Fisker buys former Pontiac and Saturn factory from GM

Fisker Automotive, a company that plans to begin selling an advanced plug-in hybrid luxury sedan next spring, agreed to buy the former General Motors assembly facility in Wilmington, Del., for $18 million. The Wilmington plant was used to make the Pontiac Solstice and Saturn Sky roadsters. Fisker said it was interested in the plant because of its size and its proximity to rail lines and a port.
 
The Obama Administration has talked a lot about its goal to develop jobs in the green economy to replace the traditional manufacturing jobs the U.S. has lost, specifically by building electric cars. An announcement today by Vice President Joe Biden marked the beginning of that process.
 
Fisker will spend an additional $175 million to retool the Wilmington facility to build a new plug-in model that is expected to cost about $48,000 before federal tax rebates. (Fisker’s first model, a luxury four-passenger sedan dubbed the Karma, is expected to cost almost $90,000. It will be built in Finland starting next year.) The company says more than half the production of the new model will be exported.
 
The $193 million investment came from a $528.7 million loan Fisker received as part of the $25 billion federal Advanced Technology Vehicle Manufacturing loan program (ATVM). The rest of the loan will pay for further development of the Karma and the Project NINA.
 
The new model, now dubbed Project NINA, is scheduled to begin production in 2014. Once the Wilmington factory is up and running, Fisker optimistically expects to produce 75,000 to 100,000 cars and employ 2,000 factory workers in Biden’s home state, as well as 3,000 supplier jobs.
 
—Eric Evarts

Recalls: Audi, Infiniti, Nissan, and Pontiac vehicles

A few recalls have been announced recently that affect the Audi A3 and Audi TT and Roadster, Infiniti M35 and M45, Nissan Cube, Murano, and Rogue, and Pontiac Vibe. If your vehicle is listed here, the manufacturer will contact you with information about what to do, or you can use one of the numbers we list below to contact the manufacturer yourself.

2006-2010 Audi A3, 2008-2010 Audi TT and TT Roadster

Volkswagen is recalling certain Audi A3, TT and TT Roadsters manufactured between September 29, 2005 and August 26, 2009 due to a problem with the fuel tank cover. The closing force of the spring of the fuel tank ventilation valve isn’t adequate to hold the valve closed under extreme driving conditions. This could cause fuel to leak and a vehicle fire could occur.

Owners will be notified of the problem and dealers will replace the fuel tank ventilation value free of charge. Questions regarding the recall can be answered by calling 1-800-253-2834.

2008-2010 Infiniti M35 and M45, 2009 Nissan Cube and Nissan Murano and 2008 Nissan Rogue

Nissan is recalling some 2008-2010 Infiniti and Nissan vehicles sold or registered in certain states due to a problem with the nut used to secure the sensor-transmitter of the tire pressure monitoring system (TPMS). The nut may corrode and crack after being in contact with heavy concentrations of road salt. If this occurs the nut may come out of the sensor transmitter and the tire-pressure light may illuminate. If the owner ignores the light and the vehicle continues to operate, the tire will quickly lose air pressure and could result in a flat increasing the risk of a crash.

The recall only affects models sold or registered in Connecticut, Delaware, Iowa, Illinois, Indiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, Washington D.C., West Virginia, and Wisconsin.

The dealer will replace the TPMS nut free of charge. Owners may contact Nissan at 1-800-647-7261 and Infiniti at 1-800-662-6200.

2008-2009 Nissan Rogue

Nissan is recalling certain 2008-2009 Nissan Rogue vehicles due to a screw in the steering gear cover that could loosen and fall out. This could result in loss of steering control and an increased risk of a crash.

Dealers will inspect to see if the screw is loose and tighten it if necessary. They will also install a cover plate to prevent he screw from coming out. Owners may contact Nissan at 1-800-647-7261 for more information.

2009-2010 Pontiac Vibe

General Motors is recalling certain 2009-2010 Vibe models equipped with the 1.8-liter engine and sold or registered in cold-weather states.

When driving in certain conditions in extremely low temperatures, the intake manifold suction port for the brake vacuum can become locked due to freezing condensation. This could lead to longer stopping distances and a possible crash.

