GMAC and Chrysler-Fiat Mashup

One of the more interesting details about today's announcement by Obama about Chrysler's chapter 11 filing was the deal with GMAC to be Chrysler-Fiat's primary lender. Said Obama:

The path we're taking also involves steps to shore up
financing, because we cannot have viable car companies
without strong car financing companies. It's now clear
that Chrysler Financial -- the institution that finances
Chrysler cars and dealers -- would on its own require an
unacceptably large stream of taxpayer money to remain
viable -- and that's something I refuse to provide. And
that is why, as part of this agreement, GMAC, an
independent bank holding company that finances General
Motors, has agreed to finance new Chrysler sales. We will
be providing additional capital to GMAC to help unlock our
frozen credit markets and free up lending so that consumers
can get auto loans and dealers can finance their
inventories;

I wonder if this was in a way punishment to Chrysler Finance for refusing the $750 million TARP infusion because the execs didn't want to abide by the compensation rules? By refusing to prop up Chrysler Finance, Obama is really sticking it to Cerberus. As part of the requirement for GMAC becoming a bank, Cerberus must sell off most of its stake.

Using GMAC helps GM because GM still owns a large minority stake GMAC. And because GMAC is a bank holding company, it is easier for the government to support through the TARP.

It also may be a hint of Obama's future intentions. If Chrysler-Fiat fails, the groundwork for GM absorbing Chrysler may be laid here.

hot cars and girls

Fiat Panda Review

History of the second generation Panda launched at the Geneva motor show in 2003. Then, the court made public four prototypes Gingo, almost ready to stand on the conveyor.Fiat PandaIt is, in the French, too consonant with the name of their Twingo model. So in a series car logically went under the other, long known to Europeans names-Panda, but to its predecessor and logically car has nothing in

2009 Fiat Fiorino QUBO 1.4 Active 75 hp

2009 Fiat Fiorino QUBO 1.4 Active 75 hpMaximum speed (km / h) - 155Acceleration 0-100 km / h (s) - 16.2Urban consumption (l/100 km) - 8.8Extra consumption (l/100 km) - 5.9Average consumption (l/100 km) - 7CO 2 (g / km) - 165RT - 9.75%2009 Fiat Fiorino QUBO 1.4 Active 75 hpSize, weight, capacityBody Type - Commercial vehicleNumber of doors - 5Length / width / height (mm) - 3959 / 1716 /

Reminder: Get Out Of Demand Notes

Update: I have attracted some hostile comments. To clarify my position:

No one who has a low tolerance for risk should be in GMAC Demand Notes. If you are using them for long term savings, get out. If you understand that you are chasing returns, and that this is similar to "junk bonds", and you have a diversified portfolio, have at it.

---

A friend of mine has some of his money in GMAC Demand Notes. I recently reminded him that this is crazy--they are basically unsecured loans to GMAC.

That's why they pay 4%, compared with FDIC insured rates of 2.25% at GMAC Bank.

With GM looking at a possible bankrupcy, and GMAC shaky due to mortgage exposure, no one should be in GMAC Demand Notes. The 1.75% extra yield is not worth the risk. If you have money that you don't mind investing in "junk" debt, buy a diversified junk bond fund or ETF,which gives you some protection against a single company default.

The same goes for Ford's Interest Advantage.

Comparing The Cash For Clunkers Bills

There are two competing "cash for clunkers" bills in the House.  One is more left-leaning, HR520, and the other is more populist, HR1550.  Both bills aim to do the same thing: encourage people to scrap older cars to buy new ones.  But they are very different in how they do so. 

In fine high school government class style, I will now contrast the two bills.

Key Differences:

Definition of a "high polluting" or "high consumption" automobile.

HR520: Average (city+highway weighted average) fuel economy of <18mpg.

HR1550: A car built before 2001.

Definition of a "fuel efficient automobile"

HR520: 2003MY or later, <$45,000 price, Tier II Bin 1-5 EPA emissions, 

25% better fuel economy than current or future CAFE standards.

