a slick action and a positive mechanical movement into each gate. In standing acceleration, they’re again incredibly close. The Mazda needed 7.90sec to hit 100km/h from rest, and crossed the 400m mark in 15.67sec at 147.0km/h. The VW took 7.95sec and 15.68sec (at an identical terminal speed). Neither was particularly straightforward to launch, however, with wheel tramp a real issue.Away from the strip and onto the open road, the Golf cruises at 110km/h in sixth at just under 2400rpm, meanwhile the 3 is doing just over 2600rpm.So, the 3 is revvy, rorty and a bit on the noisy side; the Golf’s torquey, cultured and hushed. They’re equally quick-ish, but the Golf (just) gets the nod for flexibilityThe SP25 is billed as a sporty hatch, but with VW’s Sports pack optioned (as well as adaptive chassis control; which we tested in ‘auto’, rather than ‘comfort’ or ‘sport’) the Golf 118TSI is a good match in the twisties. Wheels’ favoured ride/handling loop is a scything, gnarly slice of bitumen, and was more challenging than ever thanks to persistent rain (incidentally, the Golf’s rain-sensing wipers proved to work perfectly, matching wipe speed to the immediate rainfall).The initial impression is that the Mazda has more reactive steering, which gives a greater sense of agility than its rival. Steering kickback wasn’t evident in either, and only the Golf experienced mild crash-through on a couple of occasions. Both tread a well-judged line between body control and absorbency for sports-suspended models, with unwanted oscillations only happening over larger bumps tackled at speed. On balance, although the Golf’s steering feels a fraction inert alongside the alive 3, its extra ride quality and refinement are attributes most will appreciate more often.It should be noted, however, that coarse-chip roads are met with significant tyre drone in both cars, despite Mazda’s work on NVH and VW’s claims MkVI is the quietest Golf ever.Electronic stability control, a standard feature on both hatches, came into play at the extreme, but was never intrusive. Only very patchy sections of tarmac unsettled them, and only the tightest of corners were enough to invoke front slip.Overall, the Mazda feels more agile; the Golf noticeably more comfortable. Both chassis are well-balanced and willing to be driven hard.Each car’s styling offers an accurate snapshot of its character. So, the adventurous second-generation 3 with its bulges and creases portrays its pointy, revvy personality. You certainly get a lot of ‘design’ for your small-Japanese-car-buck these days.Alternatively, the Golf’s conservative exterior reflects the relaxed nature of its powerplant and its refined manner. If the overall shape is undramatic, it should age well, and attention to detail like the hatch handle integrated into the rear badge, and the VW logo in the centre of each headlight, impresses.If there are two different exterior approaches at play, it’s a similar story inside. The Volkswagen’s staid dash panel and instruments are in stark contrast to the 3’s sweepingly modern design. Despite that, the Euro hatch offers a pervading sense of quality and class that the Mazda, with its seemingly cheaper plastics, can’t quite match. The Golf’s soft-touch tiller and gearshift knob, the chrome trim around the HVAC vents and the roll-a-lid on the storage compartment between the front seats (which contains the ubiquitous VW bottle opener) are examples of the small details that solidify this impression.Its perceived quality mightn’t measure up, but the 3 does, however, take the award for ‘most buttons on a steering wheel’, at 20-odd. The Mazda’s (optional leather-trimmed) front pews also match its rival’s optional sport seats for ergonomics in relation to the tiller, gear lever and pedals, though the terrifically snug and supportive optional Volkswagen sport seats win on outright comfort – they’re some of the best factory seats available.With the optional sound system box ticked on each hatch and snapper Mark Pakula, a self-confessed audiophile, on hand, a road test of the doof-doof variety was inevitable. As part of the Luxury pack on the SP25, it scores a Premium Bose system with 242-watt amplifier and 10 speakers (including a subwoofer mounted in the centre of the spare wheel – which is a space-saver in both cars, by the way).The Volkswagen’s Dynaudio (a well-regarded, Scandinavian brand) 300-watt audio package upgrades the Golf from a single disc in-dash unit to a six-stacker, and brings eight speakers.With both systems cranked to 11, the Golf’s impressed by immediately putting you on the sticky carpet of an indie pub, crisply reproducing guitar twangs and cymbal tinks, and kicking out solid bass. That said, you’d probably be entirely happy with the Mazda’s system in isolation.Rear accommodation is comparable, with similar head- and leg-room, however the Golf’s boot is better fitted-out, with a ski-port, 12-volt socket, and a profusion of hooks and tie-downs.So, which flavour: German or Japanese? Before you even sit in the Mazda 3 SP25 its eye-catching exterior has your attention, and the drive experience matches the sheetmetal, immersing the driver with sharp steering, a slick, mechanical gearshift and a gutsy, enthusiastic, if ultimately noisy, engine.The conservative-looking Golf, meanwhile, offers tangibly better refinement and quality than its rival, and has an effortless gait thanks to its high-tech, torquey engine.There’s no loser here, but there is a car we’d prefer to own. The Golf’s our pick because it does a better job in areas owners will appreciate every time they drive it. It’s comfortable and classy, quiet and quick. And, when you’re in the mood, entertaining enough to encourage driving for its own sake. The word ‘compromised’ simply doesn’t apply.Correction – Volkswagen Golf v Mazda 3 comparoIn the Volkswagen Golf 118TSI versus Mazda 3 SP25 comparo in our June issue, the ‘Billed quality’ breakout on page 91 describes what we (incorrectly) perceived to be a fault with the Golf’s electric exterior mirrors.As an understandably annoyed Volkswagen and a couple of owners have since pointed out, the behaviour of the mirrors (when we adjusted one mirror, the other mirror moved with it) is actually a long-standing feature on Golf and other Volkswagen models. The idea is, if a driver adjusts the driver’s side mirror, the passenger’s side mirror moves by the same angle. It’s intended as a quick and easy means of adjusting to suit drivers of different dimensions. The mirrors can also be configured to adjust individually through a settings menu found in the car’s multi-function display.So, lesson learned. We’re off to take a good hard look in the mirror(s).

