Max Auto Updates - 30/04/2010

Tree 'speed hump' causes chaos

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An enormous tree in the middle of Trevor Street, Lorraine, had many motorists up in arms on Wednesday morning.

The tree was left in the middle of the road in the early hours of Wednesday morning, with the words "Speed bumps please!" written on the road.

Who the culprit was remains a mystery.

The tree lay in front of Braam du Plooy's house, who told of how motorists yelled and screamed at him on Wednesday morning.

"I don't know who did it, but it wasn't me.

"Last night (Tuesday night) at about 01:00 I heard the screech of a car's tyres. When I went outside, I saw that a car had crashed into the tree."

'Wild racing'

According to Du Plooy, the car drove away.

His neighbour, Dean Sale, who has lived in Trevor Street for 33 years, is tired of begging and pleading for a speed hump.

"Even if you know who put the tree there, you aren't going to say anything. We're sick and tired of the wild racing in the middle of the night.

"I've also had a few chickens trampled here."

According to DA council member, Gustav Rautenbach, this is the second time that this road has been barricaded by tree stumps.

"It happened on Monday as well. I understand their frustrations, but it's illegal to do it this way."

Democratic platforms for issues

Kupido Baron, spokesperson for the Nelson Mandela Bay Municipality, said on Wednesday that nobody has the right to block a public road.

He also asked that the public come forward if they have any information.

"The metro won't take note of senseless attempts to focus attention on a particular issue.

"There are various democratic platforms to bring issues such as the building of speed bumps to the attention of the local authority."

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2010 Miss Tuning Finalists Revealed



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500 contestants have been narrowed down to 20.

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GM to Bring Chevrolet to Korea - Camaro in 2011

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GM will be bringing the Chevrolet brand, starting with the Camaro model, to South Korea.

GM has been building Chevrolet into a powerful global brand ever since it switched its GM Daewoo division cars to carrying a Chevy badge in most markets around the world. In South Korea, GM continues to sell its current global Chevy lineup under the Daewoo brand.

The announcement was made at the Busan International Auto Show in Busan, Korea by GM Daewoo president and CEO Mike Arcamone. "The introduction of Chevrolet will enable us to provide our customers an array of exciting new vehicles from the brand's global lineup, giving them more driving options," said Arcamone in the press release.

GM says it will not be replacing the Daewoo brand in Korea with Chevrolet, something GM Daewoo's union opposes. "Our decision to launch Chevrolet is in the best interest of GM Daewoo and Korea," said Arcamone.

The Chevrolet Camaro will go on sale in Korea in 2011.

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BMW overtakes Toyota as most valuable car brand



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According to a recent Millward Brown survey, BMW is the most valuable automotive brand.

The company surpassed last year's winner, Toyota, with an estimated value of $21.82 (€16.52) billion. Toyota, while second, was valued at $21.77 (€16.48) billion. Due to the economic downturn, both companies had lower valuations than last year.

Honda came in third with a value of $14.30 (€10.83) billion, Mercedes was fourth with $13.74 (€10.40) billion, and Porsche was fifth at $12.02 (€9.10) billion.

The big gainers were Volkswagen (up 20 percent) and Ford (up 19 percent), while the big losers were Porsche (down 31 percent) and Toyota (down 27 percent).

World's most valuable car brands in $ billion; (rank in top 100)

1. BMW $21.82-- (25)
2. Toyota $21.77 -- (26)
3. Honda $14.30 -- (46)
4. Mercedes $13.74 -- (53)
5. Porsche $12.02 -- (65)
6. Nissan $8.61 -- (86)
7. Ford $7.04 -- *
8. VW $6.99 --
9. Audi $3.62 --
10. Renault $3.26 --

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Car smugglers target Mozambique border

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As many as 100 stolen vehicles a month are being smuggled over the border to Mozambique, the SA National Defence Force (SANDF) said on Thursday.

Criminal syndicates were using the mountainous terrain of the Mozambican border to hide their activities before the vehicles were driven to the nearby N4, giving them a clear path to Maputo, said Colonel Patrick Ncba Bobelo.

"More than 100 vehicles a month: Land Cruisers, 4x4s, Mercedes-Benz, even small cars," he told Parliament's defence committee, which is inspecting conditions on South Africa's borders.

The syndicates drove the vehicles to the border where South African villagers sheltered them, hid the vehicles and provided information on local law enforcement before each crossing was attempted.

Syndicates

Along South Africa's border with Zimbabwe, the syndicates cut holes in the border fence then repaired them to conceal their activities. It was difficult for casual observers to see the repaired holes.

Villagers were paid R1 000 to R2 000 for their assistance said Bobelo.

Where several hundred metres of the fence were missing, it was because locals had stolen the wire, presumably to re-sell it elsewhere.

Defence Minister Lindiwe Sisulu and the defence committee were assessing conditions on the border before the SANDF takes over border monitoring from the police.

Sisulu said in a statement that the SANDFs redeployment would be a challenge.

"This is a major programme, the infrastructure is not the best it can be, the fence is not in a good state, we have an over 2000m long, land border we have to look after and that requires both financial, technology and human resources," she said.

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BMW announces return to DTM to challenge Audi/Merc



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BMW has made a tentative decision to rejoin the Deutsche Tourenwagen Masters (DTM) race series, according to a press release issued by the automaker. Assuming BMW fulfills specific requirements set out by ITR, the association behind DTM, the German manufacturer will participate in the 2012 race season with the BMW M3.

"The planned return to the DTM is an exciting challenge for our team," said BMW Motorsport Director Mario Theissen. "Over the coming months we will be making all the necessary technical preparations that should allow us to be competitive right from the start should we join the series in 2012."

The DTM, known in English as the German Touring Car Masters, is currently raced exclusively with cars built by BMW's main rivals. In 2009, racing versions of the Mercedes-Benz C-Class AMG and the Audi A4 were used by the seven participating teams. These teams fielded 21 drivers over ten rounds of racing from May to October. Circuits utilized for the series are based mainly in Germany, with additional races in France, the Netherlands, Spain, and the United Kingdom.

BMW had participated in the original DTM series for a period of time before the series folded after the 12th season in 1996 due to a lack of interest by the manufacturers. Ìt was later reorganized in 2000.

Max Auto Updates - 29/04/2010

Mitsubishi and PSA tie-up for new SUV

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Mitsubishi announced a new joint venture with France’s PSA Peugeot Citroen to launch a new sports utility vehicle.

