Long winter means most automakers won't curb summer shutdown

A lot more happened during this latest brutal winter than days of snow and Netflix binges. Automotive sales took a battering. After all, going out car shopping when it's eleventy-billion degrees below zero isn't a good time.

Because of this Old Man Winter-induced sales slump, inventories are abnormally high as we head into the summer car buying season. That's led some analysts to predict that automakers will be more inclined to idle factories this summer, in a bid to trim some of the built-up inventory. Traditionally, American manufacturers offer up a two-week break in the middle of summer, although the burgeoning sales of the past few years have seen this practice become less popular.

"We're likely not going to see an acceleration this year," Jeff Schuster, a senior vice president at LMC Automotive, told The Detroit News. "We'll see production increases in 'pockets' but I don't know if it will be as widespread as in recent years."

According to The News, inventory levels currently sit at 69 days. That's down from March, but still a few days above desirable levels.

As of now, neither Ford nor Chrysler had set their summer production plans in stone, although the Blue Oval said it would make a decision after Memorial Day. General Motors wouldn't comment for The News' story.
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Former Treasury boss unaware auto task force fired GM's Wagoner

We dig a good political tell-all every once in a while (how else will we get our political fix while waiting for House of Cards' third season?). Today, we get just that from former Treasury Secretary Timothy Geithner's new book, "Stress Test," which details, among other parts of the 2009 financial catastrophe, the structured bankruptcy that allowed Chrysler and General Motors to emerge as competitive players in the auto industry.

In the book, which is nicely recapped by The Detroit News, Geithner discusses the firing of GM CEO Rick Wagoner while explaining how much trust he had in the auto industry task force that executed the move without his knowledge.

Auto Czar Steve Rattner "didn't even consult me before he fired General Motors CEO Rick Wagoner; if anything, that move increased my confidence in Team Auto," Geithner wrote.

Geithner also details how badly GM miscalculated the government's position while pointing out that President Obama "never seriously" considered letting GM or Chrysler fail. There are some controversial views, however. Geithner defended the decision to go harder on the automakers, while making sure banks didn't suffer to heavily.

It's really worth a read, particularly if you are, like us, a student of the industry and the 2009 bailout. Hop over to The Detroit News website, have a look at some snippets from the book and then let us know what you think in Comments.
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Detroit automakers mulling helping DIA avoid bankruptcy looting

It's not really a secret that the city of Detroit is in lots and lots of trouble. Even with an emergency manager working to guide it through bankruptcy, a number of the city's institutions remain in very serious danger. One of the most notable is the Detroit Institute of Arts, a 658,000-square-foot behemoth of art that counts works from Van Gogh, Picasso, Gauguin and Rembrandt (not to mention a version of Rodin's iconic "The Thinker," shown above) as part of its permanent collection.

Throughout the bankruptcy, the DIA has been under threat, with art enthusiasts, historians and fans of the museum concerned that its expansive collection - valued between $454 and $867 million by Christie's - could be sold by the city to help square its $18.5-billion debt.

Now, though, Detroit's hometown automakers could be set to step up and help save the renowned museum. According to a report from The Detroit News, the charitable arms of General Motors, Ford and Chrysler could be set to donate $25 million as part of a DIA-initiated campaign, called the "grand bargain." As part of the deal, the DIA would seek $100 million in corporate donations as part of a larger attempt at putting together an $816-million package that would be paid to city pension funds over 20 years. Such a move would protect the city's art collection from being sold off.

The charitable donation is still far from a done deal, though, largely because of legal complications inherent in such a large bankruptcy case. According to The DetNews, there's concern among business leaders approached by the DIA (which in addition to the automakers include utility provider DTE Energy, Roger Penske and Quicken Loans) that the entire project could fall apart if city lawmakers don't act on it quickly. Alternatively, the deal could crumble if plans put before the city's pensioners and unions ends up failing.

"Ford has been a long-time supporter of the DIA and its contributions to southeast Michigan. We are having confidential discussions with the DIA and are considering the matter very carefully," Ford spokesman Todd Nissen told The News.

"The DIA must be central to any plans for a revitalized Detroit. Both GM and the GM Foundation are giving careful consideration to how we can help preserve this treasure at such a critical time," GM spokesman Greg Martin said.

