GM uncovers the pre-production Camaro

From now on Camaros will be tested without camouflage, GM says, so bring out your cameras.

The production version of the highly anticipated Chevrolet Camaro won't be officially revealed for some time yet but, in a highly unusual move, GM won't hide the car from prying spy photographers during test drives anymore.

Magazines and car enthusiasts pay top dollar for "spy shots" of early pre-production cars, which are usually covered in black cloth and stripes of tape to try to hide their appearance, as the cars undergo testing on public roads.

In fact, several companies now specialize in selling these pictures, while car companies do their best - or at least claim to do their best - to keep their future products under wraps.

"It's really a cat-and-mouse game between spy photographers and car companies that benefits everybody," said John Neff, editor of Autoblog.com, a Website that posted several Camaro spy photos. (Autoblog.com, like CNNMoney.com, is a Time Warner property.)

Starting now, however, the Chevrolet Camaro isn't playing coy. Want to take a shot? Go for it, GM (GM, Fortune 500) says. When Camaro prototypes go out on public roads for testing they'll be totally naked.

"During this upcoming year, pre-production Camaros will appear both on U.S. and Australian roads as we continue with testing and development," Chevrolet general manager Ed Peper wrote in a post on GM's FastLane blog. "So keep those camera phones ready - if you happen to see one, we'd like to hear about it, so please post a comment and include your 'spy photo!'"

Engineering and development for GM's new rear-wheel-drive cars is taking place in Australia. That's because rear-wheel-drive cars are more common there, making GM's Australian engineers the company's rear-wheel-drive experts.

The FastLane post was accompanied by a "spy photo" GM says was taken by one of the company's engineers.

The main reason for removing the camouflage, according to Peper's post, was to facilitate tests for aerodynamics and cooling efficiency.

But even high-performance cars like the Corvette ZR1, for which aerodynamics and cooling would be especially important, are covered up during public testing. That's made some people skeptical that this is the real reason for the decision. Certainly the move would help juice publicity for the car.

In the case of the Camaro, there wasn't really much of a secret to protect, though. The company has said the production car would closely resemble concept versions that have been seen at car shows and in the movie "The Transformers."

Some executive wondered: "Why are we camouflaging something that's so close to the coupe and convertible that are already on the auto show circuit?" said Chevrolet spokesman Terry Rhadigan.

Even so, there has been a lot of interest in spy photos of the car. On the morning that GM's decision was announced, Autoblog.com posted images of a test Camaro on a parked transport truck. The images included detailed shots of the car's interior and the inside of an open door.

Seeing the potential for damage or injuries as photographers try to get close to the cars, GM may have decided that "at this point everybody is safer just taking off the camouflage," said Brenda Priddy, a professional automotive spy photographer.

Priddy, who has spent 15 years taking spy photos of cars, did not take the pictures posted on Autoblog.com. For her part, she said, she would never actually touch or reach into a car, which is a car company's private property, to get a shot.

A representative for the company that distributed the photos of the test Camaro's interior did not immediately respond to questions about how the photos were obtained.

The decision announced Thursday was made weeks ago, said GM's Rhadigan. It was not made in response to those specific photos, he said.

"This was not by any means a knee-jerk reaction to something we saw on the Internet," Rhadigan said.

Besides, said spy shooter Priddy, why should GM let people like her profit from all the interest in GM's car?
(source money.cnn.com)

Barack Obama in the leader seat

Barack Obama and Mike Huckabee have claimed victories in Iowa's first-in-the-nation caucuses

With all Democratic precincts reporting, Obama had the support of 38 percent of voters, compared to 30 percent for John Edwards and 29 percent for Hillary Clinton.

"The numbers tell us this was a debate between change and experience, and change won," said CNN political analyst Bill Schneider.

Iowa delivered fatal blows to the campaigns of Sen. Chris Dodd of Connecticut and Sen. Joe Biden of Delaware. Both have decided to abandon their White House runs.

New Mexico Gov. Bill Richardson, who finished fourth, said his campaign plans to "take the fight to New Hampshire."

New Hampshire holds the nation's first primary Tuesday.

Clinton and Obama are in a statistical dead heat in New Hampshire, according to the latest CNN/WMUR poll.

