WhichCar By Wheels

Swedish GM brand Saab may have found a lifeline in its own backyard, with rumours that supercar company Koenigsegg are one of two companies vying for the brand.

Fiat, which has just confirmed its deal with Chrysler, has denied any interest in Saab and its fellow satellite Opel, and Reuters is reporting that Koenigsegg and an American investment group Renco are the remaining interested parties.“Now we are negotiating with just two parties. This can go fast now and should absolutely be wrapped up in a maximum of two weeks,” said Saab chief executive Jan-Ake Jonsson.We’re thinking Koenigsegg could inject more than life into the shaky brand… Fingers crossed!

If he was a cricketer, Holden boss Mark Reuss would spend a lot of time striding onto the front foot. That’s certainly what he was doing today as the news broke that parent General Motors had entered Chapter 11 bankruptcy for restructure.

Adopting his most confident stance, he made it clear to the media:– As a separate corporate entity Holden wasn’t being dragged under by GM, but it was an integral part of the structure of the ‘New GM’ that would emerge from the US court-supervised restructure.– Holden itself was not in hock, that Chapter 11 would have “no impact” on Holden’s dealers, suppliers and customers.– As an employee of GM all his adult life, he welcomed the opportunity for the company his father Lloyd once presided over to clear the decks of its unwanted liabilities and start again.So all good then? Well, yes and no.Think of Reuss as the opening batsman for a team that has been forced to follow on after a first innings collapse. He might have the runs on the board but plenty of his mates have dropped the ball.So while Holden in isolation looks good, debt-free and with the capability of designing, developing and building new cars from scratch. It is now wedded to a process that is only just starting a new phase, not nearing its completion.If the US government sticks to its commitment, if this massive, complex restructure is completed, if the ‘New GM’ actually does what it says it will do when it emerges… If, if, if.If not, then Holden’s future is murky to say the least. The sell-off that has been avoided this time might well become inevitable.And even if the hurdles are cleared, Holden still faces the pressures that were bearing down on vehicle manufacturing in Australia before the GFC struck and GM collapsed.Holden is certainly doing its best to survive. It has developed a world-class rear-wheel drive architecture, plans dramatic fuel economy improvements for Commodore and a small car based on the Delta architecture will be rolling out of the Elizabeth assembly plant late next year. In addition, there is strong financial support for the car industry from Canberra.There’s no doubt Reuss and his team at Holden need to strap their helmets on tight and prepare for a torrid session on a sticky wicket. Victory isn’t in sight yet, it’s still all about saving the game.

Think European prestige and it’s Benz, BMW and Audi that come to mind. The biggest reputations and the most badge cred make them a statement of success for many aspiring car buyers. Thankfully, as well as reputations, they build some decent cars, too.