Chrysler issued a shorter statement, telling The Detroit News that it "is committed to playing a positive role in Detroit's revitalization. Accordingly, we are reviewing the DIA's request."
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Former GM engineer Jim Federico lands at Harley-Davidson

Former leading engineer at General Motors Jim Federico certainly didn't take long to find a new job. After recently announcing his retirement from GM, he is moving to Harley-Davidson on June 2 as its new Vice President of Engineering.

"We've been talking to Jim about this position for some time," said Harley-Davidson spokesperson Maripat Blankenheim in Motorcycle.

Federico spent nearly 36 years at GM and retired as the company's Executive Director of Global Vehicle Integration. He held high-level engineering positions for a wide variety of vehicles including the Chevrolet Spark (pictured above), Cadillac CTS and many others. However, his most notable recent job was as lead investigator on a team that examined the automaker's faulty ignition switches. In 2012, his group analyzed the components to understand what was happening to them. However, he later left the team because of an excessive workload. "Jim plans to take on new engineering and design challenges outside of the auto industry," said the the automaker's official statement on his retirement.

Federico's leaving appeared to be timed as GM split its engineering department into two sections. John Calabrese, GM Vice President of Global Vehicle Engineering, also retired during the change.
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Tier 1 suppliers call GM the worst OEM to work with

Among automakers with a big US presence, General Motors is the worst to work for, according to a new survey from Tier 1 automotive suppliers, conducted by Planning Perspectives, Inc.

The Detroit-based manufacturer, which has been under fire following the ignition switch recall and its accompanying scandal, finished behind six other automakers with big US manufacturing operations. Suppliers had issues with trust and communications, as well as intellectual property protection. GM was also the least likely to allow suppliers to raise their prices in the face of unexpected increases in material cost, all of which contributed to 55 percent of suppliers saying their relationship with GM was "poor to very poor."

GM's cross-town competitors didn't fare much better. Chrysler finished in fifth place, ahead of GM and behind Dearborn-based Ford, which was passed for third place this year by Nissan. Toyota took the top marks, while Honda captured second place.

PPI also surveyed suppliers of Volkswagen, BMW and Mercedes-Benz, each of which has considerably smaller manufacturing presence relative to the American and Japanese brands (there are only three US factories between the three of them). Mercedes and VW were ranked behind GM, while BMW would have been just behind Toyota.

According to Reuters, this survey serves to illustrate a big issue facing American manufacturers - Japanese brands aren't just on good terms with suppliers, but their relations are actually improving. PPI boss John Henke said the popularity of Toyota and Nissan among suppliers increased considerably, indicating that we "could be entering an era in supplier relations that doesn't bode well for the US Big Three."
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GM updating fullsize pickups for 2015

 

As Ford prepares to hit the market with its x-factor, aluminum-intensive F-150 and Ram sales stand tall enough to meet General Motors truck sales eye-to-eye, GM is putting the word out that it's going to add more features to its trucks and do so more regularly. An executive engineer for pickups told reporters that "a whole array" of changes are on the way as soon as the 2015 model year and then would likely come "the year after that, the year after that, the year after that."

Only GM knows the way it plans to go with its fullsize trucks, with almost everyone else - including its dealers - griping about market share at the same time as they applaud profits and hope for clarity and growth. GM raised prices on the Chevrolet Silverado and GMC Sierra not long after launch even as it was losing market share and getting called "the least successful large pickup launch over the last 15 years," further upsetting dealers, then Ram outsold the Silverado in March of this year and led GM to increase incentives. But transaction prices rose with the premium; in the first quarter of this year more than 37 percent of the trucks costing more than $40,000 were the Silverado and Sierra, leading one dealer to say of the Sierra, "You can't sell a cheap one," and the analyst who made that "least successful launch" comment to opine, "GM may have made the right call to go for price over share."

We won't know for a few months what any of these updates will be, but the rumored changes for the Silverado and Sierra appear to cover all the bases, including appearance, capability and fuel economy. Rumors run to higher gear counts, stop-start technology and diesel engines before brand-new pickups come for the 2019 model year, those next-generation models supposedly to be engineered with a lot more aluminum.
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DOT, GM tests say single key is safe for recalled vehicles [w/video]

Throughout General Motors' ignition switch recall, the embattled, Detroit-based manufacturer has maintained the mantra that some 2.6 million recalled vehicles were safe to drive, provided certain precautions were taken.