On the GOP side, Sen. John McCain of Arizona, whose campaign was languishing six months ago, and former Massachusetts Gov. Mitt Romney are now tied for first place in New Hampshire, according to the poll, which was released Wednesday.

McCain left Iowa before caucus night even began. He was already in New Hampshire by Thursday afternoon, trying to get a jump on his rivals.

For the winners of both party's caucuses in Iowa, it's an age revolt for Democrats versus a religious revolt for Republicans, Schneider said.

Among Democrats, Obama took 57 percent of the under-30 vote, according to CNN's analysis of entrance polls. Watch Obama celebrate his victory

Speaking to supporters, Obama called the night a "defining moment in history."

"You came together as Democrats, Republicans and independents to stand up and say that we are one nation, we are one people and our time for change has come." Watch an audio slideshow of the candidates' speeches »

Huckabee's victory can be attributed to his overwhelming support among evangelical voters and women, the polls indicate.

With 92 percent of Republican precincts reporting, Huckabee, former governor of Arkansas, had the support of 34 percent of voters, compared to 25 percent for Romney. Fred Thompson had 13 percent, McCain had 13 percent and Ron Paul had 10 percent. What do the results mean? »

Former New York Mayor Rudy Giuliani, who has turned the focus of his campaign to the February 5 "Super Tuesday" primaries, trailed with 4 percent.

"We've paid a lot of attention to states that some other candidates haven't paid a lot of attention to," Giuliani said, adding, "Time will tell what the best strategy is."

Huckabee was vastly outspent by Romney, who poured millions of dollars into a sophisticated get-out-the-vote operation.

"People really are more important than the purse, and what a great lesson for America to learn," Huckabee said in thanking his supporters.

For most of 2007, Huckabee languished in the single digits in the polls and had very little success raising money. But his momentum picked up in the final six weeks of the year when social conservatives -- an important voting bloc in Iowa -- began to move his way.

"We won the silver ... You win the silver in one event. It doesn't mean you're not going to come back and win the gold in the final event, and that we are going to do," Romney said.

Clinton, speaking with 96 percent of the vote in, portrayed herself as the candidate who could bring about the change the voters want.

"I am so ready for the rest of this campaign, and I am so ready to lead," she said.

Clinton had worked to convince Iowa caucus-goers she has the experience to enact change, while Edwards and Obama preached that she is too much of a Washington insider to bring change to the nation's capital.

Edwards, in a tight race for second, said Iowa's results show that "the status quo lost and change won."

"Now we move on ... to determine who is best suited to bring about the changes this country so desperately needs," he said.

McCain, who had largely abandoned Iowa to focus on the New Hampshire primary, said, "The lessons of tonight's election in Iowa are that one, you can't buy an election in Iowa; and two, that negative campaigns don't work."

With such a close race on both sides, voter turnout was key. The Iowa Democratic Party reported seeing record turnout. The party said there were at least 227,000 caucus attendees. The Iowa GOP projected that 120,000 people took part in the Republican caucuses.

The Iowa Democratic Party said 124,000 people participated in the 2004 caucuses, while the Republican Party of Iowa estimated that 87,000 people took part in the 2000 caucuses. (President Bush ran unchallenged for a second term in 2004.)

Caucus-goer Kathy Barger, inside a Democratic caucus site in Walnut, Iowa, said the room she was in was packed to the brim with a line out the door.

"I don't know how they are going to be able to fit everybody in the room, much less count the votes," she said. "There are bodies in every available space in the room."

The White House hopefuls campaigned down to the wire in Iowa, determined to reach as many people as possible before the 1,781 caucuses that started at 7 p.m.

Iowa Democrats, unlike Republicans, use a more complicated system to determine a candidate's viability. Republican caucus-goers are asked for their support for a candidate only one time during the event. Democrats are asked twice: an initial question of support, and a second if their first-choice candidate does not reach a 15 percent threshold to achieve viability.

Among Republican candidates, Thompson, a former senator from Tennessee, and Rep. Duncan Hunter of California needed strong showings in Iowa to keep their campaigns going, while Paul, a representative from Texas, is likely to ride his surge of popularity through February 5 -- "Super Tuesday," when 24 states hold their primaries -- no matter where he places in the early contests.
(Source cnn.com)

The Most Valuable College Basketball Teams

Highway I-40, known as Tobacco Road, connects the universities of North Carolina, Duke and North Carolina State. These schools sit within a 25 mile radius of each other in a region where college basketball is religion. The passion that their students, alumni and sponsors have for college basketball translates into an abundance of riches for these universities, making their men's basketball programs extremely valuable, according to Forbes' first ranking of college hoops teams. Just how much are these "amateur" basketball teams worth?

