Vehicles

Move the shedding of Hummer, Saab and Saturn forward to the end of this year, with Pontiac gone by the end of 2010.

Cut production by 190,000 in the second and third quarters.

Dealership network

Slash dealerships by 40 per cent to 3,605 from 6,246.

Workforce

Reduce the workforce from 61,000 to 40,000 – 7000 more than suggested in the viability plan put forward in February.

Financial

Execute a debt-swap and restructure that positions the US Government as a majority owner of about 50 per cent — in exchange for forgiving half the debt of the $US15.4 billion already loaned to GM, and adding another $US11.6 billion to it.

The United Auto Workers union pension fund would own 40 per cent in exchange for half of the $US20 billion it’s owed.

Holders of GM’s $US27 billion worth of bonds would end up owning 10 per cent, with the carmaker exchange 225 common shares for each $US1000 principal amount of outstanding notes.

If the bondholder approval rate falls short of the required 90 per cent, GM will file for bankruptcy protection, with bondholders estimated to get just 5c in the dollar – a far cry from the 33c tipped earlier this year.

A Sydney university team has developed Australia's first hybrid-electric car that can both be charged from a household plug and help supply electricity to the grid.

The SWITCH — developed by the Institute of Sustainable Futures at University of Technology Sydney — can charge its batteries from a household supply using cheap off-peak electricity and feed any spare power it stores back into the grid at peak demand times.

"This is very, very exciting," project director Chris Dunstan, of UTS, says. "There are only a handful of V2G (vehicle to grid) examples around the world but the potential is enormous.

"Being able to go out and buy one of these vehicles is not going to happen next month ... it's not going to happen next year ... but when there are thousands of these out there the effect on renewable energy will be huge."

Dunstan says the SWITCH prototype, the next step in the electric vehicle revolution, was adapted by the UTS research team from a standard Toyota Prius by adding extra batteries, controls and connections.

While the prototype does not have the capacity to recharge its extra batteries with recovered energy — as the factory-fitted Prius system does — it is something they are working towards.

"At the moment it is purely a storage system for extra electric charge which can extend the pure electric range of the Prius, but we are certainly interested in being able to gather charge from the car," Dunstan says.

The superstar stunt and speed driver for Top Gear television made a flying visit to Australia last month and put his skills to the test when he jumped into Garth Tander's V8 Supercar.

He was an instant convert to the Holden Racing Team, running hot laps during an open test at Winton in Victoria.

"Having been chewed up and spat out the other side at Winton, I feel a great respect for the cars and the way the drivers race them," says The Stig.

Except . . .

The driver in the racer red Commodore at Winton was officially only Ben Collins, a one-time Formula Three hotshot in Britain.

And his words of praise, published in motorsport bible Autosport, were reported under Collins' name.

But everyone in the motor world knows Collins was outed on January 19 as The Stig by the Daily Telegraph newspaper in England. It reported his work on the top rating television show in a move which lead to the apparent 'death' of The White Stig at the end of the current series of Top Gear.

"We can only say that Garth's car was driven by Ben Collins," says a Holden motorsport spokesman.

Even, so the Collins-Stig's assessment of the VE racer is full of praise - and respect.

"The V8 Supercar is unique: if you step in with your own agenda it will bit your ass!," Collins says.

And the final assessment?

"V8s are, indeed, 'Super' racing cars. Not just for the competitors but the spectators too."

The car was sent to death row yesterday as General Motors put the sword to the whole Pontiac brand in its efforts to survive the global economic crisis.

Pontiac will be dead by the end of 2010 as GM focusses its revised viability program on four key brands in the USA - Chevrolet, Cadillac, Buick and GMC.

There is no clear picture yet of how the G8 decision will affect Holden's factory at Elizabeth in South Australia, although its output had already been slashed in reaction to falling local sales of the Commodore and in anticipation of the Pontiac decision.

"We will work with Pontiac to manage the phase-out of the G8 through to the end of next year. The announcement has only just occurred so we don’t know what their expectations might be, as the car is currently selling really well," GM Holden spokesman, Scott Whiffin, said this morning.

"Notwithstanding the fact that this has only just been announced, we don’t envisage there will be any job losses at Elizabeth as a result of this decision."

The bad news on the G8 was balanced by no news of any potential sale of GM Holden.