Now, GM has issued a video that it says is proof of that point. Starring Vice President of Global Safety Jeff Boyer, the video shows a number of tests carried out on affected vehicles at GM's sprawling Milford, MI proving grounds. Engineers beat the heck out of the cars, just to prove that if there's nothing on the key - not even the key fob - that even some seriously brutal roads won't switch off the ignition switch.

The GM video comes on the same day that the US Department of Transportation declared that recalled GM vehicles did not need to be parked, following a petition from a pair of Democratic senators. According to Reuters, Senators Edward Markey of Massachusetts and Richard Blumenthal of Connecticut have argued that affected models shouldn't be driven until repairs can be completed.

Secretary of Transportation Anthony Foxx (shown above) dismissed the senators' arguments, though, writing that "such an action is not necessary at this time," and that the DOT's National Highway Traffic Safety Administration "is satisfied" with GM's temporary solution to the problem.

According to Reuters, Senators Markey and Blumenthal's concerns rested with the performance of the faulty ignition switches on rough roads. This video should, hopefully, allay those concerns.

Take a look below for the video from GM, and then head into Comments and tell us - is the blessing of GM and Secretary Foxx enough for you to get back behind the wheel of a recalled Chevrolet Cobalt or Saturn Ion? Let us know.
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2014 Chevy Malibu, Buick LaCrosse recalled over brake mix-up

The recall madness over at General Motors isn't letting up anytime soon, as evidenced by this latest call-back of 8,208 Chevrolet Malibu and Buick LaCrosse sedans. For those keeping track, this is the fifth recall that GM has announced in the past two weeks, not to mention the massive ignition-switch issue from earlier this year.

GM issued a statement saying these sedans are being recalled due to "possible reduced braking performance," according to Automotive News. The problem? Rear brake rotors may have accidentally been installed in the front brake assembly. And since both cars use more robust braking systems up front than out back, braking power could be reduced, increasing the risk of a crash.

Automotive News reports that, of the over 8,000 cars being recalled, about 1,700 are currently in the hands of customers, while the others are still in dealer inventory. GM is unaware of any crashes or injuries related to this problem. All of the affected vehicles are from the 2014 model year.

GM has issued a stop-sale, effective May 1, on the cars still at dealers. After the front braking assemblies have been inspected and repaired (if necessary), dealers will be allowed to sell these vehicles.

The National Highway Traffic Safety Administration has not yet issued a formal announcement about the recall. Head over to Automotive News for the full report.
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2014 Chevrolet Corvette C7 Stingray ZR1 Rendering Released

The 2014 Chevrolet Corvette C7 has just made its world debut in Detroit and the vehicle is now keeping those who handle virtual tuning busy. Yesterday we showed you a rendering of the car wearing COR wheels and now it’s time to go even further.

The adjacent image shows the new Stingray as a ZR1, with the car receiving new front end details. The front fascia is significantly more aggressive than before, as if it would indicate the presence of the ZR1's supercharged engine under the bonnet. It also uses massive LED daytime running lights, as well as a generously-sized front splitter that draws quite a lot of attention to the vehicle.

The ‘Vette is also shown wearing a set of custom rims from Advance One Wheels. These come with a multi-spoke, deep concave design. The simple styling cues of the wheels allow us to focus on the design of the car and simply make it stand out a bit more.

Image credits: SpinnerBG on deviantart

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Lotus Evora Belonging to Bob Lutz Up for Sale!

Former GM chairman, and current spokesman for VIA Motors, Bob Lutz commissioned a special Lotus Evora S for himself, yet it seems that he didn`t fancy the car very much, as it is now for sale with just 40 miles on the odometer.

It features special kit like a reversing camera, FGD Design rims, and a green exterior finish, with contrasting longitudinal yellow stripes. It also has the optional Technology package fitted as well as the Premium Sport pack. It is now priced at $95,015, for those interested.

Nevertheless, for a car with so many features and a famous former owner, it will most likely get sold rather quickly. We particularly like how the exterior body finish is nicely complimented by the yellow stripes and the great-looking rims.

