Cadillac making it on Broadway. Iconic brand breaking off from GM and moving headquarters moving from Detroit to NYC!

In a major upturn in the revitalization of Cadillac. Today General Motors announced that the iconic Cadillac brand which has stood for luxury for the better part of 112 years will be spun off from parent GM to be a stand alone business unit. With this new re-alignment will also come a move of Cadillac world headquarters from Detroit to New York City.

Johan de Nysschen, who became the new President of Cadillac in August, will be responsible for the brand�s overall operational performance. He is certainly up to the job. He was formerly North American CEO for Audi and CEO of Infiniti.

While Cadillac's current line up has a few flat spots in terms of sales, the all new Escalade, and a new flagship sedan that was teased to the world as the El Miraj concept give a clear view of where Cadillac plans to go to differentiate itself. The move to become a separate entity from parent GM rather than remaining a division as it has for the majority of its life at GM, will allow Cadillac more freedom to pursue growing areas of the luxury car market with more clarity and focus moving forward.

A move like this can only make one wonder what Ford's direction with Lincoln will be moving forward.


Source: General Motors

Press Release:

NEW YORK � As part of the continued expansion of Cadillac, General Motors today announced a strategic realignment that will establish the flagship brand as a separate business unit. In addition, the new Cadillac organization will expand to New York with a new global headquarters opening in 2015.
The realignment affirms Cadillac�s importance to GM�s strategy. Creating a new Cadillac business unit enables it to pursue growing opportunities in the luxury automotive market with more focus and clarity.

�With the relentless upward repositioning of successive new-generation Cadillac products, the next logical step is to provide Cadillac more freedom to cultivate the brand in pursuit of further global growth,� said GM President Dan Ammann.

�Cadillac�s mission is to reinstate the brand to a pre-eminent position among global luxury brands, a bold challenge requiring a distinct and focused new organization,� Ammann said. �More than a division or brand, Cadillac is becoming a center of excellence for our company.�
Johan de Nysschen, who joined Cadillac as its new president in August, will be responsible for the brand�s overall operational performance.

Cadillac�s leadership council is headed by de Nysschen, and consists of Jim Bunnell, vice president of sales and service; Uwe Ellinghaus, chief marketing officer; David Colasinski, chief financial officer; David Leone, executive chief engineer, and Andrew Smith, executive director of design. Further expansion of the Cadillac leadership team will be announced later.

Expansion Includes New York Headquarters
The plan includes expansion to New York City in the form of a multipurpose brand and event space in conjunction with modern loft offices located in the heart of a city renowned for establishing trends and setting standards for the global luxury market.

While the majority of functions with oversight and responsibility for both global and U.S. operations will be located at the new global headquarters, there will be no change to technical product development teams located in Michigan, nor does the plan impact manufacturing or assembly operations. Cadillac management is reviewing options for which specific staffs will be based in New York and which will remain in current locations in the Detroit-area or elsewhere.

Cadillac has operations in more than 40 countries. The brand�s ongoing growth has been driven by an expanded product portfolio, leading to 28 percent global growth in 2013 and an increase of about 10 percent so far this year. Cadillac sales in China have grown 75 percent year to date.

�We are very proud of our Detroit roots and heritage, and the majority of the Cadillac workforce will remain in Michigan," de Nysschen said. "But there is no city in the world where the inhabitants are more immersed in a premium lifestyle than in New York. Establishing our new global headquarters in Soho places Cadillac at the epicenter of sophisticated living. It allows our team to share experiences with premium-brand consumers and develop attitudes in common with our audience."
Company officials thanked New York Gov. Andrew Cuomo for his active support of and involvement in establishing the creation of Cadillac NYC.

"As the media and advertising capital of the world, New York is the ideal location for Cadillac to move its marketing operations to enhance their brand and spur future growth," Gov. Andrew M. Cuomo said.

"From Day One, our administration has been creating a more business-friendly environment that encourages new investments and job creation, and today is another example of how that approach is delivering results for New Yorkers. I welcome Cadillac's marketing team to New York and commend them on their decision to invest personnel and resources alongside our world-class workforce."
Said U.S. Sen. Chuck Schumer:  �To have an iconic American brand like Cadillac choose Manhattan for its global headquarters is another example that this city is a growing hub of innovation. New York continues to be a magnet for the best and the brightest companies and workers alike, and as Cadillac continues on its impressive growth trajectory as a global brand, I�m thrilled it will do so based in New York City."

VW's Jonathan Browning out, Michael Horn named President & CEO

Lots of top job shake ups this week. In a surprising turn over at Volkswagen of America, President and CEO Jonathan Browning has announced that he is leaving the company and will be replaced by Michael Horn. Horn will assume the President and CEO position effective January 1st.

