We like taking it to the boys, but sometimes us girls just want the track to ourselves…

Sydney-based motorsport group The Circuit Club will hold an all-girl track day on June 27 for a classroom of well-heeled heel-and-toers, with full training, lap timing, and the opportunity to hire a race-prepped, caged MX-5 race car for the day.

It will be held at the Marulan Driver Training Centre just north of Goulburn, and about 90 mins south of Sydney. The full training facility complete with classroom and viewing areas (spectators are welcome with free entry on the day) was designed to simulate country road driving, and its 1km track twists and turns through a hilly countryside.“Our Girls Only Day is going to be the first of its kind, and basically we wanted to make a day that would be less intimidating for girls to get together and have some fun out at the race track,”said Circuit Club director Narada Kunidar.“We will be limiting the track to five drivers at a time, but given the short nature of the MDTC and the amount of drivers on the day, there will be opportunity to run over 100 laps for the keen!”The driver training will start with general talks and proceed to one-on-one tuition and laps of the track for a bargain basement $120.Pic courtesy of the Marulan Driver Training Centre

The Litespeed Formula 3 team is just one of a full handful of new teams vying for a spot in the 2010 cost-cap F1 grid.

However, it has a unique motor behind its bid – Lotus.

The team, led by F1 guru Mike Gascoyne (who coincidentally grew up near the Team Lotus factory at Ketteringham Hall), has apparently been given permission to ‘use’ the Lotus name by rights-holder David Hunt for its F1 bid.The Litespeed team, based at Racing Technology Norfolk in the UK and founded by former Lotus engineers Nino Judge and Steve Kenchington, has already enlisted the engineering services of former Lotus F1 driver Johnny Herbert.How they will benefit from the moniker is yet to be revealed, but seeing as the Lotus F1 team, established originally Colin Chapman, won seven world championship titles in its day, the name carries some heavy cred. But whether a mere name is enough to secure a spot in the tight bidding war is another thing altogether.

The press day of the first local drive of the latest Mazda 3 involved laps of the ‘private’ AARC (Australian Automotive Research Centre) proving ground, two-something hours south-west from Melbourne.

