Several of TTAC's Best and Brightest sent us links to today's Wall Street Journal article "GM Slates Sweeping Rebates As Toyota Closes In on No. 1." That's bad news, but it's not new news– in these parts anyway. The real reason so many of our readers sent the tip is buried in the body copy of the story. "The cost of insuring against a default in GM's bonds has soared to a high in recent weeks as fears of a bankruptcy-court filing have grown. An investor who wants to buy credit protection on $10 million in GM's bonds for five years currently has to pay $2.8 million upfront and $500,000 annually for that insurance, through what are called credit-default swaps. A year ago, that protection cost only $400,000 annually, with no upfront cost, according to Credit Derivatives Research LLC. Based on market prices, debt investors currently see more than a 70% chance that GM will default on its obligations sometime in the next five years, said Boaz Weinstein, co-head of credit trading at Deutsche Bank AG." The really worrying part? "A spokesman for GM said it has sufficient liquidity for 2008. He declined to comment on 2009." Saepe ne utile quidem est scire quid futurum sit.  

Edmunds Auto Observer is often the first website to review a new car– in the sense of showering it with love and happiness or, at worst, gumming it to death. Suddenly, uncharacteristically, under the guise of humor, the bloggers who still won't fully disclose car manufacturers' contributions to their editorial (a.k.a. junketeering) grew a pair. Ish. Writer Bill Visnic offers a list of cars that "don't have a chance." Of course, it's not the carmakers' fault. Oh, no these whips are doomed "mostly [due] to the new rules governing the auto industry" Some of the cars– which now "suddenly look titanically dumb"– are easy targets (VW Rotten). Others are guaranteed sales successes (Honda Accord). So we put it to you, our Best and Brightest: which of these things is not like the other? Which of these things will not belong? And what other vehicles should be on this list of future flops, and why?

BMW X6
Cadillac CTS-V
Dodge Challenger
Dodge Ram
Ford F150
Ford Flex
Honda Pilot
Honda Accord
Infiniti FX50
Lincoln MKS
Hummer H3T
Toyota Venza
VW Routan
VW Tiguan

Well that was quick. After the Honda Clarity gave Jamie Lee Curtis' bologna a first name (O-S-C-A-R), some members of the mainstream media have cottoned-on to the fact that hydrogen has to come from somewhere. The UK's Independent newspaper thoroughly slams Honda and its sexy fuel cell car. "Is Honda's technologically dazzling hydrogen programme the long-term solution to CO2 pollution?" scribe Michael Booth asks. "Yes and no," he answers. "Mainly no. Almost entirely no, if you ask people who know." Booth argues that the fuel's a waste a time as it's created with conventional energy. The process merely shifts the site of pollution; it's like breaking wind and blaming the dog. Booth also notes that hydrogen fueling stations are notable by their absence. "Right now there is just one hydrogen station in the UK. Even Japan has only 12." Alas, Booth concludes by saying that electric cars should be our high tech future– and that's where his own arguments do him a disservice. Shifting the source of pollution from power generation? Check. Infrastructure problems? Check. Environmental problems from battery disposal? Check. Still, props for calling Honda's buff. I mean, bluff.

Thankfully, we haven't heard much about restoring Richard Nixon's national 55mph speed limit. Meanwhile… The Washington Post provides a first-person report by Honda Insight driver and proselytising hypermiler Glenn Conrad of Columbia, Maryland. Conrad states that he was not kicking ass but definitely saving gas just after midnight on an open road on the way to Baltimore – Washington International Airport. He says he was keeping his speed between 50 and 65mph (depending on the grade) in the far right lane. One of Maryland's Finest proceeded to pull Conrad over. Ten miles later (just kidding), the cop handed Conrad a warning for traveling below the legal minimum speed (50 mph). The officer stated that he often caught drunk drivers driving slowly, but didn't "offer" Conrad a breathalyzer. Conrad is plenty P.O.ed. "It seems that to be a good American, I have to drive faster. I need to use more gas. Go figure." Conrad just wishes the cop had given him a proper ticket, so he could argue his case in court. Next time. So beware hypermilers: no good deed goes unpunished.

