Toyota idles plants for extra 11 days

Automaker extends shutdown of Japanese plants beyond previously announced three-day hiatus.

By Kyung Lah, CNN


Toyota slashes profits

TOKYO, Japan (CNN) -- Toyota announced Tuesday it will idle all 12 of its wholly owned factories in Japan for an extra 11 days in response to the slumping auto market.

The company already had announced a three-day shutdown, which was set to begin in January. Company spokesman Paul Nolasco said the longer stretch, scheduled for February and March, will help the company get through the downturn without cutting jobs.

"In good times and bad, we try to keep output in line with demand, keeping production in line with demand," Nolasco said. "This will help even out production flow."

Three of the factories to be shuttered are auto assembly plants, while the rest make parts. Expanding that shutdown is a rare move that is likely to produce a ripple effect among its suppliers of parts and raw materials.

The announcement followed dismal numbers posted Monday by the Big Three U.S. manufacturers. Chrysler saw December sales decline 53% from last year, while General Motors (GM, Fortune 500) saw its receipts drop 31% and Ford (F, Fortune 500) dropped 32% .

In December, Toyota (TM) warned that that it would report its first loss as a public company. Toyota, Honda and Nissan all reported an annual drop in U.S. sales, the first time there's been such a broad-based decline for those powerful Asian brands.

A week earlier, Honda (HMC) slashed its earnings forecast for 2009 and said it saw "no prospect for recovery" in the midst of a widespread downturn.

Talkback: Have you tried to do a mortgage work-out? Was it successful or a failure? E-mail realstories@cnnmoney.com and your story could be included in an upcoming article. To top of page

Auto execs expect more bankruptcies

Annual survey of industry execs by KPMG finds more than three out of four expect more auto bankruptcies.

By Chris Isidore, CNNMoney.com senior writer

NEW YORK (CNNMoney.com) -- More than three out of four auto executives expect more bankruptcies in their industry, according to an annual survey by audit and accounting firm KPMG LLP.

The survey of 200 top executives from automakers and suppliers around the globe found 77% expect more industry bankruptcies, compared to just 36% who expected an increase in bankruptcies a year ago.

So far, major automakers have avoided bankruptcy in spite of years of losses. But there have been widespread bankruptcy filings among auto parts suppliers in recent years.

The survey was conducted in the fall, before the U.S. government offered a federal loan package to General Motors (GM, Fortune 500) and Chrysler LLC to allow them to avoid threatened bankruptcy filings. Other governments around the world are considering assistance for their own automakers due to the sharp downturn in global sales.

The survey also found that 46% of the executives believe the profit outlook for the overall industry will be volatile over the next five years, and another 24% see profitability continuing to decline. Only 15% of those surveyed expect profits to improve.

Betsy Meter, a partner in KPMG's auto practice, said she believes concerns about bankruptcies are still high, despite the fact that GM and Chrysler have received emergency funding to avoid running out of the cash they need to operate.

"I suspect it's moderated slightly, but I think there's a great level of uncertainty," she said.

While most automakers around the globe haven been hit hard during this recession, the three U.S. automakers are still viewed as particularly vulnerable by industry executives.

More than 60% of those surveyed believe that GM, Ford Motor (F, Fortune 500) and Chrysler will continue to lose global market share in the coming years, while comparable percentages believe that Toyota Motor (TM), Hyundai/Kia, Honda Motor (HMC) and Volkswagen will all gain share.

In addition, about 80% of the executives said they believe Chinese and Indian automakers will gain market share.