The Japanese manufacturer said it had entered into a new partnership with PSA to launch a compact SUV in Europe by 2012. Available in four- and two-wheel drive, Mitsubishi will avail 50 000 units annually of the vehicle to the French group annually.

The two carmakers already have an agreement in play with Peugeot’s 4008 and the Citroen C-Crosser being sister models to the Mitsubishi Outlander. PSA will supply turbodiesel engines.

The revised agreement was announced on Tuesday when Mitsubishi announced its return to profitability. The carmaker’s global sales were down 10% on the previous year, with big markets North America and Europe taking hits. However, Asia sales were robust with the Chinese market recording a 64% increase.

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Son gets dad's Veyron impounded

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Even if your dad is a stupefyingly wealthy director of one of Europe’s biggest technology companies and a former F1 team sponsor, he’s not going to be thrilled if you manage to get his Bugatti Veyron impounded.

This is exactly the unfortunate state of affairs which befell young Dutchman Thurs Perridon recently.

See, Thurs is the son of Michel Perridon - former sponsor of the Spyker F1 team and director of Trust International BV.

The elder Perridon is not a man of humble means by any stretch of the imagination. He was the first owner of a Bugatti Veyron in the Netherlands and is a keen petrolhead.

Now though, he could be without his $2.4m hypercar as Thurs was caught doing 160km/h in an 80km/h zone near Rotterdam’s airport.

Speeding is regarded as a serious crime in the Netherlands (they invented the speed camera after all) and not only has Thurs lost his license (no fun for a 22-year old) but his dad’s Veyron has been impounded too.

You could only imagine the tone of Thurs’s phonecall after being caught…

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Porsche recalls Panameras for seat belt defect



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Toyota has finally made something sexy - recalls.

While this is a bold statement, the mainstream media is now obsessed with every single recall. Case in point, Bloomberg is reporting that Porsche has announced a recall of the 2010 Panamera for a "theoretical problem with the safety belts."

Porsche discovered, in internal testing, that accelerating and reversing repeatedly could cause the seat belt to release. The 11,324 Panameras will be fixed when they are taken to a dealership for scheduled maintenance.

Big headlines for minor recalls, thanks Toyota.

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Honda reports a $2.9 billion profit for the year



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After Ford reported the good news yesterday that it was back in the black, now it's Honda's turn to show its healthy profit margin.

For the fiscal year ending on March 31, Honda reported a $2.9 billion (€2.18 billion) profit on $92.3 billion (€69.4 billion) in total sales - a 96 percent rise over the previous year.

Honda also reported a $774 million (€582 million) profit for the first quarter of this year with a 28 percent growth in sales. The Japanese automaker benefiting from rising demand in China and India, as well as recovering markets in the US and Europe.

The automaker expects the next fiscal year to be even better - projecting a $3.7 billion (€2.78 billion) profit on gross sales of $100.4 billion (€75.5 billion).

In this last fiscal year Honda sold 3.4 million vehicles and 2.6 million motorcycles. Honda's sales projection for fiscal year 2010 calls for a volume of 3.6 million vehicles.

Max Auto Updates - 28/04/2010

403km/h Superleggera Twin Turbo



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Underground Racing has exceeded 402 km/h in a Lamborghini Gallardo Superleggera outfitted with their 1103 WkW twin-turbo package.

The extraordinary event occurred at The Texas Mile, where Richard Holt piloted his Gallardo Superleggera to a top speed of 403 km/h. Not too shabby, considering the stock Superleggera has a top speed of 325 km/h.

Despite the eventual success, there were a number of setbacks. For the first two days, Underground Racing played with the suspension settings and turbochargers to no avail. When Sunday rolled around, the company finally got everything right.

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Ford posts $2.08-billion profit



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Beating analyst expectations, Ford posted a $2.08 (€1.56) billion profit in the first quarter of 2010.

The company was only expected to earn $1 billion (€752 million), so 2.08 (€1.56) billion is downright astounding. This is due, in part, to Ford's largest quarterly gain (of 2.7%) in U.S. market share since 1977.

While that sounds nice and rosy, Ford Europe only posted a pre-tax operating profit of $107 (€80.5) million - despite being the best selling brand in Europe with a 9.4% market share. More importantly, the earnings exclude Volvo (due to the sale to Geely) which likely had major losses.

According to CEO Alan Mulally, "The Ford team around the world achieved another very solid quarter, and we are delivering profitable growth. Our plan is working, and the basic engine that drives our business results - products, market share, revenue and cost structure - is performing stronger each quarter, even as the economy and vehicle demand remain relatively soft."

Mulally's statement was echoed by Lewis Booth, Ford's CEO and executive vice president, who said, "We are seeing the benefits of our One Ford plan around the world. All of our business operations - North America, South America, Europe, Asia Pacific Africa and Ford Credit - were not only profitable, but also showed substantially improved results over a year ago."

Going forward, Ford expects full-year 2010 U.S. auto sales to be in the range of 11.5 to 12.5 million units. European sales will likely total 14 to 15 million units, higher than previous expectations.

25 April 2010 - Extreme Auto Show

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We decided to try our luck with this year's Extreme Auto Show, annually held as the Northgate Dome, and see if this year... hopefully... there would be something to really draw the crowds.

Now we weren't too impressed with the last couple of years' shows as the exhibitions got less and less and the level of cars also declined at a similar rate.

We pitched up at the dome, grabbed some breakfast at the nearby McDonalds and sauntered off to the entrance. There we had to fork out R80 per person... maybe not that much compared to other events these days, but surely a bit of a premium for what you get at the end of the day.

First we decided to scan the top gallery. We saw the general display of sound installations, car club displays (with special note to the Opel Owners Club, Twincam Club, Zooped Up Club and Audi Club) and some classics. Special note is the NAZKAR tuned cars at the Opel Owners Club stall where you could see the fasted front wheel drive car in SA, as well as the fastest Opel Astra OPC (VXR as some call it in the UK) in the world (owned by Flip van Zyl). The young ladies at the Zooped Up exhibition also made us feel very welcome and also didn't mind posing alongside one of the cars on display. The classic Volvo display also had some real eye catchers, especially for those into classic car restorations.