HR1550: 2009-2011MY, <$35,000 price, Tier II Bin 5 emissions.

Voucher Amount:

HR520: New car voucher: $4,500 for 7 year old or newer car, 

$3,000 for 8-10 year old car, $2,500 for 11+ year old car. 

Used car voucher: $3,000, $2,000, $1500.

HR1550: $4,000 for US assembled 27 hwy MPG+, North America 30 hwy MPG+, 

or US light truck 24 hwy MPG+; $5,000 for US assembled 30 hwy MPG+, 

or US assembled work truck (registered commercial); 

$3000 for a NA assembled light truck with 24 hwy MPG+

Both bills require the old vehicle to be destroyed.  Parts other than "engine block and drivetrain" can be recycled, but the titled body, engine block and transmission must be destroyed.

HR520 is obviously geared towards fuel economy.  It doesn't care what kind of car you buy, as long as it is 25% better than the current requirements--which will greatly limit what kind of vehicles would qualify.  It also won't help you unless you are driving something which is relatively thirsty.  A typical case might be a trade-in of an old SUV or pickup truck.  

For example, the current standard is 27.5MPG (combined) for cars and 23.1MPG for trucks, so to qualify for the HR520 voucher now you would have to buy a passenger car that gets at least 34.4MPG or a light truck that gets at least 28.9MPG (combined).  The list of vehicles that would currently qualify is short: small and mid-sized hybrids such as Prius and Fusion, Smart, VW TDI, Toyota Yaris, Mini, Ford Escape Hybrid.  HR520 may give more benefit as time goes on, because more fuel efficient cars will appear, ahead of the tougher CAFE standards.

I think HR520 would have an unintended side effect of boosting the residual values of used large engined vehicles.  Cars that would have been worth $700 (like this one) would be worth much more, because they could be bought and titled just to qualify for the voucher.

 

HR1550 is designed to be more of a short term shot in the arm to the auto industry.  It very broadly defines what a "polluting" and "clean" vehicle is, because it isn't really about being green. It is only in force for several years, and heavily favors U.S. assembled or NAFTA vehicles.  This favoritism could cause trouble at the WTO, although it does include transplants such as Honda who have plants in the U.S.  

I prefer HR1550, because it would be better for the Detroit 3 in the short term.

A Prophecy Sadly Comes True

Back in the earlier days of this blog, circa 2005 (when I would get more real comments than spam), I posted that I thought GM should kill Pontiac.  At the time, Bob Lutz admitted that if Pontiac and Buick didn't pull their weight, GM would consider phasing them out.

I wrote:

Pontiac has no real identity--it is the "driving excitement" brand, but the cars are just not that exciting. Until recently, they were just warmed over, plastic clad versions of GM's platforms. Barely disguised Chevys and Buicks. 

This was before the G8 appeared, but also before the G5.  

The press is now reporting that GM will be killing Pontiac.  From Detroit News:

In its restructuring plan rejected by President Obama's autos task force last month, GM proposed shrinking Pontiac into a niche brand with one or two offerings. But the task force wants GM to cut deeper and faster, necessitating the decision to eliminate Pontiac, which leaves the automaker with four core brands: Chevrolet, Cadillac, Buick and GMC.

From a product portfolio, this makes sense.  Even with the life-support of Bob Lutz' heroic efforts to get some real excitement product for Pontiac (Solstice, G8, aborted Sport Truck), it was not enough to revive the brand, which was still being poisoned by its old-school badge engineered products.  Whatever street cred was gained by the Solstice and G8 was drained, zombie style, by the G5 (Cobalt), G3 (Aveo!), and Torrent (Equinox).

The big question now is, what happens to the dealers?  Most Pontiac dealers are multi-brand, using Pontiac as a complement to Buick and/or GMC.  Many smaller dealers will not survive without Pontiac.  How will the franchises be closed--through bankrupcy court?  Dealer lawsuits could swamp GM's emergence from bankrupcy court for years.  Or will Obama have to buy them out?  