General Motors has talked recently about selling its Opel and Vauxhall divisions in Europe and Britain - in addition to Saab and Hummer - but there was no mention of GM Holden when GM president Fritz Henderson worked through the latest viability plan in Detroit last night.

The end of the G8 means GM Holden will shift its focus very quickly to the export potential of its new small car, the Cruze, which goes into production alongside the Commodore next year.

The business plan for the car was originally only based on Australian sales but the car - and particularly the hatchback model - will now be pushed as a potential winner for GM outposts in other countries around Asia and also South Africa.

It could also join the Commodore in the Middle East, where a version of the VE is sold with Chevrolet badges.

The 2002 makes an ideal first classic that with a moderate amount of TLC can be used as everyday transport. It has for a number of years been highly collectible with the Tii the most desirable of the "common cars". The Convertibles and Turbos are very rare and unlikely to be seen as daily transport on Australian roads. Most being in the hands of die-hard BMW enthusiasts and leading a pampered life.

In general, if you are looking to purchase a 2002, the condition of the body is far more important than the engine and drive-train. The mechanicals are simple and relatively easy to work on.

Body

The build quality of the original car was excellent, but like any 35-40 year old car rust cannot be avoided. The areas to specifically look out for are;

* around the front indicators

* Lower rear of front fenders

* Sills and bottom of the doors

* Wheel arches - inside corners

* Rear panel below boot - inside and out

* Inside the engine bay around the headlight assembly.

* Floor, boot floor and fuel tank.

* Rear shock towers - visible from inside the boot.

If the car has a sunroof - around the inner edges and also the out roof sills as drainage can be a problem

Engine

The M10 was a strong engine, especially the bottom end with its 5 bearing crankshaft. The most problematic area lies with the valva train, especially on earlier model. The original head had inefficient lubrication channels that results in wear to the valves and seats. You will howver find that most available 2002's have had engine upgrades done over the years and the problems resolved.

The 2002 engine is a simple to work on and in most cases reliable. Normal checks should be done for engine noises, rattling of valvetrain that might be the result of a stretched timing chain. Any smoke is usually the reult of wear in this area.

Older cylinder heads have been known to crack and warp. Identifying tell tales of this are water in the oil and a sweet smell around the engine and radiator.

In genral though the engine is solid and reliable, parts are readily available and the simplicity of the engine means re-builds are not too costly. The fuel injector system is strong and robust but should be serviced regularly.

Drivetrain

All transmissions are reliable and the clutch on manuals in strong. The only reported problems were originally with 2nd gear synchros and the output flanges but most transmissions have been rebuilt by now with ugraded parts that have resolved the issues.

Differentials are strong but sometimes have an oil leakage problem.

Interior

Always look out for a car with the interior in good condition. It is not only a pointer that the car has been look after, it is also the second most important factor in purchase. Not as important as a good body, but mnore important than the mechanicals. The cost of re-upholstery and a re-trim can be significant.

Collectibility

The 2002 has always been a popular car. It is still an accessible collector car as reasonable examples can current be found at an affordable price. As with purchasing any classic car, never spend your full budget on the purchase, there will invariably be items that will require work Although rare in Australia, avoid the automatic transmission as it dilutes the sporting experience and is detrimental to re-sale value.

The rare convertibles and Turbos will always be at a high premium. For the average person interested in getting into the classic car scene the2002 is a good choice and the Tii, injector model is the best bet.

The 2002 has an active global enthusiast network. Detailed advice is available from many owner group forums on the Internet and there are numerous clubs suitable for BMW 2002 owners here in Australia.

Common to all

• 1990cc engine inclines at 30 degrees.
• Cast iron block and Alloy head.
• 89mm x 80mm bore and stroke
• Single Overhead Cam - SOHC

Specifications by Models

2002

• 70kW @ 5500 rpm, 116 ft lb @ 3500 rpm
• single Solex 40 carburettor.
• 171 kmp top speed
• 0-100 kph in 11 secs

2002 Ti

• twin Solex 40 carburettors.
• 115 mph top speed

2002 Tii

• 88kW @ 5800 rpm, 131 ft lb @ 4500 rpm
• Kugelfischer Fuel Injection.
• 184 kph top speed
• 0-100 kph in 9.3 secs

2002 Turbo

• 119kW
• KKK Turbocharger
• 209 mph top speed
• 0-100 kph in 7 secs
• The 2002 Turbo was unveiled at the 1973 Frankfurt auto show. Only 1672 cars were built and all were left hand drive.

