Marano, 46, will remain an employee of Cerberus Capital Management LP, majority owner of GMAC, and report to GMAC's CEO Alvaro de Molina, the New York-based company said in a statement. Jones elected to leave, the company said.

Last month, GMAC arranged more than $60 billion of new and refinanced credit after rising foreclosures left ResCap on the brink of bankruptcy. The package gave ResCap a one-year extension on $11.6 billion of bank facilities and $2.5 billion of new credit to finance home lending. General Motors Corp. sold 51 percent of GMAC to New York-based Cerberus in 2006.

``These management moves will further bolster the leadership team at ResCap and provide a diverse set of talents and skill sets as we work to stabilize the company and weather the near- term market challenges,'' de Molina said in the statement.

Tony Renzi, chief operating officer of ResCap's U.S. residential funding group, was appointed to the newly created position of ResCap COO. Jerry Lombardo, a Cerberus employee, will join Minneapolis-based ResCap as treasury executive, the statement said.

Marano was appointed non-executive chairman of ResCap's board in April, when he also joined Cerberus as a managing director. De Molina was named CEO of GMAC in March, four months after Sam Ramsey became chief risk officer.

Bear Stearns

Prior to arriving at Cerberus and ResCap, Marano spent more than 25 years at Bear Stearns Cos., the New York-based securities firm that was bought by JPMorgan Chase & Co. There he was head of mortgage and asset-backed securities and last year was assigned to help unwind two hedge funds that collapsed because of losses on bonds linked to subprime home loans.

As head of ResCap, he'll work to turn around a mortgage company that's recorded $5.3 billion of losses in the past six quarters amid the worst housing crisis since the Great Depression.

In 2006, ResCap was the 12th biggest U.S. subprime lender with more than $21 billion of mortgages, according to trade publication Inside Mortgage Finance.

To contact the reporter on this story: Ari Levy in San Francisco at alevy5@bloomberg.net.

via bloomberg 

An eyecatcher at first glance - this calls for a closer look AC Schnitzer presents the new styling and performance package for the BMW X6 The new BMW X6 exerts a particular form of magnetism: not only does its chassis sit perfectly on the road, it also magically attracts attention. Now it appears there is only one place where the fascination, dynamism and presence of the first Sports Activity Coupé (SAC) can be enhanced: in the workshops of AC Schnitzer in Aachen. The result is a visual and technical masterpiece which further magnifies the core qualities of the X6.

via ac-schnitzer 

By Will Oremus / Daily News Staff Writer

Vexed by rush-hour drivers careening through her manicured, residential neighborhood, San Mateo resident Anna Kuhre for years has been calling for more police enforcement.

She thinks she may have finally found the help she needs in Officer David Coy.

Three mornings a week, Kuhre picks him up at the police station and drives with him in a cruiser to a street near her house. When motorists see Coy parked there in his blue uniform and sunglasses, they tend to slow down and mind their road manners.

Most ease by without ever taking a close enough look to get the joke behind his name. Officer D. Coy is a dummy - a tool the police department has offered to Kuhre to scare speeders into obeying the law.

San Mateo police say they have used the decoy car in the past, but these days they don't have enough officers to deploy it regularly. So in a department first, they've agreed to hand the keys to neighborhood volunteers who undergo training and pass a background check.

The department launched the program last week without publicity, tapping Kuhre as the first participant. If all goes well, Police Chief Susan Manheimer said it could expand to include a volunteer from each of five different areas of the city.

It's part of a broader initiative that Manheimer calls the Neighborhood Traffic Corps. The idea is to address the near-constant rumble of speeding complaints by enlisting the complainers in the battle. For instance, some volunteers will be asked to stand watch at intersections and count the rolling stops, helping the department's four traffic patrol officers target their efforts. Others will help with speed surveys.

Another plan under consideration - borrowed from neighboring Burlingame - would give residents radar guns and notepads to take down the license plates of speeders, so police can follow up with warning letters.

"Frankly, in this era of dwindling resources for local government, we've got to rely on our neighbors and the community," Manheimer said. "This extends our reach and our eyes and ears" without pulling officers away from more critical crime-fighting tasks.