Jostling behind the big three are a bunch of other Euro-brands trying to sell the same sort of message without managing the same panache or swagger. Pretenders to the throne, or maybe just pretenders altogether, they emerge from all corners of the continent eager for their slice of the premium cake. So, prompted by the arrival in Australia of Volkswagen’s interesting Passat CC, we’ve assembled four of these would-be-if-they-could-bes together to judge their worth as bona fide buys for the upwardly mobile.Alongside the VW there’s the substantially new third-generation Renault Laguna released here mid-2008, the recently and significantly uprated Ti (for Turismo Internazionale) version of the Alfa Romeo 159, and the not-so-recently-revised-or-upgraded Peugeot 407.Given the Pug has been around for some years and has never been near the top of the Wheels must-have list, you might be wondering why it lobs here. It was actually something of a ring-in. Originally, the Citroen C5 was targeted for this test, but lack of availability saw the 407, in an effort to retain the Gallic theme, get the call-up.Talking of themes, what else do our test cars have in common apart from their continent of origin? Well, they all power their front wheels via intercooled turbo-diesel engines and all have at least four doors and four seats.But the details separate them significantly. The Passat’s CC name denotes it is a ‘Comfort Coupe’ in VW-speak – as opposed to the industry’s generally accepted folding hard-top Coupe-Cabrio interpretation. The CC has a permanent roof, albeit much more svelte than the standard Passat, sacrificing some headroom and the centre-rear seat while retaining four doors. Its obvious inspiration (in all but pricing) is the Mercedes-Benz CLS.The Laguna is the only hatchback here, while the Alfa and Peugeot offer the traditional three-box sedan body-style and five seats.Under the bonnet the VW and Renault both employ 2.0-litre four-cylinder engines, the Alfa’s 2.4-litre is a rare five-cylinder while the Peugeot gets the excellent 2.7-litre twin-turbo V6 co-developed with Ford. Transmissions are traditional six-speed torque converter autos for all bar the CC, which employs the VW Group’s twin-clutch DSG.The connection between our foursome stretches almost to breaking point when pricing is considered. The top-spec Laguna Privilege is the cheapest car here at $49,990, the VW $5000 more expensive at $54,990, while both the 407 SV and 159 Ti are $62,990.That money delivers some common ground on equipment. Everything gets front, side and curtain airbags, ESP, leather trim, dual climate control, parking sensors and heated front seats (in the rear as well in the Passat), while only the Alfa misses out on xenon headlights. The Peugeot and VW have electronically adjustable suspension dampers, the 159 and 407 a driver’s knee airbag. The VW alone comes with Continental puncture-resistant tyres (but retains a full-size spare anyway).But the really big ticket items like sat-nav are noticeably optional or absent altogether. So value for money? Well, the Alfa looks worth every cent just standing there finished in fiery red and riding on 19-inch wheels housing red Brembo brake calipers. It looks like it has just blat-blatted its way into pitlane. All that’s missing is the Nomex and leggy brunette, and it’s the sort of car that would attract the latter pretty quickly…Meanwhile, even at $13,000 less, the Renault looks over-priced. Its shape is anodyne, its long front overhang out-of-sorts with its chopped rear-end. Even riding on 18-inch wheels the Laguna still looks underdone. There’s no sense of aspiration here, it looks like a fleet car dressed up – which in effect it is.The 407 has similar issues. Its derriere rides too high, the gaping grille dominates the long nose and there are gaps between tyres and guards Zinedine Zidane would stroll through. The overall shape is somewhat more pleasing than the Renault, but is it really $12,000 better?The CC is clearly the most elegant shape. Its chiselled body is adorned by a roof that travels in an almost continuous-radius arc from the bottom of the A-pillar to the end of the boot. The details are sweet; from its prominent chromed snout, through to the frameless windows and upswept and perfectly integrated lip spoiler.Inside it’s equally well-resolved. There are new-design sunken gauges that glow white rather than trad VW-blue, a chunky, nice-to-hold steering wheel and a dashboard swathed in a broad band of brushed aluminium with a large touch screen at its centre. The impression is that the only cheap thing here is the price.And yet for sheer interior cohesion the Laguna outdoes it. Dowdy as a dustbin outside, it’s bright, shapely, minimalist and contemporary inside. Controls are grouped sensibly, the materials are quality and look good. No touch screens, no mouse controllers and no button forest.The 407 doesn’t manage the same internal salvation. There’s a clumsy stepped dashboard and a profusion of indiscriminately laid out buttons festooning a centre stack backed in plastic that would look cheap in a 207. There are luxuries, like the notably pliant seats and powered steering-wheel reach and rake control, but the Peugeot – unsurprisingly – feels and looks the most aged here.Step from the 407 to the 159 and the difference between tired and traditional becomes obvious. The driver-centric dash, the three air-con vents set in the centre stack, the three ancillary gauges, the Momo-esque steering wheel with black leather and red stitching, the deeply bolstered sports seats. It’s been renovated for this Ti upgrade, but there’s a familiarity here that works, and the bits that don’t … well (shrug), it’s an Alfa.Trouble is, there’s been a lot of shrugging and justifying in recent years because Alfa’s a sporting brand that hasn’t been able to deliver convincingly sporting cars. But the Ti is more than a look. Alfa has recognised the need for improvement and there’s been a concerted effort to lose weight, revive and refine the suspension and boost the engine’s performance with more power and flexibility.And it works. The 159 is far and away the driver’s car of this group. If a feeling of connection through hands, feet and seat is what you seek, then the Alfa is for you. But be warned, that connection is unstinting and not always enjoyable: it crystallises in the roar of the Pirelli P Zeros and the guttural clatter of the big five-cylinder oiler.The engine’s combination with the Q-Tronic auto (another target of this update) is usually seamless and there’s only the occasional stumble or laggardly thought before action. The raw acceleration figures are nothing special, but the response, courtesy of 400Nm between about 2000 and 4000rpm, certainly is. This is a car better at conquering cross-country trips than, as we learned, country airstrips.There’s a dynamic balance that nothing else here achieves. The 235/40ZR19s grip surely, there’s quick and light hydraulic steering, and a feeling of confidence that extends deep into the geometry and tune. There’s precious little tram-lining over rough surfaces or under brakes. Nor does the steering wheel buck and kick in the hands, or the ride on the 20mm lowered suspension prove unnecessarily harsh. This latter achievement is perhaps the most impressive of all because it means the Ti is not only liveable as a day-to-day proposition, it’s enjoyable. That’s with the rider of an excessive turning circle, something all these FWD cars share.Impressively, the Alfa Romeo’s reshaped rear seat and headlining have delivered much-improved space for rear-seat passengers as well. The interior still offers few storage options, but suddenly the 159 is fulfilling its true potential.If the Alfa sounds too alpha male then it’s the 407 that best represents the opposite end of the spectrum. Put aside the dumpy looks, the underdone interior and the high price and you’re left with a terrific drivetrain, a well-contained level of NVH and even a refined level of chassis behaviour … provided you press the right button.Left to its own devices in ‘Auto’ mode, the 407’s nine-setting active dampers are disconcertingly disconnected from each other and the body. They might be reading the road and the driver’s input but they always seem to be a few pages behind the action. However, flick to ‘Sport’ and behaviour improves significantly. The whole act tightens up cohesively, without becoming uncomfortable or much noisier. There is a slight sacrifice in slow-speed comfort around town but it’s worth making.And the engine is simply a great performer, 440Nm ensuring it offers response levels similar to the Alfa despite weighing in more than 200kg heavier. And it is without peer here when it comes to smoothness and quietness. No doubt, it’s the car’s greatest strength. Pity the same can’t be said for the 407’s interior space. For such a big car it’s too tight in the back seat and it also lacks storage options.The Laguna is 407-Lite, and that’s not only in terms of kerb weight. The smaller engine has to work harder to provide less performance and is noisier. Despite a petrol-esque 5200rpm redline, the Laguna is a plodder at the test track. On the road it feels far better, but is still the obvious tail-ender here, a result not helped by hesitant transmission response in the lower gears.The same applies to the Laguna’s dynamics. There’s little steering feel but plenty of ugly kickback, a tendency to slide gracelessly into understeer when pushed and virtually no evidence of damper tuning sensitivity. For rear-seat passengers the experience is made that much harsher because the Laguna is the only car here to use a torsion beam rear suspension. Add in a rock-hard seat and a lack of headroom (due in part to the optional panorama sunroof) and no-one was rushing for the Renault.Which leaves the CC. Expectations are raised by its svelte image, but those Passat mechanicals deliver a drive experience which isn’t quite so refined.The engine is a beaut for its size, beaten only by the 407’s V6 for refinement. And in terms of real world performance, it isn’t as far off the Pug or Alfa as the raw numbers suggest. At the same time it easily undercuts them for economy, as well as besting the Renault. The 9.5L/100km test average sounds high for a diesel, but the figures reflect a lot of city and performance driving and few opportunities for the engine to lope along a freeway.No doubt the DSG aided both performance and economy. It was also the most enjoyable transmission to operate manually thanks to its fast, precise shifts. Surprisingly, though, it would change up at redline, leaving only the Alfa to bang away on the limiter if you so choose. Left to its own devices there were some of the usual DSG foibles; the tendency to accelerate violently when overcoming lag and taking off and the occasional lurch when changing down through the gears.But it was in the suspension tune where the CC drew most criticism. In ‘comfort’ mode the adaptive dampers provided an acceptable ride up-front but the worst ride of all four cars in the back. Switch to ‘sport’ and the dynamic improvements were far outweighed by the increase in harshness. For such a svelte, smoothly shaped car this lumpiness is a significant disappointment.A shame, because the CC belies its compromised roofline by providing decent space in the rear, along with the highest degree of user-friendliness thanks to plenty of cubbies and a large boot with a split-fold rear seat.So it comes down to a choice between VW and Alfa. The CC is a great image car, is well equipped and is offered at a good price, but suffers from a compromised chassis. The 159 Ti is now a significantly improved mechanical package and is beautiful to behold. But it is expensive.The flint-hearted pragmatist would give the silverware to the CC, but this is Wheels, a place where driving purity and soul counts for much. And the 159 undoubtedly stirs the blood unlike anything else here. It’s the one for drivers. The VW runs it close, but lacks passion; the Pug is for cruisers and the Laguna for very, very few.While there’s no doubt that Benz, BMW and Audi are safe on their premium pedestals for the time being, the Alfa will deservedly seduce and inspire the romantics among us.