When the MkV Golf GTI launched internationally at the end of 2004, it marked a dramatic return to form for the famous three-letter badge that Volkswagen invented in 1976. By the time the GTI arrived in Australia in May 2005, it had already become the darling of the motoring press. Waiting lists blew out past six months as local dealers were stampeded by punters flocking back to the pioneering hot hatch after it had spent, by VW’s own admission, a couple of generations in the dynamic wilderness.

In short, the new MkVI GTI, due for local release in the fourth quarter of this year, has to live up to massive expectations both from the public and VW.While it’s claimed to be a new car, the MkVI GTI is a Porsche 911-esque evolution of the MkV. The platform is an updated version of the DQ35 used in the MkV, but the only common exterior panel is the roof. Some journos on the car’s international launch in France thought the styling was too similar to the MkV, but the differences become apparent when the two are parked side by side.VW also claims that the VI is powered by a new engine, but again, it’s an evolution of the Volkswagen Audi Group’s EA888 TSI range of turbo four-cylinder engines. Swept capacity remains 1984cc (from a 82.5mm bore and 92.8mm stroke), but internally the engine is more closely related to Audi’s A4 TFSI four-cylinder.Power is up 8kW over the MkV to 155kW, on tap from 5300-6200rpm, but that’s still 14kW short of the limited-run Golf V Pirelli Edition. However, Rolf Trump, technical project director for Golf and GTI, is quick to defend the GTI as a complete package.“It’s not all about power,” Trump began, “we believe 210ps [155kW] is sufficient and 230-240ps [169-177kW] is essentially the limit for GTI”.Curiously, Trump then went on to outline plans for two hot models. “The official program is two cars,” he said. “There may be one at 230-240ps, then one at 270-280ps [199-206kW].”Back to the MkVI GTI, and peak torque remains 280Nm as per the V, but it’s now available over a spread 300 revs wider – 1700-5200rpm. Coupled to either the six-speed manual or optional DSG transmission (also a six-speeder), the mid-range torque is an ever-present and welcome companion. On the sinuous mountain roads of the launch drive, it was virtually impossible to get caught in the wrong gear regardless of transmission.Locally, 75 percent of GTIs are ordered with the DSG. On the move the transmission plucks gears adroitly, but still suffers from that great dual-clutch bugbear of abrupt throttle tip-in at low speeds. It’s also a bit doughy in normal mode, quickly selecting the highest available gear for the sake of economy. Drop the shifter into sport mode, though, and the ‘box comes alive, holding gears on the run up the ratios, or instinctively giving you a downshift as you trail-brake into a corner. All the while, the engine delivers a stirring, rumbling note, with entertaining pops and bangs on upshifts.For those not yet willing to join the DSG revolution, the manual features a quick and accurate shift, mated to a light clutch. It’d be my pick only because any low-speed hiccups are the driver’s.The efficiency and fluidity of either gearbox, and the storming mid-range punch are coupled to an 18kg weight reduction (for the German-market three-door manual model), resulting in a power-to-weight of 118kW/tonne (up from 110kW/tonne). Seat-of-the- pants impressions suggests this combo makes VW’s performance claims seem conservative. According to the brand, both models will now reach 100km/h from rest in 6.9 seconds – maintaining the status quo for the DSG but 0.3sec quicker for the manual.While performance appears similar, fuel economy has made huge gains. In European testing, which is very similar to Australia’s revised ADR81 standard, combined cycle consumption for the six-speed manual drops to 7.3L/100km (down 0.7L or nearly nine percent). The DSG version consumes 7.4L per 100km.If VW is being conservative with its performance claims, it’s being cheeky calling the GTI’s XDS technology an “electronic transverse differential lock”. It’s not a proper locking diff like that offered on the Renaultsport Megane R26; instead, the diff remains open. Torque-limiting of the spinning inside wheel is controlled by XDS, in conjunction with the ESP system, applying the brakes to that wheel. It’s not as effective or hardcore as the hardware fitted to the French fryer, but it does work, with a feeling of increased stability in faster corners. It also doesn’t feel ‘tight’ like some LSDs.Dynamic chassis control (DCC) is another GTI first. Carried over, albeit in a performance-oriented guise, from the regular Golf MkVI, DCC offers three damper settings – comfort, normal and sport. On the smooth French roads of the drive program, sport mode was the pick, delivering terrific body control and just enough compliance for a car of this genre. The few rough bits of tarmac we encounted, however, suggested that sport may be too firm for Australia’s pimply roads.Which is a shame, as sport mode also adjusts the steering weighting (comfort and normal feature the one steering setting). Without selecting sport, the steering is strangely lifeless and too light. Even with sport mode on, you still crave more feel. VW insists that there were no changes to the steering, but four of the five Aussie journos present on the launch had similar reservations about the lack of weight and feedback.Perhaps the difference can be explained by wheel size. All 14 test cars available at the launch were fitted with the optional 18-inch alloys, while all Golf GTI MkVs I’ve driven in Australia have been fitted with 17-inch alloys. Of the 14 cars, two were fitted with Bridgestone Potenza RE050 tyres (225/40R18) while the remainder rode on same-size Michelin Pilot Exalto rubber, with the French set appearing to offer marginally better ride comfort and steering feel.It’d be ideal if you could separate damper and steering settings, allowing you to choose comfort or normal for the dampers and sport mode for the steering. As it stands, the lack of steering feel is the only chink in the GTI’s impressive armour, and we’ll reserve final judgement until Wheels drives an Aussie-spec car on local roads.The interior has benefitted from the changes introduced by Golf VI, including loads of work on NVH. There’s a slightly redesigned steering wheel, and the tartan-trimmed sports seats (leather remains an option) are some of the best in the business, offering a terrific combo of support and comfort.Pricing and some options are yet to be confirmed for Australian-spec cars, but expect a $1500-2000 price increase when the five-door debuts late this year (at around $42K for the manual). VW Australia also won’t yet confirm the new three-door, but Wheels expects it down under from mid-2010 priced about $2K less than the five-door. Dynamic Chassis Control is optional in Europe and is likely to remain so in Australia, along with the 18-inch telephone-dial alloys (17-inch alloys look likely to continue as the standard wheel in Australia).Next to the likes of the Renaultsport Clio and Megane, Mazda 3 MPS and Honda Civic Type R, the sixth-gen Golf GTI may appear tame. But for most drivers, the GTI offers the best balance of driving thrills and useability. In short, it’s the one to own.Body steel, 5 doors, 5 seats Drivetrain front-engine (east-west), front-drive Engine 1984cc four cylinder, dohc, 16v, turbo Power 155kW @ 5300-6200rpm Torque 280Nm @ 1700-5200rpm Transmission 6-speed manual or 6-speed automated manual Size l/w/h 4210/1779/1465mm Wheelbase 2578mm Weight 1336kg (3-door manual) 0-100km/h 6.9sec (claimed) Price $42,000 (estimated) On sale October

The new BMW X6 Sports Activity Coupé may have confused some with its interesting blend of powerful four-seat coupe with SUV looks and characteristics.

But it has certainly wowed others as its sales confirm.In 10 months, 545 examples of the crossover BMW have been delivered to customers in Australia, proving that some of the doubters – this writer being one – got it wrong.Approximately 40 percent of X6 customers are new to BMW, switching from a competitor luxury brand, and many buyers stepped up from a traditional coupé to the roomier Sports Activity Coupé.Although niche by BMW standards, the Sports Activity Coupé this year outsold cars such as the Fiat 500, Jaguar XF, Lexus IS F, Mazda MX5, Mercedes-Benz CLS, Audi A6 and Volvo C30.Its closest competitor, the Porsche Cayenne, was outsold by the X6 this year by almost 20 percent, though to be fair, the Porsche has been around for a bit while the BMW is still enjoying a honeymoon.The X6 debuted last August with a choice of two powerful twin turbo six cylinder engines. This year BMW’s first-ever V8 twin turbo production engine joined the range.Thirty-six percent of X6 customers this year opted for the efficient in-line six-cylinder twin turbo diesel engine, followed by 33 percent for the powerful petrol twin turbo V8, with the remainder choosing the smooth twin turbo six-cylinder petrol engine.“It’s a niche that nobody thought existed, until BMW developed a desirable coupe styled SUV, with the handling manners of a sports car,” observed general manager of marketing, Tom Noble.More than 35,000 customers have taken delivery of the BMX X6 Sports Activity Coupé globally.BMW Australia will introduce the big belter, the X6 M, later this year.

