Warranties, incentives, and real or perceived reputations for quality may be what close many car deals, but design and emotional appeal are what draws activity into the showroom. Whether it is a “hot flagship” model like a Chevrolet Camaro or a consistent design spirit as seen in the current line of Mercedes-Benz vehicles, sexy sheet metal counts. Of all the manufacturers currently selling vehicles in the United States, it seems that the previously lowly Kia understands this tenet best of all and has put it into high gear...

For the full report and commentary, please visit: http://mediaroom.kbb.com/hot-car-report

(Please note: Past Hot Car Reports are available by clicking the ‘Archives: 2010’ link)

**Top News**

GM share offering tests investor confidence

http://www.bloomberg.com/news/2010-08-19/gm-seeks-stock-investors-amid-declining-market-share-management-shakeup.html

GM’s IPO: High hopes and deep fears

http://money.cnn.com/2010/08/19/autos/gm_files_ipo.fortune/index.htm

GM to investors: You can bet on our team

http://www.freep.com/article/20100819/COL06/8190462/1331/business01/GM-to-investors-You-can-bet-on-our-team

GM outlines risks to buying stock, including inexperienced management

http://www.freep.com/article/20100818/BUSINESS0101/100818054/1210/business01/GM-outlines-risks-to-buying-stock-including-inexperienced-management

Filing is just 1^st of many steps in GM going public

http://www.freep.com/article/20100819/BUSINESS01/8190393/1210/business01/Filing-is-just-1st-of-many-steps-in-GM-going-public

Top executives have much to gain from IPO success

http://www.freep.com/article/20100819/BUSINESS01/8190397/1205/business01/Top-executives-have-much-to-gain-from-IPO-success

Some have issues about GM’s stability as stock sale sought

http://www.freep.com/article/20100819/BUSINESS01/8190395/1331/business01/Some-have-issues-about-GMs-stability-as-stock-sale-sought

Car czar: Billions lost with GM is ‘best stimulus around’

http://money.cnn.com/2010/08/19/news/companies/rattner_gm_bailout.fortune/index.htm

Mass pitch to precede GM stock sale

http://www.detnews.com/article/20100819/AUTO01/8190399/1148/Mass-pitch-to-precede-GM-stock-sale

GM files for IPO, but are taxpayers still on the hook?

http://content.usatoday.com/communities/driveon/post/2010/08/gm-finally-files-for-ipo/1

GM files for IPO that will reduce Treasury’s stake

http://www.bloomberg.com/news/2010-08-18/general-motors-files-for-ipo-that-will-reduce-treasury-s-stake.html

GM files plan for fall initial public stock offering

http://www.autonews.com/apps/pbcs.dll/article?AID=/20100818/OEM/100819878/1018

General Motors files for initial public stock offering

http://www.latimes.com/business/autos/la-fi-autos-gm-ipo-20100819,0,1420002.story

GM Files Registration Statement with United States Securities and Exchange Commission for Proposed Initial Public Offering

http://www.prnewswire.com/news-releases/gm-files-registration-statement-with-united-states-securities-and-exchange-commission-for-proposed-initial-public-offering-101012539.html

**KBB Commentary on Top News**

GM’s Biggest Sale

With the announced filing of GM's highly anticipated IPO, the game now shifts from 'when' to 'how much.' In this case, 'how much' addresses two key questions: a) Will this IPO raise enough funding to release the Treasury of its current majority stakeholder position, and b) Will investors like you and I (as well as large industrial investors) find sufficient value in the company to dive in? What makes this particular process more interesting than previous IPOs is the fact we all have a relationship with this company. When a financial or technology company goes public, we may not be able to connect personally with the product or service they offer. But in the case of GM, as consumers and drivers in the United States, we all know them.

This personal relationship may help or hinder the IPO, and therefore GM's public-facing staff has a huge sales job ahead of them. Their financial turmoil over the last decade has been well-chronicled and we are all aware of the current taxpayer-funded stake in the company that allowed it to avoid liquidation last year. But when it comes to investing in this company, these personal relationships and quality perceptions of their products -- past, current and future - will have an impact.

Within the most recent Market Watch data from Kelley Blue Book Market Intelligence (detailing new-car shopper activity on kbb.com), we can see signs of growth and new shopper consideration for GM, especially for two of their more fragmented and less-defined brands. Buick experienced a 33 percent increase in kbb.com shopper activity month over month for July 2010 and 77 percent year over year, thanks to the introduction of the all-new Regal and LaCrosse. Cadillac's diversification of its popular CTS sedan model into coupe and wagon formats, along with the hot SRX crossover, led Cadillac to rise 24 percent month over month for July 2010 and 17 percent on annual basis.

New car shopper interest and consideration of GM's vehicles is generally on the rise, and this trend may also sweeten the pot for IPO investors. We feel we know this company and many of us have recently made personal investments though a purchase or lease of GM’s new products...but do we feel confident enough to actually own a piece of them as well?

- James Bell, executive market analyst, Kelley Blue Book’s kbb.com

**OEM/Vehicle News**

Volkswagen to bring back Phaeton to U.S. after flop

http://www.autonews.com/apps/pbcs.dll/article?AID=/20100819/COPY01/308199993/1424

Volkswagen bringing luxury Phaeton back to U.S.

http://content.usatoday.com/communities/driveon/post/2010/08/volkswagen-bringing-luxury-phaeton-back-to-us/1

Coming Soon from Jeep®: New Version of the Iconic Wrangler

http://www.prnewswire.com/news-releases/coming-soon-from-jeep-new-version-of-the-iconic-wrangler-101066824.html

J.D. Power and Associates Reports: August New-Vehicle Retail Sales Hold the Line on a Slow Recovery

http://www.prnewswire.com/news-releases/jd-power-and-associates-reports-august-new-vehicle-retail-sales-hold-the-line-on-a-slow-recovery-101069389.html

Suzuki Kizashi Tops 200 mph Mark, Breaks Land Speed Record at Bonneville

http://www.prnewswire.com/news-releases/suzuki-kizashi-tops-200-mph-mark-breaks-land-speed-record-at-bonneville-101006169.html