GM to end HUMMER after sale to Chinese company fails

DETROIT – General Motors today announced that Sichuan Tengzhong Heavy Industrial Machines Co., Ltd. (Tengzhong) was unable to complete the acquisition of HUMMER. As a result, GM will begin the orderly wind-down of the HUMMER operations.

“One year ago, General Motors announced that we were going to divest HUMMER, as part of focusing our efforts on Chevrolet, Buick, GMC and Cadillac going forward. We have since considered a number of possibilities for HUMMER along the way, and we are disappointed that the deal with Tengzhong could not be completed," said John Smith GM vice president of corporate planning and alliances. "GM will now work closely with HUMMER employees, dealers and suppliers to wind down the business in an orderly and responsible manner."

GM first acquired the marketing rights to HUMMER from AM General, manufacturer of the military HUMVEE, in 1999.  In 2000, a HUMMER concept was introduced at the North American International Auto Show in Detroit.  That concept became the H2 which began sales in 2002 alongside the HUMVEE-based H1 through a nationwide network of HUMMER dealerships.  GM later introduced several other HUMMER models including the H2 SUT, H3 and H3T.  The H1 was discontinued after the 2006 model year.

GM will continue to honor HUMMER warranties, while providing service support and spare parts to current HUMMER owners around the world.

GM Finalizes Sale of Saab to Spyker

DETROIT (GM) – General Motors and Spyker Cars NV today announced that they have finalized the deal for Spyker to purchase Saab Automobile AB.
Going forward, Saab and Spyker will operate under the Spyker (AMS:SPYKR) umbrella, and Spyker will assume responsibility for Saab operations.  The previously announced wind down of Saab operations has ended.

“This transaction represents the successful outcome of months of hard work and intense negotiations, all aimed at securing a sustainable future for this unique brand, and we are pleased with the positive outcome,” said John Smith, GM vice president for corporate planning and alliances.  “This is a great day for Saab employees, dealers and suppliers, and a great day for millions of Saab customers and fans worldwide.”

“Throughout negotiations over the past year, GM has worked with many parties, including governments and investors, to find a solution for Saab,” said Nick Reilly, president, GM Europe. “I’m very pleased that we could come to a positive conclusion, one that presents a viable future for Saab and preserves jobs in Sweden and elsewhere.”

Test Drive: 2010 Ram 1500 Laramie Edition

Pickup trucks are not just for hauling construction supplies and towing horse trailers anymore.  While sales were down in 2009 for every major manufacturer, U.S. consumers still purchased more than 1.4 million pickup trucks.

Trucks remain popular and therefore, automakers continue to give consumers options ranging from small to large and basic utility to sheer luxury.  The 2010 Ram 1500 Laramie Edition is clearly in the big and luxury columns.

As a former HUMMER H2 owner, I like big vehicles.  There is something about their practical utility and bodacious image that make you feel invincible.  When I stepped into the 2010 1500 Laramie that Ram sent for review, I felt like I was back in my old H2 but with upgrades.

The leather seats are comfortably wide and—like the H2—they can warm your body when it’s cold.  However—unlike the H2—the Laramie seats can also cool your body when it’s hot because, in addition to being heated, they also are ventilated.

Another advantage the 1500 Laramie has over my former HUMMER is very good rear access.  This crew cab has large rear doors making it easy for passengers to enter and exit.  Rear leg room and shoulder room are quite ample allowing three-- maybe four, depending on size-- guests to ride in comfort almost matching the driver and front passenger.

Of course, the true mettle of a pickup truck is its utility.  In the case of the Ram 1500 Laramie edition, the crew cab configuration allows for the shortest payload length in the 1500 lineup; just 67.4 inches.  However, my test model was equipped with an extender allowing you to open the tailgate to accommodate and secure longer items.

This truck also provides several storage options including two glove compartments; a deep, split-level center console; and map pockets on the inside.  Outside, the 1500 Laramie has fairly deep, lockable side storage boxes on both sides of the payload area providing good space to securely keep tools or other items.

Under the hood, the Ram 1500 Laramie has the venerable 5.7-Liter HEMI V-8 engine which produces 390 horsepower and 407 lb-ft of torque.  Acceleration is brisk; cruising is smooth.  And, if you have something to tow, the muscular powertrain allows you to pull up to 9,900 pounds and carry a maximum payload of 1,430 pounds.

Features

Standard features on the Ram 1500 Laramie Edition include remote keyless entry, security alarm, tire pressure monitor, SIRIUS satellite radio, heated and leather wrapped steering wheel, 20-inche chrome wheels, and more.

Optional features on the test model included leather-trimmed bucket seats, ventilated front seats, heated rear seats, rear park assist system, RamBox cargo management system, and more.

Summary

The Ram 1500 Laramie Edition is a good combination of size, strength and suppleness.  It provides the comfort you expect from a luxury SUV and the utility you expect from the average pickup truck.  If you are in the market for a truck, do not write this one off before you give it a serious look.

Editor’s Note:  While the Ram series is America’s #3 selling full-size pickup behind the Ford F-150 and Chevrolet Silverado, MotorWeek—television’s original automotive newsmagazine—has named the Ram series its 2010 Drivers’ Choice Award winner for the second consecutive year.

