Does that include big-ass tax credits for Chevy's plug-in hybrid electric – gas Volt? Federal loan guarantees? I'm thinking… yes. But Barack ain't saying nothin'– other than it's all the republicans' fault, vote for me and I'll sort this shit out. As Reuters reports, "Democratic Presidential hopeful Sen. Barack Obama said today that the job cuts at General Motors Corp. were 'a sober reminder of the difficult economic times we're facing,' and said the U.S. auto industry was facing a 'perfect storm' of trouble." Yes, "when a mainstay of the American economy is forced to make a restructuring decision like the one General Motors is announcing today, it is a sober reminder of the difficult economic times we're facing and of why we need change and a new direction in Washington." Uh, did I miss something? What restructuring? Anyway, "My heart goes out to all the workers and families in Michigan and across the country who will be affected as well as those who have been impacted over the last few months and years of turbulence in the auto industry." FYI McCain has come out against a federal bailout for Detroit. Barack… isn't so sure. 

After Rick Wagoner's announcements this morning, GM Car Czar Bob Lutz was bubbling over with product news. Of course, Maximum Bob overlooked the fact that someone else's year-old warmed-over Pontiac leftovers may be nourishing, if they're seldom appetizing or appealing. Anyway, MB revealed that the Chevrolet Cobalt will be around for a lot longer than we'd been led to believe. It's "no where near the end of its life-cycle" and it's "finally coming into its own" (whatever that is). So what about the Cruze? It'll be sold eventually but not as the Cobalt's replacement. And then there's the news that's upsetting Autoblog's readers: the Beat won't go on, at least not in the U.S. Apparently, the small car that GM needs right now wasn't designed with federal crash and safety standards in mind (doh!). It would cost too much and take two years to fix that short-sighted screwup prepare the car for compact-loving 'Mericans. So when CEO Rick Wagoner said earlier today that GM has "a global operating framework that allows us to respond to changes in the U.S. market, a commitment to technology leadership, and an ever stronger and competitive product line-up," he wasn't talking about small cars. Except the Aveo and Cobalt. And the Pontiac-nourishing G3 and G5. 

If there's one thing Wall Street’s wizards are taking away from Rick Wagoner's morning press conference, it's that money's too tight to mention. Meanwhile product is, was and always will be the real meat of the matter. On this score, Wagoner doesn't. "Eighteen of the next 19 products will be cars or crossovers." Sounds good– provided you don't ask "what are they?" The answer to that question flags the fact that General Motors still doesn't realize that they're in a business of building cars and convincing people to exchange their money for those cars.   

Volkswagen has announced the location of their new U.S. plant. And the winner is… pardon me boys… Chattanooga. The Tennessee plant will be located in an existing "industrial megasite" to "produce a car designed specifically for the North American consumer." (The last time VeeDub tried building something specifically for the American market, they "Malibuized" the Rabbit– and retreated to the Fatherland, (cotton)tail between their legs.) VW figures on a 150k per year initial capacity for the new facility, which will begin production in "early 2011." "The U.S. market is an important part of our volume strategy and we are now very resolutely accessing that market," Martin Winterkorn, VW's CEO said. "We will be selling 800,000 Volkswagens in the U.S. by 2018 … [which] along with our growth strategy, is a prerequisite for the economic success of the company in the dollar region." Does that boy even know how to speak English? Anyway, inhabitants of the Tennessee Valley area of "the dollar region" are bound to appreciate the $1b VW's expected to pour into the local economy. 

Earlier this morning, GM CEO Rick Wagoner announced a cost-cutting package designed to "better align the business to the current market condition." He's cutting bonuses, pushing salarymen out the door, disappearing the dividend, postponing the union's health care payment, putting truck development on ice, yada yada yada. While the media focuses on the scope and scale of Rick's "right-sizing," the money shot arrives in the last six words of the official press release. Apparently, GM has "an ever stronger and competitive product line-up." Nonsense. And until that's true, GM's doomed. Which means GM's doomed. 

I love bad puns. This morning, during a lull in the action while we waited for the footware to fall on Slick Rick's press conference, I asked our esteemed publisher "if GM started designing the second generation of their electric vapormobile, would it be considered re-Volt-ing?" Lacking my finely honed sense of humor, he merely responded "har, har." Then I reminded him that if someone wrecked their S-Class, all you could so is say "well, that's the way the Mercedes Benz." OK… I know they're bad.  And I know there have to be a lot more automotive puns out there. So c'mon… hit me with your best (or worst) shot. I'll be mighty be-Holden to you if you do.

GM just sent out a press release outlining "further steps" they taking "to adapt its business to rapidly changing market conditions." The high points of Rick Wagoner's plan include:

∙ Reduction of salaried workforce via attrition and "other separation tools."