BMW X6 M 555 HP Engine

M Driver's Package the X6 M will hit 171 MPH!

2009 BMW X6 red

2009 aggressive new Concept

X6 engine jacket

X6 M 555 HP Engine

Average fuel consumption in the EU cycle: 13.9 litres/100 kilometres
(equal to 20.3 mpg imp)

2009 BMW X6 white

BMW calls the X6 a Sports Activity Coupe.

2009 BMW X6 white

BMW X6 white

X6 white photo gallery

BMW X6 white test drive

X6 desktop wallpaper

X6 white Dynamic Performance Control

It's the latter that makes the X6 so special.Don't expect the X6 to be the last vehicle to use Dynamic Performance Control.

SPAM ALERT to all my Feedburner Subscribers

I to all who subscribe to Art Car Central via feedburner, yoo got an email last night with my name on it which did not come from me. It was a request with an arabic return email address saying it was from feedburner via Art Car Central.

the message was

Hello there,
You recently requested an email subscription to Art Car Central. We can't
wait to send the updates you want via email, so please click the following
link to activate your subscription immediately:

DO NOT REPLY TO IT, i DID NOT SEND!!!!!!!

Sorry for the weirdness and I do I appreciate you all being loyal subscribers to Art Car Central. I love making you all laugh.

girls and cars hot pictures and photos

2005 Nissan Murano

With a modern design and personal drive from Nissan Murano V6 engine has a 3.5-liter twin-shaft in the head with 245 Hp. The car is clearly undeniable strong personality. On the market is available at the end of 2004.2005 Nissan MuranoThe Nissan Murano was conceived, designed and developed taking into account the specificity of North American car market, where the crossover between SUV and the

2006 Nissan Note

The Nissan Note is the idea in one of the most vital segments of the last times that of compact people carriers. Space and flexibility is a modern and original.2006 Nissan NoteAfter depopulated in different segments the notion people are increasingly saying to the basic market. Spacious and smart, but also original and trendy, the people earn consensus compact, and it is logical that the

2007 Nissan Qashqai

The Nissan Qashqai is proposed as a new segment in C. In just 4.4 meters encompasses all the qualities of a Suv 4-wheel drive, while it is still a crossover. Turbodiesel engine peak 2.0 dCi 150 hp. It is on sale in 2007 from 19,000 euros.2007 Nissan QashqaiUnique is a word very inflated, but not in relation to the Nissan Qashqai. Limousine with gifts from SUV, the Nissan Qashqai renews segment C.

Another Sign Of The Carpocalypse

(I hope Jalopnik doesn't go 1-800-Call-Sam on me for using "carpocalypse".)

One of the horseman of the carpocalypse rode through my workplace.  We used to have a cafeteria in our building which was run by a major catering company.  Between the layoffs and people cutting back on spending, they couldn't make money at it.  

Gone are all the made-to-order stations, and the hot entree line.  The cafeteria was changed into a convenience store--prepackaged sandwiches and salads, candy, chips, and bottled drinks.  Prices also went up.

The horseman left with heads hanging on his saddle.  Two managers, a chef, several cooks, and others lots their jobs.  I heard him rapping on the way out as he rode, "I'm rollin' down a hill, snowballin' gettin' bigger..."

Cutting Back

I am, thank God, employed.  

However, I don't have high confidence that I will be employed at the end of the calendar year. Considering the way the economy is going, I guess I have about a 50% chance, assuming that there is no rebound in car sales.  

So, my family has been cutting back to save some more cash for our rainy day fund.

Here are a few examples of ways that I have been saving money:

• We don't have cable or satellite TV anymore, we are using one of those digital TV converter boxes on our 10 year old analog TV to watch free over-the-air TV.  With rabbit ears.  It works, and besides, TV is over-rated.  Everyone could benefit from more reading time.
• I don't subscribe to the local paper, instead I read it for free online (sorry Detroit News and Free Press).  I get a few other magazines such as Consumer Reports for free as hand-me-downs from other family members.  There's some thrifty advice you'll never read in CR: hobo your Consumer Reports!
  