At the time, the new 3 was literally too new for road rego and too secret to be out in public. In fact, this local preview involved a lone SP25 which was temporarily diverted from its ADR homologation audit.To best demonstrate the newcomer’s changes and improvements, Mazda also fielded an equivalent SP23 from the outgoing model range; in very welcome contrast to most makers who religiously shun such new-versus-old close encounters.Since our original Los Angeles-based new-3 preview (January ’09), Mazda Australia persuaded its parent to fast-track the production of Oz-bound 3s, enabling the local launch to be pulled forward more than a month, to April. Important that, to avoid an unprofitably thin overlap between the coming and going models. The 3 range, remember, accounts for a third of Mazda’s sales. Hence, its high priority.Other post-LA news includes affirmations that the new range will replicate the earlier line-up with Neo, Maxx, Maxx Sport and SP sedans and hatches, albeit with upgraded equipment/feature levels. Unlike the five-speed Americans, our 2.0-litre manuals get a six-speed gearbox, as do the SP25 and the 2.2-litre turbo-diesel. Both petrol engines list optional five-speed automatics.Among the upgradings, all models have traction control and stability control as standard. The Maxx Sport and SP25 also boast integrated in-dash sat-nav and Bluetooth, both firsts for the class. Besides which, the SP25 is also the first Mazda 3 to include a factory sunroof in an upmarket options package.The SP25 has a little less boot capacity than its siblings, because the floor is raised to clear the premium Bose sound system’s large subwoofer which resides within the temporary-type spare wheel.Although the incoming and previous Mazda 3s share enough visual cues for the family connection to be quite clear in their size, proportions, outline and windows, for example, it’s also obvious which is the newer and bolder looking.However, there’s next to no design continuity in the cockpit. The entirely redesigned dash panel has a new centre stack featuring matt gray and silver finishes rather than the previous gloss black, and the particularly graphic instruments are accommodated in two deeply hooded binnacles, replacing the previous three.The comfortable sports-style front seats have deeper side bolsters to provide more lateral support during the forceful changes of direction that the SP25 encourages on winding roads. As per the outgoing model, leather trim (featured on the preview car) will be bundled with Bose audio for a Luxury-spec model.Thumbs up, too, for the multi-function steering wheel with its two-way adjustability and plethora of spoke-mounted controls for the audio, sat-nav, and trip computer/info functions.Brisk cornering and any other manoeuvrings quickly confirm that the latest electro-hydraulic steering is incrementally improved over its justly lauded predecessor. The helm is consistently well weighted, provides tangible sense of connection with the front wheels and has not an iota of vacancy around straight-ahead. More than ever, steering integrity is one of the pillars of the 3’s great driving dynamics.Of course, the car’s stiffened body and judiciously upgraded suspension also contribute to the enhanced handling and roadholding properties. Ride quality has benefitted too, for on most roads the suspension’s slight firmness behoves good body control without smacking of discomfort. But while the differences in new-v-old ride quality certainly aren’t chalk and cheese on smooth to average surfaces, the gain in body rigidity is plain to hear and feel across gravel’s jittery corrugations.Given an encouraging stir, the SP25 auto’s acceleration is wilfully strong