∙ Eliminating "annual discretionary cash bonuses for the company's executive group in 2008… For the company's top executive officers, it represents a reduction in their cash compensation opportunity of 75 to 84 percent. "

∙ Making "additional structural cost reductions… achieved through further adjustments in truck capacity and related component, stamping and powertrain capacity."

∙ "Revising its capital spending plan and reducing approximately $1.5 billion in expenditures versus prior plans… A major part of the reductions is related to the delay of the next generation large pickup and SUV program, as well as V-8 engine development and associated capacity."

∙ "Improv(ing) working capital…primarily related to the reduction of raw material, work-in-progress and finished goods inventory levels as well as lean inventory practices at parts warehouses."

∙ "Defer(ing) approximately $1.7 billion of payments that had been scheduled to be made to a temporary asset account over the balance of 2008 and 2009 for the establishment of the new UAW VEBA."

∙ "The GM Board of Directors has decided to suspend future dividends on common stock, effective immediately, which is expected to improve liquidity by approximately $800 million through 2009."

∙ "Undertaking a broad global assessment of its assets for possible sale or monetization."

∙ "Opportunistically access(ing) global markets to raise additional liquidity"

"The actions announced today are difficult decisions, but necessary to respond to the current auto market conditions," said Wagoner. "Even under conservative planning scenarios, GM is well-positioned to withstand the U.S. market downturn and emerge a stronger company. We have a solid position in the rapidly growing emerging markets, a global operating framework that allows us to respond to changes in the U.S. market, a commitment to technology leadership, and an ever stronger and competitive product line-up."

Click here for PDF of full press release 

Fisker Automotive is moving ahead with their plans to produce the Karma hybrid-electric sedan. Reuters reports that the former CO2-intensive custom coachbuilder (reskinned Mercedes SL and BMW 6-Series) has signed a letter of intent with Metso Oyj, the parent company of Valmet Automotive. The dynamic duo claims they're going to build 15k copies of Henrik's PC plug-in four-door. (Valmet currently builds Porsche Boxsters and Caymans; their contract with the Sultans of Stuttgart expires in 2012.) Even though there's no actual contract between Fisker and Valmet, and no one's disclosed any financial details, Metso reckons customer deliveries will start in the last quarter of 2009. If Fisker pulls this off, he'll beat GM's plug-in electric – gas hybrid Chevrolet Volt to market. You know, in theory.

Why? Non-sales of GM's two-mode hybrid SUVs and pickup have thoroughly discredited the system as an expensive affectation. And although oil burners' adherents couldn't be more rabid if they were bitten by a foaming fox, there's little evidence to suggest that mainstream consumers want to pay the estimated $2k premium for a diesel powerpant AND a buck more per gallon at the pump. Still, what do I know? The Windsor Star says it's two-mode speed ahead for the former Daimler division. "J.D. Power reports that Chrysler intends to put its two-mode hybrid system in the Grand Caravan starting next year. Chrysler will start offering the same system in its Aspen and Dodge Durango SUVs next month, at prices starting about $5,000 less than the GM vehicles." Yes, well, that's $4k MORE than a gas version, BEFORE discounts. [NB: June sales reveal that the Durango's dead and the Aspen is deaderer.] As for the re-badged Caravan soon-to-be-unknown as the VW Routan, "Volkswagen could go in two directions… either by offering one of its own four-cylinder diesel engines, which would offer excellent fuel economy but be considered rather underpowered compared to gasoline-powered minivans, or by offering the three-litre Mercedes diesel that Chrysler is currently offering as an option in its Grand Cherokee." Decisions, decisions…

Industrialinfo.com [sub] reports that China's National Development and Reform Commission (NDRC) has approved three biodiesel plants to convert tung tree nuts into fuel. For those in love with Google Earth, the plants will open in Nanchong (Sichuan province), Guizhou province and Beijing (Hainan province). The "demonstration projects" are set to yield just 50 – 60k tons of fuel per year apiece. To put that into perspective… "As a large diesel consumer, China's annual diesel consumption is about 70 million metric tons per year. Of this, about one-third of the consumption is from import. Based on the estimate of the International Energy Agency, China is the second largest petroleum consumer in the world and has a growing reliance on imported petroleum." Tung tree oil is a beloved sealant amongst kitchen remodelers and woodworkers. But don't get to thinking the U.S. could go cuckoo for tung nuts. Florida's experiment with the plants didn't pan out; vernicia fordii is now considered an invasive species. Oh, and even the smell of tung oil is enough to give nut-aversive people a severe reaction. The stuff we learn on your behalf…

The fact that Tesla Chairman Elon Musk owns a solar power and space launch company is, at least potentially, a perfect trifecta. When Musk finally announces that Space X will be launching solar panels into orbit to beam juice to a million gen3 EVs, he'll square the circle. Until then, we just have to listen to more co- and tri-branded crap. This time, it's Newsweek's Fareed Zakaria (author of The Post-America World) in Tesla's spinning teacups. "Q. What's your goal in producing the Tesla Roadster. A. This car itself is not going to change the world—it's a $100,000 sports car being produced in quantities of about 1,800 a year." "About" meaning… 50? Less? "Q. When you plug into an outlet, you're in effect plugging into coal, because a lot of the electricity produced in the United States is coal-fired. Does that bother you from a global-warming perspective? A. I'm very familiar with the "long tailpipe" criticism. I have another company, SolarCity, which is the largest provider of solar power to homes and businesses in California. The solution is to get a SolarCity solar panel on your roof and then have an electric car. It takes actually only a small solar-panel setup—of about 10 by 15 feet—to generate 200 to 400 miles a week of electricity for your car." So, are we cool?