Downstairs we first visited the Big Boss Auto booth where we got to see some nicely styled VW products, all thanks to Rieger off course. Close by there where another boat load of old classics, roadsters and hot rods with strong Chevrolet blood running there. Some more car club exhibits could be found here at the outer edges of the main floor, including the Mini Owners Club and VW Club of SA. Just in front of them we were treated to some more modern customs and tuner cars. Kit cars where also on show with some nice examples from the Puma badges. There were a lot of cars on display from an auction house that almost took up 20% of the floor space.

In another corner we found the historical roots of Audi... DKW on display with a small assortment of cars and bikes. Some nice Borgward classic cars were also close by, winking at the older generation that attended to come have a look.

Further on we got the usual assortment of Jap and other stuff, rice that would water the eyes, and sound setups that would rattle teeth fillings out of position. We did notice a nice Nissan 300ZX on display, although the colour choice is still debatable.

Further on we went, and came upon the Rock Raceway team's display with its host of Nissan Skylines and other Jap and Euro cars. Just next to it was something that drew our attention immediately, a mint Strato Chief in the most beautiful of blue and white colour schemes, a gem. Its entourage of supporting acts where a little blown away by its presence at the Team RF Rides display.

A lot of older muscle cars dotted the displays that centred the floor, with some seriously beautiful specimens. Some Italian blood was also present in the form of a few Ferrari's and Lamborghini's. The Giovanna wheels display did attract attention though with the level of cars, notably the GT-R and M3, as well as the nice looking show babes that were also not shy of strutting their stuff next to one of the display cars.

The Castrol display had only 2 cars, one well known BMW, and one Renault Megane... claimed to be worth over R500000. For us they would have to pay us double that to even consider it worthy of owning, let alone drive it. The Speed and Sound crew's display had the usual big car feel with some lovely ladies also. Although none of the team was there to let us grab a group pic of them. O well, maybe next time.

The black and carbon vinyl clad cars was a nice reprieve from all the gloss, bling and bang that crowded the rest of the main floor, but we somehow felt the Audi's treatment was a little far from what the end effect was suppose to have. At least the Superbike magazine stand girls made us forget it very soon afterwards. The NxGen and Nissan GT-R display seriously had some really beautiful modern monsters on display. We said hello to the VAG Technik boys and struggled to pry our eyes away from the beautifully styled Scirocco with Caractere body kit and a set of tail pipes to drool for.

All in all, not a bad year, still a little less than last year. Hopefully one year the trend will pick up again and we will see some seriously hot metal. Till then, enjoy the pictures we took.

New Wheel Designs...

I've been working on some new designs... please let me know which ones you like...

Full:


Sharktooth:


Slasher:

Max Auto Updates - 26/04/2010

ABT Sportsline updates styling kit for new VW T5



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German tuner Abt now has a tuning package for the facelifted VW T5 van.

The Abt Multivan package is meant to give a more sporty flavor to a multi-purpose van, which can be used for anything from carpool commuting to family vacations.

Abt adds some sizzle by means of a new front grill and front spoiler, the latter providing the van with a more crouched presence on the road. Also part of the aerodynamic package are the side skirts, a rear skirt housing, a quad exhaust and a rear roof spoiler for flair and some additional downforce.

Abt BR alloy wheels are also available in 19-inch dimension as well as in-house suspension springs for a more solid ride.

The tuner promises future power upgrading by ABT POWER for the VW 2.0 TDI engine, but provides no specifics on that.

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2011 Hyundai Accent revealed in Beijing



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Hyundai has unveiled the 2011 Accent (aka Verna) at the Beijing Motor Show.

Looking like a miniature Sonata, the Accent features sweptback headlights, a bold grille, and rearview mirrors with integrated LED turn signals. Inside, the cabin boasts higher quality materials and an improved design.

Power comes from two new Gamma petrol engines with multiport fuel injection. The base 1.4-liter produces 79 kW and 135 Nm of torque. When equipped with a five-speed manual, the Accent consumes 5.7 liters/100km. If you choose the four-speed automatic and the Fuel Economy Package, the Accent consumes 6.2 liters/100km.

If that doesn't float your boat, Hyundai also offers a 1.6-liter with 90 kW and 155 Nm of torque. It will be available exclusively with a four-speed automatic.

The car rides on an all-new platform with a 2570mm wheelbase - the biggest in its class. It uses an increased amount of ultra-high tensile strength steel, so we can expect improved handling and better NVH (Noise, Vibration, and Harshness) levels.

According to Euisun Chung, Vice Chairman of Hyundai Motor, "Today is a really special day for us, not only because we're launching a new car, but because it's one of the very few times we've done a world-premiere outside of Korea: And we chose to do it right here in China because it's our way of recognizing how important our Chinese customers are to us."

Chinese production kicks off in July, while global production occurs shortly thereafter.

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R85 million for new Porsche shop



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Porsche Centre South Africa is developing a sprawling new site in Cape Town at a cost of R85 million.

The new showroom and workshop will be situated in Century City, Cape Town.

Set on 9 200 m2 of land, the new Century City centre is the third such development in as many years for Porsche Centre SA.

“Built according to the same worldwide corporate standards as the flagship facility in Johannesburg, (the largest Porsche Centre in the world) and the recently opened Porsche Centre in Umhlanga, Porsche Centre Cape Town will share the high quality finishes and attention to detail our customers have come to expect from Porsche”, Porsche Centre South Africa group chief executive officer, Toby Venter said.

Once construction is completed in December 2010, the new Porsche Centre Cape Town will have a showroom for new and used Porsches, a customer lounge with WiFi, a boutique and a service centre.

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2 shot in road rage incident

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Two drivers were injured after they allegedly shot each other in an apparent road rage incident in Blairgowrie, Randburg on Sunday, Johannesburg police said.

Warrant Officer Karen Jacobs said a driver of a BMW 320i allegedly argued with the driver of a VW Caddy Panel van at the corner of Conrad and Standard road around 1pm.

"We don't know what the argument was about but the BMW driver allegedly followed the VW one home which is also in Blairgowrie."

Jacobs said the two allegedly argued again and multiple shots were fired by both drivers.

The BMW driver sustained a gunshot wound to the chest and the VW to the leg, she said.

They were both taken to hospital.

Jacobs said police opened two cases of attempted murder and confiscated two firearms from the drivers.

Investigations were underway and the two were expected to appear in the Randburg Magistrate's Court as soon as they were discharged from hospital.

Max Auto Updates - 23/04/2010

GM repays US government loan



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General Motors and Chrysler on Wednesday reported progress in their government-financed turnarounds, but the Obama administration still forecasts some loss on the taxpayer bailout of both companies.