As hybrid mania sweeps Japan, so it is Toyota’s Prius and Honda’s Insight that are leading the running.

But what about Subaru? The maker of the Liberty, Forester and Impreza has no hybrid to offer. Not yet, anyway, although it’s shown advanced hybrid concepts before at the Tokyo Motor Show that have been truly state-of-the-art.Instead, Subaru has let it be known that it’s working on adapting Toyota’s Prius-type hybrid system for its own line-up.At one point, the Liberty was the prime candidate to go hybrid, but we now hear that’s no longer the case. Subaru admits that research into developing a hybrid vehicle continues but has denied stories in the Japanese press linking Subaru to a hybrid launch in 2011. “No concrete date has yet been set,” said a spokesman.Similarly, reports that Subaru would launch its excellent clean Boxer diesel in Japan in 2011 have also been shot down by Subaru’s PR dept in Tokyo.“Yes, it’s true we are working on adapting our clean diesel for the US and Japanese markets, including Australia, but no further details are available at this point,” insisted the spokesman.The slumping word markets and economic crisis have put severe strain on Subaru’s bottom line. Both the diesel and hybrid technologies are expensive, hence Subaru’s taking its time but a hybrid launch sometime around 2012, perhaps in the Forester, does seem reasonable if the situation improves.Subaru to date has only offered its award winning 2.0-litre flat four turbodiesel in Europe. It would seem a natural for other major markets but again, cost is the issue.On the eco front, Subaru does have its electric-powered Stella EV ready to go in Japan this summer, but for now, along with others, it can only watch and wait as the Prius and Insight dominate the eco airwaves in Tokyo.