Kuhre, for one, is enthusiastic.

"I've been working on Third Avenue traffic issues for three years, and this is the most empowered I've felt," she said. "We're going to get this off the ground, and we're going to make it a success."

On Friday, her husband dropped her off at the police station on Delaware Street, where an officer met her to sign out the keys to the car. It's an actual police cruiser with working lights, although volunteers are under strict instructions not to use them.

"If somebody flags them down, we tell them to let us know - don't take any action on your own," said Capt. Kevin Raffaelli. "They're limited to driving to and from the destination. They will not be patrolling in a police vehicle."

Kuhre rolled off the lot, turned left on Delaware and headed toward the Baywood neighborhood, driving at the speed limit. She parked the black-and-white cruiser on Edinburgh Street between Fordham Road and Virginia Avenue - a stretch that bears scars from an experiment with speed humps that ended in controversy a few years back.

Several otherwise serene streets in the area have become notorious as rush-hour shortcuts for parents hurrying to work after dropping their kids at school on Alameda de las Pulgas. The Edinburgh speed humps were removed not because they didn't slow traffic, but because of complaints that they merely diverted the speed demons onto even smaller roads.

After propping Officer Coy in the driver's seat, Kuhre adjusted the angle of his head, fitted him with the sunglasses - her own touch - and gently brushed back his artificial hair. She crossed the street, inspected her work for verisimilitude, then turned and walked home.

Neighbors on Edinburgh, a few of whom had seen the decoy on its last visit, mostly welcomed the inanimate interloper.

"It looks like Officer Schroeder," said plumber Michael Tyo, referring to a living, breathing San Mateo traffic officer. "It's positioned great. I wish we had something like this out where I live."

Phil Acker, who lives near the corner of Edinburgh Street and Virginia Avenue, recalled a time years ago when the intersection was regularly patrolled by motorcycle officers.

"Every 10 minutes, he'd take off after somebody," Acker said. "Nobody ever stops at this stop sign."

Under the unwatchful eyes of Officer Coy, five of the first six cars made full stops at Virginia on Friday. The sixth slowed, eyed the mannequin in the cruiser, and rolled on through.

The police department had hoped to keep the decoy program under the public's radar, at least at the start. But Kuhre is broadcasting it in hopes of attracting more volunteers.

Burlingame's citizen radar program recently stalled because the city can't find enough residents willing to participate.

"I'm sure they'll get volunteers," said Karen Herrel, a member of the Beresford-Hillsdale Neighborhood Association, which has its own speed concerns. "Traffic is a real issue, and I think there are definitely people who will step forward."

Herrel herself has already signed up for the traffic corps, though she said she's not sure yet what her role will be. The decoy program, she noted, is just a part of the overall push.

"There are lots of things that police officers do that probably are not the best use of their time," Herrel said. "To the extent you can use volunteers in any organization, you're freeing up the professionals to do things only the professionals can do."

Manheimer was dismayed to hear that the decoy trick would be revealed in the newspaper. But she said drivers who begin ignoring Officer D. Coy are running a risk. Police at some point may outfit it with a camera, or even switch out the dummy for a real officer with a radar gun.

"Once drivers see the decoy," Manheimer said, "enforcement will not be far behind."



E-mail Will Oremus at woremus@dailynewsgroup.com.

via sanmateodailynews 

The Canadian Auto Workers union and General Motors have reportedly reached a settlement in a bitter dispute over the closure of a truck plant in Oshawa, Ont., that involves building two extra models at another plant in the city.

Under the deal, a new flexible car plant being built in the city east of Toronto will produce two other types of vehicles in addition to another two planned, including the Camaro muscle car.

Another key element involves paying senior GM employees a portion of their wages for up to four years until they reach the 30 years of seniority necessary to qualify for a special retirement incentive. The agreement also includes buyouts for employees leaving the company permanently.

The union said alternating two-shift operations at the truck plant will end on Dec. 21, 2008, with the plant going down to one shift as of January 2009. The CAW said GM has agreed not to demolish the plan during the lifetime of the agreement, which runs to September 2011.

