Archive for April, 2006 (Page 3)

BMW Posts New 3 Coupe Shots

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BMW had planned to wait on releasing news about the upcoming 3-Series Coupe, but some photos were leaked and published today. More news will follow next week, but what we know is that the 3-Series Coupe will initially be available in Europe with three gas engines and a diesel powerplant. The petrol engines are all in-line sixes. The 325i has the 2.5-liter 218-hp engine and sprints from 0-60 mph in 6.7 seconds; the 330i is equipped with the 272-hp 3.0-liter variant and accelerates to 60 mph in 5.8 second; and the 335i, with its 3.0-liter turbo engine with 306 hp, takes in 60 mph in only 5.3 seconds. Alle engines are limited to a top speed of 156 mph. The diesel is a 231-hp 3.0-liter. The new Coupe will arrive this summer, while next year a new M3 with a 4.0-liter V-8 and over 400 hp will be available.--Henny Hemmes

Bizweek, LaNeve Dust it Up on Imus

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There's an entertaining war of words up on morning drive-time radio between Business Week senior correspondent David Kiley and GM head of sales and marketing Mark LaNeve.

A few weeks ago, Kiley was interviewed on syndicated morning radio show Imus In The Morning by host Don Imus about GM's recent woes. In the exchange, Kiley rattled off GM's tanking stock price, declining market share, junk bond rating and miserable market capitalization. He also said GM has a few brands that are unfashionable, such as Buick, Pontiac, Saab and, to a lesser degree, Chevy cars.

Imus chimed in, "Yeah, who's buying a Buick?" Kiley responded a bit hyperbolically, "No one. No one is buying a Buick." This exchange apparently sent LaNeve and product boss Bob Lutz over the edge. LaNeve had previously given Imus a few HUMMER H2s for his ranch for kids with cancer, which Imus recently said he would have to replace because of poor gas mileage and the fact that New Mexico drivers were flipping him and the kids in the SUV "the bone" as they drove by him on the highway.

LaNeve seized the opportunity, called Imus, and offered to give him four Suburbans that will run on ethanol to replace the HUMMERs. That got him a guest spot on Imus, which is simulcast on MSNBC, to defend GM's honor and to add Kiley to the list of media whom Lutz and other GM execs feel are biased against Detroit in favor of the Japanese.

Last week, LaNeve was back on Imus, filling a slot Kiley had to turn down because he was emceeing the keynote speech at the auto show given by Nissan-Renault CEO Carlos Ghosn. LaNeve and Imus needled Kiley for being pro-Japanese and anti-Detroit. Kiley was on the next day, though, and joked that he was surprised that LaNeve was able to make it on the Imus show by 8:30 a.m. since he had seen the GM exec stumble out of (gentleman's club) Scores at 5 that morning (obviously kidding). And taking on Lutz, whom Kiley says had sent him a letter of protest about his previous Imus appearance, Kiley suggested that Lutz may be too old to make brands like Buick appeal to younger buyers. It was Lutz, Kiley jabbed, who designed the Buick Lucerne to take any driver straight to Boca Raton without having to steer, and that the right blinker would automatically stay on the whole time.

It's unusual for a reporter and industry executive joust, even in fun, back and forth in a national forum. "When you are on Imus, you have to be truthful, which I was, but you also have to be amusing if you want to be asked back," says Kiley. "LaNeve gave a good account of himself, and he is a very solid, ethical guy with a good sense of humor...otherwise I wouldn't have gone for a laugh at his expense."—TCC Team

ED Costs GM $17 Million

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In biotech terms, it’s called ED. At our house it’s called Friday night. Regardless, the problem with erectile dysfunction doesn’t stop at the bedroom door for the world’s biggest automaker. GM, the Detroit News reports, spends about $17 million a year on prescription coverage for erectile-dysfunction remedies like Viagra and Cialis, for the benefit of its insured workforce. So-called “lifestyle” drugs add up in GM’s annual healthcare tab of $5.6 billion, and coverage of Viagra and the like are examples that GM is using to show how its costs are raging out of control. GM, in addition to being the biggest automaker, has also become the world’s largest private purchaser of Viagra since its health plan with the UAW includes the drug. So the next time you shop for a GM vehicle and look at the sticker price, make sure to include those rebates — and throw in $1500 or so for other stiff penalties.