CNNMoney reports that the price of crude oil may finally have spiked– you know, if you look at it that way. "Crude oil prices retreated into the $126-a-barrel range Wednesday after dropping almost $5 a barrel from intraday highs to settle at $128.85 on Tuesday." While CNN is almost happy to make the link between dropping crude prices and "relief at the pump," it's worth noting, uh, what they note. "Gas prices have been pushed to record levels in the past year on the back of record oil prices. As the price of crude oil has more than doubled, gas prices have increased by almost a quarter." Anyone see an ominous disconnect there? Anyway and meanwhile, gas prices hit record highs for the 21st day in a row. "The nationwide average for a gallon of regular unleaded rose to $3.944, up 0.7 cent from $3.937 Tuesday." Detroit shouldn't pop the cork on those SUV-shaped champagne bottles just yet. Most analysts reckon that increased demand worldwide will prevent the price of crude from returning to last year's levels. Ever.

Ford is bringing the Fiesta back to the US of A (AP via Yahoo!). Lke the Fusion, this American car will be Hecho en Mexico. Looks like UAW President Big Ron Gettlefinger didn't get far with his argument that Ford's U.S. plants are "competitive enough that the automaker could make money building its smallest cars in the U.S." Somehow I don't think the recent "independent" strike actions at multiple UAW factories bolstered his argument much. The last time Ford sold Fiestas in the homeland they were made in Germany, imported from 1978 through 1980. Almost nobody bought them, in part because Ford dealers didn't have a clue about selling the silly little things. Although a flop at home, worldwide the Fiesta has been a perennial best selling sub-compact. This latest version will go on sale in Europe, China and other markets before making it's way back home. Assuming gas prices stay high, the new Fiesta should find a strong welcome at your local Blue Oval dealer. The question is, what is taking so long? Why is China in on the initial roll out while the world's largest car market (yes that's still us) has to wait another two years?

I love European "people's" cars. The Renault R4, the Fiat Uno and Punto, Peugeots 205 to 207, the early Golfs– they were all affordable and fun to drive with more character than Marcello Mastroianni. By the same token, I hate what Lee Iacocca called PODS. Lido was referring to Chryslers, but plenty of manufacturers have built cars for Poor Old Dumb Shits. PODS-mobiles are often Russian; Lada leading the pack. More recently, they hail from Korea or Malaysia. They're cheap to buy, miserable to operate and not at all economical to own (as CityRover owners found out). When considering Europe's cheapest car– the Romanian-built Dacia Logan– you have to wonder if the penalty box tradition continues.

When fans of bio-diesel first claimed they were running their [former] oil burners on "free" fuel– restaurants' abandoned cooking oil and grease– we predicted the fat bubble would burst. And so it has. The New York Times reports that "yellow grease" has risen from 7.6 cents per pound (2000) to 33 cents a pound, or almost $2.50 a gallon. And so we delve into the murky– or is that cloudy?– world of grease theft. The Old Gray Lady weaves a strange tale of late night Burger King raids, private dicks working for grease collection and rendering companies, shady environmentalists, and (as always) befuddled cops. Oh, and a lawyer who specializes in defending the "grease rustlers." "Once you put something in the trash, it’s abandoned property,” said Jon A. Jaworski, a lawyer in Houston who represents accused grease thieves. “A lot of times, it’s not theft.” And a lot of times it is. The unsolved 2,500-gallon Burger King heist chronicled at the outset was worth more than $6,000 on the black (yellow) market. There's only two elements missing from this tale of low life and high fat: the drivers who buy the stuff that "fell off the back of a dumpster" and government intervention. How long before the liquid gold is regulated and taxed? Take our word for it: not long at all. 

Ford's new-in-Europe Kuga compact crossover has achieved the best combination of crash test star ratings, placing the car at the top of the Euro NCAP small SUV group. The Euro-Focus-based Kuga scored the maximum five stars for adult occupant protection, four stars for child occupant protection and three stars for pedestrian protection. (Only a few other SUVs have been deemed relatively pedestrian-friendly. The BMW X3 for instance scored only one star). And no other SUV, large or small, has achieved a total of so many stars in the various categories. How did they do it? Technical gobbledygook alert… The credit goes to Ford's intelligent protection system (IPS) which "combin(es) a body structure optimised for strength and crashworthiness with restraint equipment," and high strength steels "for a very rigid, yet lightweight passenger safety cell." The high pedestrian protection score was achieved through the use of soft bumper material, a special energy absorber between the bumper and the front panel and radiator, breakaway headlights, front wings manufactured from recycled plastic and a carefully shaped hood. Best of all: the Kuga is reported to be a pretty good drive. Review to follow.