The buck stops on July 1 for businesses and individuals wanting the full $2000 grant for converting to Liquid Petroleum Gas.

The fine print of some cuts to the deficit Budget revealed that clean, green alternative fuels are seemingly a little lower on the list, with LPG conversions are one government subsidy that is losing its full bonus. This flies in the face of the Rudd government’s Green Car Innovation Fund strategy, which awards carmakers and parts manufacturers on advancements in alternative fuels and petrol consumption.The grant will be reduced by $250 from July 1 to $1750, and by 2013 it will be half its current bonus at $1000.In 2008, approximately 125,000 vehicles were converted to run on Autogas. According to LPG Australia, this number reduced the CO2 by more than 100,000 tonnes. Though let’s not forget that many LPG cars are taxis, and they travel for a much greater time and distance…“In the medium term, it is extremely difficult for any other vehicle fuel alternative to match these emissions savings on existing vehicles,” said industry development manager Phil Westlake in an official release today.“This is a blow to the industry and the installers who have invested in LPG.”Happy EOFYS indeed.

Holden says it will not be largely affected by the demise of its parent company, and says it had made preparations to go it alone in the case of GM’s filing for more than 18 months.

However, it will be an integrated part of the ‘new GM’.

In a statement issued through the GM website, Holden boss Mark Reuss reaffirmed that Holden is not a part of the Chapter 11 filing, and its operations, design, employees, dealers and suppliers will continue business as usual.“Operations at Holden are unchanged in Australia and New Zealand and we expect it to remain that way,” said Reuss.“GM has clearly stated that all of its businesses in the Asia Pacific region – and that includes Holden – continue normal operations and are not directly impacted by this process in the US.“No operations outside the US are included in the court filing or court supervised process.“Holden is a subsidiary of GM but we are a corporate entity in our own right – an independent company under Australian law.This was confirmed in a separate release by GM Group Vice President and President of GM Asia Pacific, Nick Reilly:“We believe this step – which was taken with the support of the US Government – is the most efficient and effective means for New GM to emerge with substantially less debt and lower operating costs, and with our operations positioned for long-term success.”Of course, Holden has already been affected by its parent company’s problems, with the Elizabeth plant forced to reduce employee work hours and roster shifts after the Commodore-based Pontiac G8 ceased its export.However, it’s new small car program, funded in part by the Australian government’s billion-dollar green car innovation scheme, will be the likely saviour of the local arm.“We intend to maintain our focus on Holden product programs and activities,” said Reuss.“That means technology improvements to our best selling Commodore range, launching the all-new Holden Cruze this month, and the introduction of our locally-built fuel efficient, four cylinder small car next year.General Motors and the Obama administration hope to quicktrack the bankruptcy, and have the new GM up and running within 90 days.

KEY FACTS – Holden

General Motors has finally filed for bankruptcy under Chapter 11 overnight, unable to shift the weight of $US172.8 billion (AU$213.25 billion) in debts.

Using the ultra-fast government restructuring process under the Chapter, GM expects the be reborn as a new, separate company within 60 to 90 days.Not only will the company’ debt be absorbed by its principal owner – the US government and its taxpayers will own about 60 percent of the new GM – but its burden will also be lightened by a skeletal operating system and reduced brands.It will be able to break contracts with current suppliers (and debtors), which is bound to start its own bidding war.The company will also be able to free itself from the grip of the union, which saw its pension and benefits costs dig a huge hole in its operating costs.Saab and Hummer, two of GM’s chopping-block brands, will be either sold off or liquidated entirely, giving them only a slim chance of survival in the Australian market.Pontiac, which used Holden’s global rear drive architecture, has already been put on notice, as has Saturn. Opel has already gone to the Russians.Only the strongest will survive under the new GM…KEY FACTS – GMWhat GM Corporation’s US filing is:The US filing of GM Corporation is not:

