Word on the street is that the Auto Task Force was pushing hard for General Motors and Chrysler to to dump dealerships during bankruptcy. In all, some 2,150 dealers got the axe, reportedly saving the struggling Detroit automakers big bucks while helping to ensure that remaining dealers were healthier. But while the government's Auto Task Force may have been the driving force that kicked dealers to the curb, the U.S. Congress, in an effort led by Representative Steny Hoyer (D-MD) and Senator Dick Durbin (D-IL), is looking to put those same dealers (read: donors) back in business.

The $446 billion spending bill President Obama signed earlier this week contains new legislation requiring GM and Chrysler to send out letters to every rejected dealer informing them of their rights to arbitration. Dealers interested in filing arbitration will then have 40 days to submit their intention to file. From there, arbitration must be completed within six months. Automotive News reports that the new law is substantially more dealer-friendly than the old law, and requires GM and Chrysler to spell out exactly why each dealership contract was terminated.

In an earlier report, Automotive News reported that it could cost dealers up to $12,000 in arbitration filing fees and up to $100,000 in arbitration depending on the complexity of the case.

[Source: Automotive News sub. req'd | Image: Spencer Platt/Getty]

Prior to declaring bankruptcy, General Motors began delaying new products in an effort to conserve cash. The news was disappointing to enthusiasts and brand loyalists, but with its cash piles dwindling, the General didn't have many alternatives. Post-bankruptcy, GM finds itself with $40 billion in cash and a lot less overhead, so where is the money being spent? Automotive News reports that Vice Chairman Bob Lutz confirms that many of the products that were delayed are now being accelerated, adding "Once we got out of the bankruptcy and started having money available, we were able to pull a lot of our programs forward."

One example of the pull-forward is the next-generation Chevrolet Malibu. Early this Fall, GM told us that the next Malibu would arrive in 2012, but Lutz says that time frame has been pulled up to 2011. The next Malibu will reportedly be all-new with a platform based off of the Buick LaCrosse and 2011 Buick Regal. The new 'Bu will apparently have a shorter wheelbase than the current model while still managing more interior room.

Lutz told AN that the uplevel Malibu will have chrome appliques lining the side windows, a trait he says is associated with German and Japanese luxury vehicles. Lutz apparently added that $50 worth of chrome translates into an additional $500 to $600 in perceived value to customers. Beyond the Malibu, Lutz noted that there are "a bunch" of other vehicles being pulled forward to pre-bankruptcy production cadences, though he didn't offer any specific examples.

[Source: Automotive News - Sub. Req.]

Good news, the check is in the mail! General Motors issued a (very) brief press release this afternoon stating that the automaker had delivered on its promise to issue its first reimbursement checks to the U.S. and Canadian governments by the end of the year. GM sent $1 billion to the feds and $192 million to the Canadian government, and GM reiterated in the statement that it would complete payments totaling $6.7 billion (to the U.S. government) by June 2010.

Beyond the $6.7 billion GM owes the federal government is a 60 percent ownership stake Uncle Sam has on the 101-year-old automaker. When the General releases an initial public offering the resulting stock sale will (supposedly) buy the government out. Experts feel the IPO could happen as early as the second half of 2010. Hit the jump to read over the General's succinct press release.

[Source: GM | Image: Bill Pugliano/Getty]

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Rally fans often stand at a corner or in the middle of a straight away, sometimes for hours, just to get a glimpse of their favorite car. If you're lucky, you get a prime spot at a sharp turn or abrupt elevation that leads to airborne cars. Lucky for us, the Internets exist so that the best moments of these races are captured for our enjoyment.

Over eight minutes of high-revving Porsche GT3 rally cars await you after the jump. Just about every shot is a keeper and the intense (and vivid) screams of the hopped up boxer engines is more than enough reason to spend a few minutes of your time watching the footage after the jump. Besides, you'll want to remember what it is to actually drive a car before heading out of the office and into rush-hour gridlock, right?

[Source: YouTube via 0-60]

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For the third time in two months, General Motors has a new Buick/GMC general manager, this time hiring longtime employee Brian Sweeney to the high-profile post. Sweeney gets the job one week after Michael RIchards quit after just nine days on the job.

Sweeney gets the general manager post after spending a year and a half as general sales manager of Buick GMC. GM Sales Service and Marketing VP Susan Docherty said in a press release that Sweeney "consolidated 13 different agencies to one dedicated partner to drive a consistent brand message, led the dealer network through a difficult transition and has earned a reputation for tirelessly driving results that benefit consumers." That sounds like a lot of work to us. Here's to hoping this Sweeney guy lasts a lot longer than the last guy.

Sweeney's old job goes to 25 year GM vet Jennifer Costabile. The 25 year GM employee is coming off assignment as regional sales and marketing manager for Cadillac in GM's Southeast Region. Hit the jump to read the GM press release.

[Source: GM]

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Mini's history doesn't just include producing attractive, efficient city cars -- it's done some damage in the rally circuit. But while BMW's 2001 reincarnation of the storied British brand has been a success on the sales front, it hasn't taken the motorsports world by storm. As previously reported, that could change with Mini's upcoming five-door people hauler.

The Countryman will reportedly come in several variants, including a GTI version with similar power to the Cooper S or a BMW-sourced 2.0-liter diesel capable of 200 hp. Word on the street is that Prodrive is working on a WRC concept due to debut at the Geneva Motor Show in March.