Wonderful though it is (and it is truly wonderful), one of the Ferrari 599’s characteristics is that it’s no easy machine to drive near the limit. At times you almost feel that it’s calling as many shots as you are. An Aston Martin DBS, even the dynamically weaker Merc SL65 AMG instil more trust in their driver, and move more sedately at the point where grip ends and handling begins.

. So, Ferrari has chosen to make a few choice changes to the 599, via an optional HGTE package, to make the 599 more controllable and exploitable to drive fast. Obviously, the key letter in the pack is H, for Handling; GT stands for, er, GT, and E for Evoluzione.The changes incorporate stiffer springs (17 percent front, 15 percent at rear), 10mm lower ride height, a stiffer rear anti-roll bar, and a softer compound for the Pirelli P Zero tyres that otherwise go unchanged, though they do run on front wheels that are half an inch wider than before. There’s also a little extra camber and revised calibration for the magnetic dampers, to reduce pitch and roll, and improve grip and body control.Get into the HGTE and it feels like pure regular 599. There’s an extra sprinkling of carbonfibre in the cabin, including the shells of the brilliantly supportive new seats, but there’s little you couldn’t tick as an option before.Mooch around town and the HGTE does feel mildly less supple than a standard 599, though it retains an ability to shrug off surface imperfections better than most supercars. This isn’t a Scuderia or GT3 kind of set-up; it has a broader spectrum of ability. It doesn’t skip or shimmy or crash, but matches superior body control (over the regular 599) with a deftness and delicacy that, say, really fast Porsche 911s (Turbo, GT2) can’t match. It can take more throttle than before, and when it does break away, it’s sweetly progressive and more confidence-inspiring. At Ferrari’s Fiorano test track, the HGTE displays beautiful balance and feels more approachable than a regular 599.The engine is as wonderful as ever, of course. Power (456kW) and performance claims (a blistering 3.7sec 0-100km/h) are the same as a regular 599, though a few software changes have been made so the 599 shifts gears more adeptly and emits less carbon dioxide than before. All 599s benefit from this, but only HGTE pack buyers score new exhaust finishers, a matt diffuser, newly styled alloy wheels and a revised grille.Expected to cost around $30K when it becomes available in Oz next month, the HGTE pack will attract the “majority” of 599 buyers, says Ferrari.No doubt it will be worth it. The HGTE package has done nothing to change the fact that the 599 is the best GT/supercar you can buy. In fact, it has just cemented its place at the top.Ferrari 599 GTB Fiorano HGTE Engine 5999cc V12, dohc, 48v Max Power 465kW @ 7600rpm Max Torque 608Nm @ 5600rpm Transmission 6-speed automated manual 1-100km/h 3.7sec (claimed) Price $680K (estimated) On sale July 2009

Is the world going crazy?

The world’s most populous nation, China, has placed a ban on some Renault models, claiming they don’t meet national safety standards.Yep, you got it right…China, the emerging car manufacturing leviathan that has produced a string of dodgy models that have failed to impress safety experts in more sophisticated markets, has suggested cars exported to China by the French company pose “serious potential safety risks”, says Bloomberg.The three models affected by the ban are the Laguna, Scenic and Megane models. The faults relate to 160 older-generation vehicles manufactured in 2007 and stored since then.For its part, Renault, whose products are widely accepted as among the safest passenger cars on earth, says the vehicles in question were damaged in transit from Europe.China’s grandly named and clearly selective General Administration of Quality Supervision, Inspection and Quarantine declared that Renault should examine its quality-control measures and take steps to ensure the safety of its products.A Renault spokesperson claimed in an interview with Bloomberg that the issues raised by the Chinese relate to “problems with the transport and storage of a limited number of cars and that there are no issues connected to manufacturing”.Renault, France’s second largest car maker after PSA Peugeot Citroen, is keen to overturn the ban quickly to take advantage of the growing Chinese market, one of the few on earth where sales are booming right now. Passenger vehicle sales last month were up 47 percent to 829,100 units.