GM's given the media a heads-up that CEO Rick Wagoner is about to outline "actions to better align the business to the current market conditions" (i.e. reveal their new new new new new turnaround plan). It's a bit of a bitch, as I have a General Motors Death Watch queued-up for your dining and dancing pleasure. Rest assured I'll have TTAC's take on Wagoner's latest pre-apocalypse prevarications minutes after the other shoe hangs in the air. Meanwhile, it's worth noting that Automotive News [sub] scribe Jamie Lareau felt obliged to preview the forthcoming cut and shunt by stating "The message is not likely to be an announcement of management changes or that GM is filing for Chapter 11 bankruptcy protection, a source familiar with GM told Automotive News today. The news will be 'fairly upbeat,' the source said." That's a mind-boggling bit of writing on two levels. First, you know it's bad when a generally supportive member of the automotive press feels obliged to tell people you're not choosing the nuclear option. And second, what the Hell could Wagoner say that could possibly be "upbeat?" The only good news on any GM front is that sales overseas are up– foreign ops without which GM would have a negative market capitalization. 

To paraphrase an old expression, it stops being funny when it starts costing you billions. And make no mistake about it: Cerberus' investment in Chrysler has cost the private equity firm some serious scratch. Bloomberg reports that "The $7.5 billion Cerberus Institutional Partners Series Four [15-month-old fund] lost $32 million on $3.3 billion in investments through March 31… hurt by stakes in unprofitable companies including Chrysler LLC." That one percent drop might not seem like a lot of money in a shaky U.S. economy, but fans of Cerberus' top dog are used to returns in the neighborhood of 25 percent per year. Needless to say, Chrysler's been a bit of a drag for the three-headed dog, all things considered. "Founder Stephen Feinberg plowed as much $4 billion into automaker Chrysler and GMAC LLC, the former vehicle- and home- lending arm of General Motors Corp., before they were battered by the subprime-mortgage collapse and gas prices that rose 34 percent in the past year." Again, that's before the shit hit the fan. Bloomberg points out that Chrysler probably accounts for no more than five percent of Hell Dog's latest fund, and that the ailing American automaker is, supposedly, besting Cerberus' projections. Still, $375m here, $375m there…  

You can tell by my phrasing that I don't like it. Not one bit. In case you haven't been paying attention, first term congressperson Jackie Speier– California's latest offering to the pyre of political lunacy– is proposing a Federally mandated national limit of 60 mph. I'm so angry I could spit. First of all, NO!!!!! Leave me alone! If I want to pay a bit more to get somewhere quicker that's between me and my bank account. Don't tread! Second, will hybrids, ethanol burners, hydrogen fuel cell and electric cars be limited to 60 mph, or just the dino-juice drinkers? And if all cars are limited, why? If I'm getting veggie-diesel from the local Thai joint what possible business is it of the Feds if I'm driving down the road at 80 mph? Can't they just get back to launching unnecessary wars, illegal phone taps and Alaskan bridges? You know, their core competencies. So what do you think?

One of the many important lessons I learned from my father was a healthy disrespect for partisan politics. A self described "pox-on-both-your-houses" independent, the elder Mr Niedermeyer has only ever donated to one political campaign in his entire life: the effort to repeal the federal 55mph speed limit. Though he now seems more interested in hypermiling than high-speed hoonery, it may be time for the paterfamilias to reach for the checkbook once again. The Wall Street Journal reports that Senator John Warner has written the U.S. Energy Secretary and the Government Accountability Office asking them to study the possibility of once again lowering federal speed limits. Though Sen. Warner says he's not necessarily advocating a return to the double-nickel, he wants to bring the issue before congress before the fall election recess. "I am every day trying to work on concepts to achieve some conservation now," Warner says. "I mean N-O-W." In his letter, Warner requests that the feds determine the speeds at which modern vehicles operate most efficiently. It's all a bit moot of course, as NHTSA data shows that three quarters of drivers broke the speed limit within a month of being interviewed. Oh, and Senator Warner retires this fall. And, as the WSJ aptly points out: "The speed limit issue isn't really about any of that. It's a powerful, easily grasped symbol of the freedom, mobility and affluence Americans enjoyed when energy was cheap. Letting go of that sense of freedom won't be easy, even if it is the sensible thing to do."