OFFICIAL PRESS RELEASE

GM ANNOUNCES AGREEMENT WITH U.S. TREASURY AND CANADIAN GOVERNMENTS PROVIDING FAST TRACK TO COMPETITIVE FUTURE FOR ‘NEW GM’NEW GM, BUILT FROM COMPANY’S STRONGEST OPERATIONS, EXPECTED TO LAUNCH IN 60-90 DAYS UNDER NEW OWNERSHIPGM FILES VOLUNTARY CHAPTER 11 TO IMPLEMENT ‘363’ SALE AGREEMENTGM IS OPEN FOR BUSINESS IN THE U.S. AND WORLDWIDE, HONORING ALL CUSTOMER COMMITMENTSWarranty, service and customer support continue uninterrupted, backed by the U.S. and Canadian governments Essential suppliers to be paid in the normal course Employees to be paid in the normal course Operations outside U.S. not included in court filing DETROIT, June 1, 2009 – General Motors Corp. (NYSE: GM) today announced that it has reached agreements with the U.S. Treasury and the governments of Canada and Ontario to accelerate its reinvention and create a leaner, stronger “New GM” positioned for a profitable, self-sustaining and competitive future.Pending approvals, the New GM is expected to launch in about 60 to 90 days as a separate and independent company from the current GM (“GM”), with two distinct advantages: it will be built from only GM’s best brands and operations, and it will be supported by a stronger balance sheet due to a significantly lower debt burden and operating cost structure than before. The New GM will incorporate the terms of GM’s recent agreements with the United Auto Workers (UAW) and Canadian Auto Workers (CAW) unions and will be led by GM’s current management team.The New GM will execute the key elements of its April 27 viability plan, along with additional initiatives, to achieve winning financial results by putting customers first, concentrating on adding to the company’s line of award-winning cars and trucks through four core brands and continuing to invest in green, energy-saving technologies.Under its plan, GM will sell substantially all of its global assets to the New GM. To implement the sale agreement, GM and three domestic subsidiaries have filed voluntary petitions for relief under chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York, and the sale is subject to the approval of the Court. Because GM’s sale of assets to the New GM already has the support of the U.S. Treasury, the UAW and a substantial portion of GM’s unsecured bondholders, GM expects the sale to be approved and consummated expeditiously.GM has asked the Court to approve a number of steps to protect current and new GM customers, ensure that its operations will continue uninterrupted during the court-supervised process, and provide for a smooth transition to the New GM.GM dealers will continue to service GM vehicles and honor GM warranties, and U.S. and Canadian government guarantees of manufacturers’ warranties are designed to reassure consumers. GM will use its cash-on-hand and a new Debtor-in-Possession (DIP) financing of approximately $33 billion to: ensure an uninterrupted supply of goods and services and provide for other cash requirements prior to closing of the asset sale; fund liabilities to secured lenders; and provide contingency funding to handle any potential unexpected needs. Furthermore, in conjunction with the sale, the U.S. Treasury and the Canadian and Ontario governments will provide funds to administer the wind down of the remaining assets and the closing of the chapter 11 cases. GM employees worldwide will become part of the New GM. “Today marks a defining moment in the reinvention of GM as a leaner, more customer-focused, and more cost-competitive company that, above all, can quickly generate winning bottom line results,” said Fritz Henderson, GM president and CEO. “The economic crisis has caused enormous disruption in the auto industry, but with it has come the opportunity for us to reinvent our business. We are going to do it once and do it right. The court-supervised process we are pursuing provides us with powerful tools to accelerate and complete our reinvention, as well as strong safeguards for our customers and our business. We are focused on the job at hand, for the benefit of our customers, employees, dealers, suppliers, retirees, taxpayers, investors and other stakeholders.“We recognize the sacrifices that so many have been asked to make as we have worked to reinvent GM and the automobile,” said Henderson. “GM deeply appreciates the support and the demonstration of confidence in our future by President Obama, the Presidential Task Force on Autos, the Canadian and Ontario governments, American and Canadian taxpayers, the unsecured bondholders who are supporting the proposed sale transaction, the UAW and CAW and their leadership, and the men and women of GM, including our retirees. You have enabled us to carry out this vital transformation for the good of GM, our customers and the economy, and we are working to validate your trust each day.“From day one, the New GM will be well-positioned to capitalize on the award-winning vehicles we have developed and launched during the past few years, and on our investments in exciting new technologies like the Chevy Volt, so that we can build and return value to our customers and to the millions who will have a stake in our success. The New GM will play a critical role in the future of the automobile, and assure that the U.S. has a strong stake in this rapidly changing global manufacturing industry,” Henderson said.Business operations continue globally without interruptionGM’s North American manufacturing operations continues to monitor production output to make sure it aligns with market demand, and currently intends to ramp up manufacturing operations as market demand improves during the latter half of the year.None of GM’s operations outside of the U.S. are included in the U.S. court filings or court-supervised process, and these filings have no direct legal impact on GM’s plans and operations outside the U.S. GM confirmed that all business operations are continuing without interruption in its Europe; Latin America, Africa and the Middle East; and Asia Pacific regions.“Worldwide, GM dealers are open for business, offering competitive financing options on our award-winning vehicles, continuing to honor our industry-leading warranty coverage, and providing outstanding service,” said Henderson. “Furthermore, the U.S. Treasury and the Canadian governments have issued a strong vote of confidence by backing GM’s vehicle warranties.”GM has filed various “first day” motions with the Court to ensure the company’s continued ability to conduct normal business operations. Upon Court approval, GM will be expressly authorized, among other things, to:Honor all obligations to customers and continue customer programs, including warranties, without interruption Respect our operating and financing agreements with GMAC, supporting continued wholesale financing for dealers and retail financing for customers Pay dealers’ open accounts and continue warranty and incentive programs Pay essential suppliers and logistics providers for goods and services provided before and after the company’s court filings Continue pay and benefits for employees and retirees; however, the amount of non-qualified pension for some executive retirees may be affected. The New GMGM’s agreements with the U.S. Treasury, the Canadian and Ontario governments and the UAW and CAW, in addition to the support of a substantial portion of GM’s unsecured bondholders, will enable the New GM to be a leaner, faster and more customer-focused enterprise, consistent with the vision, goals and plans of GM’s enhanced operating