However, the red calipers clash a bit with the overall colour, and the dashes of yellow, and we say they should have been painted to match the stripes, or they could have been left plain metallic grey.

News Source: lotustalk.com

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GM Issues Small-Scale Recall for GMC Savana and Chevy Express

Recalls for commercial vehicles are far less frequent than those for passenger cars, because such vehicles are usually less-innovative than their people-carrying counterparts, and therefor many proven parts are carried over from previous generations, for improved reliability.

However, they do occur, and GM has just announced a small-scale recall for the Chevrolet Express and the GMC Savana, due to fears of the vehicles rolling away, as it is possible to take the key out of the ignition, without the vehicle being in 'park'.

A total of 980 units are affected, and they will be brought back to GM dealerships, where the ignition cylinder and keys will be replaced free of charge. We don`t know if the parts were faulty to begin with, or were the subject of excessive wear, but they require replacement.

The affected Chevy-branded vans were built between November and December of last year, while the GMC version with the fault was only built for a week in November. The recall begins on January 23 and owners of the affected vehicles will be notified in due time.

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2014 Chevrolet Silverado tows in new configurator, microsite

Judging by your continued enthusiastic response to configurator notices, dear reader, you enjoy speccing out new cars as much as we do. Better still, there tends to be even more ways to personalize, configure and bloat theoretical MSRPs on full-size trucks as there are with more ordinary passenger cars. In addition to trim level, engine and transmission choices, truck buyers usually have to specify items like cab configuration, bed length, number of driven axles, tow packages, gear ratios and all sorts of bits and bobs.

That's why we're pleased to see the DIY specification utility for the 2014 Chevrolet Silverado come alive so soon after this week's Detroit Auto Show debut. While the configurator lacks pricing (General Motors hasn't announced numbers yet) and full options, you can still spec out your half-ton rig, and even print it out or email it to your friends. Beyond the configurator, the new model-specific site is pretty cool, too, with various videos and closer looks at the truck's new features.

The new Chevrolet pickup range won't be on dealer lots until sometime this summer, so whether you're a building contractor, an avid sportsman or just a guy or gal that loves full-size trucks, you might want to check out the link below to keep your appetite whetted. If you're more of a Sierra fan, well, it looks like you're going to have to wait a while – GMC hasn't updated its site yet.

News Source: Chevrolet

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GM recalls Chevy Express, GMC Savana over rollaway concern

The National Highway Traffic Safety Administration has issued a recall notice for a small number of General Motors fullsize vans due to possible rollaway concerns. On certain 2013 Chevrolet Express and 2013 GMC Savana models, it is possible to remove the key from the ignition without the shifter being in park.

Vehicle Make / Model: Model Year(s):
CHEVROLET / EXPRESS 2013
GMC / SAVANA 2013

Manufacturer: General Motors LLC

Report Receipt Date: JAN 14, 2013

NHTSA CAMPAIGN ID Number: 13V010000

NHTSA Action Number: N/A

Component: ELECTRICAL SYSTEM:IGNITION

Potential Number of Units Affected: 980

Summary:
General Motors (GM) is recalling certain model year 2013 Chevrolet Express vehicles manufactured November 1, 2012, through December 21, 2012; and model year 2013 GMC Savana vehicles, manufactured November 14, 2012, through November 20, 2012. It may be possible to remove the key from the ignition when the vehicle is running or the transmission is not in the Park position. As such, these vehicles fail to conform to the requirements of Federal Motor Vehicle Safety Standard 114, "Theft Protection."

Consequence:
If the ignition key is removed while the vehicle is still on and/or the vehicle is not in Park, the vehicle may rollaway and the unintended movement of the vehicle may result in a possible crash or injury to pedestrians.

Remedy:
GM will notify owners, and dealers will replace the ignition lock cylinder and the two associated keys. This service will be performed free of charge. The recall is expected to begin on January 23, 2013. For more information, GMC owners may call 1-866-996-9463 and Chevrolet owners may call 1-800-630-2438.

Notes:
General Motors' safety recall number is 12332. Customers may contact the National Highway Traffic Safety Administration's Vehicle Safety Hotline at 1-888-327-4236 (TTY: 1-800-424-9153); or go to www.safercar.gov.

