"Cao, nema više" reads the piece paper affixed to the tailgate of the red Serbian hatchback, as a small throng of proud workers gathered around the car to bid it "Goodbye, no more" this week. After a 20-year run, the last Zastava Koral, #794,428, quietly made its way to the Zastava museum and the scrappy Eastern European automaker has wound down production on all but one of its models. The very last Zastava, a Skala 55, will be the last of its kind when it makes its way down the production line on November 20th. After that, the proud, tenacious people who have been working at the Kragujevac factory aren't sure of what the future holds. Zastava has long been linked to Fiat, and when the lines restart, the Zastava 10 will be badged as a Fiat Punto, which it is.
Make as many Yugo jokes as you'd like, but Zastava has a long and fascinating history, and the company has managed to produce automobiles through several periods of war, even after the factory sustained bombings. The now classic Zastavas will live on; the company is working on setting up Skala 55, Koral In, and Florida In production lines in Africa and the Zastava 128 is still being produced in Egypt. In those climates, we figure they won't need to come with defroster grids to keep your hands warm when pushing.
"No, thanks," says Ford of Australia to the Duratec V6. Instead, Ford of Oz will invest $21 million to upgrade its homegrown inline six-cylinder and keep the invading powerplant out. The ongoing commitment to its own engine saves jobs at Ford's Geelong plant, as well as keeps local Australian suppliers healthy. It doesn't make any sense for gaskets, castings, bearings and other various parts to come from some other continent, so it's a piece of good news for the economy in Victoria. The engine will be freshened to meet Euro IV emissions standards and will keep thundering away down under with exemplary second-order vibration characteristics. The Falcon, Falcon Ute, and Territory will continue to be homegrown products with homegrown hearts, that we still badly want here in he States. C'mon Ford, if Pontiac can do it, you can, too. Thanks for the tip, everyone!
One door closes, another one opens. Just as Chrysler is working to extricate itself from its deal with Getrag, the Pentastar people are about to announce a deal with ZF Friedrichshafen AG. Chrysler is erecting a plant in Marysville, Michigan that will build axles and employ 900 workers, but word is that the deal will involve ZF signing a long-term commitment to operate the plant.
As far back as September, the UAW said that Chrysler and ZF were getting together. The Detroit Newsreported on the talks at the time, but they were described as a "non-binding discussion" and "a possibility." The Marysville factory, planned to open in 2010, would replace the Detroit Axle plant that currently employs 1,430 workers. Letting ZF run the Marysville location would allow Chrysler to put more focus on getting its survival in order. The announcement will be made at 9 AM EST tomorrow.
A master mechanic and two clerks, among others, are being investigated for intentionally sabotaging Mercedes cars being built at the Sindelfingen factory. Allegedly, repair shops in the area that weren't part of the Daimler corporation were bribing workers with gifts, trips, and cash to alter the cars so that the repair shops could get the contracts to fix them.
The sabotage included scratching the cars, loosening clamps and bolts, as well as -- incredibly -- putting foreign liquids into brake lines. According to Suddeutsche Zeitung, the cars affected were C-, E-, and S-Class. The Stuttgart prosecutor's office estimates the costs to Mercedes in the many of millions, but the greatest irony is this: the workers under investigation were part of the quality control department.
The roundabout that was the Chrysler, LLC-Getrag partnership recently came to an end with Chrysler pulling out the deal, citing untenable financing terms. Now Getrag Transmission Manufacturing, the U.S. company that was going to build the dual-clutch transmissions for Chrysler, has filed for Chapter 11. Getrag has done so in order to streamline its handling of claims and creditors.
Of course, it's not over: Getrag is suing Chrysler for pulling out, Chrysler is suing Getrag for not getting the $300 million financing that Getrag was supposed to bring to the table. Other than the lawsuits and bad blood, all that's left are the partial remains of the factory that was to build the transmissions, and Chrysler's need to find a source of dual-clutch transmissions. Just another monument to the turmoil the auto industry is currently mired in.
