
FOLLOW UP: Tony Cervone, a GM spokesperson, has told Bloomberg that HUMMER is the only brand the General is considering selling or closing.
The Wall Street Journal is reporting that General Motors is looking to cut thousands of white-collar jobs and sell, or stop production, of some if its brands. The General has supposedly set 2010 as a target for its return to profitability, but the automaker has never announced any details on how it plans to achieve that goal.
GM's management team will be meeting with the board early next month to discuss raising additional cash, and that could mean seriously pruning GM's bloated brand portfolio. HUMMER is supposedly already on the block, but Chevrolet and Cadillac – brands at the core of GM's business – are likely safe from the ax. However, Buick, Pontiac, Saab and Saturn, which haven't fared well during the biggest U.S. sales slump in 15 years, could possibly be sold or killed completely.
While it deserves note that all of this information comes from unnamed WSJ sources, GM's recent stock plunge and abysmal June sales numbers means something has to be done, and quick. If that entails cutting underperforming brands, so be it -- nostalgia be damned.


Track cars powered by motorcycle engines are becoming increasingly popular as the superbike mills, usually mounted amidships, provide tons of power for their small displacement and low weight. Further evidence of this truth is seen in the LusoMotors LM23, a Lotus replica powered by a one-liter Honda CBR1000 engine making about 150 horsepower. Weighing just under 900 pounds, the power-to-weight ratio of this machine would be enough to scare just about any other car you are likely to meet at the track while its light weight would surely allow for plenty of grip in the corners. The high performance of the LM23 is fitting, as the Lotus 23B design on which its based was such a giant killer that it was banned at Le Mans in the early sixties for being too fast for its small displacement.
A quick glance at the chassis shows such track-ready details as inboard-mounted coilovers and a tube frame complete with integrated roll bar. The chassis sits under composite bodywork, just like the original Lotus, though the modern interpretation adds carbon fiber to the traditional fiberglass skin. It looks like we have another Lotus replica set to join the ranks of the numerous Seven variations already sitting in our fantasy garages.
With its quad-turbo W16 pumping out over 1000 horsepower and reaching speeds in excess of 250 mph, surpassing the Bugatti Veyron is no mean feat. Many have tried, but few have succeeded. Yet that is exactly what Bugatti's own engineers will have to achieve when it comes time to replace the Veyron with its successor.
What form that successor would take has been a subject of great debate and continued speculation. At first it was rumored to go downmarket as a roadster. Then it was expected to be a four-door. A lightweight exotic was said to be under development, while its new corporate overlords at Porsche seemed keen to relegate the marque altogether to coachbuilder status. In an emerging interview for Holland's AutoTelegraaf, however, CEO Franz-Josef Paefgen revealed that Bugatti is preparing to launch a new model to replace the Veyron in 2011 or 2012, and that despite restricting emissions and fuel economy regulations around the world, the new model would have to stand up to the performance standards set by the Veyron. Design will follow along the same theme as the Veyron, while Bugatti also considers a racing program, although what championship it would contend remains the subject of further speculation.


Most automakers are struggling with horrible US market conditions right now, but unlike competitors such as Toyota and Ford, Chrysler doesn't have sales in other areas of the world to fall back on. The Pentastar is looking to improve its fortunes overseas while also benefiting from low labor costs by partnering with the Great Wall Motor Company. The young Chinese automaker doesn't specialize in the small vehicles Chrysler needs here in the States, however, as the company's primary focus is on trucks and SUVs. The goal of the union is to share distribution channels, technology, and components, which should save both companies money in R&D and improve economies of scale. The deal is unrelated to a separate pact with Chery to produce a small, Dodge-branded car for sale in North America.
With sales down in the states by 28% in June, Chrysler appears to be in the most trouble of the Detroit automakers in the near term. Branching out to other markets to drive down costs and add sales could be the automaker's best hope for survival in the future.