Despite protesting debtors and a sometimes shaky handshake between the American and Italian manufacturer, Chrysler is now officially back on track and in the hands of Fiat – and it only took a month and a half.

The Supreme Court yesterday overturned the last hurdle in the sale of Chrysler to its saviour, Fiat. At the start of the week, a group of debtors from Indiana had protested the loss of $42 million in retirement funds – a tiny sum in comparison to Chrysler’s near seven-billion dollar debt – and halted the sale in the Supreme Court.

Not surprisingly, the protest was quashed within 24 hours, and Fiat have taken the reins, the remaining assets, and a tasty $6.6 billion from the US government to get the ball rolling. As far as ownership of the new Chrysler Group is concerned, VEBA (Chrysler’s union) will own 55 percent of the company, Fiat gets 20 percent (capped at 35 percent), and the U.S. and Canadian governments divvy up the rest.New CEO Sergio Marchionne addressed the workers in an open statement released this morning, recognising their recent hardships and the hard road ahead. [Read Robert Nardelli’s sign-off speech below]“Today marks a new beginning for Chrysler and the North American automotive industry, as Chrysler Group LLC, a new company formed in alliance with Fiat Group, has completed its acquisition of substantially all of Chrysler LLC’s assets and will begin operations immediately,” he said.“Although we have many challenges yet to overcome, there is no doubt in my mind that we will get the job done. Chrysler will be back-strong and competitive and a rewarding place to work.“Chrysler is now a more focused and nimble company that will benefit greatly from its new global strategic alliance with Fiat.“The new company moves forward with significant strategic advantages, including a healthy balance sheet, a competitive cost structure, a leaner and more efficient dealer network, sound supplier agreements and significantly improved product quality and operational efficiency.“For those reasons, today is a day for optimism. Chrysler, Jeep and Dodge vehicles will once again roll out of our plants, into our dealers’ showrooms, and soon thereafter onto America’s roads and highways.“But we must also not forget what we have learned. The past few years have offered several painful lessons on what it will take to survive in the modern-day automotive industry. The alliance is a bold first step to implement those lessons we’ve learned, but it is only a first step. Now we must prove we can make it work.”Marchionne also confirmed that Fiat platforms and powertrains for small and medium cars would be worked into Chrysler’s manufacturing plants, and that a plan to develop new eco-friendly technology and Chrysler’s electric-vehicle program was already in play.The fast-tracked bankruptcy is a major success for the Obama admin, and paves the way for a similarly speedy restructure and resurrection of the New GM.However, this doesn’t mean the Obama administration are clapping their hands, then washing them clean. A new position has also been announced to oversee the salary and compensation packages of companies receiving government assistance. The New York Times has named Washington DC attorney Kenneth R. Feinberg as this ‘Compensation Czar’, who will have the final say in the salary packs of 175 execs across the seven companies currently receiving handouts. Twenty-five of them are from GM and Chrysler.

