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The Detroit News reports Chrysler is walking away from the company's pursuit of low-interest Department of Energy loans. The automaker originally applied for an $8.55 billion loan when it was still under Cerberus Capital Management, though the figure had since shrunk to $3.5 billion. The DOE, meanwhile, said it was considering a much smaller $2 billion loan with additional restrictions than were previously negotiated. The loan period would also be significantly shorter. Chrysler had sought the funds as a way to reduce the company's interest payments, which would have dropped by nearly 5 percentage points had the deal gone through.

Instead, Chrysler will use its own funds for capital improvements. The report says the company has nearly $11 billion in liquidity, though that figure includes $1.3 billion in an undrawn private loan.

Chrysler isn't the only automaker to walk away from DOE loans. General Motors pulled its application for a $14.4 billion loan last January. The funds would have gone toward retooling. The DOE and the Obama Administration have been hesitant to hand out more government money after the solar panel company Solyndra LLC received around $528 million loans before going bankrupt.

As a relatively compact crossover, you might expect the BMW X3 to be available – in this climate even in the United States – with a four-cylinder engine. But that wasn't the case until now, as BMW has announced the availability of its TwinPower Turbo four to replace the 3.0-liter six-cylinder mill in the X3 xDrive28i.

The N20 engine is the same unit that's already available in the Z4, 528i and new 328i, and joins the X3 along with a raft of upgrades for the 2013 model year. Auto Start Stop, Driving Dynamics Control with ECO Pro, and a power tailgate all join the list of standard equipment, while an optional Driver Assistance Package (with Lane Departure Warning) and an M Sport Package join the options list.

Production of the 2013 BMW X3 xDrive28i with the N20 turbo four is scheduled to begin in April, with prices starting at $37,995 (inclusive of destination), with MSRP on the carry-over X3 xDrive35i pegged at $43,595. Follow the jump for full details.

We've reported plenty on items we'd like to place in our automotive-themed dream house, from engine-block coffee tables and Pininfarina desks to Aston Martin loveseats and Porsche sofas – but most of them are for the living room. We'd be remised, however, to forget the one part of the house where the fascination all began: our childhood bedroom.

We all had the posters up on the walls, the models on the shelves and maybe the sheets on the bed, but the luckiest kids among us had beds shaped like cars, similar – but probably not as awesome – as this latest release from toy company Step2. Released this week at the New York Toy Fair, it isn't just a bed: it's a whole bedroom set, all modeled on the Chevrolet Corvette Z06.

The set includes a $229 bed capable of holding a toddler's mattress but expandable to accommodate a twin (extending its usability from ages 2 to 10) with optional working headlights, a $110 dresser that looks like dad's tool box, a $65 storage chest and a $40 wheeled storage box to make clean-up time quick. It's all made of molded plastic from one of the biggest in the business, and is sure to make for some very sweet dreams indeed.

If NASCAR is more to your kid's speed, Step2 has got a stock-car bedroom available too, but it's the Vette set that has us (a) wishing we were little again, and (b) second-guessing the grown-up's bed we just ordered for ourselves.

There are a few car photographers out there that we count among our favorites. Our own Drew Phillips is at the top of the list for obvious reasons (have you seen his recent ZR1 shots?), but close behind is Jordan Shiraki. We've shown you his work before, including a very special photoshoot where the Lamborghini Murcielago came face to face with the supercar that's replacing it.

Jordan mainly shoots Lambos, rare ones at that, and he shoots them well. Recently, however, he decided to do something extra special for a shoot with an ultra rare Lamborghini Superleggera LP570-4 Blancpain Edition. Only 12 of these special edition Gallardos were made; this one is #11. So to set this shoot apart, Jordan decided to try his hand at producing video, and the result is after the jump.

The three and a half minute video is every bit as beautiful as his still photography, if not more so. We suggest setting the YouTube player to 720p and turning up the sound. Oh, and he didn't forget to pull out his DSLR during the shoot either, so check out the gallery below.

Give us your tired, your poor, your huddled masses yearning to breathe free. But most of all, give us your supercars.