We're looking forward to seeing the production Countryman in person, but there is some question as to when the micro crossover will finally be on the showroom floor. AutoCar says the Countryman will arrive in September, while Mini-focused site Motoring File says the crossover may be delayed until 2011. If the Rally-ready Countryman does in fact come to fruition, Mini could once again have a mighty mouse ready to take on its larger competition, and that could be fun to watch.




[Source: AutoCar]

Before Fiat and prior to bankruptcy, the old Chrysler, LLC needed $4 billion just to keep the doors open. The Bush Administration came through with the company-saving cash at the 11th hour, keeping the Pentastar solvent long enough to make it to bankruptcy court. Chrysler was reportedly given $15 billion in total aid, and it appears much of that money will be repaid through future payments and through incentives for Fiat to increase its stake in Chrysler from 20 percent to 35 percent. But that original $4 billion? Don't expect that money to come back any time soon – if ever.

The Detroit News reports that what's left of the old Chrysler LLC (which has been renamed Old Carco), has filed court papers saying that the $4 billion will likely never be repaid. New Chrysler is not legally responsible for that debt and Old Carco doesn't exactly have considerable assets. And the government isn't the only debt-holder that isn't going to get its cash. Many secured and unsecured creditors will be unlikely to see their cash, thought some $21 million in secured debt could be paid. Old Carco contains the bad assets not purchased by the new Chrysler when it exited bankruptcy in the spring. The sale of those bad assets, which includes plants, tooling and miscellaneous items like old company cars, will help pay back some of the money creditors lost.

Lawyers working on the bankruptcy case say it take years before the book is finally closed on Old Carco. One item that could help drag matters out is a $25 billion lawsuit Old Carco filed against former owner, Daimler.

[Source: The Detroit News | Image: Bill Pugliano/Getty]

We're a couple months past Halloween, but this video was just too good to pass up. A gentleman with an old XBox steering wheel, a fake skeleton and a couple black lights managed to scare the holy hell out of some folks by making it look like a glowing blue skeleton was driving his car. How did he do it? The key is to have a right-hand drive vehicle and a little bit of creativity.

The Halloween prankster rigged the steering wheel to his Toyota Sera by propping it up on a 2x4 stand and holding it in place with a heavy bag of pennies. He painted the skeleton white and added a couple black lights in the door jam and attached to the sun visor. He then dressed himself in all black and waited for night fall. The end result is a scary-looking blue skeleton that's ready to send a chill down the spine of the living. Hit the jump to for the full rundown on how it was done – it's worth it to hear the screams emanating from onlookers.

[Source: StreetFire]

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How cool is this? On minute Tom Smallwood is reeling after losing a (once) steady production job at General Motors' Truck Plant in Pontiac, MI, and the next minute he takes the PBA championship. In a real-life event that mimics some of the great tales in the history of underdog turned champion, Smallwood took third in a PBA qualifier event, making him eligible for one year on the prestigious bowling tour.

That alone barely makes the story interesting, but the tale becomes far more compelling due to the fact that Smallwood rolled into Wichita, Kansas an also-ran and left holding the first place trophy and a $50,000 grand prize. Smallwood, a 15-year recreational bowler, even had to beat out PBA bowler of the year Wes "Big Nasty" Malott in the final round. The former GM line worker performed superbly under pressure by hitting two strikes in the decisive tenth frame to take the match 244-228. After Smallwood's big win he was called by GM to take another plant job but the suddenly high-flying bowler turned down the offer in order to stick with his new profession.

We're thinking Smallwood's meteoric rise to the top of the bowling world will net him quite a bit more than his $50,000 top prize. Advertisers love a rags-to riches-story and Smallwood may be selling resin and those wrist things bowlers wear before you're even finished reading this post. Congratulations Tom!

[Source: Kicking Tires]

The Mexican drug trade business is booming. Drugs are flowing between Mexico and the U.S. on a daily basis, overwhelming the Mexican military and U.S. border patrol officers. Most of the drugs arrive stateside via cars and trucks, and the vehicles transporting contraband range from a Rolls Royce to a VW Rabbit. The New York Times spent some time in Sinaloa, Mexico with Mexican General Federico Solórzano at what looked to be a used car lot.

The general's troops have seized 766 vehicles to date ranging from Jaguars to brand new SUVs to classic muscle cars. Custom choppers, pickup trucks and sports cars are all accounted for on the lot, but these vehicles are different from cars and trucks you can purchase at your local dealership: they have secret compartments for carrying drugs and weapons across the Mexican boarder. The vehicles housed untold millions of dollars in addition to automatic weapons in false sidewalls, modified bumpers and trap doors. General Solórzano reportedly told the NYT that vehicles have been retrofitted with bullet-proofing tech, machine gun turrets, secret compartments that hold sharp nails for police cruisers in hot pursuit and even a smoke machine to assist in losing the Federalis.

The vehicles are being stored at a military base because drug traffickers have raided police facilities and took back the vehicles seized near the border. In total, the Mexican government is said to have over 14,000 vehicles in its possession, yet tons of drugs make the trip from South America to the U.S. without detection. The vehicles will eventually be sold at auction or will be used by other federal agencies, but the apparent crawl of the Mexican legal system means trials are sometimes years away. Head over to the NYT to read more about the vehicles that bring drugs from the Mexican boarder to a town near you. Pretty interesting stuff. Top tip, Mehul!

[Source: New York Times | Image: Jesus Alcazar/AFP/Getty Images]