plan announced April 27.The New GM will:Focus on four core brands in the U.S. – Chevrolet, Cadillac, Buick and GMC – with fewer nameplates and a more competitive level of marketing support per brand Effectively close the competitive gap in active worker labor costs compared with transplant auto manufacturers More efficiently utilize U.S. capacity while increasing over time the percentage of U.S. sales manufactured domestically Feature lower structural costs enabling its North American region to break even (on an adjusted EBIT basis) at a U.S. total industry volume of approximately 10 million vehicles. This rate is substantially below the 15 to 17 million annual vehicle sales rates recorded from 1995 through 2007 Achieve its lower structural costs in part by further reducing 2009 salaried employment in North America from its year-end total of 35,100 to approximately 27,200, and continuing to improve its balance sheet by reducing retiree benefits for salaried retirees and non-UAW hourly retirees Provide a higher level of customer service through a more focused U.S. network of approximately 3,600 dealers Continue and increase its investment and leadership in fuel economy and advanced propulsion technologies Capital Structure of the New GMA critical element of GM’s reinvention is to achieve a significantly stronger and healthier balance sheet. On March 31, 2009, GM reported consolidated debt of $54.4 billion, along with additional liabilities, including an estimated $20 billion obligation to the UAW VEBA.Under GM’s agreements with the U.S. Treasury, the Canadian and Ontario governments, and the UAW and CAW, and with the support of a substantial portion of GM’s unsecured bondholders, upon closing of GM’s sale of assets to the New GM, the New GM’s capital structure will be comprised of:Approximately $17 billion in total consolidated debt, including: $6.7 billion of debt owed to the U.S. Treasury $1.3 billion of debt owed to the Canadian and Ontario governments $2.5 billion of notes issued to the new Voluntary Employee Beneficiary Association (New VEBA) Approximately $6.8 billion of other, primarily international debt, but excluding Europe $9 billion of perpetual preferred stock with a 9 percent annual dividend, payable quarterly in cash, $2.1 billion of which will be issued to the U.S. Treasury, $0.4 billion of which will be issued to the Canadian and Ontario governments and $6.5 billion of which will be issued to the New VEBA Common equity, 60.8 percent of which will be owned by the U.S. Treasury, 11.7 percent of which will be owned by the Canadian and Ontario governments, 17.5 percent of which will be owned by the New VEBA, and 10 percent of which has been reserved for GM for the benefit of the unsecured bondholders and other unsecured creditors of GM Warrants granted to the New VEBA to acquire newly issued shares in the New GM equal to 2.5 percent of its outstanding common equity Warrants granted to GM at closing to acquire newly issued shares in the New GM equal to 15 percent of its outstanding common equity, with various exercise prices and expirations Other than the $8 billion of debt owed to the U.S. Treasury and the Canadian and Ontario governments by the New GM, all amounts owed by GM or the New GM to the U.S. Treasury and Canadian and Ontario governments would be equitized in exchange for the New GM securities described above, and no other debt will be owed by GM to the U.S. Treasury and the Canadian and Ontario governments.GM Europe RestructuringGM announced separately today, GM Europe has an agreement for €1.5 billion of bridge financing from the German government and a Memorandum of Understanding to partner with Magna International Inc. Under the agreement, the Opel/Vauxhall assets have been pooled under Adam Opel GmbH, with the majority of the shares of Adam Opel GmbH being put into an independent trust (the balance to remain with General Motors), while final negotiations with Magna proceed. Negotiations to close the agreement should take several weeks. Additional details will be available athttp://media.gm.com/eur/gm/en/.New products and technologies on trackThe New GM, with its strong financial base and best-in-class dealer network, will support a portfolio of award-winning vehicles, including the Chevy Malibu (2008 North American Car of the Year and J.D. Power and Associates’ segment leader in its 2008 Initial Quality Survey), Cadillac CTS (Motor Trend Car of the Year) and its Buick brand (tied for 1st place in J.D. Power and Associates’ 2009 Vehicle Dependability Study). The New GM will have a number of key vehicle launches in 2009 and 2010, including:Chevrolet Camaro, a dramatic, moderately priced sport coupe with highway fuel economy of up to 29 mpg An all-new Buick LaCrosse premium midsize sedan The luxury midsize Cadillac SRX crossover and CTS Sport Wagon The Chevy Equinox and GMC Terrain, midsize crossovers with class-leading highway fuel economy of 32 mpg The Chevy Cruze, GM’s new global compact car The revolutionary Chevy Volt, an extended-range electric vehicle that can travel up to 40 miles on battery power alone with the extended-range capability of more than 300 total miles. “Our products are our future, and our lineup of new cars and crossovers are a great foundation for success,” said Henderson. “The New GM is here to stay, and our brands position us to compete well in profitable segments with vehicles that are second-to-none.”GM also reaffirmed its commitment to improve the fuel efficiency of its vehicle fleet, meet or exceed new federal fuel economy and emissions regulations, and push ahead with advanced propulsion technology. GM will launch the Chevrolet Volt extended range electric vehicle in 2010, expects to have 14 hybrid models in production by 2012, and will have 65 percent of vehicles alternative-fuel capable by 2014.“The New GM will become a long-term global leader in the development of fuel-efficient and advanced-technology vehicles,” said Henderson. “In doing so, the New GM will contribute to the development of advanced engineering and manufacturing capabilities in the United States, which are critical to the future of the U.S. economy.”GM’s primary bankruptcy counsel is Weil, Gotshal & Manges LLP. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsels. Cravath, Swaine, & Moore LLP is providing legal advice to the Independent Directors of GM. GM’s restructuring advisor is AP Services LLP and its financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP.More information about GM’s chapter 11 cases is available at www.GM.com/restructuring.Court filings and claims information are available at www.GMcourtdocs.com.About GM General Motors Corp. (NYSE: 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 U.S., 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.Forward Looking LanguageThis news release and management’s comments on it contain “forward-looking statements.” These statements are based on GM management’s current expectations and assumptions, and as such involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those that we now anticipate — both in connection with the Chapter 11 filings we are announcing today and GM’s business and financial prospects. Those risks are described in GM’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008 which was filed March 5, 2009, GM’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2009 which was filed on May 8, 2009, GM’s Current Report on Form 8-K filed on May 14, 2009 and other GM filings with the Securities and Exchange Commission

