Federal loans to automakers could flow in 6 months

WASHINGTON - By as early as next spring, U.S. automakers will be able to tap into a $25 billion low-interest line of credit from the government to help them modernize their plants to build more fuel-efficient vehicles. ADVERTISEMENT



The Energy Department, which will parcel out the 25-year loans, says it will take at least six months and possibly up to 18 months to get the program running after Congress on Saturday funded it as part of a giant spending bill.

While one Democratic senator from Michigan, Debbie Stabenow, said it's unacceptable that it will take that long to get the money flowing, the other, Carl Levin, said it will still produce "a quicker shift to the advanced technology than would otherwise occur."

Manufacturers and their domestic suppliers say they will use the money to offer a broader array of gas-electric vehicles, more fuel-efficient engines and plug-in electric cars that could be on the market within two years.

The loans are expected to carry an interest rate of around 5 percent. With weak sales, poor bond ratings and tighter credit markets, U.S. automakers would otherwise have to pay double-digit interest rates.

Executives with General Motors Corp., Ford Motor Co. and Chrysler LLC asked Congress this summer to fund the loans, which were authorized last year in an energy bill that ordered automakers to meet costly new fuel-efficiency standards of at least 35 miles per gallon by 2020.

"Congress clearly recognizes the need to move forward at this critical time to make available this source of capital for automakers and suppliers," said GM spokesman Greg Martin.

It's unclear how the money will be divided, and the companies have not said which projects they'll seek funding for.

GM recently unveiled a production version of the Chevrolet Volt, which is expected to propel the car up to 40 miles on a single charge. The company announced plans this week to build an engine plant in Flint, Mich., to produce a four-cylinder engine for the Volt and the Chevrolet Cruze, a new compact car to be built in Lordstown, Ohio.

Ford has already outlined plans to bring over six small, fuel-efficient cars it makes in Europe for sale in North America. Chrysler showed three electric-powered prototypes last week and said it plans to sell one in the U.S. in 2010.

The legislation gives priorities to facilities that are 20 years or older. Officials with Toyota Motor Corp., Honda Motor Co., Nissan Motor Co. and others did not lobby for the loans and it was not clear if they'll seek funding.

Fresh-faced Verso's added flex appeal

Designers are going practicality crazy at Toyota - they've facelifted the Corolla Verso and are working on a brand new 3+1 microcar!

Latest Corolla Verso gets styling similar to Auris
11th May 2007
The updated version of the Japanese firm's Ford C-MAX rival will arrive first. Bringing the MPV into line with the new Auris hatch, the Corolla Verso's makeover includes a fresh headlamp design and a new look for the front bumper.

Inside, the modifications are more discreet, with revamped fabrics and a higher-quality sound system. 

Diesel buyers will get the option of an ultra-efficient 133bhp 2.2-litre D-4D engine with a particulate filter. Prices for the whole range are likely to be revised when the facelifted model goes on sale in July. A few months after that - at the Frankfurt Motor Show in September - Toyota will pull the wraps off an all-new city runabout. And it's even smaller than the firm's Aygo!

Set to follow in the wheeltracks of the Endo concept - revealed at the 2005 German exhibition - the model is only 3,000mm long, compared to the Aygo's 3,600mm length. The newcomer is expected to arrive in the UK by next summer.

There should be plenty of room inside, thanks to an ingenious seating arrangement. A '3+1' set-up offers three full-size chairs and an occasional child's pew that can also be used as extra luggage space.

2009 Audi R8

Before the R8, the thought of Audi building a credible supercar was audacious enough. That it could make one that would be so arousingly beautiful was simply unfathomable. But with the R8, Audi has brought the world a car that performs like a true supercar and is sculpted in double-take sheetmetal. Certainly helpful is the fact that Audi owns Lamborghini and thus has proven supercar innards—in this instance, those of the Gallardo—at its disposal, as well as a number of excellent powertrains capable of launching the aluminum-bodied sexpot forward as if it were shot from a cannon.  All that was left, then, was to wrap it in something beautiful. And that Audi did.
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Revised Opel Corsa EcoFLEX gets 57.4 mpg

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Opel announced that, following the introduction of the new Astra ecoFLEX range, there have also been some upgrades made to the Corsa ecoFLEX model. The 75 hp 1.3 liter diesel engine received some upgrades that include longer transmission gear ratio, improved aerodynamics, 20 mm lowered suspensing, revised air intakes, 14 inch wheels fitted with low resistance tires and an overall engine weight reduced by 45 kg (100 lbs).
The results? The revised Corsa now gets 57.4 mpg (4.1 liters/100 km) and 109 g/km CO2 emissions, comparing to 52.2 mpg (4.5 liters/100 km) and 119 g/km that the current model gets. Available with the 5 speed manual transmission, performances remain the same, meaning that the Opel Corsa ecoFLEX reaches a top speed of 105 mph (168 km/h).
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Aston Martin revives Lagonda Name

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Chief Executive Officer of Aston Martin, Dr Ulrich Bez, yesterday confirmed that his company would relaunch the Lagonda marque, with a concept car due for unveiling in 2009 and a possible production offering by 2012.


Bez wants the Aston Martin to adorn only sportscars, including next year's new four-seat Rapide and the exclusive one 77 hypercar announced recently. This strategy limits the market for the company though so the idea is for Lagonda to be a stand alone brand specialising in high-end luxury cars.

Dr Bez continues: "The revival of the Lagonda brand would allow us to develop cars which can have a different character than a sportscar, and therefore offer a perfect synergy. Lagonda will use a unique design language as Aston Martin does. We will take elements of DNA from the past but will be very future orientated as we are with Aston Martin. With Lagonda offering exclusive, luxurious and truly versatile products with high quality and usability and suitable for both existing and emerging markets, I believe we can be present in more than 100 countries in the world."

It is expected that a Lagonda concept will make its debut at the Frankfurt motorshow next year, celebrating the badge's 100th anniversary.
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Chevrolet Volt

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GM has tried to be very cautious with its Chevrolet Volt plug-in hybrid, which is expected to debut in 2010. Some time ago they released a couple of teaser photos, however, the mistery has now been revealed, because one of Transformers Live’s readers managed to get some photos and a video of the Volt on the set of Transformers 2: Revenge of the Fallen. First, he only managed to take a photo where we can see half of the Volt, but then he got a real good look at it and took this video. So, what do you think about the car? Should Toyota fear? I think so, because if it’s as good as it looks, the Volt is definitely going to be a hit for GM.
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