And there you have it. The hit from Hell, sucking the life out of FoMoCo. Automotive News [sub] brings the noise. "In the financial report, Ford said that it took $8.0 billion in special charges to write off the value of troubled assets — including a $5.30 billion charge for Ford North America. The North American unit posted a $1.3 billion pre-tax loss in the quarter compared with a $270 million loss during the same period a year ago." If not for foreign ops… "Ford said it posted a pre-tax profit of $582 million in Europe during the quarter, up from $262 million. It also turned profits in Asia and South America." If not for Volvo… "The Volvo unit lost $120 million compared with a loss of $91 million a year ago." As promised, Ford announced the truck-related loss along with its plans to turn the not-so-supertanker- anymore around. [TTAC coverage continues.]. Meanwhile, according to Bloomberg, "Ford said it had $26.6 billion in automotive cash at the end of the quarter, down $10.8 billion from a year earlier." Chief Financial Officer Don LeClair is "confident'' Ford has enough liquidity. Sorry. "One time" expenses or no, there's no way Ford can sustain that kind of loss indefinitely. It's a race against the clock, and the clock is in the lead. 

According to Autospies' spies, Volvo NA is shipping C30s "back to Sweden." Yes, well, the C1-based hatch is assembled in Ghent, Belgium. In any case, the C30 seems to be selling poorly; Volvo's dropped C30 prices in Australia and Old Blighty. This might have something to do with a $22k base price for what is, in essence, a tarted-up Focus. Though the C30 offers more cargo space than, say, a MINI Cooper, the C30's practicality is hurt by its awkward hatch shape. And then there's the Swede's EPA 20/28 mpg via a turbo I-5. The poisoned cherry on top: the Volvo brand is in the weeds, facing a date with Ford's corporate strimmer. Add it all up and the C30 boomerang story seems plausible. Throw a little anecdotal evidence into the mix (how many C30s have you seen on the road lately?) and well… if Volvo can't sell its smallest, most efficient car, what does that say about its odds of survival?

When it comes to alt power, The General's ADD ways continue. In addition to its BAS "mild" hybrids, two-mode hybrids and Volt plug-in hybrid, GM is working on yet another Hail Mary: a plug-in version of the two-mode system. The result will be a single mode, the Saturn Vue plug-in. Yes folks, just in case the two-mode system isn't complicated enough, GM is adding plug-in capabilities. GM's Fastlane blog worries that we may all be too excited about the eventual release of the Volt,. They want to remind us that the plug-in Vue is undergoing testing in Michigan and Arizona. The program started with NiMh cells, but has switched to more modern Li-Ion batteries, which have now undergone thermal management testing. Apparently, they're now "fully operational and undergoing refinement." Even though the regular two-mode Vue Hybrid is set to go on sale this year, GM is hyping the plug-in version. Based on technology that's undergone more tjhan 800k miles of dynamometer testing, GM expects the PHEV Vue to "set the standard for its combination of fuel economy and performance." For an SUV. Which is to say, not at all. Shouldn't these engineers be working on the Volt, considering that its development is "pushing the time envelope," according to Rick Wagoner? 

Opel/Vauxhall's Insignia sedan debuted this weekend at the London Auto Show. The first Epsilon2-based car in GM's portfolio appears to be off to a great start. The biggest surprise so far: the Insignia looks stunning. Needless to say, there was some suspense when Maximum Bob Lutz was asked to confirm that the Insignia is coming stateside as the next gen Saturn Aura. Which was closely followed by stunned disappointment as the Man Of Maximum revealed that the Insignia IS the new Aura– but only under the skin. "We've researched the Insignia around the world, including the U.S., as an internationally spectacular new design, but the Saturn version will be its own car," says Lutz. So GM builds a mid-sized, front-wheel drive car that even Jeremy Clarkson likes (inside and out), and The General sends it to America to be fitted with (doubtless) tacky American couture. Why is GM spending money to redesign the looks of a perfectly desirable car? 