News Source: National Highway Traffic Safety Administration

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Chevy Malibu emergency refresh to include roomier rear seats, Impala styling tweaks

The Chevrolet Malibu is failing to sell at the pace General Motors would like, prompting the automaker to make the decision to refresh the midsize sedan just one year after a complete redesign. According to a report from Newsday, the main gripes from consumers center around the car's tepid styling and lack of room in the rear seat.

Naturally, styling is subjective, but the report indicates GM plans to bring the Malibu's styling more inline with its larger Impala sedan, making changes mostly to the front fascia. As far as rear-seat room goes, it's worth noting that the 2013 Malibu actually has less legroom than the old 2012 model; 36.9 inches versus 37.6. Shoulder and hip room, though, increased by two and three inches, respectively, with the redesign.

In any case, without major structural changes, there's no way the Malibu will reach the rear legroom levels set by such large so-called midsize sedans like the Honda Accord (38.5 inches) or Volkswagen Passat (39.1) due to the fact that it's sized to be a global car and not one specifically for the US market. And, considering the impending existence of the 2014 Impala, we don't expect any major structural changes to affect the Malibu's interior offerings.

It's somewhat unusual for an automaker to make such significant changes to a car after only one year of production. But with all of the hype surrounding the emergency refresh of the 2013 Honda Civic, this sort of thing could become more common moving forward.

News Source: Bloomberg via Newsday

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GM's Reuss says rear-wheel drive Scion FR-S rival "on the list"

According to Australian site CarSales.com.au, General Motors North American boss, Mark Reuss, has expressed high interest in creating a small, rear-wheel-drive coupe to rival the Scion FR-S and Subaru BRZ. If something like this ever came to production, it could take the shape of the Chevrolet Code 130R concept car (pictured) that debuted at last year's Detroit Auto Show.

"It's on the list. It would be a great entry for us," Reuss told CarSales.com.au, adding, "I don't know if they (Toyota) are making any money but it is a very attractive car."

A production version of the 130R would likely ride on a small, rear-drive platform like GM's Alpha architecture, which currently underpins the Cadillac ATS and will eventually be used in the next Chevrolet Camaro. "We would do something with the knowledge of Alpha and the background, but we wouldn't take Alpha and try and shrink it," said Reuss.

We've heard faint whispers about exactly this scenario previously, and the fact that it's still on the table is a good sign. Of course, if development hasn't started yet and a project like this gets the green light, there's no telling how far off a small, rear-drive coupe from GM could be. And considering how popular the Scion and Subaru twins have proven (at least in their early life), GM would be wise to get the ball rolling sooner rather than later.

News Source: CarSales.com.au

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El Camino revival hopes scuttled by Aussie dollar?

Could Chevrolet sell a reborn El Camino in the United States? Let's ask an expert, General Motors International Operations boss Tim Lee, what he thinks. Speaking to the Aussies at CarPoint.com.au, Lee had this to say: "I think here in the US that vehicle has a tremendous amount of cache so if we could [import it] we would if it makes sense."

Great! So, we'll be getting a pickup car within the year, right? Well, not so much. Lee continues, "You tell me about what the Aussie dollar is going to do over the next 12 to 24 months and I'll tell you the export potential of cars like that." Obviously, nobody can say with certainty what the exchange rate between the US and Australia will be in two years, but as of right now, the Aussie dollar is worth a nickel more than a US dollar.

To quote Mr. Lee once again, "You can't make a business case of something like that." Indeed you cannot.

But what about the Chevrolet Caprice PPV, isn't that built in Australia? Indeed it is, and the upcoming Chevy SS performance sedan will be important from Oz as well. Thing is, Mr. Lee says the SS "will have to take a very premium price position" in order to be sold in the States, and that's apparently not in the cards for an El Camino.

Also not an option: Building the Australian Zeta-chassis machines in the US. Being that we've quoted Lee so many times already, here's one more to close out the discussion: "We will not be investing one penny to implement the Zeta architecture in the United States. I am the chief manufacturing officer of the company – that is written in stone." 