Like us, Edmunds.com keeps an eye on monthly car sales. And by God they have noticed a trend! Or, a "Seismic Shift," as they demurely put it. Yes folks, its true: Americans are *gasp* buying fewer trucks and SUV's in favor of *gasp* more fuel efficient crossovers and compact cars. But don't ask the year-to-date sales numbers or blame four dollar gas, because Edmunds has analysis. "The (seismic) shift" writes Edmunds scribe Dale Buss "has occurred both in actual transactions and in shopping trends measured on the Edmunds.com site. Until March, this pattern of segment migration had been accelerating markedly but rather gradually. But a 10 percent increase in U.S. gasoline prices in March and April alone, to an average of $3.44 a gallon, appears to have provided the catalyst for a shift that is bigger and faster than any ever tracked by Edmunds.com." Wait, did he just say "shopping trends on the Edmunds.com website"? To be fair, you could learn a thing or two from Edmunds. Take their insistence on categorizing the Honda Accord and Chevy Malibu as "compact" cars. Sure, the EPA calls the Accord a "large car" and the Malibu a "midsize"… but they only base that off of the actual interior volume. Jamming these cars into the "compact" category and then calling it a statistical "seismic shift" is a pretty laughable ploy. Ultimately, the facts of auto sales trends speak pretty well for themselves. And yes, by facts I do mean actual transactions.

American Axle CEO Dick Dauch hung tough against the United Auto Workers (UAW) for 87 days. As the smoke clears, it's clear Dick Dastardly came out on top. The new union contract cuts the company's average hourly labor costs from $73 to about $40. The Detroit News reports that DD also sliced some 2k workers from AA's 3,650-member North American workforce. All in all, the parts maker will realize some $300m in annual savings. To help show these workers the door, AA secured some $215m worth of OPM from GM. That's roughly half the $450 to $500m tab. Meanwhile, AA shed some $370m in lost sales. Put those numbers against each other, and it looks like AA recovers its strike expenses in less than a year (excluding lost sales), and powers on from there. Meanwhile, Automotive News (sub) reports that AA has a $1.4b in backlogged orders to be filled between now and 2013. Mr Dauch celebrated the good news today by promoting his son, David Dauch, to the position of President.

Yeah, I know: car hacks always say that shit. But seriously, this one could hop the Pacific. It's Honda's Fit-based Freed, a Lilliputian van for the Japanese market named for the word yelled by occupants upon exit. Just kidding. The mini-minivan shares the Fit's 1.5-liter engine, which attempts (however fitfully) to move a maximum of eight passengers. Thanks to creative gas tank placement (shades of Toyota Previa), the Freed boasts a low loading floor and– get this– standard dual power sliding doors. Way-hey! The $16k Freed competes against the way cooler Nissan Cube3 and the Toyota Sienta. With gas prices eliminating SUVs as the stateside schleppers' wheels of choice, it's only a matter of time before one of these micro people carriers (or is that carriers of micro-people?) make it across the Pacific. But which one? And when will that vanning thing start anyway?

Even before Tata Motors bought Jaguar and Land Rover from Ford, the Indian automaker's investors were not well pleased at the prospect. A dropping share price reflected their central worry: $3b or so in debt. These worries are proving well founded. Tata has announced a $1.86b equity share offering. The stock offering amounts to a 30 to 35 percent increase in equity capital; investors are heading for the hills rather than watch their shares take the hit. "The magnitude of this offering is unexpected and could adversely affect short to medium-term stock performance," Citi analyst Jamshid Dadabhoy tells the Detroit News. Amit Agarwal of Kotak Securities tells Market Watch that servicing all the extra debt could cost Tata 19 to 22 percent of its earnings per share. Meanwhile, Jaguar and Land Rover need considerable investment to develop the products needed for profitability, and Tata has yet to build its much-vaunted Nano. Tough times.

Auto Motor und Sport's spy photographers spotted this near-production crew-cab version of Wolfsburg's global pickup undergoing street testing. Although VW has stayed true to its legacy of unnecessarily creative nomenclature, the "Robust" is a new day. First, it's a "real" VW, not a rebadged Toyota HiLux (i.e. the Taro which the Robust replaces). Second, VW won't be sending the Robust to America. VW's manufacturing the pickup in Germany, South Africa and Argentina aimed at the bounciest of developing-world roads. The engine offerings wouldn't have played well in Peoria anyway; the Robust will harbor four cylinders (gas and diesel) powerplants, with a V6 for "select markets." Volkswagen has threatened to take pickups seriously for some time. Aside from the infamous "Golfamino" of the 70's, the rebadged Toyota and a few over-the-top studies like the V10 diesel AAC concept, it's been all talk. The Robust's no-frills, (presumably) fuel efficient utilitarianism is a good place to start from scratch.