When Rick Wagoner told us GM would be making "significant reductions in promotional and event budgets," you could well have taken his vow as a shift in GM's priorities towards building solid products. Yes and no. Automotive News [sub] reports that GM will cut Chevrolet's marketing budget. BUT The General's American Revolutionaries will still spend a fortune, albeit with a new emphasis. "We've spent a lot of money this year promoting cars versus trucks, more than we have in a long time, and we're going to continue to do that," assures Chevy brand VP Ed Peper. To that end, Chevy will be leading the General's charge into new media advertising. "We actually think it's a very good idea," Peper commits. "And when budgets do tighten up, it's something we'll have to take an even harder look at," he de-commits. Snarks aside, Chevrolet already spends a larger portion of its ad dollars online than any other GM brand. Look for a Volt ad on TTAC in the near future. Say… 2010.

I was recently chatting with a friend whose OCD makes Farago's look like drunken absentmindedness, when she revealed that over the weekend was her 10th time getting pulled over and getting out of it.Sure, she's very pretty and very blond, but even still. That's one Hell of a lucky streak. Running back through my own encounters with Johnny Law I realized that I'm about 50/50. Ironically, the faster and more expensive my ride, the luckier I am. Case in point, when I dumped the GT500's clutch and laid tire tracks for almost an entire block, the officer wanted to know how I liked the overblown Shelby compared to the regular GT. Going 55 in a 35 mph behind the wheel of a Ford Explorer? Not so lucky. Going 135 100 mph in a WRX? Got written up for 85 mph. Going 80 mph in a green Sentra? Traffic school. How about you?

At 4pm Monday, GM pulled the wraps off the new Chevrolet Camaro. I didn't watch the live press conference. No surprise there. Literally. Everything about the car had been leaked in the week leading up to the curtain pull: exterior, interior, engines and transmissions. Other than that, only two numbers held any mystery: price and zero to sixty sprint times. GM only told us the latter. I'm excited, as a car fan. As an armchair CEO…

Reuters reports that Toyota sold 4.8m vehicles in the first half of 2008, while GM managed to move 4.54m. It's official: GM is no longer the world's largest automobile manufacturer. GM's spinmeisters promptly bragged that it reached record numbers in three of its four regions in the second quarter of 2008. Unfortunately, GM's 116k-unit growth outside of the U.S. was swamped by a 236k-unit decline in the home market. Also, GM continues to take full unit credit for sales in China– even though the Chinese business is majority-owned by Chinese partner SAIC. (For example, GM owns only 34 percent of the unit which builds the high-volume Chevrolet Spark.) GM's decision back in 2000 to ramp-up trucks and SUVs whilst eviscerating their US car efforts in order to boost profit margins has come home to roost. 

At the risk of sounding like FBI BAU Supervisory Special Agent Jason Gideon, Christian Nevell Bovee observed "No man is happy without a delusion of some kind. Delusions are as necessary to our happiness as realities." If so, GM Car Czar Bob Lutz must be the happiest guy on earth. Maximum Bob was in London for the auto show. He reacted to questions about GM's layoffs, production cuts and the usual laundry list of woes with the statement above [via Just-Auto]. MB's clinging to his claim that his employer's problems are caused by the "unprecedented" rise in gas prices. What more, "we're quickly adjusting to meet the challenges of a changing market… Of course, we will adjust our product portfolio to meet the market where it's headed… We will continue to develop… our brands accordingly." And that's why they'll be keeping the Cobalt around (and unchanged) forever. And why Pontiac is being "nourished" with a lineup of rebadged cars from other GM divisions. And why GM still has no competitive subcompact car to offer the North American market. If all this indicates GM's doing "the right things," well, God help them if they're got it wrong.

There's been much ado about GM's quiet launch of the 36mpg iteration of the Chevy Cobalt, both in the autoblogosphere and in promotional, warm-n-fuzzy TV spots (much like the  made-of-unobtanioum Chevy Volt). But the XFE isn't listed on the  "Shopping Tools" portion of the Cobalt microsite, nor on gm.com's "Find A Vehicle [any vehicle]" page. So I rang-up a friendly Chevy dealer who was embarrassed by his XFE-gnorance. Once he appreciated the model's existence, he said he didn't have any, there were none in Houston, and there was zero product information. "That must be a 2009 model," he countered. When I mentioned the XFE's web page on the 2008 Chevy website (sans XFE photos, BTW), there was a brief  pause. "They don't give us information as quickly you can get it." Well that sucks.