and persistent as the engine responds with persuasive zeal. It quickly winds to 5800rpm or so in Drive, or to about 6300rpm when shifted manually.Manual downshifts are answered almost instantly, far quicker than most conventional autos, regardless of whether you use the floor lever or the newly revised paddles behind the wheel.A detail change is that where the gear-position display previously numbered every gear selection in each shift mode, it now simply identifies Drive with D, and numbers only the manual selections.At speed, the SP25 cruises with easy authority. As you’d expect, the engine becomes determinedly busy when pressed, but doesn’t turn objectionably gruff or raise its voice uncouthly.Tyre noise seems a shade more moderate than before, though that impression was subject to the brevity of the track’s coarse-chip surface and the different makes of tyres on the two SPs.The wind-rush born from about 100km/h and above couldn’t fairly be called intrusively loud, and grows very little even when you’re going 50 percent faster.Now the only other ‘faster’ thing we can wish for is the chance for a good long test drive in the real world.Mazda 3 SP25 Body Steel, 5 doors, 5 seats Drivetrain front-engine (east west), front-drive Engine 2488cc four cylinder, dohc, 16v Power 122kW @ 6000rpm Torque 227Nm @ 4000rpm Transmission 6-speed manual or 5-speed automatic Sizel/w/h 4490/1755/1470mm Wheelbase 2640mm Weight n/a 0-100km/h 7.8sec (manual, estimated) Price $30,690 On sale Now

Readers who purchased our recent Road Tests Annual edition could be excused for being a bit cranky when they discovered the final page of the much-vaunted Honda Accord Euro versus Mazda6 comparison test was actually Michael Stahl’s Bullet column.

While it’s always a bonus to read one of Stahly’s well-crafted pieces, on this occasion it sat plumb where the conclusion to the above-mentioned story should have been, leaving many readers feeling short changed and none the wiser about the result of the test.As it turns out, the problem was tracked back to a production glitch which saw a page from the March edition of Wheels transferred in error to the Road Tests Annual during printing (both mags were printed simultaneously and at the same printer).Though embarrassed by the mix-up, there’s not a lot we can do about it now as the mag is printed. What we can do, however, for the benefit of those readers who purchased the otherwise excellent Wheels Road Tests Annual, is to offer a PDF of the story, including the conclusion. Please accept our apologies for the incident.

It was a rugged vehicle before its time, many moons in advance of the four-wheel-drive craze that swept Australia in the 1990s.

The special tough-as-nails rugged ute came about following calls from rural customers who sought a tougher Falcon ute with go-anywhere capabilities and a handy ground clearance.Just 432 vehicles were produced by Ford at its Brisbane factory, using additional 4WD components sourced from Jeep.The ambitious project foundered at the end of the XY’s model life as the new XA Falcon lacked the same inherent body strength as its predecessor.In its February 1975 edition, Wheels reported on the vehicle: “The first thing you notice about the ute is its height.”The limited edition Trax model of the XY ute, in Vermillion Fire, will appeal to serious collectors of Australian vehicles. Detailing is excellent, right down to the front diff and leaf springs, side exit exhaust and bash plate protecting the fuel tank.Priced at $39.95 plus postage, it is available only from Trax Models on 1800 635 508 or at www.topgear.com.au

At first glance there isn’t a great deal to separate the Handling GTE from a “normal” 599 GTB Fiorano.