Still, industry executives haven't completely written off the U.S. automakers. Asked if they agreed with the statement that restructuring efforts in the U.S. industry may yet succeed, 50% said they did. However, that was down from 58% who agreed with this statement a year ago. To top of page

Top 10 Modified Cars for 2008

The automotive world collectively focuses its attention on the new cars they will reveal in 2009. The last year wasn’t too great for the automotive industry and there will be a lot of advancements, some of technical nature, others of safety or environmental improvements but they focus more on cheaper and fuel efficient cars. The car tuners were really busy in 2008 and they revealed some breathtaking tuning packages. We love extreme modifications, unique and impressive cars and here are the top 10 modified cars for 2008 to salivate over:

10. JE DESIGN Seat Leon

JE Design SEAT LEON

They guys from JE Design made a lot of improvements for this ride. They created a wide body kit, installed LSD Doors and 18″ rims painted with the same color as the car. They modified this car’s engine to deliver 244 HP at a maximum torque of 355 Nm and now this Seat Leon could accelerate from 0 to 100 km/h in just 6.4 seconds.

9. Rieger Volkswagen Scirocco

Rieger Volkswagen Scirocco

Volkswagen Scirocco was one of the most popular cars om 2008 and a lot of car tuners wanted to modify this ride. Rieger probably made the most attractive body kit for Scirocco and they tried to make it a bit extreme by installing Lambo doors which will surely turn a lot of heads. The car has new lower springs, 20″ rims painted in the same color as the car and quad exhaust pipes.

8. Hamann Aston Martin Vantage

Hamann Aston Martin Vantage

Hamann always knew how to refine luxury cars and each car modified by them is almost perfect. Aston Martin Vantage is another luxury car they wanted to improve and they made a tuning kit with lovely sport accessories and thrilling body design. The new body kit is really stylish and it’s made from fibre glass or matt carbon with perfect aerodynamics.

7. Novitec Rosso Ferrari F430 RACE

Novitec Rosso Ferrari F430 Race

Novitec Rosso modified this Ferrari to reach a top speed of 348 km/h and it could also accelerate from 0 to 100 in just 3.5 seconds .Each new body component for this car was developed in the wind tunnel and the new body looks more aggressive appearance and reduces lift on the front axle. Novitec could also install carbon-fiber F1-style shift paddles, elongated center console, carbon-fiber scuff plates and custom made Supersport seats.

6. AC Schnitzer BMW M6 Tension Street

AC Schnitzer BMW M6 Tension Street

AC Schnitzer revealed the Tension Concept based on BMW M6 a couple of years ago but since this car impressed a lot of people they had to make a street version of their tuning kit. The car’s bonnet is eye catching and it has a large air outlet in a chrome frame that should be enough to cool down this car’s engine.

5. Hamann Porsche 911 Turbo

Hamann Porsche 911 Turbo

Hamann created a special performance tuning kit called Hamann Stallion that will boost the engine’s power to 630 HP. To gain this additional power they changed the car’s turbocompressors with new ones that are bigger and stronger and they also installed a new exhaust system made from stainless steel and they modified the car’s engine cooling unit.

4. Stangpede Ford Mustang

Stangpede Ford Mustang

This Ford Mustang will appear in Fast and Furious 4. The car has a Saleen 550 HP supercharger engine under the hood which sounds impressive, a new body kit which was slightly modified and the finishing touch was installing lambo doors. Probably the most important fact about this modified car is that the guys from Stangpede turned this ride from a stock into show car in just 6 hours.

3. Mansory SLR Renovatio

Mansory SLR Renovatio

The car has received the name “Renovatio” which means rebirth in english. This lovely SLR got an entirely new look after Mansory added a lot of design elements made by them. In the exterior, the car’s design was modified by adding new carbon fiber elements that gives the car a more agressive look and will also improve the car’s handling a bit because the car’s weight is lower now.

2. Edo Lamborghini Murcielago Audigier

Edo Lamborghini Murcielago Audigier

Edo Competition revealed the fastest Lamborghini ever made in cooperation with Christian Audigier, a designer that almost everyone knows. The guys from Edo Competition improved the car’s engine, aerodynamics, wheels, exhaust system and interior. Thanks to Audigier’s imagination, the matte black paint of the Edo LP710 has been restyled and he also redesigned the car’s interior.

1. The Red Devil Audi R8

The Red Devil Audi R8

With this great red color and agressive look it surely deserves it’s nickname, “The Red Devil“. This car could compete with any other car when it comes to looks and performances. It can accelerate from 0 to 100 km/h in just 4.2 seconds and even though it’s maximum speed is just 252 km/h this ride would impress anyone watching it.