It may be time to stop holding your breath. The planned deal between Chrysler LLC and the Chery Automobile Company to bring a Chrysler-badged Chery to our shores seems to be completely over... no, really this time. While there was nothing inherently wrong with the concept of importing the small fuel-efficient cars to North America (even if there were near insurmountable obstacles to overcome in the area of safety and emission standards), both companies have been crushed by the economy. According to a former Chery executive, "I wouldn't place much hope on it... both companies have their own problems to deal with, and both have run out of money." As neither company ever offered a public timetable for the arrival of the cars after the initial announcement early last year, the news is unlikely to come as a surprise.
Back in July we told you that Fisker had tabbed Valmet Automotive to build its upcoming Karma. Now we get word that all of the contracts have been finalized and production looks certain. Valmet will be doing all of the engineering and manufacturing for the Karma, that sexy new four-door plug-in hybrid sports sedan designed by ex-Aston Martin designer, Henrik Fisker. Production should start about a year from now, in late 2009. The first cars should show up Stateside, with European deliveries following soon after, in early 2010. The companies are planning an annual production of about 15,000 cars worldwide.
The $80k sedan uses lithium ion batteries, and owners should expect about 50 miles of driving before the gas engine ever kicks in. Range should rival the Chevy Volt at 350 miles per charge. Unlike the Volt, however, the Karma will have a top speed of 125 mph, and a 0-60 time of about 5.8 seconds. Even with the price of gas plummeting, we think Fisker should have little trouble selling 15,000 of these beauties a year, even at $80k. Full press release after the jump.
Click above for a high-res gallery of the 2010 Toyota Prius
Toyota has been scrambling to right its financial ship after cutting its profit forecast by 63% in the face of dismal US auto sales. The Japanese automaker set up an emergency committee to look at areas to cut costs, and all programs are said to be on the table. Though Toyota has announced nothing specific to this point, Japan's Nikkei Business Daily is announcing that the first US-built Priuses may not be produced until 2011. That would mean a one year delay of the opening of Toyota's Mississippi plant, which has already seen a product shift and cost overruns. The new 2010 Prius, which will initially only be built in Japan until the Mississippi plant comes online, is scheduled to be unveiled at the Detroit Auto Show in January.
Toyota is currently denying that Prius production at the Mississippi plant has been delayed. We're a bit skeptical of the Nikkei report anyway considering the Prius is still in high demand despite the economic downturn.
Click above for high-res gallery of the Fisker Karma
The Big 3 may be laying off workers left, right and center, but at least one start up is moving into town to swoop up some skilled workers. That start-up is Fisker Automotive, the aspiring luxury-hybrid automaker headed up by noted designed Henrik Fisker. The new facility is based in a leased property in Pontiac, Michigan, in suburban Detroit, and will help Fisker's engineers get the Karma, first shown in concept form at the last Detroit show and ambitiously gearing up for a production preview at the next one.
The Pontiac site is not replacing Fisker's Irvine, California, headquarters, nor its production site in Finland. It will, however, bring the outfit closer to component suppliers in the Detroit area in an effort to expedite the development process. The 34,000-sq.-ft. Pontiac facility already has approximately 130 staff members hard at work on the Karma, ramping up to 200 dedicated workers and consultants from local parts suppliers.
Click above to view the mirrored Veyron in high-resolution
Visitors to Wolfsburg, Germany are in for a treat. The Lower Saxony city is home to Volkswagen, and in 2000 the auto giant built a veritable automotive theme park there to rival anything from California to the PersianGulf. Called Autostadt (German for "car city"), the site attracts some two million visitors each year. The park holds several world records; serves as an accredited source of extra-curricular education; and encompasses a customer center, factory tour, test track, movie theater and various pavilions showcasing Volkswagen's history, production techniques and numerous subsidiaries.
The latest pavilion to open at Autostadt is the "Premium Clubhouse" in which this mirror-finish Bugatti Veyron stands as a center-piece. Chromed way beyond the level of other shiny superlikes, like the chromed Ferrari 599, McLaren's grand prix car, the chrome SLR or even Bugatti's own Pur Sang edition, the reflective Veyron sits in a mirrored room designed to blur the line between the observer and the observed as visitors see their reflection repeated infinitely in the space around them. Sounds like a real trip to make the actual trip worthwhile.