Body Styles

• 2 Door Hardtop
• Touring - 2 door wagon/hatchback - 1971 to 1975
• Baur Cabriolet - removable centre roof panel and fold down canvas rear section.
• Convertible - full folding canvas hardtop - introduced in 1971

Distinguishing Features by Year

1968-1968

• plain trim, spartan interior
• chrome bumpers
• round taillights
• silver/black combination metal grille.
• two-piston front callipers and smaller rear drums approx first 200 cars.
• The rear axle uses the long-necked differential with sliding type universal joints
• one barrel Solex carb.

1969-1970

• 4-piston front callipers.
• A new style (short neck) rear axle was incorporated with regular style CV joints.
• interior trim mildly upgraded.

1971

• The instruments and dash upgraded

1972

Tii

• new cylinder head - E12 head, with a different combustion chamber shape
• bigger valves - 46mm
• Kugelfischer mechanical fuel injection
• higher compression (9.0:1 vs. 8.5:1)
• larger intake valves (46 vs.44mm),

Turbo

• KKK Turbocharger
• larger brakes,
• stronger suspension components including strengthened control arms, spindles and hubs.
• 1/2 inch wider wheels (5X13 vs 4 1/2X13).

1973

• Slight changes in interior switch placement/trim.

1974

• Taillights changed to rectangular shape
• front grill becomes black plastic
• interior is upgraded with new style upholstery
• Updated dash/instrument cluster with fake wood grain surround.

1975 - early 1976

• New seat design
• new cylinder head (the E21 2.0), to be used on the '77-'79 320i,

Options

• Automatic transmissions where available on carburetted versions between 19'69 and 1975.
• Air-conditioning
• Sun-roof.

The BMW 2002 is the most important model in BMW's history. It established BMW as a builder of quality performance sports sedans, brought global success and cracked the lucrative US market. The 2002 was the precursor to the 3 Series which built on the 2002's success and became the class leader for more than three decades.

The 2002 was designed in Italy by Giovanni Michelotti and based on the "New Series" 1500 and 1600 sedans with a 5cm shortening in wheelbase. Introduced in January 1968 and sold through to 1975 the 20 in the name refers to the 2.0 litre capacity while the 02 represents the two doors.

The model owes its existence to Max Hoffman, the US BMW importer of the period who requested BMW place the 2.0 litre engine in the 1600-2 body. The 1600 cc engine could not pass the US smog emission requirements.

The 2002 model received four badges through its life:

* 2002 - a single carburettor engine

* 2002 Ti - twin carburettor engine

* 2002 Tii - fuel injected engine

* 2002 Turbo - Limited production Turbocharged engine

Four different body styles were sold through the production run;

* The standard two door hardtop (the only body style available for the turbo version)

* The Baur cabriolet - a removable metal centre roof section with a folding soft rear behind a reinforced t-roof.

* The Touring - a cross between a 2-door wagon and hatchback.

* The very rare full-convertible soft-top.

All retained the same basic engine, a 1990 cc cast iron block, aluminium head unit set at a 30 degree incline. The main change through the life of the power train, besides the fuel and induction delivery systems were two changes to the head design.

All leading motoring magazines of the period were universal in their praise for the 2002. The virtues of its performance and quality were expounded with the only regular criticism being around the austere looks of the cars styling and interior. Some also noted the limited rear leg room.

The 2002 had a very strong racing career that continues now in historic race series. In 1969 Dieter Quester won the European Touring Car Championship in the 2.0 litre class and was runner up overall to the Porsche 911. He also managed to win four rounds of the championship outright.

BMW has recently revisited the concept of the 2002 with the introduction of the 1-series, the spiritual re-interpretation of the ground breaking original. The 1-series has re-set the package after the bloating of the 3 series that saw engine capacity and cylinder numbers double in the top of the line performance versions .

Previously it was only the VW Transporter and Caddy that had the four-star rating, the top safety rating so far achieved by vans in Australia, but the 'Benz van has joined them and can now also claim to be the safest van in the land.