The recall only affects models sold or registered in Alaska, Colorado, Idaho, Illinois, Iowa, Kansas, Maine, Michigan, Minnesota, Montana, Nebraska, Nevada, New Hampshire, New York, North Dakota, South Dakota, Vermont, Wisconsin and Wyoming.

Dealers will modify the brake vacuum line free of charge. Owners may contact Pontiac at 1-800-620-7668.

2011 Chevrolet Caprice - Pontiac G8 lives on as police car

Fans of the Pontiac G8 will be relieved to hear that the recently cancelled high-performance sedan will live on, although perhaps not in the guise they might have wished for. They may soon find themselves being pulled over by one if they don’t behave themselves.

General Motors chose the recent annual convention of the International Association of Chiefs of Police to announce that a longer-wheelbase version of the G8 will be badged as a Chevrolet Caprice and made available to law enforcement agencies in North America. The plan is to begin taking orders next year, which could result in a police Caprice lurking at a radar trap near you by early 2011.
 
Like the G8, the police-only Caprice Police Patrol Vehicle (PPV) will be available with either six-cylinder or V8 power. Unlike the G8, it will be fitted with typical law-enforcement upgrades like high-output alternator, engine and transmission coolers, a second battery to help power police lights and electronics, and a heavy-duty suspension.
 
Built by GM’s Australian subsidiary Holden, the G8 sedan first arrived in the U.S. as a 2009 model. While never a strong seller, the rear-wheel drive G8 offered performance rivaling that of some expensive imported sedans for a fraction of the cost. Consumer Reports was one of many media outlets to praise the G8 as something of a performance bargain. (See our Pontiac G8 road test, available to online subscribers.) But GM pulled the plug on the G8, along with the rest of the Pontiac line when the carmaker reorganized following bankruptcy.
 
Turning the Pontiac G8 into a Chevrolet is made easier by the fact that the Holden is already sold in the Middle East as a Chevy, so necessary trim, fascias and the like are readily available. Adding to its appeal to law enforcement, General Motors says the long-wheelbase Caprice PPV will have more rear-seat leg room than a Ford Crown Victoria, long the police car of choice in North America.
 
The General has good reason to challenge the Crown Vic’s lock on the market: a company press release says police forces buy some 70,000 units every year.

Enthusiasts mourning the G8’s passing need only wait a few years until the first PPVs are ready for retirement to get their hands on one. Either that, or sign up for the Academy.

Related:
Don’t let the Pontiac G8 wither and die
Pontiac–The excitement has faded from the line up
Personal picks: Pontiacs, modern and classic

—Jim Travers

GM & eBay: Is car buying online a good deal?

General Motors is looking to the Web to broaden the car-buying audience through a partnership with eBay and participating California Buick, Chevrolet, GMC, and Pontiac dealers. Through this pilot program that runs through September 8th, West Coast car buyers have access to the virtual new car showroom. Shoppers can browse models on gm.ebay.com and find all the vehicle details and features. On some models there will be a “Buy It Now” price or an option to negotiate with the dealership to give your best offer.

Consumer Reports looked at the offers in this new channel to see which is better--shopping online through this program or going into the dealership? We looked at the deals and compared them to our Bottom Line Price, which factors in any dealer sales incentives, holdbacks, and rebates from the dealer-invoice price.

The results: The eBay program can save you money on certain models.

We surveyed a variety of models, and focused our detailed comparisons on three recommended vehicles: the 2009 Chevrolet Malibu, 2009 Pontiac Vibe, and 2009 Chevrolet Avalanche.

On the Malibu, we found the “Buy It Now” price to be over $2,300 less than the MSRP and almost $400 below our Bottom Line Price.

For the Vibe we found a savings of over $1,600 below our Bottom Line Price and over $3,000 less than MSRP. Both the Malibu and Vibe had factory cash back, as well.

However, not all deals were good ones. The Chevrolet Avalanche eBay price was $3,000 more than our Bottom Line Price and only $950 below the MSRP.

You can find good deals though the GM/eBay program. However, it’s important when shopping in this arena to do your research and read all the details. Since eBay is an auction site, you can have competition for the model. With the auction’s clock ticking down, you have limited time to make a decision. You also need to be prepared to purchase the vehicle and quickly arrange pickup and shipping. Also note that prices aren’t set in stone until there is a final agreement between the buyer and selling dealer.