Browning came to Volkswagen in 2010 after a distinguished career at both Ford and General Motors. During his time at VW, he oversaw 23 percent gain in 2011 and an additional 30 percent rise for 2012. This year,  sales of Volkswagen, Porsche, Audi and Bentley models are up 1 percent in a market that�s risen 8 percent. Sales at VW  have been falling for the last 8 months.

Michael Horn who will replace Browning, has been with Volkswagen since 1990. And is currently head of Volkswagen Global After Sales. A position he has been in since 2009.

Browning says that he is leaving the company for personal reasons and is planning to return to England.


Source: Automotive News.

Oficially official, the 2015 Ford Mustang

As promised, here's the all new 2015 Ford Mustang. The first completely new Mustang with inspiration from 50 years of production (yes even the Mustang II years). What can I say about the 2015 Mustang? Well for one, it looks fantastic. While overall the car is just a tad larger than the current Mustang. The new car actually looks smaller than it is. Which I really like. It gives the look of a sporty European sports car. The design is fresh and crisp, and when you get in to GT trim, it's very aggressive. The styling was critical when it came to the new Mustang as this is the first Mustang to be designed for global distribution. Believe it or not, all previous Mustangs were not made for global sales. And because of this new focus for the Mustang. Ford is pulling out all the stops to make a truly world class product. The new car is lower and wider with a wider rear track. And for the first time in a number of years, a true fastback body that leads to three dimensional LED, sequential tail lamps. You may notice the lack of the faux gas cap that had become a staple of the previous Mustang is absent in the photos. We have been reassured by a source that there will be a faux cap offered on some trim levels of the new car, however not all of them. Up front, we find LED running lamps, and a design treatment heavy on Ford Design DNA that still captures the Mustang's grille and shark bite design we have come to love on the GT 500.

The big news for the new Mustang lie in the performance and suspension. The traditional V6 and 5.0 liter V8 engines remain. But they are now joined by an optional 2.3 liter Ecoboost 4 cylinder. A first for the Mustang for nearly 30 years. And don't think this will just be a fuel sipping Focus in a new body. The Ecoboost Mustang is expected to pony out 305 Hp with 300 lb.-ft of torque. So you'll still get all the performance while saving some gas. The Ecoboost features a cast aluminum cylinder block with forged steel crankshafts and connecting rods. It also includes a newly designed high flow cylinder head with integrated exhaust manifold and a new twin scroll turbo charger that will make its debut on the Mustang.

The 5.0 liter will have in the neighborhood of 420 hp on tap while the standard 3.7 liter V6 will be at 300 hp. The V8 features larger valves, revised and re-balanced camshafts, and forged connecting rods and valve springs, for optimum high RPM performance. The engines will be backed by an updated 6 speed manual trans or a new select shift 6 sped automatic that will offer for the first time in a Mustang, paddle shifters. Very European no? The Getrag manual trans has had the shifter location moved closer to the drive and away from the cupholders (a complaint in the outgoing car). The new output shaft has been designed with a new ball bearing that will allow the GT to have a top speed of 155 miles per hour.

Flipping the shiny side over is where the Mustang is going to get really exciting. The Mustang is setting new benchmarks in terms of handling. The suspension has been redesigned from the ground up. The outgoing Boss 302 was the benchmark which has now been exceeded. A new perimeter subframe reduces the overall mass of the car while also making it stiffer. Thus allowing for more predictable wheel control to allow for better ride quality, handling, and steering. This new front suspension also allows for larger brakes to be utilized. And for 2015, there will be three different brake packages available. One will likely be Brembos.

In back where the rubber meets the road, a new integral-link independent rear suspension, again designed for the ultimate in ride quality and handling. This marks the first time the Mustang has ever had an independent rear end. Though I'm sure many diehards will miss the old live real axle, we're sure they'll take to this one.

Like all new Fords, the 2015 Mustang will feature the SYNC system and the new My Key system. The drive will also have different drive modes available (not sure if available on every model) allowing the driver to adjust engine, suspension, and steering settings at the touch of a button. A new advanced stability control system and the GT's standard launch control round out a powerful performance punch.

Looking at the interior pictures, I'm seeing a lot of new, and more upscale additions. First, a source at Ford confirmed that the material quality will definitely be far better than what we have seen on the previous Mustang. Better quality materials and leathers for a more quality feel. For instance, a leather covered dash top and center console, memory power seats, and it looks like the GT will have two additional gauges in the center of the dash. All 2015 Mustangs will also wear a special badge on the dashboard saying "Since 1964" In honor of the Mustang's 50th anniversary April 17th, 1964. An interesting fact, even though the Mustang's launch considered the car a 1964 1/2. Most states did not recognize a half year for title and registration purposes, thus making all 64 1/2s really 1965 Mustangs.