Exterior changes are minor, like new 20-inch wheels, a brushed finish prancing horse front and back and new tailpipe tips. Hear the car rushing along and you’ll note a throatier exhaust note.Inside is a bit more, such as carbonfibre shell seats that are as comfortable as they are good looking, finished in leather and Alcantara, plus added carbonfibre trim.Even the driveline is little changed right down to the Enzo-related V-12’s 6.0 litres, 462kW, 608Nm and the ratios in the 6-speed paddle shifter gearbox, though it now ticks from gear to gear in a fraction-of-a-breath 85 milliseconds, thanks to new software.So what’s really new? The GTE part, which includes stiffening the front springs 17 percent, the rears 15 percent and upping the back anti-roll bar from 23.5 to 25.0 mm. Roll stiffness is up 19 percent. The magnetorheological shocks are firmed appropriately, the front tires on wheels .5 of an inch wider and the car is lowered 10mm.Other changes include the ability to downshift several gears if you are under hard braking and hold the left shift paddle depressed, which is a little odd the first time you do it, but then just adds to the fun. And when you move the manettino lever to a sportier setting the gearbox shifts down.We had the chance to try to GTE on Ferrari’s Fiorano track and the spring flower-lined roads that wander through the Apennine foothills behind Maranello. The GTE stays firmly planted, the front end feeling more positive in turn-in, the 1688-kg Ferrari “driving” lighter and smaller than it really is. Ride is firmer, but not what you would term edgier so the 599 remains a comfortable long-range tourer.Figure the price of the Handling GTE package is about a 10 percent premium on the 599’s standard price.

The R35 GT-R has already rattled a few cages among the supercar establishment. But you knew the day would come when Nissan would roll out a lighter, harder, faster GT-R.

Enter the Spec-V, the next logical step up the GT-R evolutionary ladder and the car that’s been igniting petrolhead forums seemingly forever.Now on sale in Japan and set up as a lightweight track-day special, the Spec-V is aimed at “true enthusiasts”. The good news is, it turns out to be the best resolved, most exhilarating and focused factory GT-R to date.Think of the Spec-V as the 911 GT3 RS of the GT-R world: a rawer and more uncompromising Godzilla. The starting point is the new and improved 2009 version of the GT-R, which means it gets a modest 4kW power bump and slightly greener cred.The Spec-V weighs in at 1680kg, a crucial 60kg lighter than the regular GT-R. Playing a key role in that weight loss is Nissan’s first use of carbon-ceramic brakes for the road. The immensely strong (but expensive) anchors save 5kg per corner.The Spec-V borrows its lightweight titanium exhaust and 20-inch Rays Engineering forged alloy wheels from the Nismo (Nissan’s motorsport/tuning arm) R35 GT-R Clubsports kit . Like the regular GT-R, Spec-V rolls on either Bridgestone Potenza RE070Rs or Dunlop SP Sport 600 rubber (pictured, right) — both sets of tyres are run-flats.Nissan’s also worked the changes inside, converting the car to a two-seater (simple vinyl covers replace the back seats) using essentially the same carbonfibre-backed Recaro buckets as the Clubsports.Carbonfibre also stars on the dashboard and centre console; outside, it’s the featherweight material of choice for brake ducts, rear diffuser and boot spoiler. Visually, though, maybe the real standout is the exclusive (A$8653) purple/black metallic body paint which flips colour according to the light.Nissan served up an array of different R35 GT-Rs for us at the 4km Sendai Highland Raceway, the GT-R’s home track in Japan. The delectable line-up was: an ’07 original, improved ’09 model, Nismo Clubsports and Spec-V. After trying one after the other, it was gobsmackingly apparent how Godzilla has steadily and impressively raised its game.There were absolutely no duffers there but the headliner was undoubtedly the Spec-V. Why? Because it has all the power, fury and speed of the other GT-Rs, coupled with brilliant on-track agility and the phenomenal retardation of those carbon brakes.Nissan claims it’s 2sec a lap faster around Sendai than the ’09 GT-R, and that’s quite believable because, with a 40kg wheels/brakes/exhaust saving, Spec-V immediately feels lighter on its feet, quicker to react as you turn in and easier to place, giving the driver more options. At the same time, you can brake so much harder and later into bends. The stupendous stoppers alone feel as though they make the difference.Like all GT-Rs, Spec-V has a big, heavy-duty feel and on stiffened suspension (rates 20 percent higher), it could be hard work. But it’s not. Steering is still meaty and as well judged as ever, and you sense a lot of those clever chassis electronics pitching in to help. There’s titanic grip at both ends, yet Spec-V ultimately is more tail happy than the others, with more ‘edge’ to its on-limit behaviour. For serious combatants, it throws down an irresistible challenge.And yet Spec-V isn’t without question marks. Disappointingly, it doesn’t get the predicted 400kW-plus engine that really would’ve set it apart and helped justify its gargantuan ¥15.75 million (A$236,995) asking price. Stock GT-R top speed and 0-100km/h — Nissan claims 310km/h and 3.5sec — are also unchanged.What Spec-V does get, however, is a curious high-gear boost control device which in 80 second intervals ups the turbo boost pressure to give you an extra 19.6Nm slug of torque. It’s there to help you hurtle out of corners faster and in a higher than normal gear. You need to be in third gear or above (and also above 3000rpm) for it to work but at Sendai, let’s just say its effects weren’t dramatic. But professional drivers on a mission (like lapping the Nürburgring, for instance … hint, hint) are gonna love it.For the rest of us, the power and formidable all-round capabilities of the standard GT-R will likely be more than enough. Then again, if you want the ultimate factory GT-R and some of the best brakes in the world, you now know where to look.Nissan GT-R Spec-V Engine 3799cc V6, dohc, 24v, t/t Max Power 357kW @ 6400rpm Max Torque 588Nm @ 3200-5200rpm Transmission 6-speed automated manual 1-100km/h 3.5sec (est) Price ¥15.75m (A$236,995 app.) On sale Now, Japan only