Buyers should be wary of unexpected add-ons or markup-driven enticements (e.g., VIN etching, stain protection, extended warranties), just as they would with a traditional purchase. And as always, the buyer may need financing. Best to know the fair rates and secure a loan quote before accepting dealer financing. If the dealer can’t meet or beat your best rate, you’ll have an alternative plan.

Car shoppers nationwide can use the power of the Internet to check local inventory and solicit offers from nearby dealers by using the automaker’s Web site. What makes the eBay program unique is the ability to bid on a product and watch market forces in action, or conveniently choose to “Buy it now.”

When buying any new car, whether at the dealership or online, through eBay or from a neighbor, focus on choosing the best car for your needs and budget. ConsumerReports.org has a variety of tools to help you make an informed choice, then empower you with the Consumer Reports Bottom Line Price from the New Car Price Report. 

—Liza Barth 

Cash for clunkers: American cars

The “Cash for clunkers” program intended to jump start auto sales is in full gear. The Car Allowance Rebate System (CARS) allows consumers to trade in their gas guzzler for an instant credit toward the purchase of a more fuel-efficient vehicle based on specific qualifications.

All automakers are hoping to benefit from the potential sales surge. In particular, Chrysler and GM could benefit from a sales boost to coincide with their exit from bankruptcy.

If you are considering junking your old car and want to buy from an American brand, then check out our list of domestic vehicles that qualify for the Car Allowance Rebate System (CARS) program. All models listed are also Consumer Reports recommended, which means they must have performed well in Consumer Reports' tests, have average or better reliability, and, if crash-tested, provide good overall safety. In addition, we list the owner cost score, which factors in depreciation, fuel, interest, insurance, maintenance and repair, and taxes over the first five years. A much more detailed view of owner costs, for three, five, and eight years as well as full ratings, reliability, safety and more are available in the model overviews for each new car (available to online subscribers).

For comparison, we have included the overall mpg from Consumer Reports’ tests to illustrate real-world fuel economy numbers. To judge the benefits from making a switch, we used these figures to calculate the annualized fuel costs based on 12,000 miles a year at an average price of $2.50 a gallon for gas. We assumed the trade-in vehicle had 18 mpg. If the overall EPA mpg is less, then the fuel savings would increase. (Compare your fuel economy scenario.)

Make & model	EPA mpg	CR's overall mpg	Annual CR fuel costs	Minimum fuel savings	Cost of ownership score (1-5 years)
Chevrolet HHR	24	24	$1,250	$417
Chevrolet Malibu (4-cyl.)	26	25	1,200	513
Ford Escape (4-cyl.)	21	21	1,429	238
Ford Escape Hybrid	28	26	1,154	595
Ford Focus	27	26	1,154	556
Ford Fusion (2010)	25	24	1,250	467	N/A
Ford Fusion Hybrid (2010)	39	34	882	897	N/A
Ford Mustang	20	20	1,500	167
Ford Taurus	21	18	1,667	238
Lincoln MKZ	21	20	1,500	238
Mercury Mariner	23	21	1,429	362
Mercury Mariner hybrid	28	26	1,154	595
Mercury Milan	23	21	1,304	362
Pontiac Vibe	28	29	1,034	595
Saturn Aura XR V6	20	20	1,500	167

For more information about the program, visit our Cash for clunkers special section.  To get advice on whether it is the right time to buy a new car, see our post Is Cash for Clunkers for you? Visit our New car buying and leasing forum to share your experience and give advice to others making the trade.

—Liza Barth

Also read:

Cash for clunkers: Recommended cars that qualify for a voucher
Cash for clunkers: The best gas guzzlers to junk
Cash for clunkers: Compare the fuel savings
Cash for clunkers: Fuel and owner costs
Cash for clunkers bill cuts fuel consumption–running the numbers

Free Volkswagen Routans from The Oprah Show

The king-maker of midday, Oprah Winfrey will give away Volkswagen Routan minivans on her popular television program this summer. In 2004, The Oprah Winfrey Show gave away 276 Pontiac G6’s, making a massive media splash in the process. Promoted as making dreams come true, many winners faced with taxes on their winnings were not able to keep their cars. Presumably, the smaller-scale VW promotion will go smoother. (There are reportedly two Routans up for grabs, and neither will look like the "O Edition" here made up from our test Routan.)