While other vans leave their drivers' legs exposed to serious injury in a frontal crash VW and Mercedes have managed to minimise that risk.

"These 4-star vans demonstrate this type of vehicle can be designed to minimise leg injury," says ANCAP Chair, Lauchlan McIntosh.

While VW and Mercedes are setting the safety pace the Mitsubishi Express languishes at the other end of the field with a single star against its badge.

It has ruled out any chance of a four-pot price-fighter to cut the entry price for the Porsche family, despite recent rumours from Europe.

Any talk of the next-generation Boxster in 2012 taking on a turbocharged four in the tail was strongly denied by Porsche's executive vice-president for research and development, Wolfgang Durheimer.

In China to help launch the luxury four-seater Panamera, Durheimer says Porsche is chasing better fuel economy and lighter weight across all its models but a four-cylinder is not part of the plan, at least at present.

"A lot of people are around hinting about what we could do," he says.

"Of course, in the past we had four cylinders but at present we don't have a project under development."

Despite Durheimer's denials, Porsche's own engineers say the six-cylinder boxer engine can be converted into a four cylinder without too much trouble, giving an engine capacity of 2.4-litres.

Despite his denials, the Porsche engineering chief admits some of the ideas used in Volkwagen's smaller twin-charged turbocharger/supercharged engines have merit. And, since Porsche owns VW, there is room for collaboration.

"Together with VW we have a very bright future ahead of us, we have the chance to share forces," Durheimer says.

But he says any transfer can only happen if VW and Porsche are not direct competitors.

Porsche last had a four cylinder in the 924 and 944, a series built built between 1976 and 1988.

The 924 was originally designed as a VW sports car but Porsche took it over as a replacement for its mid-engine 914.

If Porsche does decide on a four-cylinder model it can gain some inspiration from VW's own BlueSport roadster concept, which was shown at this year's Detroit Motor show. The performance two-seater sports car has hybrid-like economy but uses a mid-engine 2.0-litre turbo-diesel.

The BlueSport uses light-weight, high strength steel, tipping the scales at just 1200kg.

While denying a four, Durheimer is strongly in favour of Porsche hybrids. The company has already confirmed it will use a petrol-electric drive-train in the Cayenne SUV and Panamera in 2011.

Durheimer says hybrids will be around "for a very long time" and present a solid case to bridge the gap between fuel economy and performance.

However, diesel and petrol engines are also becoming more efficient, he says.

"Petrol and diesels are getting more and more efficient but hybrids will help bridge the gap," he says.

Ford has suffered a signficant sales setback over the past 18 months but the company's new chief, Marin Burela, says it has all the ammunition it needs to hit the target in Australia.

He believes everything from the baby Fiesta to the homegrown Falcon has been undersold and is pushing a new line to revitalise the showroom action.

An upbeat Burela was launching the $20 million Advanced Centre for Automotive Research and Training's environmental wind tunnel, noting the investment highlights the technology and innovation Ford is using to appeal to efficiency conscious consumers.

"This was once a myth and a dream," he says of the XT Falcon's 9.9-litres for 100km fuel consumption.

"There are some mainstream large volume four-cylinders that achieve that economy ... you can actually have a large car and be socially responsible.

"We've also been locked out of certain markets because we didn't have a large car with sub-240g/km emissions.

"Governments wouldn't even put us on their shopping lists.

"This Falcon now achieves emissions of 238g/km.

"I'll be knocking on the door of those governments (departments) and fleets."

"For those who choose not to drive a large car, then the Fiesta actually provides better fuel economy than the (Toyota) Prius and at $15,000 less."

Behind the positive spin is a simple fact — Ford's marketing hasn't matched its product.

The Falcon was awarded Car of the Year by Carsguide and Wheels last year — and was last month outsold by the Commodore by 1554 cars.

Ford is touting Paul Gover's assessment of the Fiesta as "the best car in class — simple as that" on a 12m billboard next to Melbourne’s Bolte Bridge — yet the best car in the segment is being outsold by the Toyota Yaris and Hyundai Getz.

"All we have to do is get Australian customers to accept the world is at their door," Burela says.

"We'll be advertising in a very focused, very specific way."

"We need to get people to drive the cars and judge for themselves."