Much of the spotlight has been on the GM restructuring but meanwhile Fiat has dipped out on Opel. Large chunks have gone to parts supplier Magna and to a Russian company. But Fiat did score Chrysler.

Chrysler LLC’s request to sell substantially all of its operations to Chrysler Group LLC, the new company formed in alliance with Fiat SpA, has been approved by the US Bankruptcy Court.“With this approval, the new Chrysler Group is created and can prepare to launch as a vibrant new company formed with Fiat,” said Robert L. Nardelli, chairman and chief executive officer of Chrysler LLC.Nardelli says that the revamped Chrysler Group will soon begin operations with significant strategic advantages, a reduction of debt and interest expense, the disposition of idle assets, a rationalised and more efficient dealer network, and sound agreements with suppliers.Chrysler’s Mexican, Canadian and other international operations will also be acquired by Chrysler Group.The deal will give Fiat a rails-run access to the vast US market with its fuel-efficient small cars – the right cars for the current era. It is expected to introduce the first of its products – in all likelihood the 500 model – as soon as next year.Meanwhile bankrupt GM’s European subsidiary, never large enough to go it alone, will pass into the hands of several joint owners. North American parts manufacturer Magna will own 20 per cent. GM is retaining 35 per cent, Russia’s Sberbank will have 35 per cent and Opel employees will own 10 per cent.Russian carmaker GAZ has struck an ‘industrial partnership’ arrangement with the new owners of Vauxhall with the target of building a 20 per cent share of the growing Russian car market.Fiat, an earlier suitor and favoured to acquire Opel, was ultimately passed over.The new ownership of GM of Europe raises many questions including where it will now source their engines for future models.Also, Magna’s existing relationships with car makers including GM, Ford, Chrysler, Volkswagen and BMW maybe threatened by fears that the Opel ownership is a conflict of interest.Chrysler Australia has welcomed the completion of the new structure and ownership arrangements.“We are very pleased with today’s announcement and the opportunities that it brings to our company,” said Gerry Jenkins, managing director, Chrysler Australia.“At this stage, It is too early to comment or speculate about how the integration with Fiat might apply in our Australia or New Zealand regarding all aspects of the operation including dealer body and distribution.”Jenkins says the alliance with Fiat provides Chrysler Group with access to exciting products that complement the company’s current portfolio, technology cooperation and stronger global distribution. Work with Fiat is already well underway to develop the next generation of environmentally friendly, fuel-efficient high-quality vehicles.