Pricing hasn't been released yet, though I wouldn't expect it to be far off from the current Mustang's base price. Ford is expecting the 2015 Mustang to hit showrooms in late 2014.


Source & Photos: Ford Motor Co.

Arrivederci Gallardo!

After ten years and 14,022 cars, the Lamborghini Gallardo has come to the end of the road. The Gallardo was the first Lamborghini to really break the mold so to speak. Prior to the car's production, the company would average around 250 or so cars a year, The Gallardo brought a whole new way of thinking at the company in terms of volume by jumping to 2000+ per year. Since Lamborghini was founded in 1963, nearly half of all the cars produced are Gallardos.

Like all Lamborghini's, the Gallardo name was derived from bullfighting. The Gallardo bloodline was known for its exceptional courage and undaunted nature. ans was bred during the 18th century. When the Gallardo was introduced in 2003, it also brought many new advancements for Lamborghini. Including an all new aluminum space frame, the first ever Lamborghini to have full time all wheel drive, and a robotized electronic shifting system (e-gear). The Gallardo also set records with 32 different variants of the car over it's 10 year run. My particular favorite was the Superleggera. It was also the first Lamborghini to have a special service record with 2 cars built for the Italian State Police.

The 2013 Gallardo LP 570-4 Squadra Corse boasts a dry weight of 1340 kilograms, 70 less than the already lean Gallardo LP 560-4. With a stunning power-toweight ratio of 2.35 kilograms per hp it delivers breathtaking performance: from 0 to 100 km/h in 3.4 seconds, from 0 to 200 km/h in just 10.4 seconds.

Now, the final car produced? It is a Gallardo LP 570-4 Spyder Performante in Rosso
Mars (red) and it is destined for a private collector.

Source: Automobili Lamborghini S.p.A.

Breaking News: Detroit files for bankruptcy protection.

While breaking, this story really comes as now surprise to me that the City of Detroit has filed for chapter 9 bankruptcy protection.

In a surprise move today, the city's state appointed emergency manager, Kevyn Orr asked for permission to put the city under Chapter 9 protection this afternoon in court. Currently, Detroit is $18.5 billion dollars in dept. Currently, the Governor of Michigan has to sign off on the bankruptcy since it is the largest municipal bankruptcy in U.S. history.

Details are still forthcoming so we will be posting updates as we find them.

Source: Detroit News.

Suzuki files for Chapter 11 protection, no more U.S. car sales

What can I say. I saw this train wreck happening 2 years ago. American Suzuki Motor Corporation announced late this afternoon that it was filing for chapter 11 bankruptcy protection. According to their press release, this is being done in order to realign the company to focus more towards their motorcycle, ATV, and marine operations.

As part of the wind down operations, ASMC will discontinue all U.S. automobile sales. However, unlike Saab's bankruptcy, all warranties will be honored for owners. Suzuki, states that "low sales volumes, a limited number of models in its line-up, unfavorable foreign exchange rates, the high costs associated with growing and maintaining an automotive distribution system in the continental U.S. and the disproportionally high and increasing costs associated with stringent state and federal regulatory requirements unique to the U.S. market." as the reasoning behind their decisions. I am curious as to why it has taken them this long to reach that decision as their sales performance has been slipping for the last several years. Their marketing was at times puzzling, comparing the Kizashi against cars like the Mercedes C class and Audi A4.

As we receive more details about Suzuki, we'll keep you updated here. 

Source: American Suzuki Motor Corporation.

Press release:

American Suzuki Motor Corporation ("ASMC") Announces Restructuring and Realignment to Focus on Motorcycles/ATV and Marine Divisions

ASMC to wind down and discontinue new automobile sales in continental U.S.
Consumers will be protected and all warranties will continue to be fully honored

BREA, Calif.--(BUSINESS WIRE)-- American Suzuki Motor Corporation ("ASMC" or "the Company"), the sole distributor in the continental United States of Suzuki Motor Corporation ("SMC") automobiles, motorcycles, all-terrain vehicles and marine outboard engines, today announced that it plans to realign its business to focus on the long-term growth of its Motorcycles/ATV and Marine divisions. Following a thorough review of its current position and future opportunities in the U.S. automotive market, ASMC will wind down and discontinue new automobile sales in the continental U.S. The Company has determined the best path to achieve this realignment in an efficient and orderly manner is to restructure its operations under chapter 11. The case will be filed in the United States Bankruptcy Court, Central District of California in Santa Ana.

Consistent with ASMC's long history of standing by its products, owners of Suzuki automobiles will be protected. All warranties will continue to be fully honored and automobile parts and service will be provided to consumers without interruption through ASMC's parts and service dealer network.