CAW filed a grievance against the company in early June after the auto giant announced it was shuttering the truck facility in 2009, eliminating 2,600 jobs.

The news came two weeks after GM and CAW signed a three-year contract in which the union made major concessions in exchange for product commitments at the Oshawa facility.

The closure of the Oshawa trucking plant triggered angry protests, including a 12-day blockade at GM's Canadian headquarters in the city.

The automaker has blamed the truck plant's closure on soaring gas prices that have led to a fall in pickup truck sales across North America.

via cbc 

Autosport.com has learned that Franchitti is set to stay focused on NASCAR for now after pondering the options he was offered by Chip Ganassi, following their meeting two weeks ago at Chicagoland Speedway.

The Scot plans to compete in seven Nationwide Series races, alternating with fellow rookie Bryan Clauson at the wheel of the No.40 Fastenal Dodge, which has also been driven by Reed Sorenson and Scott Pruett this year.

In addition, Franchitti could make a one-off return to the Sprint Cup Series in October, driving the No.40 Dodge in the Pep Boys Auto 500 at Atlanta Motor Speedway.

Franchitti is not expected to be back in the Nationwide Series until after the final road course race of the season at Watkins Glen, as Pruett is set to drive the No.40 car in the next two races at Montreal and The Glen.

Juan Pablo Montoya will also drive the No.40 Nationwide car later this year when he races at Texas Motor Speedway in preparation for a run in the series' season finale at the Homestead-Miami Speedway, where he will drive the No.42 car sponsored by Powerade.

via autosport 

THE prime minister has pledged £90m in government money to help make Britain “the European capital for electric cars”, a promise that has already sparked interest from motor-industry giants such as General Motors.

Gordon Brown made his commitment at the British International Motor Show last week — arriving in a motorcade of Jaguars and Range Rovers. He said the money would be available over five years to support electric, hybrid and other environmentally clean car projects.

It is far from clear how this money will be spent. There were plenty of environmentally friendly cars at the motor show in London’s Excel exhibition centre. Most were small city cars imported from as far away as China and India, but there were also high-performance models from Tesla (an American company that subcontracts chassis construction to Lotus in Norfolk) and Lightning, a British start-up firm.

Of the leading manufacturers represented at the show, General Motors and Renault-Nissan have the biggest commitment to the development of electric cars. Carl-Peter Forster, president of General Motors Europe, took the opportunity to pitch a deal to Brown.

GM has already previewed its Flexstream concept car — a hybrid vehicle that is part of the company’s E-Flex programme — which it hopes to launch in America by the end of 2010. By 2011 it intends to sell the car in Europe as a Vauxhall or Saab. Although very cheap to run, the price will be high — about £32,000.

Like other carmakers, GM is faced with the high cost of reducing the fuel consumption and thereby carbon-dioxide emissions of its conventional cars to meet forthcoming European rules that are expected to require a fleet average of 130 g/km carbon dioxide.

Forster said that it was seeking a national sponsor for a “super credit” scheme that would allow ultra-low carbon-dioxide vehicles (below 50g/km) — like its E-Flex cars — to offset larger and more polluting models. If Britain was prepared to champion this idea within the EU, GM would consider making its electric vehicles at the Ellesmere Port plant on Merseyside.

The first E-Flex model will be based on the next generation of Vauxhall Astra, which will be made at Ellesmere Port. GM anticipates first-year production of 30,000 cars for Europe. Bob Lutz, GM vice chairman in charge of production development, believes that worldwide production of E-Flex cars could be 1m by 2020.

Unlike Renault, Nissan and many smaller companies that are climbing on to the electric bandwagon, GM does not believe in the pure electric car. E-Flex models are hybrids, driven by an electric motor and designed to be plugged into the mains but also include a small petrol engine to charge the batteries if the driver wants to go further than the 50 miles provided by the household charge.

Batteries remain the biggest hurdle for the all-purpose electric car. The advanced lithium-ion battery packs for E-Flex will cost £5,000 apiece. GM is about to announce which of its two development partners — CPI, a subsidiary of LG of Korea, and Continental — will provide the cells for E-Flex but, because it believes that electrics will play a large part in the future of the car, it is now bringing battery technology in-house.