There have been far too many that were never homologated for the American market, but thankfully the new McLaren MP4-12C isn't one of them. McLaren Automotive has set up an entire network of dealers across these United States – and even one in Canada! Which is all well and fine, but ain't worth jack if they don't have stock.

Fortunately that's exactly what has arrived at the Port of Baltimore and proliferated across the country. It's enough to have us looking at what our extraneous organs would be worth on the black market, and you can see it for yourself in the video after the jump. (Pay close attention and you just might notice one passing something rather unique on Rodeo Drive.)

Distracted driving is a topic that's on everybody's minds these days, and for good reason. Every new car and truck sold today is packed with more technology than every before, from touchscreen LCDs that offer myriad audio and infotainment options to voice-controlled applications and various forms of smartphone integration.

It comes as little surprise, then, that U.S. Department of Transportation head Ray LaHood has announced a new set of proposed distracted driving guidelines for automakers that would limit the use of in-car tech solutions that are "not directly relevant to safely operating the vehicle, or cause undue distraction by engaging the driver's eyes or hands for more than a very limited duration while driving."

Specifically, DOT is recommending that automakers not introduce technology packages that require both hands to operate or that could take a driver's eyes from the road for more than two seconds. Further, DOT wants technologies that require detailed input from the driver to be disabled while the car is out of park. That would include text messaging and internet browsing along with such tasks as address entry into navigation systems and manual phone dialing.

Future guidelines may include recommendations to manufacturers of aftermarket devices like smartphones, portable GPS units and tablet computers. It's important to note that these guidelines are recommendations, not mandates. Feel free to read the entire press release, which includes specific guidelines, after the break. The public will have 60 days to comment on this proposal before final guidelines are drafted.

BMW has announced a whole slew of products it intends to showcase at the rapidly approaching Geneva Motor Show, with the biggest reveal being the first public showing of the five-passenger 6 Series Gran Coupe.

But that's just the tip of the Bavarian iceberg. Another highly anticipated machine, the BMW M6 Coupe, will make its world debut in Geneva before going on sale in the U.S. in the late summer as a 2013 model. The M6 Convertible, which is a big seller for BMW in the States, will debut in April at the 2012 New York Auto Show and will go on sale shortly thereafter.

Also on hand will be the BMW M550d xDrive, M550d xDrive Touring, X5 M50d and X6 M50d. Together, these four diesel-powered machines launch BMW's line of M Performance automobiles (not to be confused with M-badged models like the M3 and M5). Sadly, these oil-burners are not headed Stateside.

Naturally, the brand new 2012 BMW 3 Series will be on display, with Europeans getting their first look at some of the new diesel engine offerings. Those of us in the U.S. will be more interested in the 3 Series with the M Sport Package that will go on sale in August and the 3 Series ActiveHybrid that will hit the market in September.

Geneva showgoers will get to see the refreshed 2013 BMW X6 ahead of its entrance into the U.S. market in the spring, plus the electrified i3 and plug-in hybrid i8. And finally, BMW will unveil a new line of M Performance Parts and official accessories for the new 3 Series. On the M Performance front, those new additions will include blacked-out kidney grilles, exhaust systems, carbon fiber front splitters and M-branded steering wheels.

We know that's a lot to digest, so we won't mind at all if you want to click past the break for the complete press release. But first, be sure to check out the high-res image gallery of M Performance Parts above.

Good news, race fans: the Baltimore Grand Prix may be returning this year, after all.

The IndyCar and ALMS race extravaganza was held last year over Labor Day weekend at the Maryland city's picturesque harborfront, but though the event itself was deemed a success, a financial dispute between the city and the race organizers jeopardized its future. The city ended up canceling its contract with Baltimore Racing Development LLC, but a new one is reportedly now being negotiated between municipal authorities and a new promoter, Downforce Racing – organizers of similar street races in Toronto and St. Petersburg.

