With the "energy crisis" as the calamity of the moment, it's easy to forget that the credit crunch is still a long ways from resolution. Luckily, Chrysler is around to remind us. The Wall Street Journal reports ChryCo Financial has a $30b credit facility due for renewal next month, with its borrowing rates set to rise. The usual unnamed sources say the renewal deal is still being "worked out." And while the exact increases are not yet known, analysts are placing the spread at more than one point over LIBOR, currently 2.8 percent. JPMorganChase is said to be "pushing hard to persuade more than 20 banks to renew the facility — backed by car loans, leases and loans to dealers — that was issued by the auto-finance company last year when it was carved-out of the former DaimlerChrysler AG." Uh-oh. Investors have been running away from this exact sort of complex, structured debt since the credit crunch first hit. In contrast, Ford and GM typically use such "conduits" in one or two-month increments, keeping their borrowing costs below 0.5 percent above LIBOR. And the more expensive the borrowing, the less Chrysler can offer in financing terms to move its metal. Which is barely moving anyway. Not good.

Malcolm Bricklin is deeply regretting his plan to import Chinese Chery cars to the U.S. Automotive News (sub) reports that the man who brought Subaru to America is suing his erstwhile Chinese colleagues for corrupt practices. This after losing $26m (of someone's money) trying to bring Cherys to the US. The suit alleges Chery has "systematically broken contractual obligations, stolen plans for vehicles, made cars designed by Western companies without paying for their rights, and made deals without the slightest intention of carrying them out." In other words, business as usual. Bricklin once described his partnership with Chery in glowing terms: "I have never met a more cooperative, more intelligent, more aggressive group to do business with. We're working together as if we've been working together for 100 years." And now… "We're going to get them for everything they've done." Bricklin reckons Chery is legally vulnerable in the states; an American designer has successfully sued his overseas imitators. No matter how this shakes out, it's good news Chrysler's plan to import Cherys into the US.

Auto Motor und Sport reports Volkswagen vants to conquer ze world! The German automaker aims to displace  Ford as world number three automaker this year and then, eventually, take on Toyota. Yes, well, anyway, Wolfsburg can't get there from here without fixing its NorAm ops. To that end, VW is considering bringing a subcompact "similar to its Polo" stateside. The Yaris/Fit fighter would take VW back to its small, fuel-efficient American roots. Bloomberg reports that Vee Dub's also looking to produce a market-specific version of a future Polo in the U.S. of A.. Power could come from one of VW's new low-pollution powerplants, built at a forthcoming engine plant in Puebla, Mexico. Better late than never?

Shelby Supercars (SSC) recently grabbed the title of fastest production car in the world (and the respect of Jay Leno) with its 1k+ hp "Veyron-performance-made- in-the-USA-at-half-the-price" Ultimate Aero. Even so, SSC knows that a world record and fifty-unit-per-year production do not a viable car builder make. And since the Ultimate Aero can plow through a gallon of gas every 15 seconds at full boost, SSC figures a cleaner, greener model is in order. The SSC blog reports that the Ultimate Aero EV replaces the standard 1183hp twin-turbo V8 with a 500hp electric motor. They claim that the watt-guzzler will "feature a revolutionary power source allowing for extended time between charging intervals with the possibility of several years between charging." Huh. Tesla has a bank account full of Silicon Valley venture capital and more media coverage than a panty-free Britney Spears. But they still can't get a transmission to handle their Roadster's low-down EV torque. And SSC expects to waltz in and handle even more 0 rpm torque with its standard carbon clutch and six-speed tranny. Whether it evolves into a Tesla-killing masterpiece or an overly ambitious flameout, this project is just too crazy not to keep an eye on. [Hat Tip to El Jalop]

I just spent three hours deducing that a car completely covered in loose fitting vinyl was in fact a Suzuki Kizashi and not a Volkswagen Jetta. Or refreshed Subaru WRX. And we auto scribes do not get paid by the hour. OK, some of us do, but three hours is an insanely long time. Especially if no one cares. You there, sir, do you care about a Suzuki Kizashi? What if I told you it was a 300 hp, AWD Camry competitor? Still not interested in looking at photos of it all wrapped up in line-blurring leather? I'm not shocked. However, I am shocked at the news from last week that a French journalist was hauled off to jail for industrial espionage because he got a hold of photographs of the new Renault Megane. How nutso is that? I say pretty nutso. But I'm being serious — do you really care about spy shots? And if so, why? Or why not?