The other day, we caught– but didn't have time to blog– a story about golf cart safety from the Associated Press. "The Ohio report, published in the American Journal of Preventive Medicine, said about 148,000 people have been treated for injuries related to golf carts since 1990. The UAB [University of Alabama] found there were some 48,255 golf-cart related injuries between 2002 and 2005 alone, or an average of about 1,000 each month." Bone fractures and head injuries were among the most common injuries. And, here's the kicker: "About half of the injuries occurred on golf courses or in other sports venues, such as football stadiums. The rest were on streets or residential property." So when I read an article in this morning's Detroit News about an entrepreneur hawking golf carts to beat gas prices, I was sure they'd mention the potentially lethal downside. Nope. "The cart, he said, is not only cheaper but fun to drive too. Now he's making plans to furnish similarly "pimped out" carts to others who want to cut their gasoline bills. Auld is working with a golf cart manufacturer to make and sell the street-legal vehicles to the public, starting next month." Donorcarts? [Note to Jennifer Youssef: Google is your friend.]

Let’s say you've mentally prepared yourself to pay full whack– $42,185– for the new Dodge Charger Super Bee. In other words, you're looking to "invest" an additional $2760 (over the normal SRT/8) version to get some gaudy matte paint, suede seat inserts and “Super Bee” badges. In that case, you’d better hope you don’t live in Oklahoma. Closely examining the window sticker on said Bee, I noticed the presence of an additional half sheet of paper next to the window sticker, crudely copied from a handwritten note used on who knows how many other cars. This “limited availability charge" (a.k.a. “screw you sticker”) detailed a $10,500 hike in the Bee's MSRP. So, want to drive it? Not a chance. My salesman explains that the Bee's a “very expensive car” A sizable deposit (10 percent or more) would be required to take it off the lot. To Bee or not to Bee? Not. Unless you're looking for a garage queen for life, anyone who pays full whack for a new Chrysler– any new Chrysler– is staring down the barrel of epic depreciation. Will "collectible" gas guzzlers escape this curse? We'll tell you in twenty years. Meanwhile, you might want to consider the fact that base and SXT Chargers get $1,500 rebate or low APR financing. RT models get $2,500 rebate or low APR. Both models qualify for gas plan, as well. 

In the latest GM Death Watch, RF points out that GM is dancing on the point of a spear. The LA Times puts it into a different perspective. After the stock market closed yesterday with GM down 6.4 percent from Friday's closing, the company that was once the largest and most profitable in the world is "now is a less-significant business than Starbucks Corp., Gap Inc. or computer game retailer GameStop Corp." GM's total market capitalization is currently $7.3b, down from $14.1b on January 1. Starbucks, on the other hand, "still has two digits before the decimal point: Starbucks' shares are worth $11.9 billion in all." And as if to rub salt into wounds, they point out "you could fit nearly 17 GM's in Coca-Cola's $124-billion market cap." How the GM board can sit idly by and watch this unfold is anyone's guess, and why they keep the current impotent leadership around defies logic. GM's workers, suppliers, dealers, stockholders and customers deserve better than this.

The Better World Club differentiates itself from other roadside/travel services by dint of its "dedication to preserve the environment." We're talking discounts on hybrid rentals and green hotels/eco-travel; the nation's only bicycle roadside assistance ("service for you and your bicycle up to 30 miles annually with a maximum of two service calls per covered member, per year"), free Carbon Credits with auto insurance, one percent of revenues (gross? net?) donated to environmental cleanup/advocacy and "a unique policy agenda includes supporting state attempts to regulate autos to reduce greenhouse gases." And just in case that isn't politically correct enough– and I'm thinking it is– Better World is now proud to offer married gay couples free membership. "We want to congratulate all the same-sex partners who are taking the big step," says Mitchell Rofsky, BWC President. "We didn't think you'd ever get married!" Don't worry if you're a gay couple in a state without gay marriage, or a breeder. BWC will "even" offer opposite-sex couples the same wedding present. "Gay marriage is good for everyone, so we're including all the June brides… grooms… spouses… whatever!" says Rofsky. In other words, BWC's using gay marriage to generate a fundamentally generic press release to lure media coverage. Mission accomplished. 