Renault-Nissan has linked with Project Better Place, run by Silicon Valley entrepreneur Shai Agassi, which is to develop an electric-car infrastructure in Israel and Denmark — a network of service stations that swap depleted battery packs for fully charged ones.

This idea was rejected by GM on cost and logistical grounds, but it is an essential step if electric vehicles are to stand any chance of gaining ground on their oil-dependent cousins.

via business.timesonline 

Solo drivers would be able to a pay a toll for the privilege of using carpool lanes to speed their commutes on a dozen highways from the South Bay to Sonoma and east under a plan approved Wednesday by Bay Area transportation officials.

The system would be phased in over nearly two decades, starting in late 2010 or early 2011, and the first pilot projects would open on two congested corridors: southbound Interstate 680 over the Sunol Grade and both directions of Interstate 580 between Livermore and the I-680 interchange, according to the Metropolitan Transportation Commission, a regional planning and funding agency, which is coordinating the plan.

Eventually, the toll-lane network would be expanded to cover nearly 800 of the region's 1,200 miles of freeway lanes.

The price of the tolls hasn't been decided, but it could start out at a couple of dimes per mile. Motorists would use FasTrak transponders to pay.

The region-wide project along segments of 12 highways would cost an estimated $3.7 billion to build. Officials anticipate the system will generate more than $6 billion in 25 years - enough money to cover the project's expenses and produce additional cash for other roadway and transit improvements.

And while making money is an important goal, it's not the only one, said John Goodwin, spokesman for the Metropolitan Transportation Commission.

"On most days, on most corridors, we have unused capacity in the carpool lanes, and this is making more efficient use of our resources," he said. "We can't build our way out of congestion."

While the toll lanes won't cut down the number of cars on Bay Area highways, they should reduce congestion by getting some drivers out of the most jammed lanes and luring them to the less-crowded carpool lanes if they pay.

Officials estimate that by 2035, under the new plan, motorists traveling in the general lanes would move at an average speed of 39 mph, while motorists in the carpool or express lanes would be moving at an average speed of 54 mph.

Officials don't expect individual drivers to use the toll roads every day, but when pressed for time.

"There's been debate over whether these will be Lexus lanes" - a perk for wealthy drivers - "but that's not the case," said Bijan Sartipi, the Caltrans director for much of the Bay Area.

He pointed to a California Polytechnic State University San Luis Obispo study of toll lanes in Southern California that found they are used by people of all incomes. It also found that the same drivers don't always use them every day. Instead, some drivers use them only when it pays to get somewhere on time - for example, to work or to a day-care center that imposes a charge for late pick-ups.

The amount of the toll would fluctuate based on demand. During peak periods, when congestion is the worst, the charge would be higher. The price could vary minute by minute, road by road.

As congestion builds on the express lanes, the toll would go up to discourage solo drivers from using them and keep traffic flowing at a faster clip than the normal lanes.

Officials anticipate that solo drivers initially would pay 20 to 60 cents per mile in the early years of the program, and perhaps up to $1 per mile in 2030. Carpools, vanpools, mass transit and motorcyclists would continue to use the priority lanes for free.

Under the scheme, people driving alone would enter and exit the express lanes at designated locations and be tracked via a network of electronic readers erected along the freeways that link to a FasTrak transponder in the vehicles.

The charge would be automatically deducted from prepaid accounts, just as the FasTrak system now operates on Bay Area bridges.

The pay-as-you-go express lanes are in use on Highway 91 in Orange County, I-15 in San Diego and highways in Houston, Minneapolis and Denver.

In the Bay Area, the toll roads would be incorporated into existing carpool lanes, which now comprise about 350 miles of freeway, and the approximately 140 miles of additional carpool lanes now under construction. The plan calls for building another 300 or so miles of the lanes to fill in the gaps and create a seamless network.

The Metropolitan Transportation Commission approved the funding plan for the project Wednesday, with the goal of having all the express lanes in place by 2025. However, with the exception of a handful of demonstration corridors - two each in Alameda and Santa Clara counties - state lawmakers would have to grant the Bay Area permission to proceed. A bill to do that is pending in Sacramento.

