More Details of Kerkorian/Chrysler Deal Divulged 02/16/96 Reuters reported that more details of the Chrysler/Kerkorian peace treaty have been divulged. The agreement, which the billionaire and the automaker came to last week, provides an exit strategy for Kerkorian to sell off his stock in the corporation, if he wants. Kerkorian is the automakers largest single shareholder, with a 13.75% share of the company. The agreement leaves Kerkorian's investment firm Tracinda Corp free to sell Kerkorian's stock in the company without Chrysler's permission, but only up to a 5% stake in the company. In order to sell a more substantial portion of his Chrysler stock, Kerkorian must get Chrysler's approval, seek an underwritten offering, or sell to someone who agrees to the same terms that Kerkorian agreed to last week when he pledged a 5 year standstill on the acquisition of more Chrysler stock. The agreement provides Chrysler some peace of mind, as it limits Kerkorian's ability to sell his stock to those who might be in a position to launch a Chrysler takeover. For Kerkorian, the agreement provides that he can ask Chrysler to register shares to be sold in an underwritten public offering twice and expect the corporation to "use reasonable efforts" to carry out his request. The agreement also allows Tracinda Corp. to nominate Kerkorian to Chrysler's board of directors as a replacement for James Alijian. Alijian, a long time Kerkorian associate and executive of Tracinda Corp., was appointed to the board as part of Chrysler's concessions to the billionaire. Paul Dever -- The Auto Channel ##--##--##news00165 FMR Sells Chrysler Stock, Kerkorian Becomes Biggest Shareholder, Again 02/16/96 The Associated Press reported that FMR Corporation, a mutual funds company has sold off about 10% of its Chrysler holdings. The move drops FMR's share of the automaker to 13.1%, leaving Kerkorian as the single largest shareholder with 13.75% of the corporation. Paul Dever -- The Auto Channel ##--##--##news00166 GM's New Electric Car for Lease, Not for Sale? 02/16/96 The Associated Press reported that consumers interested in the EV1, which is supposed to make its market debut at Saturn dealerships in four major markets this fall, may have to lease the car instead of buying it outright. GM is considering restricting deals on the new vehicle to leases. Saturn says the intent of such a limitations would be to make the consumer's experience risk-free and convenient. Paul Dever -- The Auto Channel ##--##--##news00167 Nissan Recalls 714,600 Infinitis 02/16/96 The Associated Press reported that Nissan Motor Corporation U.S.A is recalling 714,600 Nissan Infiniti cars. The possibility of leaks in cars' fuel injection systems create the risk of fire in the engine compartment. The corporation will replace fuel injectors and associated hoses on recalled cars. 88 fires have been reported; there have been no injuries associated with the fires. Paul Dever -- The Auto Channel ##--##--##news00168 GM Suffers From Too Much Production 02/16/96 Reuters reported that over-stocked inventories of cars and trucks at the end of last month may cause General Motors to cut new production and to provide greater sales incentives. GM's 97 day supply of vehicles on Dealer lots surpasses the industry average of an 88 day supply and significantly exceeds the 60 day supply that the industry considers ideal. -- The Auto Channel ##--##--##news00169 Minard-Ford Unveils New M195B 02/16/96 The Associated Press reported the unveiling of Minard-Ford's new Formula One car at a practice in Estoril, Portugal. The new car is powered by the same Ford engine the team used last year, but it has been redesigned with aerodynamics in mind. The track was wet as the rain continued this week, but Pedro Lamy took the new M195B racer out for 8 laps. Lamy's best time was 1:26.92, three seconds slower than the best lap that Damon Hill's drove in his new Williams-Renault. After Hill, Alain Prost had the second fastest lap in his McLaren-Mercedes (1:25.27). The slowest times from Wednesday's practice were driven by Martin Brundle in his Jordan-Peugeot (1:39.09) and Jean Alessi in a Benetton Renault (1:42.76). The rain continues to hamper driver's efforts to practice. Paul Dever -- The Auto Channel ##--##--##news00170 Nissan Powered Indy Racers in 1997 