Does anybody need a reminder that the credit crisis is hurting our economies? Case in point: German car-industry supplier Schenk Plastic Solutions. Schenk is a small but basically healthy company that relies on Daimler for 60 percent of sales. They have a patented new product named SkinForm which was developed for premium car interiors. It's been reported that SkinForm is unique and has no real competition, since it offers superior quality at a super-low price. Mercedes wants Schenk to supply SkinForm for one million cars per year. In 2005, Schenk sold a majority interest to a private equity company named Argantis to finance their expansion plans. Surprise! Argantis is connected to IKB, a German bank which is basically bankrupt after investments in subprime U.S. real estate. So IKB pulls the plus on Argantis, which subsequently pulls the plug on Schenk. A great company with good products and healthy customers is forced to declare its insolvency. As these things go these days, the Indians come to the "rescue." Automobilwoche reports that the Ashok Minda Group, based in Uttar Pradesh, will be buying Schenk. Globalism wins, Daimler is happy and the West's industrial base is eroded a little bit more.

Eric Peters' blog at the National Motorists Association explores efforts to make breathalyzers mandatory on all U.S vehicles. Peters zeros-in on the Driver Alcohol Detection System For Safety (DADSS), a $10m taxpayer-funded partnership between the  industry-funded Automotive Coalition for Traffic Safety (ACTS) and the National Highway Traffic Safety Administration. DADSS is hot for new, "less intrusive" breathalyzers; specifically gizmos that measure blood alcohol content (BAC) through the driver's skin (via steering wheel-mounted sensors). While acknowledging America's 9k annual drunk driving deaths, Peters is not pleased at the prospect of treating every motorist like a convicted drunk driver, He's also displeased that consumers would be expected to shoulder the additional costs of this new "standard equipment." More proof that freedom's just another word for nothing left to lose.

I promise we'll post something quirky to lighten the mood later, but I feel compelled (compelled I tell you) to mention that Detroit's meltdown is finally getting the coverage it deserves. Detroit News' columnist Daniel Howes– he of the jump down turnaround better days ahead– has just used the "b" word in his latest rant, finally admitting that "Big three need cash fast" (never mind a competitive small car or ten). The Detroit Free Press is also beginning to wake up and smell the ashes. While I'm pleased that the Motown print media is finally growing a pair, I am astonished that these two august institutions have failed to fully and persistently chronicle the human cost of The Big 2.8's inexorable decline. Jim Dollinger (a.k.a. Buickman) tells me that Flint is even more like a ghost town these days, with business drying-up and blowing away. Where are the papers' reports on the lives disrupted by Detroit's downsizing? While we await these tales of woe from the sharp end– which will arrive in force the moment Chrysler files– we'd appreciate any local reports from our Best and Brightest. 

From unsinkable to unthinkable. But there it is; stock picking guru Jim Cramer says GM is headed for Chapter 11. Yes, The General "joins the list of unthinkables, the ones that may not be able to make it with its current structure. The ones that basically need to be Chapter 11'd to save the business from dying." In his own inimitable style, Cramer reduces the arguments against GM's survival down to its essentials. "GM does not have enough cars in demand that it can make a profit on, and it has way too many cars and trucks that aren't in demand to do anything but lose billions of dollars, despite the decline in headcount and costs per car. It feels like the Citigroup of the autos. Without the deposit base." But seriously folks, Cramer's rant also fingers Ford for extinction. Of course, this is the same Jim Cramer who said the following in his 10-25-06 TV show: "GM – We recommended it at $18; it goes to $36. We say take a little schnitzel. It's now pulled back to $34. It's going to get to $40, but it's going to meander. I like F. I like GM." And this in February of this year: "I know there's risk to GM. But if you want to tell me that I am being reckless recommending this small-cap stock with the biggest share in the world, then I might as well just recommend that there's no real way to make money in the market." Never mind. When telegenic mainstream media mavens tell the average Joe to sell his stock and run for the hills, you can bet the big investors are already sunning themselves in the Hamptons. 

When Kirk Kekorian's mouthpiece Jerry York said Ford should get rid of Volvo,few commentators thought the deal would go down this quickly. Even though a Ford spokesman insists "we have been consistently saying since the end of last year that Volvo is not for sale," Automotive News [sub] reports that Ford is negotiating with Shanghai Automotive Industry Corporation (SAIC) to sell their Swedish division. SAIC currently has joint ventures with GM and VW to build and sell cars in China. They also own the rights to Rover; they're branching out with their own vehicles based on Rover cars under the Roewe brand. Buying Volvo would give SAIC a strong inroad to the European and American markets and/or another brand to play with in China. If this deal falls through, an unnamed Russian investor is rumored to be interested in buying Volvo. A word of caution to the brand's suitors: Gott lära av andras fel, eftersom man inte hinner begå alla själv.