The North Carolina Tar Heels basketball team is the most valuable in the country, worth $26 million. We base our valuations on what the basketball programs contribute to four important beneficiaries: their university (money generated by basketball that goes to the institution for academic purposes, including scholarship payments for basketball players); athletic department (the net profit generated by the basketball program retained by the department); conference (the distribution of tournament revenue); and local communities (incremental spending by visitors to the county during the regular season that's attributable to the program).

Last season the Tar Heels posted a $16.9 million profit and, thanks in part to a lucrative merchandising agreement with Nike (nyse: NKE - news - people ), contributed $800,000 to the university for academics. With Michael Jordan's jersey hanging from the Dean Smith Center's rafters and the basketball team a perennial contender for the national championship, basketball is the cornerstone of the university's athletic department.
In Pictures: The Most Valuable College Basketball Teams

Duke is the fifth most valuable team, worth $22.6 million. The Durham Convention & Visitors Bureau estimates total spending by visitors to Duke Blue Devils men's home games last season topped $11.2 million--more than any other basketball program in the country. Duke's success (three national titles during the past 17 years) has enabled head coach Mike Krzyzewski to become a brand unto himself, appearing in commercials for American Express (nyse: AXP - news - people ) and Chevrolet, a division of General Motors (nyse: GM - news - people ). Rivals complain Coach K's commercial success is an unfair recruiting advantage.

NC State's basketball program, ranked 13th, is worth $13.6 million. With expenses of only $3.1 million, the lowest of any team on our list, the NC State Wolfpack earned a profit of $7.9 million last season. In his first year with the Wolfpack, former NBA head coach Sidney Lowe led his alma mater to victories over Duke, North Carolina and Wake Forest University, marking the first time in four years that NC State beat all three in-state opponents during the same season.

Captured in our valuations are mandatory donations required by some athletic departments in order to be eligible to purchase season tickets (often hidden within athletic department accounting). These "gifts" add up: the University of Louisville's basketball team, the most profitable in the country, raked in $10.5 million last season from contributions directly tied to premium seating. Valued at $24.4 million, Louisville's basketball team is ranked third on our list. State rival University of Kentucky generated $7 million through 7,000 premium seats at Rupp Arena before a single ticket was even sold. Placing second, the Kentucky program is worth $24.9 million.

There is less wealth disparity among the top college basketball teams than the top football teams mainly because television money is more evenly distributed in basketball. The 20 most valuable teams span seven conferences, and include one team from the mid-major Atlantic 10. Xavier University, a private institution in Cincinnati with only 3,360 undergraduate students, can boast having a basketball team worth $10.7 million--largely as a result of personal seat licenses reaping almost $4 million in annual revenue. Compare that with football (see "The Most Valuable College Football Teams"), where teams from the SEC, Big Ten and Big 12 dominate our list.
(Source forbes.com)

DaimlerChrysler gets record fuel economy fine

Mercedes-Benz cars draw $30.3 million penalty for violating fuel economy standards.

DaimlerChrysler has been hit with the largest fine ever assessed against any company for violating fuel economy standards set by the federal government.

The automaker was split into two companies last year when its Chrysler division was purchased by a private equity firm.

The fine of $30.3 million was assessed for 2006 model year imported passenger cars. That means the fine was assessed almost entirely against the company's Mercedes-Benz luxury cars. The only imported car sold as a Chrysler was the German-built Crossfire sports car.

For the 2006 model year, the average fuel economy of passenger cars imported by DaimlerChrysler - as measured for "corporate average fuel economy," or CAFE, purposes - was 24.8 miles per gallon. The government requires an average of 27.5 mpg.

The fine for violating CAFE standards is $5.50 for ever tenth of a mile under the 27.5 mpg goal, multiplied by the number of vehicles imported. The record fine is nearly double the $16,895,472 the company had to pay for the 2005 model year.

The fuel economy figures used by the National Highway Traffic Safety Administration (NHTSA), which administers the CAFE program, are calculated differently from Environmental Protection Agency fuel economy figures shown on vehicle window stickers. In general, NHTSA's CAFE figures are about 25 percent higher, according to the EPA.

