If you loved the new 7 series BMW we tested in the previous issue (December 2009), but fear you may have a problem wielding such a large car around the cramped confines of our city streets, you’ll love the next generation 5 series. The new Five is very much the mini-Seven. Based on the chassis of the 7, the 5 series gets a wheelbase that’s shorter by 4 inches – but it’s still almost 4 inches longer than the new Mercedes Benz E Class.

Visually, in keeping with BMW’s new design philosophy, the next-gen 5 series takes on from where the 7 series left off, which is to say it has smart, straight-forward lines, sharp creases on the bonnet, and a bold face with an imposing kidney grille up front. On the inside, once again, the 5 takes several design cues from the 7 series – with the latest-generation iDrive, and back panel technology on the instrument panel and center console.

On the powertrain front, there are a number of engine options available – both in diesel, as well as petrol. A new engine that’s, unfortunately, unlikely to make it to India is BMWs all-new petrol 3 litre, turbocharged engine with direct injection and Valvetronic, mated to a new 8-speed automatic transmission. Unlike the award winning twin-turbo in the existing 535i, this engine uses a single twin-scroll turbocharger, and becomes BMWs first turbo-six to feature Valvetronic, which is BMWs version of variable valve timing technology in order to optimize combustion.



On an efficiency front, the new 5 now comes with electronic power steering to improve fuel economy. And while this may be a concern for some purists, in terms of steering feel, the new EPS system in the 7 series actually felt quite impressive. The 5 also gets BMWs battery of Efficient Dynamics options, which, in this case, also includes an auto start-stop system, as well as regenerative braking, active aerodynamics that close the flaps behind the front grille on cold starts to improve aerodynamic efficiency, and low rolling resistance tires. As expected, BMW takes a huge step forward with the new 5 series, while at the same time going back to a design theme that’s more conventional, yet individualistic.

If the Five series is a little too rich for your blood, you may be interested in the latest variant of the 320d, which is in showrooms currently at a very inviting price of under 25 lakhs (ex-showroom, Delhi). You’ll have to do without a few niceties however, such as iDrive, xenon lamps, electric seats, a sunroof, 6-CD changer, leather upholstery, and even, believe it or not, a rear armrest. It’ll also have a different alloy wheel design, but will still come with BMW’s brilliant 2 litre diesel that pumps out a very healthy 175 horsepower.

During the second week of December, VW and Suzuki announced the beginning of a comprehensive, long term, strategic partnership that would see VW purchase a 19.9% stake in the Japanese automaker. As per the cross-shareholding arrangement, Suzuki will then use 50% of the proceeds to purchase VW stock.

What was made imminently clear by Osamu Suzuki, however, was the fact that Suzuki would remain an independent entity – despite the fact that VW becomes its largest shareholder. This ensures, at least for now, that this partnership precludes management changes – both at Suzuki and Maruti-Suzuki.

VW has made its intention to become the worlds’ largest automaker loud and clear, and this deal is a step in that direction. Suzuki, on the other hand, has an enviable presence in one of the worlds’ most important markets currently – India. Nonetheless, it could use the support of a giant like VW on a global scale.

Consequently, this partnership would help VW understand the business of producing and selling low cost, small cars at a profit – crucial for developing markets. Suzuki, on the other hand, will be able to leverage VWs scale to cost-effectively implement diesel and EV technology.

From a macro point of view, this partnership is a sign of two clear and emerging themes – firstly, the importance of the Indian car market on the global scale, and secondly, the emerging global demand for compact, fuel efficient, and eco-friendly vehicles.

Fritz Henderson, who visited India last year for the inauguration of GM’s plant at Talegaon, Maharashtra, was asked by GM’s new Board of Directors to hand in his resignation just eight months after taking the top job from former CEO, Rick Wagoner – who himself was ousted by the Obama Administration.

Henderson, who spent 25 years at GM, was faced with the unenviable task of maneuvering the auto giant through bankruptcy court as soon as he took the helm – many analysts say his fate was inevitable under the circumstances. While he did a remarkable job staying positive though bankruptcy, his critics argue that he failed in his task to shed several GM brands, such as Saturn, Opel and Saab.

GM Chairman, Ed Whitacare, former CEO of AT&T, who has as fierce reputation for getting things done, takes over as interim CEO till such time as the Board can find a replacement – most likely from outside the industry. The GM board will, no doubt, have been influenced by the success of former Boeing CEO, Alan Mulally, at Ford.

Henderson’s departure sends a powerful message that the shakeup at GM is far from over, as the company aims to repay its government loans, and even looks towards going back to being a listed company in the short term. It’s clear that Whitaker and the Board are convinced they need someone from the outside to get the job done.