Obama's wheels: Secret Service to unveil new presidential limo

WASHINGTON (CNN) -- As a candidate, Barack Obama promoted hybrid cars.

Auto enthusiasts have panned the design of the new presidential limo, which will be painted all black.

Auto enthusiasts have panned the design of the new presidential limo, which will be painted all black.

As president, he'll be handed the keys to one. Sort of.

Shortly after taking the oath of office, Obama will climb into the Mother of All Hybrids -- part car, part truck and, from the looks of it, part tank.

In keeping with recent tradition, the Secret Service will place a brand-new presidential limousine into service January 20 to drive the new president on the 2-mile jaunt down Pennsylvania Avenue during the inaugural parade.

Already, spy photos of the limo -- with patches of gray primer -- have leaked out. And already, the reviews:

"Ugly as sin," says one car enthusiast on an auto Web site. "Can't we make a hotter ride for our pres?"

"Sheesh," says another, "why don't they just transport the president around in an Abrams tank."

One news agency, noting its 8-inch-thick doors, says the limo can withstand a "direct hit from an asteroid." But GM spokeswoman Joanne K. Krell laughed off the comments.

"And it will fix you a latte if you ask," she jokes. Video Watch Obama's new wheels »

In truth, the new presidential limo is a Cadillac, Krell said, although it is "not a direct extension of any single model."

"The presidential vehicle is built to precise and special specifications, undergoes extreme testing and development, and also incorporates many of the top aspects of Cadillac's 'regular' cars -- such as signature design, hand-cut-and-sewn interiors, etc.," Krell told CNN.

"Cadillac is honored to serve and renew this great tradition," she said. "And it is entirely appropriate that an American president has at his service a great American vehicle."

For much of the country's history, the Secret Service didn't even drive the president, evidently oblivious to the dangers of asteroids.

In the post-Lincoln horse-and-buggy era, it was customary for a security detail to closely trail the president, according to a Secret Service history.

With the advent of automobiles, the Secret Service acquired a 1907 H. White Steamer to follow Theodore Roosevelt's horse-drawn carriage.

White House chauffeurs drove later presidents, until the Secret Service assumed many of the driving responsibilities after Franklin Roosevelt's death in 1945.

In 1965, Lyndon Johnson was the first president to ride in a bulletproof limo in an inaugural parade, less than two years after his predecessor, John F. Kennedy, was shot and killed while riding in an open car. Take a look at a few presidential limos »

Cut off from the world

Obama should expect two seemingly contradictory feelings when riding in the presidential limousine, said Joe Funk, a retired Secret Service agent who was President Bill Clinton's driver during part of his career. Video Watch Funk talk about his time as the president's driver »

"I think he will be surprised about how when he's in the limo, it's a cocoon," Funk said. "The everyday noises will be gone, and he will be totally isolated in this protective envelope."

"At the same time, I think he will be surprised at the communication capabilities, how the phones, the satellites, the Internet -- everything is at his fingertips," he said. "So at one end, you are totally removed from society. The other side of the coin is that he can have any communications worldwide at a moment's touch."

Funk says presidents sometimes chat with the agents, and sometimes don't.

"Every day is different, just like every person," he said. "Sometimes they get in the car and they have a lot on their mind. They're involved in reading material, they're involved in the newspaper, they're talking to local dignitaries or they are talking to Cabinet-level.

"Other times, they are interested in sporting events, in doing the crossword puzzle, interested in the feedback they get from talking to the agents -- primarily the supervisor that sits in the front seat," Funk said.

While the government spares no expense for the presidential limo, the weight of the car makes it less maneuverable and more sluggish than comparable sport utility vehicles, Funk said. And the door and window frames, which accommodate thick ballistic glass, create large blind spots, he said.

Funk's own experience driving Clinton was uneventful, he says, which is a good thing, considering his line of business.