At the risk of being sued by Julie Roehm, inventor of the Dodge brand's ill-fated lingerie bowl, the ex-auto exec strikes me as a bit of a bunny boiler. The above headline comes from an email exchange between Roehm and her then-subordinate (in the literal sense), executive Sean Womack. We are privy to its contents thanks to Roehm's lawsuit against her then-employer Wal-Mart. Which was eventually settled amicably (i.e. Wal-Mart, like Chrysler, paid her to go away.) I mention all this because the increasingly salacious Detroit News Business Insider informs us that Roehn's bad girl behavior has landed her a role on Mark Burnett's new reality show "Have You No God Damn Shame?" Just kidding. Obviously. The real name of the program is "Jingles." Even though it's stuck in development Hell (like I give a shit), the report tweaked my curiosity. When was the last time you heard an automotive brand jingle? I can't remember a memorable one……. lately. I think it's high time for a comeback. 

Earth2tech reports that Tesla opened its second showroom last week in Menlo Park, CA. The new "palatial" space is three times larger than Tesla's original L.A. showroom, highlighting just how important the Silicon Valley is to Tesla's attempt to become a viable boutique automaker. And though the money could have been spent on say, a transmission, Tesla threw a party at its new showroom to celebrate the (eventual) delivery of cars to its patient customers. And what a party it was, by all accounts. "The parking valets seemed to outnumber the electric Roadsters," says E2T (ya think?), and an open bar served such cocktails as the Electric Margarita (great as long as you don't ask how it's made) and the Model S Mojito (if you wanted to get really delusional). Tesla President/CEO Ze'ev Drori and Chairman Elon Musk mingled with customers (martini glasses in hand) and spoke of plans for more showrooms (and accompanying parties) in New York, Chicago, Seattle and Miami. And while Tesla partied, the first dozen roadsters to be delivered to Silicon Valley customers sat in the back of the showroom, along with nine others scattered across the showroom floor in "different stages of development." They may be arriving in California at a rate of four per week, but since final assembly takes place at Tesla's dealerships, most are not yet ready for delivery. Which brings to mind the wise words of another, more famous electric innovator from a different Menlo Park: "genius is one percent perspiration, and 99 percent hype." Or something like that.

BMW doesn’t need to advertise their “ultimate driving machines.” After decades building and selling vehicles offering sporting luxury, BMW has trained its customers to intuitively understand their products' appeal. Brands take years if not decades to develop, millions to billions of dollars to engender, and require careful stewardship to sustain. Contrary to much of this website’s commentary, GM’s management is not stupid. They know that Buick, GMC, Pontiac, Saab and Saturn are “damaged brands” in North America. But unless General Motors’ execs follow Bimmer's lead, and soon, the company will fail.

Common sense is not so common, Voltaire opined. [FYI, Like Cheryl Sarkisian LaPiere, François-Marie Arouet's decision to trade his given name for something a tad more memorable is entirely understandable. That said, God knows what he would have made of the song "Half Breed."] But common sense is also lousy journalism, which TTAC abhors (amost as much as "Gypsies, Tramps & Thieves"). So when I spied "Rookie and rusty cyclists hit streets… and hospitals" in The Atlanta Journal Constitution, I looked for some statistical verification for Thomas Stinson's theory that high gas prices have lead to stupid cyclists have lead to more injuries. Silly me. "Hard data aren't available." Aren't they? Never mind, there is some killer anecdotes (so to speak). "Horrified by his first $70 trip to the gas station, Schatz drove to a bike shop last month, plunked down $2,500 on a new touring bicycle and began two-wheel commuting from his Grant Park home to his office in West Midtown… The pluses included conservation and fitness as well as frugality — until the morning he went airborne above traffic on West Marietta Street. Hit by a car, he broke both elbows. Afterward he asked himself, 'This is what I get for trying to save the environment?'" I'm an avid cyclist, but I gotta say it: yes.  

That's what The Star-Ledger columnist Bob Braun (via nj.com) concluded when he drove the same 55-mile route two times: once keeping pace with traffic, and once at just above the 65-mph speed limit. If you've driven on the highway anywhere lately, I don't need to tell you the outcome (but I will anyway). Keeping pace with traffic, Braun drove 80 – 85 mph and had no cause for concern. Driving 68 mph, he was passed by almost everyone, tailgated and found himself in dangerous situations more than once. He quotes Charles Lave, University of California at Irvine economist: "I find that there is no statistically discernible relationship between the fatality rate and average speed, though there is a strong relationship to speed variance. Variance kills, not speed." Perhaps the lawmakers need to be reminded of this fact as they consider lowering speed limits in the name of saving fuel. (An aside: does that mean the more fuel-efficient a car is, the faster it'll be allowed to go?) If our elected representatives are stupid enough to drop the national speed limit back to the double nickel, accident rates will go up as the variance between those who want to get there in a reasonable time and those who drive the speed limit increases. It makes more sense to raise the speed limit for safety's sake. As Braun points out, "if everyone uniformly sped, or, if everyone obeyed the limits, then we'd be safer." And you know the majority aren't going to obey the limits.