Earlier today, General Motors announced a "temporary" return to zero percent financing. It’s a clear, unavoidable sign that the automaker’s June sales slump is, as predicted, cataclysmic. Staring down the black hole begun on Black Tuesday, GM had to do something, anything to move the metal. And yet, at the same time, GM also revealed it’s raising its prices by 3.5 percent across the board. This second piece of news is equal parts bizarre and revealing. In essence, in the final hand of the poker game for its existence, GM has just doubled down. And now it’s Toyota’s bet. Here’s the thinking…

The National Highway Transportation Safety Administration (NHTSA) was supposed to present new roof-strength rules to Congress by July 1. The Detroit News reports that the NHTSA wants more time. A letter from chairman of a Senate Commerce subcommittee on auto safety apparently prompted the hurry-up-and-wait. "We encourage you to extend your deadline to ensure a proper rule making that would maximize safety and significantly reduce deaths and injuries for passengers and drivers in vehicle rollover accidents," wrote Mark Pryor. One might assume that Pryor is concerned that the NHTSA proposal to strengthen roof-crush strength to 2.5 times the vehicle wait might create top-heavy vehicle which would roll over more frequently. Nope. Pryor is simply demonstrating his party's fealty to the trial lawyer lobby, by opposing language which would limit rollover lawsuits in state courts. Whether or not those limits are valid is subject to debate. That requiring stricter roof-crush standards would increase car prices and rollover frequency while reducing efficiency is not. Here's hoping these facts sink-in during the NHTSA's extra deliberation time.

Ford has announced that the current Euro-spec Focus arrive stateside in 2010 as a 2011 model. What's more, it'll be an American-made product, And for once, we don't mean Mexico. Automotive News [AN, sub] says the current Focus plant in Wayne, MI will likely build the new-to-us small car. If all goes according to plan (i.e. the SUV market never recovers and the United Auto Workers play ball), Ford's Louisville KY factory may also switch over to the new Focus (from Escape/Mariner production). All in, we're looking at an annual production capacity of 280k units. AN's confirmed sedan and five-door versions of the new Focus, with rumors circulating of possible C-Max MPV. With this machine, Ford returns to a "world car" strategy for its C1 platform; the 2010 US-spec model will be the same car sold in Europe, South America and Asia. This global product alignment will bring new features to the stateside Focus, like direct-injection engines and a six-speed gearbox. We'd like to think that a hot ST or RS version might also be sold stateside, but then we also daydream about Paganis.

Truck sales are in the toilet, Toyota will be all hybrid by 2015. And yet there's this: The Ironman Toyota Tundra. No, ToMoCo's not trying to supporting Robert Downey Jr. rehabilitation (as Audi did). They're naming the most powerful-ever Toyota anything after truck racing legend Ivan "Ironman" Stewart. Hey why not? Along with the mu macho moniker comes 501 horsepower and 550  supercharged lbs.-ft. of torque. Autoblog reports that other, ahem, enhancements include "Magnaflow cat-back exhaust, Bilstein shocks, Hella lamps, a Hurst pistol-grip shifter and 20-inch Alcoa aluminum-alloy rims with General tires." All that kit should add $20k or so to the price of the heavily discounted, dust-gathering, Texas-built full-size pickup. No word on fuel consumption, but we predict somewhere between unconscionable and just plain awful. 

Maserati has revealed its refreshed Quattroporte S sedan.The 4.3-liter V8 making love to your ears from the engine bay remains for "standard" Quattroportes. The S gets a newer 4.7-liter V8, shared with the GranTurismo S. Horsepower is up from 400 to 430, a necessary but not overwhelming bump for this class of machine (cough 518hp S63 cough). The Italian's standard transmission becomes the ZF six speed automatic– now that Maserati has finally realized most buyers were not interested in the F1-style clunkbox transmission. The exterior is also slightly refreshed, and as far as I'm concerned, it's as though Monica Belluci just put on a new dress. TTAC will be driving the Quattroporte, so keep the peepers open in the next few weeks for a review.

John McCain's initial proposal to alleviate pain at the pump: a summer gas tax holiday. With "option A" laughed off the table, the Wall Street Journal reports that McNasty wants a buck from every [documented] American to fund a $300m prize for a killa battery. The money would go to anyone who develops battery technology that can deliver power at 30 percent of current costs. Oh, and it has to have "the size, capacity, cost and power to leapfrog the commercially available plug-in hybrids or electric cars." Apparently, "from now on, we will encourage heroic efforts in engineering, and we will reward the greatest success." Meanwhile, the Arizona senator suggests toughening fines for CAFE violators, increasing ethanol "incentives" and offering U.S. automakers a $5k tax credit for every zero-carbon emissions car they sell. McCain called current incentives "the handiwork of lobbyists, with all the inconsistency and irrationality that involves." As all of his proposed incentives are offered to automakers (American automakers, at that) rather than consumers, should we expect them to exhibit the same inefficiencies that McCain is railing against? Yes, we should.