Audi is nothing if not ambitious. For decades considered the poor cousin of BMW and Benz, the Ingolstadt-based car maker cracked the magic million global sales mark for the first time last year, and is openly gunning for the number one premium German spot by 2015. According to Australian MD Joerg Hofmann that might happen here as soon as 2012, with the Q5 SUV leading the charge.

Audi expects to sell about 1000 Q5s this year, but says that number is limited by availability, and that in 2010 around 1500 of its new SUV will find Australian homes — knocking BMW’s X3 from top spot in the process. And after sampling the Q5 over a long and varied launch route criss-crossing NSW’s Alpine region, including a reasonably challenging 35km fire trail, it’s clear the Q5 has the skill set to shake up the class.The launch program included two variants: the 2.0 TFSI turbo-petrol four ($59,900) and the 3.0 TDI diesel V6 ($71,900), with two additional engines joining the stable in May. Regardless of which engine you choose, however, all Q5s run a new seven-speed DSG transmission.The sub-$60K entry point looks attractive and will no doubt get punters into showrooms, but start ticking boxes on the extensive options list and it’s easy for the drive-away figure to skyrocket. Like the adaptive steering and damper option at $5215 (more on this later), or the $6200 multimedia interface with 7in colour display, which includes sat-nav run from an in-built harddrive that also can be used to save music. Want electric seats up front? Then you’ll need to fork out an extra $2210.Standard kit, however, is reasonably extensive and includes hill descent control (which works a treat), parking sensors, fog lights and air-con. Audi hasn’t scrimped on safety, either, with ESP and front, side and curtain airbags.The 2.0 TFSI runs a version of the VW Group’s ubiquitous direct-injection and turbocharged four-cylinder, but saying it’s the same as the Golf GTI engine is like claiming all beer is identical because it’s wet and poured from taps. The bottom end has been overhauled and the top end redesigned by Audi’s engineers with a new turbo and intercooler set-up, as well as Audi’s variable valve timing system (AVS).The result is an engine tuned for a stronger midrange; peaking at 155kW from 4300-6000rpm, with a creamy 350Nm slug of turbo torque from 1500-4200rpm. Despite tipping the scales at 1740kg, its pace and response are crisp, and there’s even a raspy exhaust note for punctuation. Fuel consumption can suffer, though. The ADR sticker boasts 8.5L/100km, but an enthusiastic right foot will see that figure surge into the 13-14L/100km region.If you have an extra $12K burning a hole in your pocket, the 3.0-litre, turbo-diesel V6 is a better bet. The 176kW/500Nm powerplant is incredibly smooth and refined for a diesel; there’s virtually no traditional tractor clatter, even at start up, and power delivery is silken, right up to the 5000rpm redline.The seven closely-stacked gear ratios ensure the V6 stays within the thick of its 500Nm torque curve and sprints with surprising pace, yet doesn’t muster the in-gear shove you might expect with the V8 levels of twist it has on tap. Frugality isn’t an issue, though; the official number is 7.5L/100km and even a heavy right foot couldn’t break it out of the 10s.Now, using an SUV to carve a mountain pass is a bit like bringing a Harley-Davidson to a motocross competition, but if a Q5 finds a home in your garage, you’ve bought one of the better-handling SUVs. The heavier diesel V6 bears more weight ahead of the front axle-line compared with its four-pot petrol twin and as a result feels noticeably more nose-heavy, succumbing to understeer much earlier.And we remain unconvinced about Audi’s adaptive damper and steering package which was fitted to the 3.0 TDI. The steering felt artificial, blighted by inconsistent weighting, while the three-mode dampers switch between firm, too firm, and uncomfortable. Final judgement on the Q5’s around-town ride will have to wait, but to this tester Audi’s latest SUV felt a touch stiff-legged.So, has a new class benchmark been set? The definitive comparison test against the segment’s key players awaits, but Audi looks to be on a roll.Audi Q5 3.0 TDI Engine 2967cc V6, dohc 24v, t/d Max Power 176kW @ 4000-4400rpm Max Torque 500Nm @ 1500-3000rpm Transmission 7-speed automated manual 1-100km/h 6.5sec (claimed) Price $71,990 On sale Now