• My family has nearly stopped eating out.  Except for the occasional lunch with my co-workers, or a night where we don't have the will to cook anything.
• I have gotten used to driving no more than a couple of miles over the speed limit.  My mid-sized sedan with its <2.5l>
• I am stretching my oil changes out to 6,000 miles (manufacturer suggests 3,000 miles on my wife's car and 5,000 on mine).
• I have cut back on beer and wine consumption.  I used to take a bottle of beer or a glass of wine every day, now I find myself stretching it out by drinking on weekends.  I do have a weakness for scotch, though...
• I have cut back on how much meat I eat.  I think I eat red meat less than once a week now, and chicken or fish no more than a couple of times a week.  I admit this is also to improve my overall health, but you can save quite a bit of money this way.
• I have cut back on buying gadgets, except for ones that have an actual useful purpose.  For example, my old Dell laptop (Windows XP, P4) works fine, no need for one of the new ones--I just replace broken parts, which are cheap and plentiful, when something breaks.  I did buy a new digital camera, but I sold the old one on eBay so it was not a big investment.
• My wife and I don't give each other expensive gifts for birthdays and holidays, just small items to express the thought.  

If you think about your spending habits more carefully, you might be amazed at how many places you are spending that you could trim back, with a little bit of adjustment.

Of course, I'm one of thousands doing the same thing.  As a result, the economic death spiral accelerates.  Restaurants are closing, food producers are hurting, newspapers are going out of business, magazines are getting skinnier (even Consumer Reports).  

Rudy: Cuban Gynecologist and American Used Car Salesman

Why is this so funny? I used to sell cars once upon a time and I heard a lot of stories about ways to sell cars. But this is by far the worst gimmick I have ever heard and hopefully Rudy the Cuban Gynecologist and American Used Car Salesman doesn't plan on doing both at the same time. Or maybe he plans on throwing in his services as an added feature to the 100k mile warranty.Wait I think I just spotted the spoof. This video was made by Rhett&Link and they also have a making of the making of this funny commercial they made.

Amazing 15 World's Largest Objects

World's Largest Book

The award for largest published book goes to an author and scientist at the Massachusetts Institute of Technology, Michael Hawley. The 133-pound book is five by seven feet, 112 pages, needs a gallon of ink for printing, and costs $2,000 to produce. Its title? “Bhutan: A Visual Odyssey Across the Kingdom.”

World’s Largest Motorcycle

Officially recognized by the Guinness Book of World Records, Gregory Dunham, from California's Stockton, built the world's largest motorcycle. Greg spent three years in his workshop crafting this 11 feet tall, 20 feet long monster bike which is powered by a 8.2 litre (V8 engine and has tyres that are 1.88 m tall. The 6,500-pound motorcycle with a pricetag of $300,000 is totally rideable.

World's Largest Bottle of Wine

It’s a 490 liter Grande Cuvee TBA NV No.7 2005 of Austrian wine maker Kracher, presented in Rehetobel Switzerland. The bottle itself has been certified by Guinness World Records as the world’s largest bottle of wine, holding the equivalent to 640 regular bottles of wine.

World’s Largest Revolver

You’re looking at what probably is the largest revolver in the world: a replica of Remington model 1859, by Mr. Ryszard Tobys. It’s 1.26 meter (4.13 ft.) long.

World's Largest Pencil

This mother-of-all writing utensils weighs in at 21,500 lbs and stretches to 76 feet long and it’s a version of the classic No. 2. The huge pencil was built in New York by Ashrita Furman and many talented craftsmen.