Test Drive: 2010 Lexus HS250h

One definition of the word hybrid is an offspring of two animals or plants of different races, breeds, varieties or species. Another definition of hybrid is something that has two different types of components performing essentially the same function.

In the automotive world, the two breeds that combine to form hybrids are performance cars and economy cars. The two types of components are gasoline-powered engines and electric motors.

Most Lexus models are known for luxury with a dose of powerful sportiness. Most hybrids—take the Toyota Prius for instance—are known for oddly unique looks and gas miserly performance. Enter the new HS250h. It works if you like and want typical hybrid performance. It does not work if you like and want a true Lexus.

Over the years, I have driven LS, GS, ES and IS models and found each to be cars that I would seriously consider owning. So, when Lexus sent the new HS250h Premium sedan for me to test, I was anxious to see if this hybrid would perform like a true Lexus while providing the fuel efficiency benefits of the gasoline-electric power plant. I was greatly disappointed.

Yes, the HS250h provides Lexus comfort and luxury. Leather seating, automatic dual-zone climate control, premium audio system and more are standard. There is ample rear seat comfort and a sizable trunk that can accommodate a standard set of golf clubs, bag and all. But I never got past feeling like I was in an overdressed Toyota Prius. The two models share the same basic platform but the HS250h is longer, wider and taller than the Prius.

The HS certainly has the Lexus look but also carries that distinctive hybrid look as well, possibly because the HS is a solely hybrid model. Unlike other Lexus hybrids—RX450h, GS450h and LS600h—there is no gasoline-only version of the HS. The appearance would not be a deal breaker for me, but it is not overly endearing.

The deal breaker would be the lackluster performance compared to other Lexus models. In every Lexus I have ever driven, step on the gas pedal and you get instant acceleration gratification from the V-6 and V-8 powertrains. Step on the gas pedal in the HS and the high-tech electric motors and four-cylinder gasoline engine provide acceleration that left me wondering if I was in a base model Toyota Corolla instead of a Lexus.

On the plus side, my HS250h test model achieved 34.9 miles per gallon, essentially matching the EPA estimate of 35 mpg. While alternative energy advocates will argue the impressive fuel economy is the goal, I would give up a few miles per gallon to have the electric motor mated to a V-6 gasoline engine and achieve the more spirited performance Lexus customers have come to expect. If the RX450h utility vehicle can produce 32 mpg in city driving, I would be willing to bet an HS350h could produce at least the same.

I did like the joystick controller for the multi-information display. It was comfortably situated on the center console and combined many features of a traditional joystick and a computer mouse allowing the driver to easily manipulate features with minimal distraction.

Features

Standard features on the 2010 Lexus HS250h test model included a power moonroof; Smart Access with push-button start/stop; XM Satellite Radio; Bluetooth technology; genuine wood trim; and 18-inch aluminum wheels with all season tires.

Optional features included wide view front monitor with backup camera; an upgraded Mark Levinson audio system with 15-speakers and 6-disc in-dash DVD changer; Navigation system; and the Tech Package including a head-up display, front & rear park assist, radar cruise control which helps maintain a designated distance from the vehicle in front of you; and a feature Lexus calls Lane Keep Assist which warns you if you drift out of your lane.

Summary

The Lexus HS250h is filled with features, comfortable to be in and fairly attractive on the eyes. Unfortunately, it is not much fun to drive. Fans of dedicated hybrid vehicles who want luxury eco-friendly transportation will like the HS250h. Those who prefer more spirited performance will likely steer clear. The HS250h starts at $34,650.

Editor’s Note: Since the noted review period, Toyota Motor Sales, USA announced a voluntary recall on 2010 Lexus HS250h models to update anti-lock brake (ABS) software after some owners reported experiencing inconsistent brake feel during steady application of brakes on rough or slick road surfaces. Owners were to begin receiving recall notices in mid-February 2010.

2010 Prius and Lexus HS250h models among latest Toyota recall

Quality control issues continue at Toyota. The Japanese automaker has announced another major recall involving hundreds of thousands of vehicles.

Toyota is voluntarily recalling 437,000 hybrid models including the 2010 Prius and 2010 Lexus HS250. The automaker says both models need a software upgrade to the anti-lock brake system (ABS).

The ABS normally engages and disengages rapidly as it senses and reacts to tire slippage. According to Toyota, some 2010 Prius and HS250h owners have reported experiencing inconsistent brake feel during use on rough or slick roads while trying to maintain traction.

"We're committed to doing everything we can-- as fast as we can-- to restore consumer trust in Toyota, and these recalls are part of this effort," said Jim Lentz, President and Chief Operating Officer of Toyota Motor Sales. "We regret the inconvenience this recall will cause to Prius and HS 250h owners, and will do our best with the support of our dealers to make sure that it is conducted in the most trouble-free manner possible."

Prius owners affected by this recall should begin receiving letters from Toyota next week instructing them to schedule an appointment with their dealership for the software upgrade. The automaker will begin contacting affected HS250h owners within the next few weeks.

This latest recall comes less than a month after Toyota recently recalled more than 4-million vehicles to fix a problem with sticking accelerator pedals. The automaker recalled more than 5-million vehicles in 2009 for floor mat pedal entrapment problems.