GM chief executive Ed Whitacre announced at a plant in Kansas that the automaker had fully repaid U.S. and Canadian government loans extended as part of its bankruptcy last year, and said there was "a real possibility" of an initial public offering this year.

"We are moving at GM and improving at a rapid pace," Whitacre said. "This is the new pace of GM today. GM's ability to pay back the loans ahead of schedule is a sign that our plan is working."

GM completed the repayment of its loans from the U.S. and Canadian governments by paying the outstanding balances of $4.7 billion and $1.1 billion respectively.

Chrysler may break even

Separately, Chrysler posted a $143 million operating profit in the first quarter and was on track to at least break even in 2010 on an operating basis with a stronger cash position.

Chrysler emerged from bankruptcy in June 2009 under the management control of Italy's Fiat SpA. An IPO is also envisioned for Chrysler, although not as soon as GM's.

The better-than-expected progress at GM and Chrysler have "materially improved" chances the U.S. government will sell its stake in the companies sooner than expected, top White House economic adviser Lawrence Summers said in statement.

In an accompanying government report on the matter, overall bailout investments in GM, Chrysler and financing arm GMAC by the Bush and Obama administrations will "likely result in some loss."

However, the report added that the Treasury Department anticipates the shortfall to be "much lower" than forecast last year.

"We're not out of the woods by any stretch of the imagination. We have seen improvement," said White House spokesman Robert Gibbs.

In addition to the nearly $7 billion in direct loans to GM, the U.S. Treasury extended $43 billion in bailout cash in 2009.

Government stakes

The non-debt portion of help for GM was converted into equity during its bankruptcy and represents the 60% stake in the company owned by the government.

Chrysler owes the U.S. government nearly $7 billion in loans. Payments on principal are not due until 2011 and full repayment is not expected until 2014.

The rest of Chrysler's aid was converted to equity in the restructured company of which Treasury owns about 10 percent.

Summers said progress by automakers such as GM in repaying bailout funds was a bright spot for economic recovery, though the auto industry and economy have a long way to go to repair the damage from the recession.

The U.S. Treasury noted that the GM loan was repaid five years ahead of time.

"We are encouraged that GM has repaid its debt well ahead of schedule and confident that the company is on a strong path to viability," Treasury Secretary Timothy Geithner said in a statement.

The repaying of the GM loans and the completion earlier in April of full accounting for its results since its emergence from bankruptcy in July 2009, were two key steps GM needed to make toward launching an IPO.

Canadian Industry Minister Tony Clement said the risk of job loss was too severe to ignore if the auto industry failed last year.

"This was not a decision we took lightly," Clement told reporters.

"We look forward to additional announcements ... when it comes to the equity share issue, which of course is not being addressed today," he added.

Max Auto Updates - 22/04/2010

SA spared latest Toyota recalls



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Local subsidiaries of Toyota and Lexus have confirmed that South Africa's vehicles are unaffected by the latest round of global recalls affecting the carmakers.

Toyota Motor Corporation on Monday announced a global recall campaign for its Toyota Land Cruiser and Lexus GX 460 models.

Toyota SA has informed that only left-hand drive Land Cruiser Prados are affected by the recall campaign. An issue concerning the vehicle stability control of these vehicles is to be addressed, but since right hand drive models have a different weight distribution, the company says, local models are not affected.

Moreover, the Lexus GX 460, of which sales in the US have been temporarily suspended, is not sold in South Africa.

No other Toyota or Lexus models sold in South Africa are affected, the carmakers said.

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New Astra gets green light for SA



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After some uncertainty early last year as to whether the new Opel Astra would be introduced in South Africa after the local range was trimmed, General Motors South Africa (GMSA) has confirmed that the car will be introduced here early in 2011.

GMSA says the news follows a decision by its parent company to retain the Opel brand following GM’s shock pull out of a planned sale to Canada’s Magna and Russia’s Sberbank.

“The certainty around the future of Opel is great news for South Africa and allows us to build on the fine history of the Opel brand and the Corsa and Astra ranges,” said GMSA vice president of planning, Ian Nicholls.

The new Astra is said to be more spacious than the car it replaces, courtesy of its longer wheelbase and increased girth. An assortment of Ecotec petrol and common-rail diesel engines will be on offer, although powertrains and model specifications for the South African market have yet to be announced.

Opel’s new Astra goes on sale in South Africa in the first quarter of 2011.

In April 2009, GMSA announced it was discontinuing sales of its Meriva, Zafira and Tigra models locally. Only 1.6, 1.8 and OPC variants of the Astra hatchback were available to order.

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Soccer World Cup to 'leave transport legacy'

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The forthcoming FIFA World Cup will leave a lasting transport legacy far beyond 2010, Minister of Transport Sibusiso Ndebele said on Tuesday.

"We have constantly emphasised that the FIFA World Cup is not only about sport - it's also about transport," the minister told a media briefing at OR Tambo International Airport on the state of integrated transport readiness for the World Cup.

"With 51 days to go we will put our best forward to ensure that all those who use our transport services are able to do so effectively and efficiently."

Ndebele said the opening earlier on Tuesday of the new terminal at OR Tambo International Airport by President Jacob Zuma highlighted the country's world-class airport infrastructure.

The terminal precinct at Cape Town International Airport had also undergone "a complete transformation".

On the road

Turning to road transport, the minister said his department would have in place an inter-provincial and regional transport system operated by the recently appointed Operating Managing Entity (OME).

"The OME will facilitate the efficient and safe transport of general spectators to and from matches."

A major component of the entity would be 110 newly acquired 79-seater inter-city buses, specially procured by the government for the World Cup.

A first-class national integrated transport system using the newly acquired Auto Pax coach fleet integrated with the taxi industry had been created.

"This will ensure safe, comfortable and well-maintained long-distance vehicles," Ndebele said.

The Passenger Rail Agency of SA was using the event as a springboard to upgrade rail infrastructure, he added.

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Corsa bakkie to be rebadged as a Chevrolet

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The popular Corsa bakkie will from May form part of the Chevrolet family, General Motors South Africa has announced.

The benchmark sub-one ton bakkie, which has been a mainstay in the Opel lineup since its launch here in 2004, becomes the Lumina Ute’s plaything within Chevrolet’s LCV mix.

Total sales since launch of the locally produced bakkie, GMSA reports, is approaching the 150 000 mark and this Ute has been the sales leader in its segment for over 60 months.