The commission also is working with county congestion management agencies, Caltrans and the California Highway Patrol to turn the idea into reality.

via sfgate 

It has been hard to pinpoint just what will power the much-anticipated Audi RS5 and next-generation Audi RS4 models. With the S4�s impending move to a six-cylinder supercharged 3.0-TFSI and the current S5 running an FSI V8, we know that Audi is pushing for variation between the two similarily sized S-cars. Then, just last week a report from Car Magazine suggested Audi will opt for an even more-powerful 3.0 TFSI in the RS4 � paraphrasing a discussion their writer had with an un-named Audi executive over dinner at a new model launch in Valencia Spain. If this is right, then it marks a significant change for the RS4 and opens up the further question of differentiation between the upcoming RS offerings. With so many rumors flying around, we began to put together what we knew and put those questions to a wide list of contacts. And oh yeah, we were also headed to Valencia so we figured we'd ask around. Below is a summary of what we found.

First and foremost, the cars will use the same engine. While Audi sees the S5 and S4 as being different models for different customers and thus worth going through the trouble of developing two powerplants, this won�t be the case for RS4 and RS5. There just isn�t enough volume to make a business case and RS customers are looking for the ultimate offering � one new engine will suffice.

We�ve known the RS4 is coming for a while now. There�ve been rumors in the press, assumptions based on market demand and the release of a new BMW M3 that raises the bar in the segment. However, a mention by quattro GmbH boss Stephan Reil during an interview caused us to come the conclusion that the model was in stone.

So what of forced induction? CAR says the 3.0 TFSI in the form of an even more potent iteration that�d have to be at least 420-hp to match the outgoing model. While a turbocharged system was developed for this motor, we�re ruling out both forced induction options. We�re told specifically on the turbos there are packaging issues, especially in smaller applications of the MLB such as the A4 and A5 on which these two new RS cars are based.

Without naming our source, we solidly believe the notion of one engine to be credible. A move to a forced-induction V6 in the RS5 as compared to the V8-powered S5 doesn�t make much sense. Given the news from a magazine as reliable as CAR, this just raised more questions for us.

So we flat out put it to an executive over dinner and the answer was surprising. The RS4 and RS5 will get a high-revving engine like the outgoing RS4. The high-rev applications in the R8 and B7-generation RS4 have impressed Audi�s engine development teams and they wish to continue in that direction with the next-gen of Audi�s hottest models. First comes a high-revving V10 in the R8 this fall, then an assumed V8 in the RS4 and RS5.

The two running RS5 engine rumors prior to our trip to Valencia were either a supercharged 4.0 TFSI or a 450-470hp variant of the current RS4�s V8. We now believe a 4.0 TFSI turbocharged application is being readied for duty in the next-generation A8 based on our recent discussion, but that likely wouldn�t fit in the B8 chassis A4 and A5 applications.

This leaves the idea of an improved high-revving V8. Previous rumors put the updated high-revving 4.2 at 450-hp, though a recent news article from German auto magazine Auto Zeitung about the RS5 suggests as much as 50 hp more, putting the number at 470-hp. One thing is for sure, our contact tells us there will not be an increase in displacement.

So where doe does Audi plan to get the added power? The current engine is about as tuned as one might expect a production engine to be, so 30-50 more horsepower from a streetable ECU, intake or more aggressive exhaust doesn�t really add up. We�d asked drivetrain engineers in the past about Valvelift, though it had been suggested Valvelift wouldn�t spin as high as the RS4�s 8,000 RPM redline. We again raised the question of Valvelift and were told that it certainly does work within the rev range of the current RS4 4.2. If that�s so, this might explain the bulk of the rumored power jump, while other frictional loss is expected to be minimized as Audi has done in its V6 and 4-cylinder ranges. If our assumption is correct on this engine, don�t be surprised to see the R8�s base engine also get the same upgrades within that car�s own model cycle.

As of yet we�ve not heard of any RS4 models in testing nor have we caught any spy photos. While no RS5s have surfaced either, we have it on good word that at least one board member is driving an �S5 fitted with an RS4 engine� and that there are at least two RS5 drivetrain mules known to be testing in America.