OFFICIAL PRESS RELEASE

Nardelli congratulates employees on Fiat closing

Dear Employees,Congratulations!I am pleased to report that we have closed the alliance agreement between Chrysler Group LLC and Fiat S.p.A. and have emerged from bankruptcy in record time. Chrysler Group now is a leaner, healthier and more robust company ready to compete in the challenging economy as an important player in the global automotive industry. As I announced on April 30, the completion of this alliance agreement is an appropriate time for me to step aside and return to Cerberus Capital Management. But in leaving, I want to share some parting thoughts with you and express my everlasting appreciation for the work you have done, the sacrifices you have made and the support you have shown me during my time as Chairman and CEO of Chrysler LLC.This is my farewell message to you.When I joined Chrysler 20 months ago, I was immediately impressed by the deep intellect of Chrysler people, by your dedication and loyalty to the company and by your passion for innovation, design and great products. All of my experiences since then have reinforced those initial impressions.What I have learned along the way is that Chrysler people also have the resolute heart of a scrappy underdog. This is a company that has been knocked down many times, but never knocked out. The global economic downturn and the credit crisis have severely tested Chrysler’s ability to survive. But our employees, retirees, the UAW, CAW, dealers, suppliers, lenders, our owners Cerberus and Daimler, and other stakeholders have rallied together and made the sacrifices necessary to restructure and reposition Chrysler and give it a new lease on life and the opportunity for long-term success. No one should ever doubt the tenacity of the Chrysler spirit and its rich legacy.During the darkest hour of the American Revolution, Thomas Paine wrote of the “sunshine patriot” who disappears when the going gets tough. I have found there are no sunshine patriots at Chrysler-just men and women who stand tall and persevere, who never lose hope or faith despite adversity and the negativism from this great industry’s detractors. You are men and women who believe in the company, in each other and in a better future.During my 38 years in business, I’ve never faced a tougher challenge. Even with our early and aggressive restructuring efforts, we could not offset the negative impact of the financial crisis and the severe economic recession. However, because of those efforts, we gained credibility and the support of the U.S. Treasury, which provided funds to assist us through this transitional period. The global automotive industry is fiercely competitive, and international economic forces have left even the largest automakers awash in red ink. At Chrysler, we have had to take significant restructuring actions to adjust to the new market realities. From August of 2007 through May 2008, we saw the impact of the declining SAAR on our current market share result in the loss of 610,000 units of production, or about $14 billion in revenue.At the same time, we continued to invest in the restructuring of the company, including $7 billion in 2008 alone. We took important steps to improve quality, which resulted in the lowest warranty cost in the company’s history and the lowest recall rate in the industry in 2008. These efforts will pay off even more in the years to come. We strengthened our commitment to a customer-focused culture. We maintained our commitment to a strong product pipeline, with 24 new vehicles planned during a period of 48 months. For 2009, 73 percent of our product lineup offers greater fuel economy than last year’s models and, going forward, our robust electric-vehicle strategy will help meet national concerns about energy security and climate change.The newly signed alliance with Fiat is a direct result of our strategy to pursue partnerships to drive growth. Chrysler and Fiat will be an excellent fit in terms of product, geographical strengths and culture. Using Fiat’s distribution system, Chrysler will be able to substantially increase the global reach for the Chrysler, Dodge and iconic Jeep® brands in markets outside of North America. Fiat will bring vitally important small platforms and advanced powertrain technology, broadening our portfolio of offerings and providing customers with exciting fuel-efficient products that they will want to buy. This alliance also will significantly enhance our ability to compete and comply with the new CAFE standards.I want to express my deep gratitude to my staff at Chrysler as well as to our owners at Cerberus and Daimler, who provided steady and unstinting support throughout our efforts to revitalize the company and enable it to survive. I’d also like to thank President Obama’s administration, the U.S. Treasury Department, the President’s Automotive Task Force, the Canadian government and the province of Ontario, as well as our partners at the UAW and the CAW, for their continuing support in helping us complete this alliance. Their efforts will help to protect the livelihoods of many thousands of people in the Chrysler work force and the many others who depend upon those workers.With the appointment of a new board of directors and the selection of Bob Kidder as Chairman and Sergio Marchionne as CEO, I am confident that Chrysler will continue to build on its proud 85-year heritage and remain an integral part of American life for many years to come. The road ahead will always have hurdles, but I strongly believe that Chrysler will meet every challenge and will build a bright future as part of a vibrant new company.It has been my privilege to share in the rich Chrysler legacy and to serve as your Chairman and CEO. I’ve never been involved with a more talented, passionate and committed group of men and women. The dedication you have shown to your company and to each another has been truly remarkable.I also want to express my deep appreciation to the entire Detroit-area community for welcoming and accepting me during my time with Chrysler. In my many years in business, I have worked in 14 different cities. Detroit and the auto industry have done so much to shape our country’s history, and I feel tremendously proud to have been a part of this dynamic community and a company so committed to its revitalization.I thank you from my heart, and I hope that the coming years bring good fortune and prosperity to each of you, your families and to everyone associated with the great Chrysler team.Sincerely,B

The problem consumers have with tyres is that dumb tyres look the same as smart tyres; both camps are round and black, have treads, sidewalls and beats.

Over time we’ve been forced to rely on the so-called brands we can trust, but this isn’t always foolproof. Some prominent makes occasionally let us down with product. And occasionally, the less renowned rubber springs a pleasant surprise.Korea’s Hankook isn’t up there yet with the likes of Pirelli, Bridgestone, Yokohama, Michelin, Continental, Dunlop, Goodyear…But it has demonstrated steady improvement in recent years, witness its performance in the Wheels tyre tests.