ASMC remains firmly committed to Motorcycles/ATV and Marine products, and these divisions are competitively positioned in their respective markets, allowing for long-term growth as economic conditions improve. The realignment is intended to better position ASMC for long-term success and is a return to the Company's roots in the U.S. market, which began with motorcycles and has grown to include ATV and marine products. ASMC remains very proud of its high quality, high performance motorcycle, ATV and Marine products. The Company will continue to bring ASMC products to market, including its full lineup of sportbike, cruiser, touring, scooter, dualsport, motocross, off-road motorcycles and KingQuad ATV line, as well as its flagship DF300AP, state-of-the-art DF20A, and DF15A, among other models. Additionally, ASMC is working to further build its market share through continued investment in additional support for dealers through marketing and advertising activities and sales promotion. Suzuki will continue to have a strong presence as a sponsor of teams in supercross, outdoor motocross and road racing.

In evaluating its position in the highly regulated and competitive U.S. automotive industry, ASMC determined that its Automotive division was facing a number of serious challenges. These challenges include low sales volumes, a limited number of models in its line-up, unfavorable foreign exchange rates, the high costs associated with growing and maintaining an automotive distribution system in the continental U.S. and the disproportionally high and increasing costs associated with stringent state and federal regulatory requirements unique to the U.S. market. While the decision to discontinue new automobile sales in the U.S. was difficult to make, today's actions were inevitable under these circumstances. ASMC is dedicated to honoring its commitments to Automotive customers through and after the wind down of new automobile sales in the continental U.S.

An Orderly Process to Serve Consumers
ASMC intends to work within its current U.S. Automotive dealer network to help structure a smooth transition from new automobile sales to exclusively parts and service operations, or, in some instances, an orderly wind down of dealership operations. ASMC intends to market and sell its remaining U.S. automobile inventory through its Automotive dealer network. Through and after the restructuring, all warranties will be fully honored and automobile parts and services will be provided to consumers through the dealer network. ASMC intends to honor any automobile buyback agreements that are currently in place with financial institutions.

As part of its chapter 11 filings, ASMC will submit a proposed Plan of Reorganization and Disclosure Statement that specifies how the Motorcycle, ATV and Marine divisions will be maintained and enhanced, and how its relationship with Automotive dealers will be largely transitioned to support consumers and dealers through continued parts and service operations. SMC or its nominee intends to purchase ASMC's Motorcycle, ATV and Marine businesses, as well as the Automotive service operation responsible for parts and warranties, through a new U.S. subsidiary that will retain the ASMC brand name.

ASMC believes it has sufficient cash on hand to operate its businesses during the restructuring. If necessary, ASMC will request permission from the Court to borrow additional funds from SMC needed during the restructuring.

Honoring Commitments
ASMC intends to operate its Motorcycles/ATV and Marine businesses as usual and is dedicated to completing the realignment process as smoothly and efficiently as possible. ASMC will continue to fully stand behind all of its products and honor all warranties from these divisions. ASMC is working with GE Capital's Retail Finance and Commercial Distribution Finance businesses to continue providing motorcycles and ATV consumer financing programs and motorcycle, ATV and marine dealer inventory financing respectively. The Company expects existing agreements with other dealer and consumer financing providers to continue as well.

ASMC has filed a series of first day motions requesting approval to continue paying employee wages and benefits in the ordinary course, offering dealer incentives and payments under customer warranties. ASMC also expects to pay vendors in the normal course of business for goods and services delivered on or after its November 5, 2012 filing. Payments for goods received before ASMC's November 5, 2012 filing will be made in accordance with the chapter 11 procedure.

SMC, the 100 percent interest holder in ASMC, is not a debtor in the chapter 11 filing.

ASMC's legal advisor on the restructuring is Pachulski Stang Ziehl & Jones LLP, and its financial advisor is FTI Consulting, Inc. Nelson Mullins Riley & Scarborough LLP is serving as special counsel on automobile dealer and industry issues. Further, ASMC has proposed the appointment of M. Freddie Reiss, Senior Managing Director at FTI Consulting, as Chief Restructuring Officer, and has also added two independent Board members to assist it through this period.

Additional information regarding ASMC's business realignment can be found at the Company's website, www.suzuki.com, or via an information hotline at 1-877-465-4819.

Italian auto industry rocked by earthquake.

Northern Italy was rocked by yet another earthquake today. One that has literally shut down the Italian auto industry. At least for the next couple of days. The quake was centered about 40 kilometers north of Bologna Italy. Ferrari, Lamborghini, Ducati, and Maserati all are either headquartered or have factories in that area. So far, Maserati is the only manufacturer that is showing damage at their factory. All have ceased operations for the day to allow workers to go home and be with their families. Details are still emerging, so we will keep you posted on this as more details come out.

Source: Autoblog.