But does a free car mean it is a good car?

Nope. The Pontiac G6 scores 49 out of 100 in our tests. Its token “high” is the controls. “Lows” include just about everything else: Noise, sloppy at-the-limit handling, steering, braking, ride, fit and finish, seat comfort, turning circle, and reliability.

Of course, this is a different year and different vehicle. The Routan is built by Chrysler, with limited modifications to its Town & Country/Dodge Caravan minivans. The T&C Limited scores 64 in Consumer Reports testing, and it is not recommended due to predicted reliability being much worse than average. (See our video review.)

The VW version is distinguished with a more familial grille, a soft dash top, and retuned suspension and steering that gives it a slightly more responsive and taut feel. However, the result is less than convincing. While we have not completed testing on our Routan, the Chrysler engines in other minivans are a bit noisy and not particularly fuel efficient. The cleverest elements from the platform -- the second-row seats that fold into the floor known as "Stow and Go" or the "Swivel-and-Go" seating—are absent from the Routan. Although the large bins under the floor that the seats stow in are still very useful for storage.

Volkswagen is banking on the Oprah effect to goose minivan sales and raise awareness. And it is probably a safe bet. (Unless, of course, Oprah is the touch of death: Pontiac is about to be put to pasture…)

In the first six months of 2009, the Town & Country has sold 43,737 units, according to Automotive News. The Dodge Caravan is close at 41,747. Volkswagen sales are just a fifth that at 8,290, a figure that is less than half the total produced. Before reading into the comparison, the Routan has outsold the Eos, Golf/GTI, New Beetle, Passat, and the Rabbit— only the CC and Jetta outsell it in VW’s lineup. (Links in this paragraph go to model overview pages, where online subscribers can review ratings, pricing, reliability, and road tests.) Comparing the before and after sales will be complicated by the impact of Chrysler idling the manufacturing plant for weeks during its bankruptcy proceedings, thereby reducing supply to better match demand. That said, I’m still curious…

Bottom line:
While Oprah can be seen at many times as the champion for the underdog, there is no mistaking this relationship—VW ads and “sponsorship” make it apparent.

Be skeptical of celebrity endorsements. And do your own research on your next new or used vehicle, trusting independent sources such as Consumer Reports that are free from advertiser influence. If you can find them.

Also read: "Word jumble–How should Volkswagen spell Routan?"

—Jeff Bartlett

Pontiac G8 will not live on as Chevrolet Caprice

Updated 7/16/09

Bob Lutz has reverse his previous position on the G8, stating a post to the official GM Fastlane blog that it will not live on as a Chevrolet Caprice.

"The G8 will not be a Caprice after all. I’d mentioned it, and said we were studying it, giving it a serious look, because a car like the G8 was just too good to waste.That’s all still true. But I have to say that, with my new “marketing” hat on, upon further review and careful study, we simply cannot make a business case for such a program. Not in today’s market, in this economy, and with fuel regulations what they are and will be."

Below is the original text from our 7/13/09 blog post:

The blogosphere has been abuzz with rumors that from the ashes of the shuttered Pontiac division that its G8 muscle sedan would be reborn as a Chevrolet Caprice. Consumer Reports editors and engineers have been lamenting the expected loss of this world-class, rear-drive car and are encouraged that one of GM’s best models may survive the restructuring process.

This afternoon, GM Vice Chairman Bob Lutz in a Web chat wrote:

The G8 has finally been discovered by a broader percentage of the buying public. The owners are ecstatic about them, many calling it the best sedan they've ever driven. We consider it too good to waste. So we're studying the feasibility of bringing it in as a Caprice for both law enforcement and the public.

The transition could be relatively minor, with the greatest challenge being the replacing the twin kidney Pontiac grille with a more-appropriate Chevrolet fascia, such as shown below on the Middle East version sold as the Chevrolet Lumina. Swap out a few Pontiac dart logos for Chevy bowties and call it a day. Shame the Impala moniker is already being used…

While GM is now focused on electrifying powertrains and producing fuel-efficient vehicles, we hope they are able to save this gem from the old GM.