World’s Largest Pinata

Breaking the Guinness Record for the world's largest pinata, according to an onsite Guinness adjudicator, this giant mock donkey measured 28.5 meters long; 7.2 meters wide and 18 meters tall and was filled with 8,000 pounds (3,628 kilograms) of candy. A wrecking ball was used to help smash the pinata during a public event, where Carnival Cruise Lines was producing a television commercial.

World's Largest Crossword

The Ukrainian city of Lvov has recently installed what might just be the world's largest crossword (in physical size). The puzzle covers the entire side of a residential tower block that's approximately 30 meters tall. During the day the crossword appears empty - with the answers lighting up at night. The questions for the puzzle are located in different point of interests of the city: monuments, theatres, fountains etc. so people walking around the city can try to solve the puzzle and write down their answers. When night comes they can meet at this house and check how they did.

World's Largest Easter Egg

In 2005, a Belgian city entered the Guinness Book of Records creating the Largest Easter Egg ever. The Belgian chocolate producer Guylian made the chocolate egg with at least 50,000 bars. The egg measured 8.32 metres high, beating the previous record made in Kwazulu-Natal, South-Africa in 1996. Twenty-six craftsman worked altogether 525 hours to build the egg. They used 1950 kg (4300 lb) of chocolates.

World's Largest Burger

Weighing in at 123 pounds, this giant burger features an 80-pound beef patty, a 30-pound bun, 12 tomatoes and 160 slices of cheese. Made at Denny's Beer Barrel Pub, Pennsylvania restaurant, they also throw on a pound each of lettuce, ketchup, mustard and mayo -- and up to five onions. The menu price for the Beer Barrel Main Event Charity Burger comes at $379.

World's Largest Swimming Pool

This swimming pool is more than 1,000 yards long, covers 20 acres, had a 115ft deep end and holds 66 million gallons of water. Acknowledged by the Guinness Book of World Records as the world's largest swimming pool, it took five years to build, cost nearly £1billion and the annual maintenance bill will be £2million.

The man-made saltwater lagoon has been attracting huge crowds to the San Alfonso del Mar resort at Algarrobo, on Chile's southern coast. The saltwater pool contains 250,000 cubic metres of water and is even navigable in small boats.

World's Largest Chair

This is not Photoshopped —it's an actual photograph of the world's largest chair, in the piazza of Manzano, Italy, a city of chair makers where it was created.

World's Largest Birthday Cake

Made in 1962 for the Seattle World's Fair, the world's largest birthday cake weighted 25,000 pounds and stood 23 feet tall. The ingredients list includes the 10,500 pounds of flour needed for the cake.

World's Largest Cheese

Dutch gourmet cheese maker Beemster made a record-breaking cheese wheel. The giant cheese measures 6 feet wide and weighs 1,323 pounds.

World’s Largest Beer Can

Not much information on what could very well be the World’s Largest Beer Can.

World's Largest Football Table

Here’s the largest table football game in the world. In fact, Table Football XXL is so huge, two entire soccer teams — 22 players — could face off with it, settling their challenges without ever setting foos on a real field. This monster was built by Amsterdam brewer Amstel, a stunt that coincided with the European Champions League Finals. If this wanted to buy this one, you’d need six flight cases just to ship it to you.

Amazing 15 World's Largest Objects

World's Largest Book

The award for largest published book goes to an author and scientist at the Massachusetts Institute of Technology, Michael Hawley. The 133-pound book is five by seven feet, 112 pages, needs a gallon of ink for printing, and costs $2,000 to produce. Its title? “Bhutan: A Visual Odyssey Across the Kingdom.”

World’s Largest Motorcycle

Officially recognized by the Guinness Book of World Records, Gregory Dunham, from California's Stockton, built the world's largest motorcycle. Greg spent three years in his workshop crafting this 11 feet tall, 20 feet long monster bike which is powered by a 8.2 litre (V8 engine and has tyres that are 1.88 m tall. The 6,500-pound motorcycle with a pricetag of $300,000 is totally rideable.