“The Corsa Utility has proven to be the benchmark in the ‘B’ segment of the light commercial vehicle sector,” said Malcolm Gauld, vice-president sales and marketing for GMSA.

“It has redefined the half-ton sector of the market and driven interest to a level where the volumes in the segment now account for over 25% of all light commercial vehicle sales,” continued Gauld.

No engine changes

The Corsa Utility is available in a range of diesel and petrol models with a choice of either 1.4 or 1.8-litre petrol engines, or a 1.7DTi turbodiesel engine. A five-speed manual transmission is standard across
the range.

The 1.4 litre multi-point fuel-injected engine generates peak power of 66 kW at 6 200 r/min and torque of 115 Nm at 3 200 r/min. Top speed is 160 km/h with a 0-100 km/h time of 12.8 seconds. Average fuel consumption, according to GMSA, is around 7.6 l/100 km.

The intercooled 1.7 litre turbodiesel produces 55kW at 4 400 r/min with maximum torque of 165 Nm between 1 800 and 3 000 r/min. This model has a top speed of 150 km/h with a 0-100 km/h time of 15.4 seconds and average fuel consumption of 5.7 l/100 km.

The 1.8 litre produces 79 kW at 5 400 r/min and it has a peak torque figure of 160 Nm at 2 600 r/min. Top speed is 185 km/h with a 0-100 km/h time of 10.3 seconds. Average fuel consumption for this engine is around 7.6 l/100 km.

As for comfort and convenience items on the Chevrolet Corsa Ute, a range of specification levels is available and base models are fitted with power steering and air conditioning.

One level up is Club which adds items such as a sliding rear window, cloth seats, a high-mounted stop light and a driver airbag.

Range-topping Sport models feature colour coding, alloy wheels, driver and passenger airbags and sport seats.

The Corsa Ute 1.8 Sport is the only model fitted with ABS.

Model range and prices:

Corsa Utility 1.4i - R 107 600
Corsa Utility 1.4i A/C - R 117 600
Corsa Utility 1.4i Club - R 135 100
Corsa Utility 1.4i Sport - R 155 400

Corsa Utility 1.7 DTI - R 151 300
Corsa Utility 1.7 DTI Club - R 175 700
Corsa Utility 1.7 DTI Sport - R 189 200

Corsa Utility 1.8i - R 132 400
Corsa Utility 1.8i Club - R 154 000
Corsa Utility 1.8i Sport - R 188 000

The Corsa Ute retains its five-year/120 000 km warranty.

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Hamann Z4 E89 tuning program released



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=1439

Hamann Motorsport has released details of its new BMW Z4 sDrive35i-based car. Improvements were made both under the skin and in the styling department. There are also customisation options for the interior which include Hamann-branded foot mats, an aluminium gear knob and complete leather fittings.

The exterior is characterised by two LED daytime running light arrays, a new front spoiler, side skirts, a new rear apron and an aerodynamic spoiler on the deck lid. The sports exhaust system burps out a deep pleasing sound through its four tailpipes.

Two 8.5Jx20 inch alloy wheels with 235/30ZR20 rubber are at the front axle while the rear features 10.0Jx20 rims with 295/25ZR20 tyres. Special chassis springs were used to lower the suspension system by 30 millimetres.

Hamann remapped the 3.0-litre force fed engine's ECU to extract more power and torque. From the standard 225 kW and 400Nm the tuner was able to garner an extra 40 kW and 140Nm respectively. Furthermore, the standard vehicle's 250 km/h electronically limited top speed has been liberated to fullfill its true 285 km/h potential.

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Piecha Design SLK R171 Performance RS



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=1440

Piecha Design has unveiled a new styling package for the Mercedes SLK (R171).

Dubbed the Performance RS, the package features an aerodynamic body kit with new front and rear fascias, aggressive side skirts, a rear lip spoiler, and SLR-style mirrors. Wheel choices include 19- and 20-inchers, with the latter having a 100mm stainless steel outer rim that "perfectly emphasizes the SLK Roadster's wedge-shape."

In terms of performance, the car boasts a QUADRO exhaust system and a "must have" power converter "for perceptibly improved acceleration."

Other goodies include a revised roof-lowering module (which allows the top to be opened or closed at speeds up to 60 km/h), a glass wind deflector, and LED lighting for the aforementioned side skirts.

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Renntech SL65 Black Series packs 600kW



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=1441

The standard Mercedes-Benz SL 65 AMG Black Series punches out a formidable 493 kW and a whopping 1,000 Nm of torque. Renntech has just released figures for their own version of the car and it looks exceptional.

Engine performance has been improved by tweaking the ECU, upgrading the intercooler pumps and fitting sport mufflers. Thanks to all that, maximum power is now 600 kW, with 1,356Nm of torque available to the rear wheels. Renntech can also throw in a transmission upgrade and a Limited Slip Differential for extra bucks.

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Hidden report shows biofuel damage

http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=1442

Biofuels such as biodiesel from soy beans can create up to four times more climate-warming emissions than standard diesel or petrol, according to an EU document released under freedom of information laws.

The European Union has set itself a goal of obtaining 10% of its road fuels from renewable sources, mostly biofuels, by the end of this decade, but it is now worrying about the unintended environmental impacts.

Four major studies are under way.

Chief among those fears is that biofuel production soaks up grain from global commodity markets, forcing up food prices and encouraging farmers to clear tropical forests in the quest for new land.

Burning forests releases vast quantities of carbon dioxide and often cancels out many of the climate benefits sought from biofuels.

Biodiesel from North American soybeans has an indirect carbon footprint of 339.9 kilograms of CO2 per gigajoule - four times higher than standard diesel - said the EU document, an annex that was controversially stripped from a report published in December.

Editing the report caused one of the consultancies, Fraunhofer of Germany, to disown it partly in a disclaimer.

But it has now been made public after Reuters used freedom of information laws to gain a copy.

The EU's executive European Commission said it had not doctored the report to hide the evidence, but only to allow deeper analysis before publishing.

"Given the divergence of views and the level of complexity of the issue ... it was considered better to leave the contentious analysis out of the report," the Commission said in a statement. "The analysis prepared under this study applied a methodology which by many is not considered appropriate."

Scientific neutrality

The annex adds some weight to a growing dossier suggesting biofuels are not as green as once thought - even the more advanced, second generation biofuels made from wood chips.