"I was very lucky. We didn't have any close calls," he says. "Everything was very smooth."

But he still considers the experience a career highlight.

"At the end of the day, if you had a good driving day, you do kind of sit back with a certain amount of pride and say, 'I had the president of the United States in the car with me for an hour, two hours, and I got him from point A to point B safely in conjunction with all the other team members,' " he said. "When it's done, you can sit back and take some pride in knowing that you pulled it off."

Available in any color, as long as it's black

One Internet wag, adding to the rampant speculation about the new car, made this prediction: It will be painted black. But environmentalists may ask, will it be green?

Not likely. Car enthusiasts believe the overweight vehicle burns diesel and will have low mileage. And with diesel costing about $2.40 a gallon Monday, versus $1.67 for gasoline, this new limo can't be called an economy vehicle.

"The limousines of yesteryear were designed just well enough to provide protection to get the president out of the situation," says Ken Lucci, CEO of Ambassador Limousine Inc. and owner of two Reagan-era limos. "In today's case, they [the Secret Service] expect a prolonged attack, and they expect an attack that is a lot more violent than [with] a weapon you can hold in you hand."

"It literally is a rolling bunker," he says. "It just happens to have wheels on it."

And it's not a bad vehicle for someone whose job is to fix the economy, even if it won't brew coffee on command.

MCR Nissan 370Z

MCR Nissan 370Z

Matchless Crowd Racing is a Japanese tuning company that likes to bring serious improvements to japanese cars. They recently announced a new tuning package for the new Nissan 370Z. Their Nissan has an improved body kit, a new exhaust system, new suspension and a traction hook. The MCR Nissan 370Z has an exhaust system that is much lighter than the standard one, made from stainless steel and has a titanium silencer. They wanted to make this car sound awesome when you accelerate it and the sound of their exhaust would impress any car enthusiast. The guys from MCR also improved this car’s suspension for better handling, more stability and better comfort.

The new suspension is adjustable and customers could modify the damping force and spring rate for this ride. They haven’t revealed the price for this tuning package yet, but it shouldn’t be too expensive.
MCR Nissan 370ZMCR Nissan 370ZMCR Nissan 370Z


Luscious LaCrosse Leaves Lexus Lurching

Just days before the start of the North American International Auto Show (NAIAS) in Detroit, Michigan, General Motors has taken the wraps off of the next generation Buick LaCrosse — Oh, is it a beauty!

With a distinct Lexus look to the body style, the next generation LaCrosse is big on visual appeal inside and out. Slated to show up in Buick showrooms this summer, the 2010 Buick LaCrosse is the brand’s best looking vehicle since the Enclave.

There are no V8 engines to be found in the all new LaCrosse, rather a pair of fuel saving V6s will be used. According to GM, “The new LaCrosse was created with great attention to detail, craftsmanship and advanced technology,” said Susan Docherty, Buick-Pontiac-GMC vice president. “It builds on the success of Enclave as the next step in Buick’s revitalization. And, as with Enclave, our goal is to attract a whole new buyer to our dealerships for LaCrosse.”

According to GM, the 2010 Buick LaCrosse will be offered in three models - CX, CXL and CXS:

  • CX – equipped with a new 3.0L direct injection V-6, premium cloth seats and 17-inch wheels. The 3.0L engine generates an estimated 255 horsepower (190 kW) and 211 lb.-ft. of torque (286 Nm) and is mated to a six-speed automatic transmission.
  • CXL – also equipped with the new 3.0L direct injection V-6, adds leather-appointed heated seats, dual-zone automatic climate control, fog lamps, outside rearview mirror with LED turn indicators and puddle lamps, and 18-inch wheels. Intelligent AWD is available.
  • CXS – equipped with a 3.6L direct injection V-6; real-time active-dampening suspension; perforated, leather-appointed, heated and cooled seats, and chrome-plated 18-inch wheels (19-inch optional). The 3.6L engine, mated to a six-speed automatic transmission, generates an estimated 280 horsepower (209 kW) and 261 lb.-ft. of torque (354 Nm).