The Big 2.8 have been having something of a problem with vehicle depreciation over the last few years, thanks to fleet sales, over-production and the fact that the general public doesn't value their products as highly as the transplants'. Automotive News [sub] reveals the not-so-shocking fact that the same principle applies to Motown franchises. "Dealer and property developer Bruce Toll owns and operates two auto malls in suburban Philadelphia. He says a domestic brand dealership, including its real estate, that might have sold in his market for $4 million a few years ago would be lucky to fetch $500,000 today." Ouch. "When Detroit 3 dealerships sell at all these days, many bring only the value of their real estate and parts inventories. 'Blue sky' — the intangible value of a franchise — is often virtually nil for a Detroit 3 store." Double ouch. For some reason, speculation that the D2.8 may file for bankruptcy or kill brands is depressing prices. Depressing as in eliminating. "Sheldon Sandler, an investment banker in Skillman, N.J., specializes in working with big auto retailers to buy dealerships. He says his company, Bel Air Partners, 'won't bother' with Detroit 3 dealerships. 'They are just worth parts,' Sandler says.

Recent carparazzi spy shots reveal that Porsche is hard at work on the next generation Cayenne. Apparently, the German manufacturer is speeding-up the design process to catch what's left of the sport truck's declining market share– before Euro-regs and CAFE clampdowns strangle the fuel-sucking SUV's sales. To death. From the spy shots, it looks like the Cayenne Mk II will not increase in size. We can even imagine a little downsizing (doubly true for the mechanicals, as 500bhp-plus turbocharged engines are not the done thing in Brussels). A hybrid system is way more fashionable (it not actually effective). Will Porsche have to ditch robust off-road mechanicals for mpgs? No se. As for the Cayenne's design, I'm hoping for a more muscular and elegant version. Then again, who isn't? I'd also like to see Porsche work around the traditional round lights. Those just scream: "Porsche." For the rest, one piece of advice: keep it simple. No uber-grilles or uber-spoilers. Leave that to the tuners.

As someone who worked at Cable News Network from Day one to Day 3,650, I understand the true "news pyramid." At the top: international news. In the middle: local news. At the bottom (the foundation): what's going bad in your refrigerator. So I'm not really all that surprised that our largely U.S. audience couldn't give a rat's ass about the fact that the U.K. is rapidly becoming Orwellian, or even bother to wonder what Eric Arthur Blair was on about. Still, the anti-speeding jihad has opened the door to some truly frightening policing. The latest example [via Pistonheads]: "The number plates of speeding drivers will be flashed up on new ‘smart signs’ in a bid to shame them into slowing down… When fully operational, the system will flash up the number plate of any vehicles exceeding the speed limit as a visual reminder to drivers to slow down. The system includes a large trailer-mounted variable message sign and remote speed and Automatic Number Plate Recognition detection units." Privacy? "The agency said the data gathered will not be used for enforcement and the system does not record any personal data, therefore complying with the Data Protection Act." Call me a tin foil hat wearer, but do Brits really buy that?

No, no, not that Auburn Hills automaker. You didn't seriously think Chrysler was hiring, did you? No, Gibbs Technologies, a growing maker of *ahem* amphibious vehicles is opening its North American headquarters near the Pentastar Palace. The makers of the Aquada roadster (pictured), Humdinga SUV and Quadski ATV are bringing their products to the American market, and more amazingly, jobs to Michigan. Gibbs will hire 70 new employees by year's end, with plans for an eventual staff of 250. Further helping the moribund Michigan economy: the 270 workers at local suppliers and businesses required for Gibbs' operations. The company is also seeking locations to manufacture its surf-and-turf rides, and Michigan is reportedly a top contender. The first Gibbs product to go on sale stateside will likely be the Aquada roadster, a three-seater capable of 100mph on land and 40mph in the water. The Aquada could cost as much as $85k when it goes on sale sometime next year. Yes it's true: this whole venture depends on Gibbs selling vehicles. Imagine that.

The AP gets straight to the heart of this story: "As the price of oil drops dramatically, some analysts wonder if the bubble is bursting." When the markets closed on Friday, August oil futures had dropped from their recent high of $147/barrel to "only" $128.88. That still leaves oil about $100/barrel over it's long term inflation adjusted average of $27-$28. Detroit, especially Ford, appears to be moving full steam ahead to convert capacity from trucks to small cars as fast as possible, which means in about two years. So… what if fuel prices will drop back down, keep going up or stay about where they are now during that two-year timeframe? Whatever happens, it seems that $4/gallon has been a behavioral tipping point for the US' car and truck buyers. It took about a decade of stable fuel prices for people to forget the shocks of the 1970s. Once again it seems that even a slight moderation of prices would not mean a wholesale return to 1990s style gas-guzzlers. The only sensible strategy for a mainstream automaker: offer a compelling line-up across the board and flexible factories ready to zig when the market zags. But hey, what do I know?