"For the third time in six weeks the (European) Commission is forced to release studies about the climate effects of biofuels," said Nusa Urbancic of T&E, a campaign group for green transport.

"And for the third time these studies show that land use is the most important factor in deciding if biofuels make sense or not," Urbancic said.

Biodiesel from European rapeseed has an indirect carbon footprint of 150.3 kg of CO2 per gigajoule, while bioethanol from European sugar beet is calculated at 100.3 kg - both much higher than conventional diesel or gasoline at around 85 kg.

By contrast, imports of bioethanol from Latin American sugar cane and palm oil from Southeast Asia get a relatively clean bill of health from the study at 82.3 kg and 73.6 kg respectively.

But one of the scientists involved with the study cautioned that much work remained to be done before the issue was properly understood, and that no firm conclusions could be drawn about the relative merits of different biofuel sources.

"The major point is that we have to do more work, develop new sustainability criteria and we have to be very careful about the origins of biofuels," said Wolfgang Eichhammer of Fraunhofer.

"We must also find a way of excluding the inefficient biofuels," he added.

Eichhammer said he had made his stand with the disclaimer to protect the neutrality of science, and emphasised the value of ongoing Commission studies into the problem.

Max Auto Updates - 21/04/2010

Toyota recalls 2010 Lexus GX 460



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=1432

Lexus has announced plans to recall the 2010 GX 460, one week after Consumer Reports issued a "do not buy" warning.

The recall will consist of a software update to the electronic stability control (ESC) program. Worldwide, approximately 10,400 vehicles are affected.

As you may recall (no pun intended), Consumer Reports found the rear of the GX would "slid out until the vehicle was almost sideways before the electronic stability control system was able to regain control." They slapped the sport-ute with a rare "do not buy" rating because "in real-world driving, that situation could lead to a rollover accident, which could cause serious injury or death." This prompted Lexus to halt sales of the GX, until engineers in Japan could duplicate the problem.

Oddly enough, the GX recall was announced on the same day Toyota agreed to pay a record fine of $16.4 million dollars (12.2 million euros) for the pedal-gate fiasco. As we have previously reported, the National Highway Transportation Safety Administration (NHTSA) could levy additional fines if Toyota failed to comply with all their disclosure obligations.

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Luca di Montezemolo to step down as Fiat Chairman



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=1433

Luca Cordero di Montezemolo has announced he will step down as chairman of Fiat.

While the company declined to explain his departure, 62-year old di Montezemolo left shortly before Fiat unveiled their 2010-2014 business plan.

It is speculated that Fiat's vice chairman, John Elkann, will replace him. This makes sense considering that Elkann is the chairman of Exor S.p.A, a family-owned holding company, which owns 30 percent of Fiat.

Despite his resignation, di Montezemolo will stay on Fiat's board and remain chairman of Ferrari.

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GM to pay $5.8 billion bailout loan balance early



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=1434

GM will repay $5.8 billion in loans from the U.S. and Canadian governments as early as today. This will square GM's loan-based debt with the two governments, though the U.S. Treasury will continue to own over 60% of the automaker while the Canadians own 12%.

This is due to the U.S. government's conversion of $43 billion out of $50 billion in bailout funds into equity. The Canadian government traded $8 billion into a stake in GM. $4.7 billion will go to the Americans, with $1.1 billion headed to Ottawa.

General Motors is making the repayment roughly two months ahead of schedule, with a formal announcement expected on Wednesday when GM chief Ed Whitacre visits a factory in Fairfax, Kansas. Whitacre may also announce an expansion of the Kansas facility, with added investment and an increase in hiring.

GM is attempting to create a wave of public and investor confidence in the long-suffering automaker. The company is working out plans to sell stock in an initial public offering, and a better reputation will help launch the stock at a higher price point. Once this happens, the U.S. and Canadian governments will be able to sell off their ownership in the automaker in the hopes of getting their money back.

The American manufacturer lost $3.4 billion in the last three months of 2009, though this was better than many analysts had expected.

Max Auto Updates - 20/04/2010

VW Touareg W12 Sport Edition by CoverEFX



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=1426

German tuner CoverEFX have remastered the tapes on the VW Touareg W12 and have come up with their own limited edition series of the model.

The Erftstadt-based tuner has unveiled the VW Touareg W12 Sport Edition - a series which will be limited to 500 units. CoverEFX has wrapped the Touareg in a two-tone CFC film of gun-metal and black gloss to give it the proper sporty look. A boosting of power under the hood is also performed by means of some software tuning, bringing the horsepower figure to a nice round 368 kW.

Some electronic tuning of the chassis is also part of the package with a sportier ride and a suspension lowering of unspecified centimeters.

The W12 Sport Edition is fitted with 22-inch RS-L light alloy rims from Kahn wrapped in Pirelli Zero Scorpion high-performance tires of 295/30-22 dimensions. The rims are definitely stylistically unique with their red pinstripes and black powder coat.

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Honda to cease Civic Type R four-door production



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=1427

Honda says it will stop production of the Civic Type R four-door model at the end of August 2010. The car was being manufactured at the company's Suzuka factory in Japan. Its predecessor had come off Honda's Swindon, Wiltshire, UK, production line.

Unlike its three-door hatchback sibling with 150 kW, the four-door Type R's 2.0-litre naturally aspirated engine was injected with extra power for a rating of 168 kW. Drive goes to the front wheels through a 6-speed manual transmission.

The Type R badge is worn by Honda's performance models and was first offered with the legendary NSX back in 1992. The first Civic Type R appeared in 1997.

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Toyota confirms safety problem with Lexus GX 460



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=1428

Toyota engineers have confirmed the serious safety-related issue with one of their company's vehicles. Following a published account in Consumer Reports listing the 2010 Lexus GX 460 as a "do not buy" due to rollover risk, employees at Toyota successfully replicated the test conducted by the magazine.

“They duplicated Consumer Reports’ results on the GX 460 and they are currently evaluating potential remedies, but at this point there is [sic] no details of what the remedy is,” Lexus spokesman Bill Kwong told the New York Times.

Consumer Reports linked the potential rollover to a slow-responding electronic stability control, and noted that other SUVs allow the driver to regain control quicker. The report led to Toyota ordering a sales freeze on the SUV until a solution to the problem could be found.

Vehicle testers for the magazine noted that in evasive or extreme driving situations the rear end of the vehicle would slide significantly, leading the model to be sideways before the stability system kicked in. Kwong said that the company is "very concerned," and sees this as a serious issue.