How do I put this delicately? The new Ferrari California looks like a Chevrolet Corvette crossed with a BMW Z4 tuned by Brabus. The front end is the best angle, but it's still busier than Sunday morning at a college health clinic. The Fezza's side and back, however, are a goddamn mess. The gills, no doubt an homage to the properly stunning 1957 Ferrari 250 GT California, look completely out of place on this car. The bizarre lines on the side are overdone. The back end is a disaster. Quad stacked pipes? Black plastic trim? It's more TVR or Lorinser than Ferrari. Folding hardtop? On a Mercedes-Benz SL65 AMG, sure. A Ferrari with a folding hardtop is like a nuclear-powered toaster. Can you imagine the embarrassment at Wolfgang Puck's Spago in Beverly Hills when that thing gets stuck in full vertical? While the engine sounds phenomenal, the interior probably smells like Adriana Lima's cleavage and it's sure to handle with all the visceral panache that we expect from Ferrari's legendary death cars, it's not enough to save the California from pastiche-land. Then again, with guaranteed waiting lists and eBay adjustments, the men from Maranello will, once again, put their customers hands in the air like they just don't care. But I do. 

Parlare con CAR, VW design guru Walt de'Silva admits he isn't exactly thrilled about VeeDub's current design direction. Pensare? The Jetta looks like a Corolla and the Passat looks like a bar of soap. So VW’s styling will "return to simple design language that’s easy to understand – a clear hierarchy of grilles and rear-end treatment." Scribe Adam Towler says "Expect the next generation of VWs to have spiritually more in common with the late 1990s range of cars rather than the current set." For those of us that have long lamented the descent of VW into aspirations of ascent, this is fantastic news. The biggest question: where will this makeover leave the Volkswagen brand in the European market? When Ferdinand Piech decided to take VW into Mercedes territory, matching the Mercs models for model, Skoda and Seat filled VW's cheap and cheerful, honest and robust, everyday car remit. Maledetto! It sounds like someone has too many brands. 

Sajeev can breathe a sigh of relief. The Detroit News reports that the Blue Oval Boyz are considering offering the Ranger demi-pickup for two more years. Originally slated for the scrapheap in 2009, along with the Twin Cities Assembly Plant, the new plan puts a hold on the factory closure and extends production of the market's most fuel-efficient compact truck to 2011. That's when the "global" Ranger model hits the streets. Of course, Ford will neither confirm nor deny the reports. Spokesman Said Deep: "We do not discuss future product plans for fear we'll have to change our minds again competitive reasons." FoMoCo will build the global Ranger outside of the U.S. South Africa gets the nod, exempt as it is from the "chicken tax" on imported pickups. Now if they'd just start marketing the Ranger (when was the last time you saw a commercial for one?), they might just have a hit truck on their hands. You know; relatively speaking.

You may not know this, but Acura has only two executives. One of them oversees the design and build of fantastic, fun, reliable, affordable cars. This suit was responsible for all the Integras, the NSX, the Legend and the original TSX. The other executive has the reverse Midas touch. He botched the RSX, let the NSX stagnate for a decade, and shot the Legend in the head and gave us the RL. And now, that sonofabitch got his hands on the new TSX. To say the result is disappointing is to say that gas is becoming a bit dear. Advance? I don't think so.

The things car makers do for love… Car companies in Germany traditionally offer journalists discounts of about 20 percent on new vehicles. Until now, this offer's been restricted to one car per year. Ford's cutting that clause: Automobilwoche reports journalists can now buy as many popular models for a bargain price as they want, and enjoy. Or, more to the point, flip 'em on the market for a few percent profit, and repeat. Other makers are expected to follow suit. Historically, journalists are considered a small but influential group– "opinion leaders" in the marketing argot. "Just like taxi drivers: not a large audience, but they are important, so they are worth some special consideration," says a German VW dealer. How much consideration? VW's generosity is worth 15 percent for new cars and 10 percent for pre-owned. The quoted dealer thinks VW's vig may soon reach Ford's levels: up to 25 percent, depending on model. Mercedes-Benz also grants 15 percent for journos. Porsche is parsimonious, offering no more than 10 percent. Most makes are (for the time being) stricter than Ford: Mercedes requires a minimum holding time of six months, and allows no more than two purchases per year. We're looking into the situation stateside, but we know Ford offers scribes the Ford employee discount…