See the Pontiac G8 model overview, with ratings, reliability, road test—available to online subscribers.

Read our G8 laments:
Don’t let the Pontiac G8 wither and die
GM shrinks performance model line-up
Pontiac–The excitement has faded from the line up
Personal picks: Pontiacs, modern and classic

—Jeff Bartlett

August issue road tests: Wagons & hatchbacks

For our August issue test group, we tested hatchbacks and wagons. These vehicles are good alternatives to small SUVs. They offer better fuel economy, have a sedan-like ride, and flexible cargo-carrying capabilities.

The full road tests from the magazine (available to subscribers), have been posted online, along with videos of some of the models hosted by our automotive experts. These videos highlight the strengths and weaknesses of the vehicles, bringing the road tests to life.

For this month’s group, we looked at the Chevrolet HHR, Hyundai Elantra Touring, Kia Soul, Mazda3, Pontiac Vibe, and Volkswagen Jetta. Plus, we also feature the newly introduced Honda Insight hybrid, which gets 38 mpg overall.

In the September issue we’ll report on family sedans, including the Kia Optima and Ford Fusion and Fusion hybrid.

Ratings for all of the hatchbacks and wagons we have tested can be found with our dynamic New Car Selector tool.

Personal Picks: Small cars

With all the doom and gloom news dominating the airwaves these days, it’s good to know that there’s a new, small car that really blew us away...and it doesn’t cost a fortune. For about $17,000, the manual transmission Honda Fit goes from 0-60 mph in under 10 seconds, holds five people (or lots of cargo) and still gets 33 mpg overall. Remember the “economy” cars of the 1980s? While several got terrific fuel economy, none were as comfortable, fun to drive, or as safe as the Fit. It does so many things well, the Fit is the answer to many buyers’ needs.

As gas prices continue to climb, more and more people may retreat to smaller, more fuel-efficient cars. All of the other fuel-thrifty models in this test group--the Chevrolet Aveo, Nissan Versa, Suzuki SX4, and Toyota Yaris--were competing for second place.

But vehicle choice is a personal one, and here are our staff picks:

Mike Quincy: The Smart ForTwo sparks more conversation than just about anything I’ve driven in the last 10 years. But when people ask me about the diminutive design, I immediately bring up the Honda Fit. I’ve repeated these lines so many times: For about the same money as the Smart, the Fit is immensely more fun to drive and easier to live with. The Fit is faster, has superior steering, loads more cargo room, and only gives up 6 mpg overall. I don’t hate the Smart, but there’s no way I’m buying one over a Fit. Finally, what puts the Fit over the top for me is the relationship between its four-cylinder engine and manual transmission. I can’t think of many engine/transmission combinations that come close to the shear precision of their operation. And after running through the gears in our manual Sport model, I have to again remind myself that it only costs $17,000. The Fit is the smartest choice.

Gabe Shenhar: The engineer in me admires the originality of the Honda Fit design. What a genius of a car. With the gas tank mounted under the front seats, rather than the rear seat, it frees up a lot room, which gives the car its amazing spaciousness and in-cabin flexibility. It’s not for nothing the Fit has already established a cult following during the relatively short time it’s been for sale in the U.S.

But I’d have trouble shelling out $16,000 on a new Fit that’s still a noisy and jittery-riding car. For me, a used Mini Cooper for similar money would be much more enjoyable with similar gas mileage, go-kart agility, and nicer interior (but, admittedly, less space). You can’t have everything.

Rick Small: These small sedans are enjoying a surge in popularity due to poor economy and fresh memories of high gas prices. The Subaru Impreza is a nice car, but only comes in AWD--hurting fuel economy--and the driving position doesn’t fit my tall body as well as some. The Hyundai Elantra is very nice, has a long warranty and good fuel economy. The Toyota Corolla gets very good fuel economy but my tall frame also doesn’t fit in it so well. The Ford Focus has lost some of its grip and with it went braking distances and some of the fun-to-drive factor. The Focus’s driving position is decent for tall drivers but it has no rear headrests which is a serious safety omission. The VW Rabbit feels more solid and sporty than some here and has a good driving position for taller people.