Ford wants some government recognition; not only for its ability to individually restructure its operations without taking handouts and Band-Aids, but for the future of brand competition.

In a statement released just after the news of General Motors’ bankruptcy filing and confirmation of the merger between Fiat and Chrysler, Ford reminded the White House that a ‘level playing field’ must be maintained in the local car industry.

The Blue Oval has reasons for concern, with the Obama administration and the local taxpayer paying heavily for the bailout of the ‘old GM’, and owning about 60 percent of the ‘new GM’.The bankruptcy deal also sees an extra US$30 billion handed to the General to solidify its new position, on top of the billions already received (and lost forever) in government bailout funds.This already moves the goalposts in GM’s favour, as Ford will never see this kind of money from the government.Also, since Ford restructured its own operations and finances by itself without the aid of Chapter 11 or the administration, it will have to repay its mortgaged assets and live with its clearance sale of stock and bonds well into its operating future.Ironically, Ford has been able to capitalise on GM an Chrysler’s continued woes up until now. The company has experienced some growth since January without the heavy competition, and its decision to stand alone and fix its own mess has increased buyer confidence. In fact, Ford USA is planning to increase its third quarter production by 10 percent.

OFFICIAL PRESS RELEASE

FORD STATEMENT ON GM BANKRUPTCY FILING

DEARBORN, Mich., June 1, 2009 – Today’s announcement that GM is filing for Chapter 11 bankruptcy is another important development during this unprecedented period for the auto industry and the global economy.The Ford team continues to monitor the industry environment and plan for all contingencies to ensure our transformation plan remains on track. At this time, we do not expect any major disruptions to our operations as a result of today’s news.We share President Obama’s hope that GM’s bankruptcy will be controlled and orderly, and we continue to believe it is important that our governmental leaders and the U.S. Automotive Task Force remain focused on the stability of the supply chain and on ensuring that a healthy U.S. auto industry emerges from this difficult economic period. We look forward to working with the Obama administration to ensure that the government’s majority ownership of GM will not change the industry’s competitive dynamics and that a level playing field will be maintained.Ford remains absolutely committed to continuing to make progress on our transformation plan without accessing emergency taxpayer assistance from the U.S. government. We have been executing our plan for several years and now gaining market share and new customers with an unprecedented number of new high-quality, fuel-efficient vehicles, such the new Ford Fusion, F-150, Lincoln MKS and Lincoln MKZ. Coming soon are the highly acclaimed Ford Taurus, Lincoln MKT and Transit Connect

Suzuki Motor Corporation has posted a profit for the 2008 fiscal, making it something of a rarity in a motor industry doing it very tough.

Finishing in the black allows SMC to maintain its impressive streak of recording a profit every year since 1950.Suzuki’s strong situation came on the back of continued good sales in India and throughout the Asian region. Unlike other Japanese vehicle brands, Suzuki also had limited exposure to the dramatic drop in car sales in the US.SMC Corporate Planning Department general manager Seiji Kobayashi this week said the company would report a profit of 27.4 billion yen ($US280 million) for the 2008 fiscal year.The outlook for Suzuki remains positive too. Mr Kobayashi said Suzuki was well placed to handle the unique market conditions with its portfolio of small vehicles.In Japan, Suzuki performed well with a total market share of 32 per cent, up 1.0 per cent year on year.This lifted Suzuki to number three for total sales in Japan in the last fiscal year, ahead of Honda, Mazda and Mitsubishi.In Europe, the introduction of the Splash and Alto mini-vehicles kept Suzuki’s sales healthy – it finished just 6.9 per cent down while the market is down more than 17 per cent.In Australia, Suzuki recorded its sixth straight record year in 2008, with total sales of 22,523 vehicles for an increase of 4.4 per cent.But year-to-date 2009, Suzuki sales in Australia are off more than 1400 units and are currently lagging 19.2 per cent off January-April 2008.Suzuki Oz is sweating on the arrival of the all-new Indian-made sub-lite Alto econocar which joins the local line-up in the third quarter.The new Euro IV compliant Alto is powered by a three-cylinder 1.0-litre petrol engine producing peak power output of 50kW with a maximum torque of 90Nm.This fifth and smallest member of Suzuki’s range has posted eye-catching fuel figures of 4.5litres/100km and CO2 emissions of just 103 grams per kilometre.SRS front, side, and curtain airbags are available. Energy-absorbing trim materials provide further head protection.The Alto, which Suzuki says will be very handily priced to make it accessible to those on tight budgets, would be available in two packed specifications.The entry level Alto will come standard with air conditioning, CD stereo system with MP3 auxiliary input, remote central locking, ant-skid brakes and six airbags.The top specification Alto adds alloy wheels, fog lamps, tacho and stability control.For the 2009 fiscal year, SMC has predicted a 10 billion yen group operating profit and a net profit of 5 billion yen.