Of The Big 2.8, there's no question that Ford has the best chance of emerging from America's Summer of Shiva, uh, intact. But that doesn't mean they will, or can– despite the Obama-like blessing bestowed upon the ailing American automaker by the mainstream automotive press. Tomorrow, The Blue Oval Boyz are taking a leaf out of GM's PR playbook. FoMoCo will announce its new new new turnaround plan on the same day that they reveal some shocking financial losses. To say the press is in the tank for Ford would be something of an understatement, as two of its heavy hitters have already praised Ford for its courage, perspicacity, common sense, speed and general good looks. Self-styled Autoextremist Peter DeLorenzo leads the charge. The big news here: Sweet Pete's finally using a typeface that doesn't make you want to do an Oedipus. But seriously, "Instead of doing a series of baby-step changes over the next three years, Ford will bring its 2012-2014 products forward to the 2010-2011 time frame in a blaze of models and configurations that will set the U.S. market – and its competitors – on its ear." Woo-hoo! While The Detroit News' Daniel Howes is a lot more cautious, his piece is generally supportive. "Ford is taking giant steps in the right direction," Howes pronounces, without waiting for a glimpse at the big picture. "At last."

A TTAC reader named Don has requested a semi-private audience with our Best and Brightest. Don wants to purchase a used BMW 3-Series. Here's Don's dilemma: "I'm looking for a 2003 to 2008 model four door. I am replacing a 1994 Lexus SC400 and I want to experience BMW's great handling and road feel. 80% of the time I will be driving alone or with 1 passanger, but 20% of the time I will have my wife and some or all of my 3 kids along with me. I am undecided as to an automatic or a stick shift. My main priority is handling and feel and I am hoping for good reliability (are BMW's reliable?). Power, speed, and fast acceleration are not that important to me. Is there a superior model year in my range (I think that a body style/size change took place around 2006) or have the characteristics that I am looking for slowly evolved and improved each year?" Feel free to think laterally here, lady and gentlemen. But remember: most of the time people buy what they want to buy regardless of anyone's advice. Or, as my beloved wife reminds me (to no avail, obviously), no one ever got into trouble by nodding their head. At least not straight away.

I don't know how we missed this, but we're not alone; Autoblog didn't find this story until this morning. Anyway, Michigan's Democrats are pushing for a $4b handout stimulus package for their floundering automakers. The Detroit Free Press quotes Presidential candidate Barak Obama pledging support for such aid, stating "America cannot truly prosper unless Michigan prospers" while speaking in Warren, Michigan last week. (Governors of about 49 other states might disagree with that statement.) In a letter pandering to the UAW, Obama promised he "will provide real solutions necessary to help this industry compete and win in the global economy." Of course, his "solutions" boil down to the only "solution" politicians have for any problem: taxpayer money. Barack and other Democrats are pushing for a $50b "stimulus plan" for the auto industry, including loans at "below-market interest rates." Republican candidate John McCain is opposed to the loan idea, but he does support a $300m prize for battery development, tax credits for fuel-efficient vehicles and strict goals for flex-fuel vehicles. Either way, it's going to costs a bundle to correct what fifty years of over-priced, under-performing executives and their yes-men have produced. Or, dare I say it, not.

America has the hots for hybrids. On the flip side of high gas prices, the value of any vehicle with fuel economy below 20 mpg has collapsed. Brand new "gas guzzlers" sit on dealer lots collecting incentives, rebates, finance deals and dust. The price of used fuel-suckers has dropped by 25 percent in the last four months, and THEN the rest. This is the perfect time to shop for a twin-turbo twelve-cylinder behemoth.

A few weeks back, we told you that some of Chrysler's component manufacturers have been running their plants full bore, even canceling holidays to meet Chrysler's production demands. They've even had to ship parts in cardboard because they didn't have enough of the usual plastic packaging. Now we've learned Chrysler has called a hard stop, throwing suppliers into a tailspin as they halt production lines that were running beyond capacity last week to keep up with orders. Plant managers are scrambling to determine new production levels so they can get lay-offs started as quickly as possible. Is this the beginning of the Chrysler meltdown? We'll keep you up on what's going on as we find out more.