Sleuth; The Week of October 26

Hot off the press!

Aston-Benz project means more than shared engines: Rumors of a Mercedes-Benz alliance with Aston Martin first surfaced two months ago. However, the Sleuth hears talks are progressing quickly with farther-reaching partnerships now being discussed at the highest levels. The word is that the tie-up will be worth at least US $400 million. The first project could hit the road by 2010, sources said. That’s the same year Daimler, which owns Mercedes-Benz, will refresh its Maybach line, a project that has now been handed over to Aston Martin. If Aston does a good job, the partnership will spill into more joint projects. That means that the next Aston DB9 could use M-B’s 12-cylinder engine and a seven-speed transmission.

GM delays redesigns of key models: The full impact of slower sales and dried-up credit markets might not be seen in the product lineup on your dealer lot today, but it’s the next generation that might be of concern. The Sleuth hears General Motors has delayed the relaunch of two nameplates: the next-gen Buick LaCrosse; and the Cadillac CTS coupe. Both cars won’t hit the market until late 2009, a delay of about six months. Cost cuts seem to blame, but given how far along both cars are in the product pipeline, it could signal that parent GM is reshuffling the deck on its complete portfolio.

Infiniti-badged version of the Nissan GT-R in the works: Inside the halls of Nissan, the debate has been raging over who should get a four-door version of the GT-R sport car: Nissan; or its upscale Infiniti brand. Call it a sport sedan a la BMW’s M version of its 5 Series. The Sleuth hears that Infiniti has won out with a vehicle hitting the streets by 2011, giving the brand a new flagship model. But where the GT-R uses a 480-horsepower twin-turbocharged 3.8-liter V6, the Infiniti model will have a 420-horsepower version of the same 5.0-liter V8 used in the FX50 tall wagon. The GT-R’s all-wheel-drive system will be used and shifting responsibilities will continue to be handled by the car’s paddle-shifted manual gearbox.

Possibilities appear endless as BMW hints at third-party-software integration for its vehicles: There is a technological revolution taking place deep in southern Germany that could affect the way every car is developed in the future. The Sleuth hears BMW is working on an open-source platform for electronics that would allow third-party suppliers to develop plug-and-play applications for its vehicles. The move would allow the software industry to contribute code for in-vehicle infotainment systems, opening up a whole new world of possibilities. BMW will have an open-source platform within the next seven years, trade newspaper Automotive News reports. In simple terms, more software companies could compete for the electronics business and develop even more exciting features faster.

Buick might not have Tiger as a driver: Contract negotiations are ongoing, and although nothing has been decided, the Sleuth hears that pro golfer Tiger Woods might not endorse Buick for much longer. It remains unclear if his relationship with the GM brand will continue past 2009. Woods’ contact with Buick expires next year with both sides exploring if it makes sense to ink an extension. Woods’ current five-year deal is reportedly worth $40 million. With Buick having just one fresh model — the Enclave — and considering GM’s current financial state, the Sleuth thinks it’s pretty amazing that GM is even considering extending Woods’ Buick contract. The automaker is cutting spending left and right, and even recently cut some employee programs such as tuition assistance.

Market indicators

Even Toyota’s numbers: The Japan-based automaker is known around the world for producing highly efficient and reliable vehicles, but that sterling image wasn’t enough to protect it from the third quarter. During that time frame, Toyota saw is global sales slip four percent, resulting in the company’s first quarterly sales in nearly a decade. Toyota recorded sales decreases across the globe during its fiscal second quarter, but the company’s U.S. operations are largely responsible for the drop. In fact, Toyota’s September U.S. sales were off 32.3 percent with overall U.S. sales down 10.4 percent this year. Toyota recently launched a zero-percent-financing campaign in the United States to help boost the numbers.

Chrysler’s value with Daimler: The German company that once owned all of Chrysler and now owns 19.9 percent, depreciated its stake in the Auburn Hills, Mich., automaker from US $268 million at the end of the second quarter of 2008 to $0, at least from an accounting standpoint. On the books, Daimler says Chrysler has no value. Just over a year ago, Daimler said its nearly 20 percent share was worth US $2.2 billion. Apparently, the company says it plans to continue negotiations with Chrysler’s owner — Cerberus Capital Management — over the remaining share of Chrysler, though it’s unclear how this latest announcement will affect the transaction. Chrysler’s automotive and finance businesses lost US $1.17 billion this year, whereas Ford Motor Company lost US $8.6 billion and General Motors lost US $18.7 billion.