The tentative arrangement was announced yesterday by Mayor Stephanie Rawlings-Blake, pending approval by the city's Board of Estimates, set to meet on February 22. If given the go-ahead, Downforce Racing would receive a five-year contract with a renewal clause for another five years, with the city's expenses to be recovered from ticket sales and a profit-sharing clause that would see the city receive ten percent of profits over $1 million.

Assuming everything comes together, the ALMS race will be held on Saturday, September 1 and the IndyCar race on Sunday the 2nd.

Company: BMW of North America

Medium: TV and the Internet

Ad Agency: Kirschenbaum, Bond, Senecal + Partners

Product: 2012 BMW 3 Series

Campaign: "The Ultimate Driving Machine"

What We Like: There is no joy in Bimmerville. Not any more. In truth, BMW has not really been advertising "Joy of Driving," or "Joy" anything, for about a year. It had already returned to using the world's best ad slogan, "The Ultimate Driving Machine," after many months of defending "Joy," as well as some executive changes. But a new ad effort for the all-new 3 Series puts UDM center stage again in a way that underscores the company's commitment to an ad slogan everyone seems to love.

There are six video shorts running mostly on the web, but also as TV ads. In fact, one of the shorts, touting the car's system that reads email aloud to the driver, ran as a local ad during the Super Bowl. Each "short" ad, which focuses on a single feature of the car, ends with a hunky-sounding voiceover asserting with no doubt in his voice: "We only make one thing. The Ultimate Driving Machine."

BMW has a raft of new products coming this year and next, as well as rolling out two complex platforms of technology – EfficientDynamics and BMW ConnectDrive. It seems like a good idea to spotlight one product benefit per ad the way this campaign does, and have each play off a few bigger TV ads for the 3 Series that focus on the image of the whole car, and its reputation as the best sports sedan in the world.

What We Don't Like: The focus on individual features like a heated steering wheel, adjustable seats or emails read aloud in the car seems more Volkswagen than BMW. The voiceover sounds like he drinks whiskey, but the overall feel of the ads and the focus on "fun features" feels more Brandy Alexander.

We note that Cadillac advertised its soon-to-be launched ATS sedan during the Super Bowl, and referred to the 3 Series as "The best in the world." We are looking for more ads from BMW's new ad agency that have some guts, majesty and the faint aroma of burning rubber and brake dust.

Strategy: BMW seems to shy away form the guts, grit and red-blooded desire for a great driving machine that is the heart of its brand image. Yeah, yeah... we know... women are looking for a more approachable BMW. Married men need for their wives to bless the Bimmer purchase. And this collection of video shorts is a step in the right direction. A 30-second ad that shows us the 3 Series zipping around city streets and hairpin turns is even a bigger step as the TV spot also spotlights the 3's surprising 36 mpg highway few economy. We'd still like to see BMW guts and glory show a nit more often.

Grade: A-

Watch the ads after the jump and give them your own grade below.

General Motors will freeze the defined benefit pension plans of 19,000 workers on Sept. 30, 2012, shifting them instead into 401(k) plans. Affected workers were all hired before 2001 and are salaried employees. Hourly workers are not affected by this change.

Because the retirement plans will be frozen, contributions will no longer be accepted into them; however, any funds contributed prior to that date will remain intact and will be paid out upon the worker's retirement.

GM has hired around 7,000 salaried employees since 2001, but these workers will not be affected because they were entered into a 401(k) plan right off the bat in lieu of the old pension program. CNN reports GM made the switch to shift investment liabilities from the company its employees.

General Motors has announced its full-year earnings for 2011, and by nearly all measures performed extremely well. Apparently, though, its old pension plan remains 88-percent underfunded, and it remains to be seen how the company will deal with that issue.

Some will invariably debate their authenticity, but as far as we're concerned, there's no arguing with the quickening of our pulse when we gaze at such examples of retrofitted classics as the Eagle E-Type Speedster or the Singer 911. But if you've been wondering why European sportscars have been getting all the old-meets-new attention, wonder no more, and feast your eyes on the Pogea Corvette.

