The print edition of Auto, Motor und Sport (March 13, 2008) carries an interview with GM Car Czar Bob Lutz. Regarding February sales, Maximum Bob told the German car mag “everyone was down strongly, including Toyota;” forgetting that Nissan and Honda were both up for the month. MB also “reveals” that GM’s hybrids are selling “increasingly better” and “the mild-hybrid system in the Malibu and Vue are selling well;” forgetting that GM sold just 577 hybrids in March, less than 30 of which were gas – electric ‘Bus and Vues. Lutz also says “Hybrids are not an economic or practical solution. Driving with two power sources leads to higher costs that the buyer can never recoup;” forgetting that the Prius can recoup its premium in less than five years. Note to Bob: the truth will set you free.

If ever two automotive companies deserved each other, it's Tesla Motors and Fisker Automotive. The former is the erstwhile maker of an electric roadster that's the dictionary definition of irony (the discrepancy between expectation and reality). The latter is a failed "coach-builder" (of hideously expensive re-sculpted SL and 6-Series) turned EV tree-hugger. And now, Autoblog breathlessly reveals that Henrik Fisker designed Tesla's imaginary WhiteStar sedan. Apparently, Tesla kept the design (for its next prospectus) and told Fisker to f-off on the production front. In case you thought this means anything, here's a bit from yesterday's press release from Fisker, which I couldn't quite blog because of a sudden attack of hype-related biliousness. "Fisker Automotive, Inc., a green American premium car company, today announced Fisker Italia as its first International importer. With plans to allocate more than 50 percent of its production to overseas sales, Fisker Automotive is poised to become a leading exporter of premium U.S. automobiles. Additionally, Fisker Automotive, maker of the first of its kind plug-in hybrid premium sports sedan, further announced it has received great interest from 44 North American markets in which it hopes to have retail representation." Get ready to vote for this one during next year's Bob Lutz award. 

Yes, "it" is the new BMW 1-Series. Like many of James Healey's reviews, there's a huge disconnect between the headline ("BMW 1 Series is small but sassy"), the critic's observations and his conclusions. Combining the old "I'll ask myself a question and then answer it" format with the bi-polar "I'll raise an objection and answer it" routine, Healey plays it straight down the middle. After arguing with himself about the small Bimmer's large price tag, he concludes "Nothing unexpected for a BMW. Hey, here's one: the stupid trim pieces on the inside door handles of the test cars, a 128i convertible and 135i coupe. The pieces are mated so that you grab the joining line every time you use the door handle. Unattractive. Rough-feeling. So there." Nuh. Healey's three word summary: it's a keeper. While our Justin Berkowitz wouldn't agree, BMW might well describe TTAC's 1-Series review the same way Healey refers to the 1-Series convertible's roof rattles: faint but troubling squeaks.

In the growing war of words between bio-fuel producers and savvy environmentalists, pro-ethanol supporters often point to Brazil, claiming that the South American country's energy independence offers a template for America's future. Detractors already know that Brazil's booming ethanol production is based on geography (sugar cane rather than corn), takes a heavy toll on the [ideologically sacrosanct] rain forest and has little to do with the country's net energy consumption. And here's a new wrinkle. Energy Business Review says "Brazilian ethanol producers reportedly exported a majority of their fuels to Europe in 2007. Increased exports have saved Brazilian sugarcane producers from going bankrupt as sugarcane prices fell below the cost of production on commodity exchanges." This is a bitch because both the U.K. and Germany have recently "de-incentivized" bio-fuel consumption. And that means… "Brazilian ethanol exporters are pro-actively lobbying with common interest groups in the US, to help create a global market for ethanol." Energy independence be damned; what's the bet America's corn-fed politicians raise the barriers? 

Mr. Mehta, and Mr. Lieberman,

I fear not your V8olvo, nor your red-benecked Lincoln, as I have ditched my Audi 4000 quattro beater (due to many eaten axles, a blown head gasket, and more electrical issues than British Leyland) for something truly unholy. For $0, yes, zero dinero, I have scored a full-on, 260bhp (stock!) 1991 Audi V8 quattro. A car so legendary, that it was banned from the IMSA GTO and German DTM series. Come to think of it, quattro has been banned from rallying, IMSA, DTM and probably the real LeMans in the future… from what has yours been banned for "unfair advantage" recently?

Vorsprung durch technik uber alles!

