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'We're not a hedge fund': Porsche plans to curtail speculators and flippers

A sizable number of speculators view cars as an investment. Rare or unusual models are quickly snapped up and either parked for years or flipped for a profit. Cars from automakers like Porsche and Ferrari are more prone than others, and at least some people behind these models are getting a bit tired of it. While it's difficult to police what goes on after you sell a car, Porsche has some plans that might curtail the problem before it starts. Andreas Preuninger, the head of GT road-car development and the man behind the new 911 GT3, spoke to Car and Driver at a recent event. "I personally like to see my cars being used," he said. "That's what we build them for. They are just too good to be left to stand and collect dust." One recent example of this rampant speculation is the 911 R. While the special manual-only model sold for $185,950 when new, used versions were selling for nearly $1.3 million just months after it went on sale. While the car is a masterpiece and an instant classic, a good number will be parked and simply used as art and not the rolling testaments to the man/machine interface they were intended to be. The concern over valuations has become so fierce that some owners are upset that Porsche is offering the new 911 GT3 with a manual transmission, fearing that it may hurt the value of the 911 R. "When I said we're not a hedge fund, I'm talking to those people who are yelling at us for offering the manual transmission similar to the R," Preuninger said. "But if there are people wanting to buy cars like that, then as a company we should try to fulfill that, to meet that demand." It seems Porsche is keeping a close eye on who is flipping cars. Since there is often far more demand than supply with certain models, the German automaker has a name for every car before it's built. Buyers with bad reputations might not even make the wait list. Related Video:

Burt Reynolds’ former 1978 ‘Smokey’ Pontiac Trans Am in big auction by feds

A 1978 Pontiac Trans Am once owned by Burt Reynolds as a memento of the car he drove in the film “Smokey and the Bandit” will be among nearly 150 muscle cars and luxury vehicles seized from the alleged perpetrators of an $800 million investment scheme that will hit the auction block this weekend in California. ItÂ’s said to be the largest single-owner car collection ever auctioned by the U.S. Marshals, seized late last year from Jeff and Paulette Carpoff, the founders of the now-defunct mobile solar generators company DC Solar. Two employees of the San Francisco Bay Area solar energy company, certified public accountant Ronald Roach, 53, and general contractor Joseph Bayliss, 44, both of the Bay Area. pleaded guilty Tuesday to participating in what federal prosecutors say was a massive scheme that defrauded investors of $1 billion. Both men agreed to cooperate in the ongoing investigation. While the Carpoffs, the company's owners, have not been charged, they agreed to let the government auction their collection of 150 classic, performance and luxury vehicles, including the 1978 Pontiac Trans Am once owned by Burt Reynolds. The replica of the car the late actor drove in "Smokey and the Bandit" and the other vehicles are to be auctioned Saturday, with online bidding already pushing the accumulated value past $5.5 million. Bidding on that Trans Am alone had topped $65,000 by late Tuesday. The auction company said it had been driven less than 3,400 miles. It's the largest single-owner car collection ever auctioned by the U.S. Marshals Service. Chief Deputy U.S. Marshal Lasha Boyden of the Sacramento office called it "a stunning collection of vehicles" that also includes 1990s Humvees, 1960s-era Ford Mustangs, Chevrolet Camaros from several decades, plus older cars including a 1939 Buick Roadmaster, a 1951 Chevy Thriftmaster 3100 pickup truck and a 1941 Plymouth Special Delux with wooden doors and trim. “It is rare for the U.S. Marshals to hold an auction of such a stunning collection of vehicles,” Chief Deputy U.S. Marshal Lasha Boyden in Sacramento said in a statement. ReynoldsÂ’ former Trans Am is a hardtop memento of the version he drove in the 1977 action comedy. It bears Bandit Run logos in the rear window and upper windshield and appears to have modified suspension components and bucket seats. It comes with a Florida registration with ReynoldsÂ’ name on it, and an autograph on the glove box that reads, “Be Safe!

GM recalling 778,000 Cobalts and G5s, six deaths reported

General Motors has announced that it will be recalling 778,562 compact cars after six people were killed in accidents, partially due to the airbags' failure to deploy. An issue with the ignition switch is causing the airbag issues, as well as causing the engine and other components to shut off without warning. The recall covers the 2005 to 2007 model year Chevrolet Cobalt and 2007 Pontiac G5. (Note that the Cobalt pictured above is a 2009 model.)
According to a report from Automotive News, a number of factors can cause the ignition to switch out of the run position, including weights on the key ring, rough or bumpy roads or other "jarring" events. Any of these situations could lead to some vehicle components not functioning properly.
There have been five fatal front-impact crashes that took the lives of six people, although as a GM spokesman noted, all five of the crashes happened off road and at high speed. In each of these cases, though, the lack of airbags wasn't the only lethal factor - alcohol and failure to wear a seat belt also played a role. Outside of the fatal accidents, there have been 17 other crashes where airbags didn't deploy. It's unclear if any of these crashes were caused by the engine shutting off.