This month Hankook Tyres boldly introduced its new silica low-rolling resistance H430 Enfren (lower case, like smart cars) range for passenger car. Enfren is shorthand for “environmentally friendly”.Hankook claims the new tyres combine a number of technologies to help improve fuel economy over conventional steel-belted radials by as much as five per cent, resulting in a reduction of CO2 emissions – but with no detectable trade-off in grip levels.Tyre rolling-resistance accounts for 20 percent of a vehicle’s fuel consumption. As such, low rolling resistance tyres are a simple bolt-on hip-pocket solution AND environmental solution.Across the motoring world rolling resistance is becoming a major issue in several ways – everyone’s hip pocket, and the environment, and energy security.Oil is the link here. We rely on it so much and yet we pay too much for petrol to stick in our cars, and then it comes out the exhaust pipes as nasty earth-eating gases.And reducing the nation’s petrol consumption reduces our reliance on imports from nations that don’t always love us.On this score alone (and Hankook emphasised as much to the present motoring journos who struggle with maths), every fifth fill-up with fuel goes against the tyre ledger.At Eastern Creek Raceway, independent testers put the new Hankook tyres through a series of 60 measured comparisons with a regular tyre using fellow Koreans, identical Hyundai i30 CRDi autos, pressured to the recommended 32 psi and using GPS for accuracy.Entry speed was 60km/h, and the car was then slipped into neutral and allowed to coast.The outcome was that the Enfren tyre rolled 6.2 per cent further – 411.4 metres (average) versus 387.5 metres (average)A speed correction factor was then applied by the boffins, which favoured the control tyre (car) and brought the overall advantage to a still noteworthy 4.5 per cent.Supporting the figures, two i30s – one fitted with H430 Enfren tyres and the other with control steel belts – were driven from Sydney to Goulburn and back for economy comparisons.The result of the 382km trip was a 5.02 per cent advantage to the Enfren car. This equates to, in the case of the i30 diesel, travelling 47km further on a single tank.So it’s fairly safe to conclude that the Enfren tyres deliver a fuel economy benefit of close to 5 per cent. And this should apply to older cars (of which Australia has millions) and new ones.New, more efficient engine technology can’t be retrofitted affordably to older cars but a set of new low rolling resistance tyres will reduce visits to the pumps, and reduce air pollution accordingly.Past low rolling resistance tyres we’ve sampled in the past have had disappointing grip levels and Hankook gave us the chance to drive i30s and Sonatas on the racetrack in a series of performance evaluations.These included slaloms, emergency stopping, acceleration and cornering.While this was not a comparative evaluation, the impression was largely positive. There was a little understeer when the car was pushed hard, but this could be expected with all tyres.Hankook’s Enfren low rolling-resistance tyre is available in a wide range of the sizes to fit many popular cars sold in Australia.

Retract the roof on any convertible and you immediately open a forum for anyone armed with an opinion. Clearly one person’s ideal of gently tousled hair and the heady notes of spring is, for another, a one-way pass to scuttle shake and sunburnt ears filled with the cries of “wanker alert!”

So where do you sit with regard to Lamborghini’s new LP560-4 Spyder?While you decide, it’s preening itself in the sunshine not giving a toss. Somehow, through its exclusivity, belly-scraping stance and ceiling-scraping price tag, it manages to (almost) defy conventional soft-top assessment.The fact is, no-one needs a $455,000 Lamborghini coupe — not while Porsche continues to offer a 911 comfortably under $300K. So it stands to reason that a convertible Gallardo, now crossing the half-mill threshold, should be an extravagance in these times to rival a private jet for car-company executives. Okay, bad analogy.Yet Lamborghini confidently predicts that 60 percent of Gallardo customers who’ve limboed under the credit crisis will choose the convertible over the coupe. And having experienced the car on the sinuous, sensational roads in the Canary Islands at the international launch, it’s not hard to see why.Actually, make that hear why. The new 5.2-litre direct-injection V10 is an engine with a seemingly endless vocal repertoire, and removal of the roof invites you straight into the mosh pit for a searing, sometimes savage aural assault. It’s brilliantly flexible, as you’d expect from 5.2 litres, but max torque doesn’t arrive until 6500rpm, demanding you spin it hard for the desired result. Around 4000rpm, the induction growl sounds like a pack-a-day roadie clearing his throat into the mic. North of 8000rpm, the exhaust note climaxes in a bellowing, chilling roar at a volume surely about as legal as arson. Avail yourself to this engine’s full force and you’ll quickly forget the price tag while remembering why you didn’t settle for a 911.The six-speed E-gear transmission remains optional ($27K), as per the coupe, but the manual is clearly on the endangered list. None of the 13 cars available on the launch gave you the option to stir a gearstick. No complaints — it’s hard to shout “insufficient involvement” from a car like this, and the shift speeds are much improved from the original. Yet the gearbox still falls well short of a good dual-clutch transmission for seamless ratio selection, demanding you ease the throttle slightly or else embrace a footy-club-style slap in the back.There’s little evidence that the roof removal results in a loss of rigidity, and it would take a race track to make the Spyder’s weight gain of 50kg apparent. The steering, as in the coupe, is chunkily weighted and deliciously direct. Grip levels, especially on the optional Pirelli P Zero Corsa tyres, are colossal. It takes a committed attack to find a nudge of understeer on the way into anything worthy of third gear and up, and a determined right foot to neutralise it, via the rear-biased all-wheel-drive system, on the way out.All is not perfect, however. The eight-piston Brembos have a springy few centimetres of travel before you strike the meaty goodness, which I found continually disconcerting. When nailed, however, they’re as effective as a forearm to the jaw. Carbon ceramics are optional, but if you require them, then you should have bought a Superleggera.Cabin turbulence is calmed via the small glass screen behind your head, allowing conversation up to around 140km/h. Beyond that it starts to get a little gusty, although we did we see 250km/h without loss of caps, sunglasses or hair follicles. The top speed claim is 324km/h, which feels credible, but I’d suggest raising the roof before you try.Time to park the pragmatism. For those with the means, Lamborghini ownership is a statement of arrival; a wave of a flag pronouncing both wealth and taste. And, hey, what better way to improve that flag’s visibility than through the open roof of a car as extroverted, intoxicating and accomplished as this?Gallardo LP560-4 Spyder Engine 5204cc V10, 40v, dohc Max Power 412kW @ 8000rpm Max Torque 540Nm @ 6500rpm Transmission 6-speed clutchless manual 0-100km/h 4.0sec (claimed) Price $502,000 On Sale July