02/16/96 The Associated Press reported that Nissan will supply 1997 Indy Racing League drivers with a suped up version of it's 32-valve V-8 engine, which, in its normal version, can be found under the hood of Infiniti Q45 sedans. Nissan has supplied engines for IMSA and SCCA American sports car series, and they have also put engines in off-road racing trucks. The deal with the Indy Racing League will mark the company's entrance into supplying engines to the world of open-wheeled racing. Nissan will supply existing IRL teams with the Infiniti Indy VRH40DE as an assembled powerplant or for use with aftermarket components like camshafts, crankshafts and pistons. IRL rules require a 90 degree cylinder bank angle, a camshaft drive system, and cylinder bore spacing. The Nissan engines will be limited to a maximum rpm of 10,500 and will be normally aspirated to keep costs down. Paul Dever -- The Auto Channel ##--##--##news00171 New Ferrari on F1 Circuit 02/16/96 The Associated Press reported that the Ferrari Formula One racing team unveiled their new car in Italy this week. When Ferrari showed off their new F310, which has been overhauled aerodynamically and sports a 3000 cc, 10 cylinder engine, German Driver Michael Schumacher and Ferrari team chairman Luca Cordero di Montezelmo were both present. Ferrari has only one a single race during each of the last two seasons, so they have set their goals reasonably. They want to win more in 1996 than they did last year, but they are not planning a big season until 1997, when they hope to win the F1 World Championship. Ferrari invested $48 million over the next two years in order to lure Michael Schumacher to race for them instead of for their compatriot rivals Benetton. Schumacher won 9 races in 1995, tying Nigel Mansell's 1992 record. He also became one of seven drivers to win consecutive F1 titles, ever. In spite of Schumacher's driving skills, Damon Hill is this year's favorite driver, as he has a more reliable, higher performance car. Paul Dever -- The Auto Channel ##--##--##news00172 Earnhardt, Irvan Win Twin 125-Mile Races In Daytona 02/16/96 Both Dale Earnhardt and Ernie Irvan won their respective races in the Twin Gatorade 125-mile qualifying races for the Daytona 500. Earnhardt beat Sterling Marlin in the first race, while Irvan beat Ken Schrader. Earnhardt's field had seven Daytona 500 winners in it and saw tough competition among Earnhardt, Sterling Marlin, Dale Jarrett and Terry Labonte. Rain slowed the race, but the average speed was 143.039 mph. Earnhardt's margin of victory over Sterling Marlin was about three car lengths, or 0.16 seconds. The rain slick track saw a wreck during lap 44 of the race. Bobby Hillin Jr. and Brett Bodine touched coming out of turn two, Bodine nudged Bobby Labonte who was in a slide, Labonte flipped and traveled the backstretch on his roof. Labonte was not hurt. There were no wrecks in the second race, and Irvan managed to lead the pack of 8 front runners throughout the whole race. Winning by only half a car length after Ken Schrader and Jeff Gordon tried to put the move on him in turn two of the last lap. On turn four Gordon tried to move high around Schrader, and John Andretti moved in low behind Irvan. Irvan finished first and the other three cars finished three wide with Schrader following closest on Irvan's high side and Andretti barely beating Gordon. Average speed for the second race was 186.027 mph. Earnhardt and Irvan will be in the front row for the start of the Daytona 500, Marlin and Schrader make up row two, Terry Labonte and John Andretti in three, Dale Jarrett and Jeff Gordon in four, and Wally Dallenbach and Ricky Rudd in row five. Time trial speeds locked in positions 31-38. They went to Rick Mast, Lake Speed, Kenny Wallace, Jeff Purvis, Bobby Labonte, Ricky Craven, Joe Nemechek and former Daytona winner Geoff Bodine Bobby Hamilton, Darrell Waltrip, Brett Bodine, and Hut Stricklin took provisional positions at the back of the field based on last year's car owner points. Rusty Wallace will bring up the rear of the field. He is starting in the provisional position reserved for former series champions. Wallace was forced to race through the pit after getting squeezed off the track in the second qualifying race. Paul Dever -- The Auto Channel ##--##--##news00173