The target of 27.5 mpg is the same for domestic and imported cars, but averages for domestic and imported cars are tabulated separately.

The fine assessed against DaimlerChrysler surpassed the previous record $28 million fine against BMW for the 2001 model year. For the 2006 model year, BMW was hit with the second-biggest fine, but at about $5 million it was much lower than DaimlerChrysler's.

No American or Asian car company has ever had to pay a fine for violating government CAFE standards. Only European car companies, which mostly sell luxury and performance-oriented cars here, have had to pay such fines - and many do so routinely

Representatives of Mercedes-Benz USA and Chrysler LLC did not immediately respond to requests for comments on the fine. Since the fine was assessed against the combined DaimlerChrysler, it is not clear what portion of the fine, if any, Chrysler LLC will have to pay.

Cars produced in Canada and Mexico are counted as domestic products under fuel economy regulations.
(Source money.cnn.com)

Oil pushes to $100

Violence in Nigeria, supply disruption in Mexico and the prospect of another drop in U.S. inventories and more rate cuts drive crude to triple digits.

Oil prices topped $100 a barrel Wedesday as violence in Nigeria pushed an already nervous market over the triple digit mark.

NEW YORK (CNNMoney.com) -- Oil prices kicked off the first trading day of 2008 by hitting a new high of $100 a barrel Wednesday on violence in oil-rich Nigeria, the prospect of more interest rate cuts, a halt in Mexican imports and the expectation of yet another drop in U.S. crude supplies.

U.S. crude for February delivery jumped $4.02 to $100 a barrel on the New York Mercantile Exchange before slipping to $99.42. The previous trading record was $99.29 set Nov. 20. Oil prices ended 2007 by gaining nearly 60 percent for the year, the largest jump this decade.

"This market is really gonna fly," Ira Eckstein, president of Area International Trading Corp, said from the NYMEX floor.

In Nigeria, bands of armed men invaded Port Harcourt, the center the oil industry Tuesday, attacking two police stations and raiding the lobby of a major hotel, The Associated Press reported. Four policemen, three civilians and six attackers were killed. The Niger Delta Vigilante Movement claimed responsibility for the attack.

At 2.1 million barrels per day, Nigeria was the world's eighth-largest oil exporter in 2006, according to the U.S. Energy Information Agency.
What $100 oil would cost you

A surprise fall in manufacturing activity sparked fears of yet another interest rate cut from the Federal Reserve. Interest rate cuts generally cause the dollar to fall - and oil prices rise - as investors bail out of U.S. stocks and bonds and into commodities.

One trader said word among traders on Wednesday was that Mexico plans to temporarily halt oil exports, although the reason was unclear. The Associated Press reported that several Mexican ports were closed due to rough weather. PEMEX, the Mexican state oil company, could not be immediately reached for comment.

At 1.7 million barrels per day, Mexico is the world's 10th largest exporter of crude and the second largest exporter to the U.S. behind Canada.

Analysts are expecting the latest government inventory report - set for release Thursday, to show a 1.8 million barrel decline in crude supplies, according to a Dow Jones poll. It would mark the seventh straight week U.S. crude stocks have dropped.

Oil has been on a tear over the last few months - rising from under $70 in August - as OPEC cuts from earlier this year began to eat into inventories in developed counties.
$100 oil and the 'S' word

A falling dollar and several reports pointing to tightening supplies as strong demand from developing countries swallows up new production gains have also pushed prices higher, as well as attracted a slew of investment money.

Crude has risen over five-fold since the start 2002, largely for the same reasons.

Adjusted for inflation, oil is at or near the prices of the early 1980s. At that time, following the Iranian revolution and the outbreak of the Iran-Iraq war, oil traded in the high $30-a-barrel range, the equivalent of between $92 and around $103 a barrel in current prices, depending on the contract cited and the inflation calculation used.

Retail gasoline prices have not risen as fast as oil prices over the last few months, largely due to weak demand.

But with oil prices so high, gasoline is beginning to catch up. The national average price for a gallon of regular Wednesday was about $3.05 a gallon, a penny less than last month but about 30 percent higher than the same time last year, according to the motorist organization AAA.
(source money.cnn.com)