German tuning house Pogea Racing – whose customized Abarth 500 we reported on back on 2010 – has taken an original '59 Corvette roadster and given it a thoroughly modern makeover. Starting with the chassis itself, Pogea went back to the drawing board and built a new tube frame to which it has mounted a new suspension, brakes and powertrain.

The latter comes courtesy of a modern 6.2-liter Corvette LS3 V8 engine, upgraded with new injectors, camshaft, intake and exhaust to drive 485 horsepower and 431 pound-feet of torque through a five-speed manual with ceramic clutch to a Dana 44 differential. Modern Corvette-sourced ventilated brakes with six-piston calipers up front and four-pots in the rear were fitted to keep the power in check, mounted behind 19-inch modular wheels on low-profile Bridgestone Potenza rubber.

Pogea also widened the track, fitted LED tail lights in the shape of the originals, and refurbished the interior with fresh leather and carpeting, Cobra buckets, Vallelunga wheel, Alpine stereo with sat-nav and upgraded electronics. The result is a stunning package that has all the charm of the original (minus, perhaps, the rear quarter vents...), but with a 3.9-second run to 62 and a 179 mph top end. Check it out in the high-res image gallery and press release after the jump.

BMW is earning quite the reputation of underrating its turbocharged engines. From the early days of the N54 twin-turbo inline six, through the later N55 single-turbo iteration and straight on to the 2012 M5's turbocharged V8, the crafty Bavarians have always erred on the low side with their factory-quoted power figures.

According to the dyno run that you'll see after the break, the tradition continues with BMW's new twin-scroll turbocharged four-cylinder inline N20 engine that sees duty in the 2012 328i. The mill is rated at 240 horsepower and 255 pound-feet of torque, and on at least one Dynojet dyno, a stock 328i put down 226 horses and 230 lb-ft.

Assuming that around 15 percent of power is lost to the various friction forces of the drivetrain, these results indicate that the engine is really spinning out 265 horsepower and 270 pound-feet of torque. Those are mighty impressive figures, and equal about 25 more horses than stock and at least 15 more lb-ft of torque. Suffice it to say, this engine is an extremely tempting proposition for future 3 Series owners.

Remember the days of planned obsolescence? They're over. The latest J.D. Power Vehicle Dependability Study shows a 13-percent improvement in new car dependability over the first three years of ownership. The latest sample of 2009 model year vehicles shows the lowest rate of problems since the study's inception in 1990.

The big winner was the Lexus LS, which had the fewest reported problems in the study. Lexus was the highest rated brand as well, followed by Porsche, Cadillac, Toyota and Scion. J.D. Power says 25 of 32 automotive brands showed improved dependability, with six declining and one remaining the same.

While J.D. Power was pleased to see automakers producing high quality cars despite the economic disaster unfolding around them three years ago, it did note that some brands are still not getting credit for building reliable vehicles. "During the past four years, models from Buick, Cadillac, Ford, Hyundai and Lincoln have achieved consistently strong levels of dependability," the company's release stated, "but still have relatively high proportions of new-vehicle buyers expressing reliability concerns."

To read the full press release, click past the jump.

Tesla and Daimler are set to collaborate on a new electric Mercedes-Benz. According to Gigaom.com, the fourth-quarter earnings report released by Tesla earlier this week revealed the company is set to supply a full powertrain for an unnamed electric Mercedes-Benz in the near future. Those components include a motor, transmission, inverter and all of the software necessary to keep the car whirring along. Funds from the deal are supposed to begin trickling in by the second quarter of this year, though no details about production timing or volume were available in the report.

The two automakers aren't strangers. Daimler is an investor in the small electric vehicle manufacturer, and Tesla already supplies battery packs for the low-production Smart ED. Mercedes-Benz made waves at the 2011 Frankfurt Motor Show when it unveiled the B-Class E-Cell Plus. At the time, the vehicle boasted a lithium-ion battery sourced from a joint venture between Daimler and Evonik, though it's certainly possible the German automaker has changed course on the five-door. Then again, the B-Class E-Cell Plus was an extended-range hybrid, whereas the Tesla earnings report seems to hint toward a full-electric model. Consider us curious.