You read that right. Ford's 350hp turbocharged 3.5-liter Ford V6 (a.k.a. "EcoBoost") will appear under the hood of the 2010 Taurus. Scoop snapper Chris Doane (formerly of Brenda Priddy now of LeftLaneNews) provides the inside dope on the dope Taurus. The new model will put the power to the ground with all wheel-drive with appropriately upgraded suspension and wheels. Ford reckons that this special "SHO" or "ST" trim level will account for 12 to 15 percent of Taurii sales. So call it five percent. The heavy performance-oriented Mondeo will go head-to-head with such jewels as the Chevy Impala SS and maybe the Chrysler 300. While a blown Mondeo might be an exciting sounding car for domestic-leaning pistonheads who like affordable stealth speed, G8. Meanwhile, most civilians shopping for big family cars want good mileage and just enough power not to have to think about it. You can bet your mortgage money that the turbocharged six will appear in an upcoming Lincoln or three, where it belongs. Yes, even the D472 (Lincoln Flex). 

Just paid $4.37 per gallon this morning for premium. Oy. While patiently waiting for (another) $60 to leave my wallet a lady pulled up in a Smart Roadster. I haven't driven a Smart yet, but from I'm told, it blows. However, it really doesn't weigh very much. A few days ago, a dear friend called me and asked if she and her one-year-old should buy a used Audi. Let me rephrase that: she wanted to buy a used A4. I tried explaining that when new, the A4 sold for three times what a Mazda Protege went for. Today the Mazda is worth more. She wasn't hearing it. I then touched on the fact that she could well be paying $400 a month in bizzaro repair bills, like CV joints and a new electrical system. And the (relatively) poor mileage. "But Jonny, it's so cute! My friend has one– I love it" I finally talked her out of it by mentioning that the auto-dimming rearview mirror will eventually leak mercury all over her infant. That worked. Long story short, she's got about $15k to spend. I told her to get a Honda Fit. "Oh no! My friend says they're death traps." Based on what? Her friend– a TV actor– test drove one and thought it was a death trap. From the test drive. Long story short, even though she wants a clean, high mileage car, she ain't going small. Because of her baby. You?

TTAC has confirmation from three trusted, independent sources that Chrysler is delaying payments to its suppliers– to the point where certain suppliers have refused to ship parts until the embattled American automaker settles its bill. Even so, we are filing this report as Wild Ass Rumor because none of these sources will go on record. (Hardly surprising consider the economic self-interest involved.) It is equally true that there's no way for TTAC to accurately gauge the full extent of Chrysler's delayed payment situation. IF, as we suspect, Chrysler's owner Cerberus is readying to file for C11 during its company-wide summer holiday, or, as some suggest, preparing for the long-delayed "strip and flip," delayed payments would indicate, at best, ChryCo cash flow problems. We invite both Chrysler and its suppliers (guaranteed anonymity) to use the comments section below or contact us via email to clarify this issue.

Apparently the GMC dealer unknown writer posting on the Commercial Auto Dealers web site had a change of heart about hybrids. After warning everyone about the dangers of driving a too-quiet, electromagnetic-field-generating deathtrap, now he wants everyone to know that "GMC is the leader in hybrid vehicles if you're looking for trucks or full-sized SUVs." He goes on to brag "during the first quarter of 2008, the automaker sold nearly 850 hybrid vehicles and about 80 percent of those were large trucks." I'm assuming by "the automaker" he means GM, not GMC division, as the only hybrids GMC sells are monstrous Yukons and pickups. So let's see… they sold a total of 850 hybrids in three months. That works out to an average of what, 293 hybrids per month, 234 of which were trucks? In the month of April, Toyota sold twenty-one thousand Priora. Not fair, you say? Ok, let's look just at trucks. Try 1,624 Lexus RX 400h's. Or 2,578 Highlander Hybrids. Ford even sold 1,682 Escape Hybrids. If, as he claims (citing Eric Fedeva without identifying exactly who he is or why what he said is important), "GMC is going to be a serious contender in the hybrid market in the next few years," someone at GM better get serious and produce a full hybrid the average buyer can afford. Oh, and that won't bombard its hapless passengers with the "type of magnetic field [that] has been linked to leukemia in children."

The Alabama Press-Register's headline: "State invests in ethanol, but results mixed." Invests? Mixed? You guessed it. "State agencies have doubled purchases this year of E85, an ethanol-gasoline mixture, citing its production from domestic sources and ever higher costs of conventional gasoline." In practice, "the state Department of Transportation paid more per gallon for E85 than it did for gasoline in five of the 10 months between May 2007 and March of 2008." So how much is this boondoggle costing Yellowhammer State taxpayers? "In March, E85 cost the department $2.64 a gallon, while gasoline cost $2.46. Despite the higher price, state records show DOT bought an additional 4,224 gallons of the mixture that month, an increase of nearly 40 percent." Even without the 40 percent increase, that's a $10k E85 surcharge for five months' corn juice. The executive director of the Alabama Clean Fuels Coalition blames… gas prices. "In order to get any product anywhere in this country, it takes a truck or engines," said Mark Bentley. "And currently, those engines are fueled by petrodiesel, which is currently tied to price of gasoline." Mr. Bentley called for Alabama-based E85 plants. So far, only one company has so proposed.