News Source: CarPoint.com.au

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General Motors Announces Creation of New Jobs and Additional Shifts

While the European automotive industry is experiencing the worst period in the last 30 years, in the US things are very different. Following an announcement made by Ford, regarding the addition of new jobs (2,350 by 2015), General Motors has also made similar announcements, through its own and UAW officials.

The UAW president, Bob King, announced that he expects GM to soon pass the 20,000 jobs mark, added since the 2009 bankruptcy. No further details were given, but it is expected that Joe Ashton, VP in charge of the union’s GM side of things, will be making additional announcements soon.

This would mean the addition of at least 2,000 new jobs, to the 18,000 they have already added since 2009. It would bring about the creation of additional shifts at some of their manufacturing locations, as well as the launch of new products, in 2013 and 2014.

Still, GM expects a profit increase for 2013, a year which is all about setting the stage for improved revenue, market share and profit growth going forward," according to Chuck Stevens, chief financial officer of GM North America and GM South America, despite announcing it as a modest year, on the local US market.

Aside from Ford and GM, Chrysler has also announced, towards the conclusion of 2012, that they have already added an impressive 5,700 hourly jobs, at their various sites in Detrout, since the company was taken over by Fiat, back in 2009.

Story via The Detroit Free Press

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GM Plans Further Expansion in China

China is the best bet, in the current economic climate of the world, for automakers looking to keep their massive sales figures on the rise, when common sense dictates they should be going down. Despite the fact that the Chinese market is slowing down its relentless boom, it is still a highly-attractive alternative for foreign automakers.

General Motors, which has already established itself very well in China, through both its own products, and local joint ventures, still wants to expand its ‘influence’ in the country - they are also the largest foreign automaker in the PRC. Now, having already built two manufacturing plants in 2012, have already announced a third and the construction of a fourth.

GM did very well in China, last year, and they just managed to nudge ahead of Volkswagen, by selling 2.84-million cars in total - just 300,000 more than the Germans. They want to be part of the predicted growth, which will still be very evident in 2013, when analysts expect the total number of cars sold to increase to 21 million - up from last year`s 19.4 million.

Bob Socia, GM China boss said: “You need to stay ahead of the curve [ . . . ] Are we ready to announce another plant? No, but clearly we’re looking at what we’re going to need to handle our expansion.”

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GM CEO Dan Akerson is ‘Proud’ of the New Corvette C7

And why wouldn`t he be - it is not only an excellent modern interpretation of the classic ‘Vette recipe, with great styling, a substantially better interior than its predecessor, a high-tech engine which is still a V8 and high tech construction - it even uses carbon fiber for the hood and roof!

The GM CEO, Dan Akerson, recently stated: “If you really want to transform this company from just playing it kind of four-corner stall, as they say in basketball — but go on offense, you are going to have to take some risks [ . . . ] It’s a statement about American ingenuity — it’s about technology and, frankly, our risk-taking. This is the first car that was designed start to finish-post.”

They plan to sell around 35,000 C7s per year, despite the fact that sales of the old model reached a 50-year low, back in 2010, when only around 13,000 were sold. Still, this new car is a far more appealing prospect, and from what the people behind it say, it is a much better all-round car - a more usable one which works well both on the road and on the track, thanks to selectable driving modes.

This high-tech new ‘Vette will give Chevrolet a much-needed image boost, above all - it won`t really be a money-maker for GM, but more of a ‘halo car’ for the Chevy brand.

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Jon Sibal renders the 2014 Chevrolet Corvette C7R

General Motors has made it very clear the 2014 Chevrolet C7 Corvette borrowed more than a few engineering tricks from the mighty Corvette Racing C6R, leaving us to ponder on what exactly a C7R might look like. It seems our friend Jon Sibal was wondering the exact same thing. The designer recently took the time to whip up a rendering of an American Le Mans Series-prepared version of the new sportscar, and the creation looks as sinister on our screens as it did in our imaginations. With its exposed carbon fiber, matte black graphics, yellow lighting and center lug wheels, this rendering looks appropriately sinister.

Here's hoping Corvette Racing is paying attention. So far, the outfit hasn't said one word about its own take on the 2014 Corvette, but you can bet your lunch money the machine will give the rest of the competitors in the ALMS GT class something to sweat over. 

News Source: Jon Sibal via Facebook

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