Sincerely,

Captain Mike Solowiow
Future LeMons Champion

Ford isn't wasting any time bragging about their bought and paid for surveys claiming that their quality is now on par with Toyota's. However, as the Detroit News reveals, FoMoCo's newfound reliability has dealers losing money on warranty work. The National Automobile Dealers Association estimates Ford dealers currently lose $30 on every new car they sell; they make up the difference through financing, add-ons, service and warranty work. [U.S. car dealers earned $7.7b on warranty repairs last year.] With warranty work shrinking, they'll have to earn more money elsewhere. To that end, Ford's introducing a line of aftermarket accessories called "Customs" focusing (so to speak) on "high-profit items like custom wheels and electronics." So in addition to paint protection, window etching and LoJack, Ford dealers will be hawking factory-authorized customization. Pimp my profits?

This clip from GNTV is almost 18 minutes long. I love Maximum Bob's "poor, pitiful misunderstood GM" schtick for the first five minutes. Then the winner of TTAC's 2008 annual Bob Lutz Award goes into a rambling rant about blogs in general and how important his is (in specific). At the 10 minute mark, Lutz addresses his "global warming is a crock of shit" comment; he was wronged because it was "off the record." MB didn't think it was that big of a thing until the print media picked it up– and they only found out about it because he posted his "here's what I really meant" backtrack in Fastlane. At the 14 minute mark Bob's asked how GM will make use of "social media" in the next few years. It gets seriously boring as he pontificates on the evolution from bulletin boards with notices tacked up on them (which he refers to as "fiberware," whatever that means) to blogs. Maximum Bob never really passes on any usable information, but it's an interesting excursion into LutzLand. I'm disappointed that he never mentioned the Deathwatch series. And I have to wonder what this guy did to get him to do this, and what he cut from the final vid. Think we could get Bobbo to agree to doing a video for us?

History is bunk. Although cars like the Jaguar XK120, Shelby Mustang and Porsche 911 have become legends, their modern equivalents offer far superior driving dynamics. And greater reliability. And safety. But it is their "soul" that resonates: the combination of icnoclastic style and man – machine zeitgeist. So when enthusiasts (and BMW PR) started comparing the new 135i to Bimmer's venerable 2002, expectations were sky high. The reality is more like a fat guy limbo dancing under a pole raised six feet off the ground.

For the last thirty years, Mercedes has manufactured the car we Americans know as the "G-Class" or "the Mercedes that looks like a brick shit house." The Geländewagen was originally built in the year the Shah of Iran skipped town (1979). Since then, Mercedes' truck has been regularly upgraded– provided you think giving an army truck a sedan interior represents an improvement. Someone does; the brand sells a fair number of these mucho macho SUVs into the U.S. luxury market. With this go-round, the G gets a new grille (to keep it consistent with the rest of the lineup) and a major engine upgrade. Out goes the G500's 290 horsepower V8. In comes Benz's ubiquitous 5.5-liter 388hp V8. Rappers and other off-road enthusiasts can also order some new toys, like a reverse camera and a Harmon Kardon stereo (perfect for soothing lions, gangstas and other savage beasts). Although some pundits had predicted that the urbane-in-comparison seven-seat Mercedes GL would replace the G-Wagon, the $90k+ style statement lives on. And yes, there is an AMG version.

The President of the World Bank [via NPR] says demand for ethanol and other biofuels is a "significant contributor" to soaring food prices around the world. Robert Zoellick says droughts, financial speculators and increased demand for food have created "a perfect storm" of climbing food prices. In the U.S., the price of corn has more than doubled due, in part, to the demand for alt fuels such as ethanol. The World Bank figures food prices will stay high, or go higher, over the next couple of years. "Biofuels is no doubt a significant contributor," says Zoellick. "It is clearly the case that programs in Europe and the U.S. that have increased biofuel production have contributed to the added demand for food." As we reported last week, some 20 percent of last year's U.S. corn crop went to ethanol production; it's likely to reach 30 percent next year. Boondoggles can be lethal.