World's Largest Bottle of Wine

It’s a 490 liter Grande Cuvee TBA NV No.7 2005 of Austrian wine maker Kracher, presented in Rehetobel Switzerland. The bottle itself has been certified by Guinness World Records as the world’s largest bottle of wine, holding the equivalent to 640 regular bottles of wine.

World’s Largest Revolver

You’re looking at what probably is the largest revolver in the world: a replica of Remington model 1859, by Mr. Ryszard Tobys. It’s 1.26 meter (4.13 ft.) long.

World's Largest Pencil

This mother-of-all writing utensils weighs in at 21,500 lbs and stretches to 76 feet long and it’s a version of the classic No. 2. The huge pencil was built in New York by Ashrita Furman and many talented craftsmen.

World’s Largest Pinata

Breaking the Guinness Record for the world's largest pinata, according to an onsite Guinness adjudicator, this giant mock donkey measured 28.5 meters long; 7.2 meters wide and 18 meters tall and was filled with 8,000 pounds (3,628 kilograms) of candy. A wrecking ball was used to help smash the pinata during a public event, where Carnival Cruise Lines was producing a television commercial.

World's Largest Crossword

The Ukrainian city of Lvov has recently installed what might just be the world's largest crossword (in physical size). The puzzle covers the entire side of a residential tower block that's approximately 30 meters tall. During the day the crossword appears empty - with the answers lighting up at night. The questions for the puzzle are located in different point of interests of the city: monuments, theatres, fountains etc. so people walking around the city can try to solve the puzzle and write down their answers. When night comes they can meet at this house and check how they did.

World's Largest Easter Egg

In 2005, a Belgian city entered the Guinness Book of Records creating the Largest Easter Egg ever. The Belgian chocolate producer Guylian made the chocolate egg with at least 50,000 bars. The egg measured 8.32 metres high, beating the previous record made in Kwazulu-Natal, South-Africa in 1996. Twenty-six craftsman worked altogether 525 hours to build the egg. They used 1950 kg (4300 lb) of chocolates.

World's Largest Burger

Weighing in at 123 pounds, this giant burger features an 80-pound beef patty, a 30-pound bun, 12 tomatoes and 160 slices of cheese. Made at Denny's Beer Barrel Pub, Pennsylvania restaurant, they also throw on a pound each of lettuce, ketchup, mustard and mayo -- and up to five onions. The menu price for the Beer Barrel Main Event Charity Burger comes at $379.

World's Largest Swimming Pool

This swimming pool is more than 1,000 yards long, covers 20 acres, had a 115ft deep end and holds 66 million gallons of water. Acknowledged by the Guinness Book of World Records as the world's largest swimming pool, it took five years to build, cost nearly £1billion and the annual maintenance bill will be £2million.

The man-made saltwater lagoon has been attracting huge crowds to the San Alfonso del Mar resort at Algarrobo, on Chile's southern coast. The saltwater pool contains 250,000 cubic metres of water and is even navigable in small boats.

World's Largest Chair

This is not Photoshopped —it's an actual photograph of the world's largest chair, in the piazza of Manzano, Italy, a city of chair makers where it was created.

World's Largest Birthday Cake

Made in 1962 for the Seattle World's Fair, the world's largest birthday cake weighted 25,000 pounds and stood 23 feet tall. The ingredients list includes the 10,500 pounds of flour needed for the cake.

World's Largest Cheese

Dutch gourmet cheese maker Beemster made a record-breaking cheese wheel. The giant cheese measures 6 feet wide and weighs 1,323 pounds.

World’s Largest Beer Can

Not much information on what could very well be the World’s Largest Beer Can.

World's Largest Football Table

Here’s the largest table football game in the world. In fact, Table Football XXL is so huge, two entire soccer teams — 22 players — could face off with it, settling their challenges without ever setting foos on a real field. This monster was built by Amsterdam brewer Amstel, a stunt that coincided with the European Champions League Finals. If this wanted to buy this one, you’d need six flight cases just to ship it to you.