Toyota has recalled millions of vehicles over the last six months for a variety of safety problems. Amongst the most notorious is a sticking gas pedal that caused sudden, uncontrolled acceleration in several of their models.

Lexus hopes to discover the cause of the problem in the Lexus GX 460 within a week.

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Vorsteiner GTRS3 widebody kit for M3 E92 revealed



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=1429

Vorsteiner has released a new body kit for the BMW M3 E92. The full product is called the GTRS3 M3 and it consists of several body modifications and aerodynamic pieces. Up front the bumper has been replaced with a complete carbon fibre unit with a modular replacement splitter, GTRS3 carbon fibre wide arch fenders and extended side skirts. A GTRS3 carbon fibre vented race bonnet is also available.

The back end consists of quarter panel fender arch extensions, a Vorsteiner chrome boot badge emblem, a wide arch rear bumper and an integrated carbon diffuser. A stainless steel quad exhaust system is available as an option. The twin 7-spoke V-308 concave forged mesh wheels can be ordered in 18 or 20-inch sizes. Michelin Pilot Sport PS2 performance tyres are specified.

Only 100 Vorsteiner GTRS3 M3 kits are to be sold through the company's worldwide network.

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Toyota agrees to pay $16.4M fine - sticky pedal



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=1430

Toyota has decided not to fight a $16.375 million fine imposed by the National Highway Traffic safety Administration for its handling of a sticking accelerator found in seven different models. Led by Transportation Secretary Ray LaHood, the department criticized Toyota for stalling a recall of 2.4 million units tied to the defective pedal.

Toyota is required to pay the fine within 30 days.

"By failing to report known safety problems as it is required to do under the law, Toyota put consumers at risk," LaHood said in a press release. "I am pleased that Toyota has accepted responsibility for violating its legal obligations to report any defects promptly. We are continuing to investigate whether the company has lived up to all its disclosure obligations."

However, Toyota will likely not acknowledge any fault in the matter. By doing so, they would give an advantage to the plaintiffs in over 200 different lawsuits filed against the automaker. Toyota knew about the problems with the accelerator since at least September 29, according to documents obtained by the NHTSA.

The Department believes Toyota could have recalled the vehicles four months earlier, if not sooner. The fine levied was the maximum allowed under law, though more fines may be possible as Toyota's practices are further investigated.

The Securities and Exchange Commission is also examining the matter for any fraudulent business practices, while the U.S. Attorney in New York has also initiated a criminal investigation.

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SA car makers up 2010 forecast

http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=1431

South Africa's automobile industry is set for a strong recovery this year, with new vehicle sales seen up 14 percent% - twice as much as previously forecast - after weak sales for the past two years, car makers said on Monday.

The National Association of Automobile Manufacturers (Naamsa) said in its first quarter business conditions report that sales should rise to about 451 000 units in 2010.

South Africa's auto sector was one of the hardest hit by a global downturn and domestic recession but sales have turned the corner for the key employment industry.

Monthly sales data showed the first year-on-year increase in almost three years in January and growth has since reached double figures, partly on a 550 basis point drop in the central bank's repo rate to 6.5% since December 2008.

"Projections for 2010 have been revised upwards," NAAMSA director Nico Vermeulen said in the report.

"In aggregate terms, domestic sales are expected to improve from the 395 000 in 2009 to about 451 000 in 2010, an increase of around 14%. However, the improvement will be off a very low base."

Exports were also seen recovering sharply, helping lift total domestic production by nearly 20%.

"Factoring in the expected improvement in domestic sales together with anticipated growth in exports, domestic production of motor vehicles in South Africa during 2010 is expected to rise from 374 000 vehicles produced in 2009 to about 443 000 units projected for 2010, an increase in vehicle production of about 18.4%," he said.

South Africa's government sees auto manufacturing as a key industry to help boost growth and jobs and has tried to help the car makers to build up exports.

Africa's biggest economy shed nearly 900 000 jobs during last year's recession, more than 200 000 of them in the manufacturing sector.

Car makers BMW, Ford, General Motors, Daimler, Nissan, Toyota and Volkswagen all have manufacturing plants in South Africa.

Max Auto Updates 15/04/2010

Toyota suspends Lexus GX 460 sales - rollover risk



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=1425

The once shiny reputation of Toyota has been tarnished again amidst a Consumer Reports warning that the 2010 Lexus GX 460 is prone to rollover. In an attempt to respond quickly to the allegation, Toyota has frozen sales of the 2010 model year SUV.

Consumer Reports rated the vehicle as a "do not buy," saying that "in real-world driving, [an evasive maneuver] could lead to a rollover accident, which could cause serious injury or death."

Toyota has not confirmed the danger, but their engineers are said to be "vigorously testing" the SUV to replicate the situation claimed by the magazine. "We are taking the situation with the GX 460 very seriously and are determined to identify and correct the issue Consumer Reports identified," Lexus executive Mark Templin reportedly said in a statement.

Those customers who have already purchased a vehicle will be provided a loaner vehicle upon request while the problem is researched.

This is the harshest rating by Consumer Reports since a 2001 warning that the Mitsubishi Montero Limited was subject to rollover in turns at high speeds. The magazine is considered an unbiased reviewer of automobiles, getting credit from Toyota itself for increased vehicle sales over the past 15 years.

Max Auto Updates - 14/04/2010

BMW still top premium brand despite Audi's surge



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BMW is still the world's number one premium brand but not by much. Audi sales have come very close to matching BMW's for the first quarter of this year - coming in only 1,709 units behind the Bavarian brand's.

BMW had a global sale count of 265,809 units for the quarter (January to March) while for Audi the number was 264,100. BMW sales were buoyed by demand for the new X1 model. Both automakers were helped by resurgent markets, particularly the US, where overall auto sales rose 16 percent over the same period last year.

Audi is sticking to its goal of becoming the world's top-selling premium brand by 2015 with 1.5 million unit sales per year. Audi surpassed Mercedes-Benz sales for the first time this quarter too, making Mercedes the number three premium brand globally.

But Mercedes-Benz also saw a bountiful sales increase of 26 percent for the first quarter in the US, making it the number one premium brand (ahead of Lexus) in the world's largest single car market.

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Consumer Reports: Avoid GX 460 - rollover risk



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=1419

Consumer Reports has issued a warning against the Lexus GX 460, due to a potential rollover risk.