All that being said, my favorite, though, is the Mini Cooper. Both the base and S models are a blast to drive, get very good fuel economy and surprisingly have a very good driving position for tall drivers. The back seat is petty much for storage or very small passengers, however. The Honda Fit has a versatile interior, a useable rear seat and good driving position for taller drivers; a new tilt-and-telescoping steering wheel really helps here. The manual shifter feels sporty. Fuel economy is very good--even with the automatic transmission--but if you want even more mpg, get the manual.

Tom Mutchler: True confession time: I had already written my Personal Pick for this group, the Honda Fit. I started out with a diatribe about the lack of ESC unless you get navigation, but then noted that the Fit was great fun to drive with a very clever interior.

But then I read a post on our expert forums by a Pontiac Vibe owner, suggesting that his car might be the best "budget car" over the Fit. Never mind that the Vibe is larger than the Fit and isn't really a subcompact, or that the MSRP of his Vibe 1.8-liter manual with air and power accessories is $18,630 compared to the $16,730 Fit Sport manual.

Let’s examine his idea. First, that price difference mostly dissolves with the Vibe’s incentives. You can likely buy that Vibe for a little over $17,000; you’ll probably pay list for the high-demand Fit. The Fit doesn't give you the Vibe’s standard ESC or a fold-flat front passenger seat or OnStar. (You do get iPod control and alloy wheels on the Fit Sport; the cheaper base Fit lacks cruise control.)

The Fit isn't exactly a ball of fire and the interior trim is on the cheap side - ditto for the Vibe. Neither is that quiet inside. We haven’t tested a Vibe 1.8-liter manual, but given that our Toyota Corolla manual got 32 mpg overall with the same engine, we’d expect the larger Vibe to get something less. Not quite up to the Fit Sport manual’s fuel economy, but probably still quite good.

Both have room for four and a spacious cargo area. The Vibe has long been reliable too--remember, it's basically a Toyota Matrix that costs less.

My heart still leans towards the spunky, fun-to-drive Fit (or a used Mazda 3s Touring); put simply, I wouldn't look forward towards hustling a Vibe down a twisty road. But logic says that a discounted Vibe is a fine alternative.

Car brands: Who owns what?

The auto industry is very complicated these days, with constant change across all corners of the globe. The worldwide economic slowdown dictates widespread cost reductions, inspiring partnerships and changes in ownership. Further confusing the scene are past commitments between companies: For example, the new 2011 Jeep Grand Cherokee is based on a Mercedes-Benz platform–even though Chrysler and Mercedes are no longer joined at the hip.

To help clear up some of the confusion, here is a road map to navigate who owns what brands among the major companies that sell in the U.S. car market.

BMW owns: BMW, Mini, and Rolls Royce

Fiat owns: Alfa Romeo, Ferrari, Fiat, Lancia, Maserati; Chrysler, Dodge, Jeep–20-percent stake

Ford Motor Company owns: Ford, Lincoln, Mercury, Volvo (for now), and still owns 13.4 percent of Mazda

General Motors owns: Buick, Cadillac, Chevrolet, GMC. Also owns a controlling interest in Daewoo, as well as Opel and Vauxhall in Europe and Holden in Australia. (Pontiac to be discontinued)

Honda owns: Honda, Acura

Hyundai owns: Hyundai, Kia

Tata Motors (India) owns: Jaguar and Land Rover

Mazda (partially owned by Ford)

Mitsubishi

Daimler AG owns: Mercedes-Benz and Smart

Nissan owns: Nissan and Infiniti (Nissan is owned by Renault--France)

Porsche owns: Porsche and a majority share in Volkswagen

Subaru (A controlling interest of Subaru is owned by Toyota)

Suzuki

Toyota Motor Company owns: Lexus, Toyota, Scion, Daihatsu and Hino Motors, with a stake in Fuji Industries (Subaru’s parent company) and Isuzu

Volkswagen owns: Audi, Volkswagen, Bentley, Bugatti, Lamborghini, and overseas SEAT and Skoda.

In formal negotiations to be sold:
Hummer: Tengzhong (China)
Saturn: Penske Automotive Group
Saab: Koenigsegg (Sweden)

--Liza Barth