In addition to the new engine, we�ve also been told that these models will get Audi�s latest 7-speed S-tronic dual-clutch automatic transmission (a.k.a. DSG), though hopefully not as the sole offering. The new RS cars will also benefit from Audi Drive Select (ADS) � controlling suspension, steering weight and ratio, throttle mapping, and shift points on S-tronic models. Audi�s new torque-biasing all-wheel drive set to debut on the next-generation S4 is expected and, we were told, will be controlled via the Audi Drive Select portion of the car�s pre-programmed ADS settings or via the MMI system for custom settings

While in Valencia, we tried our hands at an S5 mule fitted with the 7-speed S-tronic box on a very small track outside of the city and were pleased with what we found. A full report will be out soon, but the incredibly fast shifting and intuitive Sport shifting modes we�ve experienced on earlier transverse S-tronic models were matched by the new 7-speed longitudinal box.

Another point of interest that very well could effect American versions of the RS4 and RS5 is that the as-of-yet European-only Recaro shell-style sport seats have been developed for airbag fitment and thus North American sale. The seat�s lighter-weight construction and more aggressive bolster design offer significantly greater sporting feel for track rats or simply those who like a good bear hug while driving. Given the B7 RS4 was the first such car from the Volkswagen Group to incorporate these seats, don�t be surprised to see them as optional fare on the RS4 and RS5.

Fourtitude created the illustrations you see here for the express purpose of helping to give a vision of what can be expected. Rather than guessing where we think the designs will go, we�ve carefully added current elements from the most recent RS6 - blister fenders, the latest RS style wheels and an aggressive fascia to show what an RS4 or RS5 released today might look like. We�ve gotten no official comment from Audi on how close these images are, though quattro GmbH boss Stephan Reil was impressed enough by the two images to request that we send him high-resolution copies.

With the S5 already on the market and the S4 set to bow at the Paris auto show, combined with our knowledge of test vehicles, expect to see the RS5 debut first. The RS4 should follow close behind the coupe � we�re guessing the RS5 could debut as early as next spring�s Geneva Auto Show and maybe the RS4 at the 2009 Frankfurt IAA. These launch projections are guesses but, given the importance of these two vehicles, they seem to be the most logical choices.
 

via fourtitude 

via fourtitude 

One of last week’s hottest news stories involved the French Police raid at Auto Plus (magazine) over spy pictures and details of a new model that were leaked to the press.

Well, we’re far away from France and unlike what is implied in the newspapers regarding a journalist at Auto Plus, we didn’t have any inside information – but our spy snappers stumbled upon a video shoot in the United States involving the next Megane. And although we have a variety of people attempting to cover the vehicle, photographers managed to get pictures of the next Megane – showroom ready!

The new Renault Megane III will be launched at the Paris Motor Show later this year and, as you can see, will be a strong departure from the current Megane design.

The new Megane will be a small family car offered in 3- and 5-door hatchback guise, with other versions (sedan, coupe, convertible, station wagon and probably crossover body-styles) to follow. Built on the same platform as the Nissan Qashqai, this European Renault will engage in a formidable fight with the Peugeot 308, Fiat Bravo and VW Golf VI, and will obviously be much more than just a mature evolution of the current Megane.

via worldcarfans 

Volvo will begin a recall of approximately 1,020 of its 2008-'09 C30, C70, S40 and V50 models by the end of July to correct a problem with the power steering return line hose.

The National Highway Traffic Safety Administration (NHTSA) says that the hose was not properly cured and does not meet specifications.

"If the power steering return hose fails, a sudden rupture of the hose can occur," says the NHTSA in its recalls summary of the problem. "This can result in a rapid drainage of the power steering fluid in the system and complete loss of power assistance, increasing the risk of a crash."

Volvo dealers will replace the hose assembly, if necessary, at no charge. Owners can contact Volvo at (800) 458-1552.

What this means to you: If you own one of the aforementioned Volvos, better have it checked out ASAP with your dealer. — Anita Lienert, Correspondent

via edmunds