General Motors had one bit of good news after yesterday’s bankruptcy lows – that it has signed a Memorandum of Understanding (MoU) with a potential buyer for the Hummer brand.

The company is Sichuan Tengzhong Heavy Industrial Machinery, or Tengzhong for short. The privately-owned Chinese industrial company makes transport, construction and energy industry equipment – so Hummer should fit right in with this heavy artillery.The companies released a joint statement yesterday, with the CEO of Tengzhong, Yang Yi, all but confirming the sale:“We will be investing in the HUMMER brand and its research and development capabilities, which will allow HUMMER to better meet demand for new products such as more fuel-efficient vehicles in the U.S,” he said.“The HUMMER brand is synonymous with adventure, freedom and exhilaration, and we plan to continue that heritage by investing in the business, allowing HUMMER to innovate and grow in exciting new ways under the leadership and continuity of its current management team.”GM said about 3,000 American jobs would be secured in the transaction if it goes ahead, and confirmation of the sale is expected in the third quarter.

OFFICIAL PRESS RELEASE

TENGZHONG IN ADVANCED TALKS TO PURCHASE HUMMER FROM GM IN STRATEGIC ACQUISITION Industrial Machinery Company To Invest in Growth and Global Expansion of Premium Off-Road Vehicle Brand; Deal is Expected to Secure Over 3,000 US Jobs DETROIT and SICHUAN, June 2, 2009 – Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd (Tengzhong) and General Motors Corp. (GM), today confirmed details of their proposed transaction, pursuant to which, Tengzhong, a major industrial machinery group, will acquire the rights to the premium off-road HUMMER brand, along with a senior management and operational team. It will also assume existing dealer agreements relating to HUMMER’s dealership network. It is contemplated that Tengzhong will, as part of the transaction, enter into a long-term contract assembly and key component and material supply agreement with GM. In an earlier statement, GM said it expects the deal if successful to secure more than 3,000 US jobs. The final terms of the deal are subject to final negotiations. Based in the Chinese province of Sichuan, Tengzhong is a privately-owned company and a leading domestic manufacturer of road, construction and energy industry equipment. It will expand into the premium off-road vehicle segment through what will be a strategic acquisition for Tengzhong and a catalyst for HUMMER’s growth in the U.S. and around the world. “The HUMMER brand is synonymous with adventure, freedom and exhilaration, and we plan to continue that heritage by investing in the business, allowing HUMMER to innovate and grow in exciting new ways under the leadership and continuity of its current management team,” said Yang Yi, CEO of Tengzhong. Mr. Yang continued, “We will be investing in the HUMMER brand and its research and development capabilities, which will allow HUMMER to better meet demand for new products such as more fuel-efficient vehicles in the U.S.” HUMMER will continue to maintain its headquarters and operations in the U.S., and will continue to be managed by its existing leadership team. The team intends to expand HUMMER’s dealer network worldwide, particularly into new and underserved markets such as China. “Today HUMMER is a globally recognized brand with excellent growth prospects, both in terms of new markets and new products for our existing markets,” said James Taylor, HUMMER chief executive officer. “With Tengzhong’s investment and strong support, we will be able to make our visions a reality. This transaction, if successful, will secure more than 3,000 U.S. jobs, and allow us to embark on a more aggressive global expansion, ensuring a successful future with our new partners.” The transaction is expected to close in the third quarter of this year and is subject to customary closing conditions and regulatory approvals. Financial terms of the agreement will not be disclosed at this time. Credit Suisse is acting as exclusive financial advisor and Shearman & Sterling is acting as international legal counsel to Tengzhong on this transaction. Citi is acting as financial advisor to GM.About GM General Motors Corp. (GM), one of the world’s largest automakers, was founded in 1908, and today manufactures cars and trucks in 34 countries. With its global headquarters in Detroit, GM employs 235,000 people in every major region of the world, and sells and services vehicles in some 140 countries. In 2008, GM sold 8.35 million cars and trucks globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM’s largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM’s OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com.About Tengzhong Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd. (“Tengzhong”) is one of China’s major privately owned engineering companies. Tengzhong is a manufacturer of heavy machinery equipment with a presence in special-use vehicles, road and bridge construction equipment and construction and energy industry equipment. Since its establishment, Tengzhong has quickly become a major manufacturer of machinery and construction components through a series of successful acquisitions. Tengzhong prides itself on its automated manufacturing equipment, its processing systems, significant research and development initiatives and commitment to innovation. Forward-Looking Statements This press release contains forward-looking statements. All statements contained in this press release that are not clearly historical in nature or that necessarily depend on future events are forward-looking, and the words “anticipate,” “believe,” “expect,” “estimate,” “plan,” and similar expressions are generally intended to identify forward-looking statements. These statements are based on current expectations, estimates and projections of GM’s and Tengzhong’s management and currently available information. They are not guarantees of future performance, and investors are cautioned that all forward-looking statements involve certain risks and uncertainties that are difficult to predict and are based upon assumptions as to future events that may not prove to be accurate. Many factors could cause the actual results, performance or achievements of GM and Tengzhong to be materially different from those that may be expressed or implied by such statements, including but not limited to those discussed in GM’s Annual Report on Form 10- K for the year ended December 31, 2008, as amended, and other filings with the SEC. Although GM and Tengzhong believe the assumptions underlying the forward-looking statements contained herein are reasonable, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate.

Not that long ago, Rick Wagoner, CEO of General Motors, announced to a crowd celebrating the automaker’s 100th anniversary, “We’re a company that’s ready to lead for 100 years to come.”