The new Honda Jazz and Kia Soul have only managed four star ratings from a possible five in the latest round of Australasian New Car Assessment Program crash results.

This is despite the Jazz earning a full five-star rating in the European equivalent, the NCAP testing. But there is good reason for this: the Euro Jazz and Kia Soul models get full electronic stability and traction control (ESP, TC). The safety program is not yet available across the Jazz range here, and cannot be optioned on the base Kia Soul.Another factor that punished the cars in the Aussie test was the lack of seatbelt reminders for passengers, as the base cars of both models have a driver’s belt warning only.Ironically, the Kia Souls destined for New Zealand get a full five star ANCAP rating, as ESP and passenger seatbelt reminders are standard specification across the range.

First Rick Wagoner got the boot from the President of the USA on March 30; then Fritz Henderson reluctantly took the tangled reins for a few months of diabolical rumour and innuendo, and bankruptcy, with an ‘interim’ chairmanship held by Kent Kresa until a suitable sucker could be found.

Enter Edward E. Whitacre, Jr., who will take up the top spot after a seventeen-year tenure as chairman and CEO of AT&T – which saw it become the largest telco in the USA.

He also has a bit of industry knowledge, with a degree in industrial engineering, and board time at ExxonMobil and BNSF Railway. And he’s an all-American boy scout – literally, serving as national president of the Boy Scouts of America from 1998-2000.Whitacre, along with Kresa, Philip Laskawy, Kathryn Marinello, Erroll Davis, Jr., and E. Neville Isdell, will join retained President and Chief Executive Officer Fritz Henderson as the ‘nucleus of the New GM board’.But will the New GM gestation be a smooth ride?

OFFICIAL PRESS RELEASE

Edward Whitacre, Jr. to Become Chairman of New GM

Edward E. Whitacre, Jr., former chairman and CEO of AT&T Inc., will become chairman of the New GM when the company is launched later this summer, GM’s interim Chairman Kent Kresa announced today. Kresa will continue to serve as interim chairman until the launch.Whitacre and Kresa, along with current board members Philip A. Laskawy, Kathryn V. Marinello, Erroll B. Davis, Jr., E. Neville Isdell and President and Chief Executive Officer Frederick A. Henderson, will serve as the nucleus of the New GM board, providing management oversight and a continuing commitment to transparency and world-class standards of corporate governance.The six other members of the current board will most likely retire no later than the approval of the sale of GM assets to the new entity. A selection process is currently underway for four more directors to serve on the board of the New GM. In addition, the Canadian government and the new UAW Voluntary Employee Benefit Association (VEBA) will each nominate one director, bringing the total number of New GM directors to 13.Whitacre, 67, was chairman and CEO of AT&T Inc. and its predecessor companies from 1990 to 2007. During his tenure, which began with Southwestern Bell, Whitacre led the company through a series of mergers and acquisitions–including that of AT&T in 2005–to create the nation’s largest provider of local, long distance and wireless services. He serves on the boards of ExxonMobil Corporation and the Burlington Northern Santa Fe Corporation and holds a degree in industrial engineering from Texas Technological University.“The appointment of Ed Whitacre as chairman represents a very auspicious beginning for the New GM,” said Kresa. “We look forward to working with him to complete the reinvention of GM and maximize the enormous potential of this new enterprise.”“I am honoured to be able to serve GM at this critical juncture and take part in its reinvention,” said Whitacre.