“The new LaCrosse is intended to represent modern elegance,” said Ed Welburn, vice president of GM Global Design. “Throughout the design, you experience a balance of contrasts. Both the interior and exterior have been designed with harmony in mind. The exterior balances taut, sculpted lines with sensuous accents and surfaces. Inside, smoked chrome accents, warm wood, first-class leather and materials combine with cool blue ambient lighting to create an inviting environment.”

The sedan will make its official roll on Monday when Buick holds its press conference at the NAIAS. In the meantime, the following photographs can serve to whet your appetite for this nice looking sedan:

Sculpted styling is the most noticeable difference between the first and second generation LaCrosse models.

Sculpted styling is the most noticeable difference between the first and second generation LaCrosse models.

Buick faithful see that the LaCrosse is closely styled to the Invicta concept which rolled out at the 2008 Beijing Auto Show. Buicks largest market is China where the brand outsells the U.S. domestic market by a 2 to 1 ratio.

Buick faithful see that the LaCrosse is closely styled to the Invicta concept which rolled out at the 2008 Beijing Auto Show. Buick's largest market is China where the brand outsells the U.S. domestic market by a 2 to 1 ratio.

The interior of the LaCrosse features an analog instrument cluster, chrome offset by dark wood accents, and the contrasting thread and French stitching on the instrument panel. Both the 3.0L V6 and 3.6L V6 are paired with a six speed automatic transmission to provide excellent highway fuel economy.

The interior of the LaCrosse features an analog instrument cluster, chrome offset by dark wood accents, and the contrasting thread and French stitching on the instrument panel. Both the 3.0L V6 and 3.6L V6 are paired with a six speed automatic transmission to provide excellent highway fuel economy.

Pricing and EPA fuel economy have yet to be announced. Expect that information to be provided closer to the LaCrosse’s summer release.

Source: General Motors

2009 Honda Civic Sedan

2009 Honda Civic Sedan Shown










First introduced in 1972 as a cheap hatchback with outstanding fuel efficiency, the 2009 Honda Civic Sedan is refreshed for the ninth generation this year, giving it a leaner, sharper, sportier look. Few of its local competitors, the likes of Chevy Cobalt, Dodge Caliber and Ford Focus or such out of towners as Nissan Sentra, Toyota Corolla, Volkswagen Rabbit and Mitsubishi Lancer, to name but a few in this ever growing pack, come close in the looks category.

But the Civic has changed more than its looks. For the first time, the new Civic has Bluetooth hands free technology and USB audio interface available and a vehicle stability system is standard on some models.

The standard engine on the Civic is a 1.8 liter, 140 horsepower I4, but some models get a 1.8 liter, 113 horsepower I4 or a 2.0 liter, 197 horsepower I4. Likewise there are three transmissions, in various mixes with the different engines - a 5-speed automatic with overdrive or either a 5-speed or 6-speed manual, also with overdrive. The right combination gets a startling 25 miles per gallon in the city and 36 miles per gallon on the highway. Other combinations stay close to that.

There are a bewildering 21 trim lines for the Civic. The basic breakdown, however, is DX, LX, EX, Si and GX, in order of price and amenities, from lowest to highest. Each of these, except the GX, has several iterations based on features. All of them have the same basic look, and all of them are nice. Further, you can get most or all of the best features on any of them.

The Civic gets 4 stars from NHTSA for rollover and front side crash tests. All other areas get 5 stars. Child safety locks, antilock brakes, all around airbags, tire pressure monitor and inside trunk release are all standard features on the Civic, making it very up to date in the safety area.

The Civic started out as a plain Jane vehicle whose merits were low initial price, low operating costs due to high fuel efficiency and ease of access through the hatchback. Definitely geared to the young driver and new family, it was a good buy and quickly became popular.

The 2009 Honda Civic Sedan still appeals to their initial audience (plus a much wider group), still gets great mileage and at $15,405, still has a great initial price. But today's Civic can just as easily be a status symbol or a luxury ride. Somehow, Honda just keeps getting it right.