Forbes' columnist Jerry Flint is at it again. This time 'round he's saying what he said last time 'round: the feds need to give Detroit a holiday from fuel economy and safety regs. While I approve of recycling in general, recycling the General's spin strikes me as a particularly inadvisable endeavor. By the same token, defending GM's management seems, well, indefensible. At first, at last, Flint seems to come to terms with GM suits' epic incompetence: "The record is not good. Since 1992, GM's U.S. market share has fallen steadily–from 34% that year to 19% in May. Many of GM's leading executives are from the finance side of the business, but the financial failures are numerous… What is more amazing is that GM management has survived relatively little criticism, as far as I can tell, from its board of directors or the press." The press being… Jerry Flint? Roger [and me] that. "I know many terrific GM executives, starting with Vice Chairman Robert Lutz, who are doing an outstanding job. The problem is that GM is running out of money and time. The decisions it makes over the next few quarters could be crucial to its survival. I worry whether GM has enough of the right leaders to steer the company through this crisis." File this one under too little, too late, too disconnected from reality to be believed.  

For the last two weeks, Canadian gas prices have hovered between $1.36/L and $1.47/L. In American terms, that's roughly $5.60/gallon. CTV News is reporting that this price level looks like the sweet spot for the average Canadian hybrid driver; that is to say, the point at which the long-term savings from lower fuel consumption outweigh the up-front savings from buying a conventional petrol-only vehicle. The finding is based on a study conducted by the British Columbia Automobile Association (BCAA). They projected operating costs for 13 hybrids (versus their respective, conventional ICE brethren) over five years, assuming 20,000 km driven/year. The result: seven out of 13 hybrids were cheaper to operate. Leading the way: the Honda Civic Hybrid. The gas – electric whip cost some $4k less  to run than its petrol-powered counterpart. Notable by its presence, the Prius was compared to the Matrix and came out… second. The Prius cost $86 more to operate over five years. Unfortunately, the study focused primarily on sticker pricing (meaning the domestics, which don't sell anything for sticker, were again disadvantaged), and didn't include depreciation. So… what?

Gas is more expensive than ever and because everything else costs two arms and/or legs, much more painful to purchase. Many consumers are switching to fuel-sippers or looking for something completely different (EV and Hydrogen, not hooning sheiks). Regardless, cars are more powerful than ever. Even cars that aren't here yet are going to be more powerful than ever. Examples? The new 911 Turbo is up 20 hp. The M5 is growing in displacement and probably leaping in power. MB's upcoming Gullwing will be in the 750 horse ballpark. Audi's S4 will be dropping two cylinders, but gaining 10 hp and gobs of torque. And that's just the Germans. The 2009 Maxima is up to 290 horses. The 2010 Mustang, despite losing its big-block 6.2-liter Boss V8, should grow to 5.0-liters and make much more than 300 horses. Then there's that Camaro SS which very well might have over 500 horsepower, the 550 hp CTS-V and the 638 pony ZR1. These are just off the top of my OCD head. Is "more POWA!" the future, or has the entire industry been caught without pants and excuses?

$11,800. That’s the price for a 2008 Chrysler PT Cruiser down at my local Chrysler dealer. Throw in the “Refuel America” $2.99 per gallon guarantee into the equation and you end-up with a pre-tax, tag, title price right around $10,200. Not bad. Not bad at all. Then again, is it? There are a lot of factors to consider when approaching any of the bargain basement cars currently on offer during this, Detroit’s [most recent] dark days. Join me as we journey down the PT-shaped rabbit hole…

One of the guys who delivers– well, delivered– press cars to my humble abode related his "normal" phone conversation with the PR folk. "I know the guy comes off like an asshole. Talk to him. Meet him. He's a sweetheart." Yes, well, there's a reason I'm in a tiny office on top of a house listening to the sound of strimmers echoing through suburban surrounds, and it's not because I mastered The 48 Laws of Power. Or basic social skills. Still, I can be charming when I need to be. OK, I can shut up for about ten minutes. Just. Now I'm not saying I'm going to venture south for this Big Apple get together with TTAC Road Test Editor Captain Mike and contributor/podcaster Justin Berkowitz. But if I am, I promise not to make a fool of myself– or at least drink enough so I don't remember it. But there's definitely going to be a brace of Bentleys in the barrio for your dining and dancing pleasure. RSVP below. Or just show up. Enjoy!

The details: Thursday, June 26, 7PM to whenever. Peter McManus Cafe (it's a pub, of course) on 152 7th Ave at 19th st. Close to subways: 1, 2, 3, A, C, E, F, V, L Google maps link.