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Weekly Recap: Tesla loses money, still dominates the news

Some people get an inordinate amount of attention. In politics, it's Donald Trump. In football, it's Jim Harbaugh. And in the auto world, it's Elon Musk and his always-fascinating electric car company, Tesla Motors. General Motors is spending $877 million to upgrade a factory. So what! US auto sales are up. Who cares? Tesla has a metal snake that will recharge your car! So was the week in Tesla – er, the industry. Snarkiness aside, Tesla did dominate the news cycle, led by the announcement the company lost $184 million in the second quarter. Tesla also said it expects to deliver between 50,000 and 55,000 vehicles this year, and is preparing for a full launch of the Model X crossover in September. Musk also made news during the earnings call by simply not answering a question about ride sharing, leading to speculation Tesla could be considering its own operation. While the financials were the arguably the most important company news, reports of a Model S cyber hacking were more compelling fodder for Tesla followers. Researchers were able to attack the sedan and bring it to a stop, though they required access to the car first. Tesla says it already has deployed a remedy for the situation. On a lighter note, Tesla published a video of its metal charger prototype that autonomously uncoils like a snake to power up the company's vehicles, provoking plenty of humorous comments and comparisons. Watch it and decide for yourself. While some of this might seem trivial, much of Tesla's recent attention has been warranted. It's the first startup US automaker in decades to launch from nothing and actually gain traction in the market. Sure, Musk is a lightning rod and Tesla always seems to be in the spotlight. But amid all of the publicity, it easy to lose sight of the new reality: Tesla is a force. OTHER NEWS & NOTES 2016 Chevy Volt lights up 106 MPGe The Chevy Volt's vitals are looking healthier for 2016. The second-generation plug-in hybrid racks up a gaudy 106 miles per gallon equivalent, which is an increase of eight MPGe from the 2015 model. The new Volt can travel 53 miles on electricity, a significant jump from the 2015 Volt's 38-mile range. The new car also has a 420-mile total range when factoring in the capability of the gasoline engine, which is 40 miles greater than the current car offers.

GM program sees dealers taking on way more loaner cars

Given the volume of vehicles we're talking about, this is a significant development for GM's bottom line. Bring your car into the dealership for service, and you may need a loaner car in exchange. And with so many recalls being carried out, that means a lot of loaners – especially at General Motors dealerships. That could be one of the reasons why GM is massively expanding its loaner fleet program. While many Chevrolet and Buick-GMC dealerships have an on-site rental car location operated by a third party like Enterprise (which may or may not provide a GM vehicle), others manage their own loaner fleets. But while the range of dealerships operating such fleets was once small, reports Automotive News, the number has been growing rapidly: from the locations responsible for only 20 percent of those brands' sales two years ago to about 90 percent today. The impetus for that growth comes down to a massive expansion of GM's Courtesy Transportation Program. The initiative encourages dealers to ramp up their loaner fleet to a maximum size determined by GM, with a mix determined by the dealer itself, so that a showroom in Texas can be bolstered with a fleet of pickup trucks and a dealer in California can employ more Volt and Camaro Convertible loaners. The dealership gets a $500 credit for each vehicle its puts in its fleet, and can use those vehicles as loaners for service customers, as multi-day test drivers or to rent out separately. The vehicles remain in the dealer's fleet for 90 days or 7,500 miles, then they can be sold as used, but with new-car incentives. The dealer gets a fleet of loaners, customers get to use the loaners, try out a new car overnight or buy a barely used car with attractive incentives, and GM gets to clock more sales. But therein lies the kicker: the automaker counts the dispatch of the loaner new vehicle to the dealership as a new-car sale, which could end up distorting its sales figures. Counting loaner vehicles as sold vehicles is something of an industry-standard practice, but given the volume of vehicles we're talking about, this is a significant development for GM's bottom line. One dealership - Paddock Chevrolet in Kenmore, NY, for example - had no loaner fleet two years ago, but now runs a fleet of 50 vehicles. Multiply that by the 4,000 or so dealers GM has across America and you're talking about the potential for hundreds of thousands of these sorts of sales.

Millionth Corvette now being restored after sinkhole damage

Among the original American sports cars that were damaged by the sinkhole at the National Corvette Museum over a year ago was a 1992 convertible that was the millionth Vette made. And now that milestone vehicle is starting its restoration process. The landmark Corvette's rehabilitation is being carried out by the GM Design Center in Warren, MI, by a team of skilled craftsmen and technicians. The crew is more accustomed to building prototypes and concepts, but will face a new challenge in bringing this millionth Corvette back to its original condition. The white-over-red convertible was one of eight Corvettes that were swallowed up by the sinkhole at the museum in Bowling Green early in the morning on February 12, 2014. Five will be preserved in their compromised condition as part of a display demonstrating the effects of the sinkhole, while the remaining three were earmarked for restoration. The Design Center team has already completely the restoration of the 2009 Corvette ZR1 "Blue Devil" prototype, while the remaining 1962 Corvette will be restored by the museum. Related Video: Sinkhole-Swallowed 1 Millionth Corvette Restoration Underway Milestone damaged when earth opened beneath National Corvette Museum 2015-06-10 WARREN, Mich. – Craftspeople and technicians at the General Motors Design Center are painstakingly restoring the historic 1 millionth Chevrolet Corvette damaged nearly 16 months ago when a sinkhole opened beneath the National Corvette Museum in Bowling Green, Ky. The restoration crew is part of GM's Mechanical Assembly group at the Design Center, which typically spends its time building prototype and concept vehicles. The white 1992 Corvette is a challenge because rather than build an all-new vehicle from the ground up, the workers are trying to preserve the original appearance of a production vehicle. It is the second of three sinkhole-damaged Corvettes that Chevrolet has pledged to restore. The first, a 2009 Corvette ZR1 prototype known as the Blue Devil, was only lightly damaged and was returned to its original condition last fall. The National Corvette Museum will oversee the restoration of the third car, a 1962 Corvette. Five other Corvettes swallowed by the sinkhole will remain in their as-recovered state to preserve the historical significance of the cars. They will become part of a future sinkhole-themed display at the museum. Sinkhole summary On Wednesday, Feb.