American Axle (AA) and the United Auto Workers (UAW) are back at the negotiating table. But they're still a long way from an agreement. After Monday's meeting between UAW president Ron Gettelfinger and American Axle CEO Dick Dauch, a quick resolution of their differences seemed promising. However, the Munster, Indiana Times reports AA's negotiators called a proposal from the UAW a "slight improvement" that wasn't anywhere near the concessions the company seeks. In a news release, AA ratched-up the rhetoric. If the UAW wasn't willing to "make realistic economic proposals" (i.e. accept a 50 percent pay cut), AA'd "be forced to consider closing these facilities." Dauch's counter-offer: "generous buyouts" to those union members who don't want to work for half of what they made before the strike. The UAW hasn't responded to AAM's statement. radical union factions are warning members about "the treachery of the UAW bureaucracy." They claim the UAW "is planning another agreement modeled after the concessions contracts it has agreed to again and again throughout the industry." AA and its customers certainly hope so.

Sorry, I know: it's all very Inside Baseball. And I just got through excoriating Automotive News for not publishing the Ford Taurus spy shot. And God knows TTAC is not perfect. (Ask me; I'm OCD.) But this website is nothing if not a bully pulpit for a certain otherwise unemployable automotive publisher/writer who considers the blurring of editorial and advertising about as defensible as Barry Manilow's Grammy Award for Copacabana. Anyway, the April 14th paper edition of AutoWeek contains a heavy cardboard, full-color, two-sided, pre-perforated advertisement for the Danbury Mint's $495 18" die-cast replica of the 1930 Cadillac V-16 Roadster. For some strange reason, page 22 offers a review of same by Jay Engel. The sub-head proclaims the toy– I mean, reproduction, a "work of art." Apparently, the Danbury Mint has launched "what some collectors who have seen the project up close consider to be the tour de force of Danbury 23 years of die-cast replication… From the gorgeous two-tone metallic green paint to the mechanical dazzle of the hallowed V16 engine to the cornucopia of functional features, this finely detailed replica does everything except burn gasoline." I gotta admit: it's a nice looking model. But AutoWeek's "review" is hardly what I'd call a model of editorial integrity. 

I like Automotive News [AN, sub]. Although AN often fails to ask American automakers the tough questions, at least they're not Detroit lap dogs, cheerleaders or apologists (like some news orgs I frequently name). But what's with their article on the Ford Taurus spy photo? It starts off innocently enough, chronicling the turn of events that led TTAC to post the shot (without any legal blow-back, I might add). "The buzz intensified when Ford's legal department moved quickly to force several of the Web sites to take down the picture — leading many to conclude that the photo was the real deal. The photo vanished from the Internet for about 24 hours before it reappeared and spread rapidly." And then, suddenly, they make a not-so-bold, not-so-Woodward-and-Bernstein run for the [allegedly] moral high ground. "But neither Automotive News nor our affiliate AutoWeek will run the photo. We don't have permission from the owner, we don't know where it was taken, and we wouldn't run a photo taken inside an automaker's property." Hang on; if they don't know where the shot was taken how do they know it was taken inside an automaker's property? And now that the photo's all over the place, why wimp-out? It gets worse. "If curiosity gets to you, just type '2010 Ford Taurus' into your favorite Web search tool." 

The Detroit News reports that GM has reached an agreement with UAW workers in Parma, OH over  new, union-negotiated, two-tier wage structure. The sticking point: the definition of "core" (higher tier) and "non-core" (lower tier) jobs. While the accord still needs final approval from the United Auto Workers' (UAW) 1600 local members, its ends the threat of a strike at the plant which makes Cobalt components. That leaves four more union locals still threatening to walk over job designations. GM is negotiating with the remaining discontented union locals, which are nearing the end of their five-day strike warnings. Look for GM to try to put out these remaining fires as the week winds to a close; the ongoing American Axle strike has left the General highly vulnerable to any supply shocks.

True story. Market Watch reports that Goldman Sachs has sold $500m worth of Chrysler debt at a discount, reducing its exposure to the troubled firm. The investment house– which underwrote Cerberus' purchase of Chrysler along with JP Morgan, Citigroup, Morgan Stanley and Bear Stearns– sold the loans at the discount price of $.63 (they currently trade between $.64 and $.66). Sources close to the deal (as opposed to those with a faraway look in their eyes) say Goldman Sachs made the sale to an investor group that included hedge funds. Goldman had already sold some $300m of its $1.6b exposure to Cerberus' $7b first-lien loan (used to buy the automaker from DaimlerChrysler). As disconcerting as the fire sale is for Chrysler, it actually signals an improvement. In August and November of last year, underwriters collectively failed to find interest in $2b and $4b chunks of Chrysler debt at any price. The risky debt now returns some 20 percent on investment; which helps investors accept the clear and present danger inherent in holding debt for the struggling American automaker. Good luck with that.