They missed their goal by 99 years, four months.Facing reality after years of dodging it, GM filed for bankruptcy on the very day its Detroit rival, Chrysler, forged a formal link with Fiat to emerge from its bankruptcy.GM declared it has $82.29 billion in assets and $172.81 billion in debts. The automaker’s bankruptcy is the third largest in U.S. history, biggest ever by an industrial concern.To add insult to injury, bankruptcy required that GM be dropped from the stock market’s prestigious Dow Jones Industrial Average, the list of the 30 largest and most widely held blue chip U.S. companies. It was replaced by the communications and computer networking company Cisco Systems…a sign of the times?In fact, with the bankruptcy filing GM’s common stock became worthless. Once touted as a major “widow’s and orphan’s” stock because of the company’s strength and dependability, it closed at a Great Depression-level $0.75 cents per share on the last trading day before bankruptcy, a fall of around $70 since the now-government-deposed Wagoner took over GM in 2002.Incidentally, as President Obama and GM CEO Fritz Henderson were explaining GM’s bankruptcy, the stock market shot up some 250 points…What’s next?With the government-forced filing, GM will receive a public cash injection of $30 billion so it can continue operations while the old GM ceases to exist and a “New GM” is created. Added to the earlier $19.8 billion loaned GM, this $50 billion gives the U.S. government a 60 percent stake in the new firm.Canada and the province of Ontario, which have significant GM factories, will get a 12 percent chunk of the New GM in exchange for a $9.5 billion investment. The auto worker’s health-care fund takes a 17.5 percent share in return for concessions. Bondholders get 10 percent with warrants to buy an additional 15 percent, this equity-for-debt swap intended to cover a portion of their huge losses that come with the restructuring.Chrysler’s bondholders were large financial concerns, as are many of GM’s, but the latter’s bondholders also included thousands of individuals from autoworkers to school teachers who had grown up in a society where the automaker was considered a “can’t fail” investment…but it did and now they can only lick their wounds.Eleven GM factories that account for stamping, assembly and powertrain will be closed, four this year, six next year and one in 2011. Three more will be put on standby. One may be converted to a new factory to build small cars.These and other closings will mean the loss of what could be 21,000 auto worker jobs out of GM’s 54,000. “White collar” jobs will also be cut from the firm’s additional 38,000 employees.Also on the chopping block are dealerships. GM had announced in mid-May that it would notify 1124 dealerships that their franchises would not be renewed when they expire on October 31, 2010. Roughly another 550 will be gone as Pontiac is phased out and Hummer, Saab and Saturn sold. And now an additional 450 will get their termination letters.This is GM’s plan to cut the number of dealers from 5,969 to 3600 as part of the restructuring. While this elimination of dealers would have been a legal logjam before bankruptcy, one benefit of the action is the ability to end otherwise difficult contracts.This New GM, trimmed of excessive production capacity, workers, dealers and with lower employee costs, is hoped to be a leaner, more competitive company.GM has said that the bankruptcy does not affect operations outside the U.S., though, of course, GM is selling the majority of its Opel operations to Sberbank, a Russian bank; Canada’s Magna International; and Opel employees. Prospects for Vauxhall seem uncertain.Saab’s future is up in the air as a trio of bidders including exotic car builder Koenigsegg, play their hands. Hummer is reported to have been sold so a Chinese company. GM is mulling over offers for Saturn, including those from Roger Penske and Magna International. The last one is interesting as Magna is now involved in Opel and the modern Saturns are almost all lightly Americanized Opel models. Other elements that made up the “old GM” will also be sold off.What does that leave for the New GM? Chevrolet, Cadillac, GMC (trucks) and Buick, the latter thanks to its popularity in China. The job will be to make the operation more efficient, driving labor costs down to those paid by transplant Japanese and German automakers in the U.S., and achieving efficient plant utilization.And, most important of all, producing cars Americans want. In his speech announcing the New GM, CEO Fritz Henderson admitted that in the past GM would launch 15 new vehicles, expecting five to be hits and 10 to be average. He said that attitude was over and admitted something GM executives would have been too proud to acknowledge in the past asking consumers to, “Give us another chance. The GM that let you down is history.”The New GM is expected to emerge from bankruptcy in 60-90 days and when it does, Obama has said it will not be run by the government. Many Americans are edgy over the idea of the government operating what should be a private company…even those who admit “the feds” had little choice but force GM into bankruptcy. Obama tried to comfort them by called the government a “reluctant investor” in Detroit. Treasury Secretary Timothy Geithner said, “We want a quick, clean exit as soon as conditions permit.”Hopefully that is what will happen and we’ll have a strong New GM, but to most Americans the day GM announced bankruptcy was a sad one. To many it means lost employment, and that extends beyond the automakers and the tens of thousands employed by dealerships and supplier companies. As one example, all the restaurants, churches, grocery stores, Girl Scout troops, clothing shops, charities, et al supported by those 11 closed GM factory’s workers will suffer.A total of 789 Chrysler dealers and their employees were already familiar with the feeling of being cast off. They had been told mid-month that they were being dropped by the automaker. Many of those terminated were small stores in small communities, often owned by the same family for decades.In reality, the problems now being solved by the bankruptcies of GM and Chrysler are not new. The matters of manufacturing overcapacity, excess dealerships, unsustainable labour costs, too many models, etc have been discussed for years. Somehow it was believed they could be solved in a calm, orderly manner.Apparently they couldn’t.In an unrelated news item, we got word as GM was sinking into bankruptcy that Millvina Dean had died. Dean was the last surviving passenger from the Titanic. Rescued at 2 months old and surviving until she was 97 years old, Dean didn’t last quite as long as GM, but the event that forever linked her with history at the beginning of her life was as traumatic to the public then as GM’s failure is for us today.We sail through life thinking we’re so darn smart… and then.