During testing, the magazine discovered the GX had problems with emergency-handling. They found that the rear "slid out until the vehicle was almost sideways before the electronic stability control system was able to regain control."

Consumer Reports believes "in real-world driving, that situation could lead to a rollover accident, which could cause serious injury or death." This caused them to release a statement urging consumers not to buy the Lexus GX.

Toyota, battered by the recent pedal recall, was quick to respond. Spokesman Joe Tetherow said "Our engineers conducted similar tests during the development of the new GX and had no issues." He added Toyota engineers have been notified and they will attempt to duplicate the problem.

The last instance of Consumer Reports recommending a "do not buy" warning was in 2001 with the Mitsubishi Montero.

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One off BRABUS VANISH based on SL65 AMG Black



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=1420

German tuners Brabus have created a new one-off sports car tuning kit based on the Mercedes-Benz SL 65 AMG Black Series. Named by its owner in Dubai, the Brabus Vanish has a power increase of nearly 19.5 percent.

Power on the Vanish is boosted to 588 kW, up from the 493 kW cranked out by the 6.0-liter AMG V12 engine. The increase comes from engineers installing larger turbochargers, and mating the engine to a racier gearbox and exhaust. Due to the larger turbines, the hood was replaced with a new version that includes an awkward bulge in the middle.

New Vanish-badged brakes can also be found, while inside, Brabus badging is seen throughout.

Still, for such a luxe ride, one would hope the designers would come up with something better than the tacked on bonnet bulge. Surely, such an elaborate car deserves better.

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MacPherson struts go carbon-fibre

http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=1421

If you are a petrolhead, your fetish construction material has to be carbon-fibre.

In racing carbon-fibre is, well, pretty much ubiquitous in its presence on F1 cars. The reason is the combination of low mass and high strength.

It’s rather expensive though and quite labour intensive to produce, which is why you're hardly likely to see it on the new VW Vivo, for instance.

With manufacturers seeking to improve the efficiency of their cars (lowering emissions and fuel consumption), weight reduction has become a massive issue in the last few years.

One of the best ways to trim mass is by increasing the volume of carbon-fibre within a vehicle’s construction.

Whereas one traditionally expects to find carbon-fibre present in a car’s surfacing or cabin, German automotive supply giant ZF has an alternative which hides behind the wheels.

High-tech material, simple construction

Engineers at ZF have now fashioned a carbon-fibre MacPherson strut, which the company claims reduces weight per wheel corner by as much as 3kg.

In terms of construction the ZF MacPherson assembly features an integrated carrier and piston rod hewn from carbon-fibre, whilst the spring and top mount plate are fibreglass and plastic respectively.

The only traditional construction part of the ZF MacPherson strut equation is its steel damper tube. In its current state the ZF carbon strut is only rated to suspend cars with a mass of less than 900kg. Essentially the ZF carbon strut is limited to lightweight British sportscars for the moment.

Interestingly, ZF says the carbon strut’s fewer parts and reduced assembly complexity brings it into a pricing alignment with traditional suspension technology.

All we know is this: it looks extraordinarily cool.

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Kids left in car at strip club

http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=1422

A suburban Dallas man faces child endangerment charges after police say he left his 3-year-old and 9-month-old children locked in the car while he visited a strip club.

Thirty-six-year-old Michael Galloway of McKinney was in the Dallas County Jail on Tuesday on bonds totalling $10 000.

Dallas police say a tow truck driver discovered the children late on Friday across the street from Pandora's Men's Club, according to The Dallas Morning News. The car was parked illegally. Police say the windows were up and the doors were locked.

According to police, Galloway said he was inside for 20 minutes. Witnesses told police he was drinking inside for at least an hour.

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Company car tax boon

http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=1423

Recipients of company cars may see an increase in their take-home monthly pay, consultancy Ernst & Young said on Tuesday.

In a statement Vedika Andhee, director for tax, said the provision of a company car had a fringe benefit tax attached to it.

"It was announced earlier this year that the SA Revenue Service (Sars) will be reconsidering the value of the fringe benefit.

"Currently, company cars are taxed at a rate of 2.5% of the 'determined value' of the motor vehicle," she said.

The concept of 'determined value' was comprehensively defined in the Income Tax Act but would generally be the original cost of the vehicle to the purchaser.

"The original cost of the vehicle excludes any finance charge, interest, VAT etc.

"In the current economic environment, when acquiring a motor vehicle from a dealership, it is a common selling point that the vehicle comes with a three to six year warranty and a maintenance contract."

Andhee said the vehicle's selling price would therefore have this maintenance contract built in.

The fringe benefit

"One way of reducing the tax on a company car is to reduce the determined value of the car or to reduce the percentage points applicable to the determined value."

She said that as an illustration, where the employee did not receive a travel allowance and bore the full cost of maintaining the company vehicle, the value of the private use of the company car - or the fringe benefit - had to be determined by deducting 0.18% from 2.5%.

"The fringe benefit is calculated at a rate of 2.32% of the determined value of the vehicle on a monthly basis," she said.

Arguably, in situations where a maintenance contract was included in the purchase price, the determined value should be reduced by the cost of the maintenance contract.

Andhee said the reduction in the percentage points could not, however, be used as it only applied in instances when the employee bore the full cost of maintaining the vehicle.

"Assume that a company purchases a car for R250 000 (excl VAT etc).

'Smiles on their faces'

"The car has a three-year maintenance contract which costs R40 000 and this cost is built into the purchase price.

"The determined value to be utilised in computing the fringe benefits tax would be R210 000."

Andhee said that this amounted to a reduction in the fringe benefit of R12 000 per annum or R1 000 per month.

"There are those who would argue that the determined value cannot be reduced in this way.

"However, it appears that Sars approves of the method," she said.

"They have specifically stated in the Employer Guide that where a motor dealer includes a maintenance contract in the purchase price of a vehicle, the value of the maintenance contract should be excluded from the calculation of the value of the benefit received by an employee when the right of use is granted to such employee."

Andhee said in light of Sars's ratification of the method, it would be wise for employers to request that the dealership provided them with a breakdown of the purchase price separating the maintenance contract from the actual cost of the motor vehicle.

"The fringe benefit will therefore be much lower once the maintenance cost is removed.

"At the end of the day, recipients of company cars may have smiles on their faces as they will be seeing a greater take-home pay on a monthly basis," she said.