Bloomberg has a tidy little article summing up the current state of play in the corn ethanol industry: game called on account of brain. Yes, not only are people beginning to realize that the “food for fuel” industry has its ethical “limitations” (food riots and rising prices at the supermarket will do that to a concept), but the realities of economics are giving gung-ho investors pause. As in, why should we put money into this boondoggle when there’s already tens of millions of gallons more production capacity than demand? (So much that E85 producers can’t get cheap corn, either.) The result: the end of the corn-based ethanol industry’s boom. And a big PR switch from “no one ever died defending a corn field” to talking about [non-existent] cellulosic-based E85. The Bloomberg piece ends with the revelation that even ADM’s man (gotta love that jet) is backing away from corn juice. “Asked whether Obama may reduce his support for corn-based ethanol as president, spokesman Tommy Vietor referred to an April speech in Indiana: ‘We have to recognize that corn-based ethanol is a transitional technology,” the candidate said then.” Oh wait… “An energy bill introduced by House Democrats Thursday would require all gas stations to add one alternative fuel E85 pump, a fuel of 85 percent ethanol,” The  Detroit News reports. “Currently, less than 2,000 of the nation’s 185,000 gas stations have an E85 pump.” And why is that, then?

When it comes to cars from General Motors, I’m always prepared for disappointment. No matter how promising the new vehicle is (Corvette!), GM finds a way to let me down (Corvette seats!) Take the Pontiac Solstice GXP. Flat gorgeous. More important, that sweet turbocharged engine with its (relatively) massive power and torque. Hell yeah, right? But the shift linkage is made from hamster bedding. The interior was designed for Gitmo inmates. And the brakes — when pushed — stink. I mention this because I was wholly ready to be let down by the new Pontiac G8 GT.

Chrysler’s Jim Press is refining the “not a bailout” argument today, calling federal loan proposals “an acceleration of technology into the hands of consumers who couldn’t afford it, if we didn’t do it.” Furthermore, Press tells the Detroit Free Press that taxpayers will reap concrete benefits from the loans. “I think it will allow everybody to bring electric cars, plug-in hybrids, hybrid cars, even range-extended hybrids. All of those vehicles will be accelerated,” says Press. No, seriously. “These are going to be very doable products, looking at production, not just research, he deadpans. “Our focus of our investment from his point forward is improving the environmental footprint of our cars.” Why, Mr Press? Are high oil prices shifting the market towards greater fuel efficiency, making these investments a smart business choice? Not exactly. “We’re worried about dependence on foreign oil,” says Press, getting all national security advisor on us. “But if you fast forward 15 years, where will batteries come from? Right now, the major sources of batteries are other countries. So are we trading our dependence on foreign oil, which is a natural resource, for a dependence on other countries to produce something in a factory? We need to stimulate that development here — here in Michigan.” In other words, the real reason that Detroit should receive bailout loans is that it’s an organ of the national interest. If you think a Volt in every pot, and a head start on tackling Peak Battery sounds tempting, Press is even willing to put some accountability (and your money) on the hood to push you over the top. Press says $25b in loans would be a “good start,” and that the Feds should “look at the return on that $25 billion, and if in everyone’s perspective, we can do it again, we should. I think for a beginning, $25 billion is an appropriate place to start.” The camel knows it need only get its nose into the tent…

The unveiling of the production version of the Volt will go down in history as one of GM’s final coffin nails. Not only does it mark the death of the Volt cult, but it also signals the end of the whole “concept/dream car” era as invented by GM’s legendary Harley Earl in the fifties. Bob Lutz has thrown his “Hail Mary pass” right into the stands. The fans are furious, heading for the exits.

The Pension Benefits Guarantee Corp has had enough of Delphi’s ongoing pension debacle, and has warned the GM spinoff that it would file in court to seize a further $900m of the supplier’s assets. Having missed hundreds of millions of dollars in payments to its pension plan, Delphi’s still-profitable overseas operations are targeted for seizure by the PBGC. On Tuesday, reports the Wall Street Journal, the PBGC sent the second letter in the last month to urge GM to absorb at least $1.5b in Delphi’s pension obligations by the end of the month. Timing is crucial, because new pension laws which go into effect on October 1 will make such deals far more expensive. Oh yeah, and then there’s the whole bailout angle. “I can’t speak for the rest of the government, but I assume if GM is asking for assistance from the government generally, the status of the GM-Delphi pension situation would be highly relevant,” says PBGC Director Charles E.F. Millard. We couldn’t agree more. So GM and Delphi have until the end of the week to file papers that would transfer $1.5b of Delphi’s obligations to the General’s pension account. If that date is missed, Delphi’s only remaining profitable business ventures will be ghost like Swayze. With the firm likely to follow shortly thereafter, Chapter 7 style. So, why would GM endanger it’s bailout chances and kill off its largest supplier, when it’s own pension fund is actually overfunded to the tune of some $18b? Because that’s “already committed to paying off United Auto Workers medical claims, funding employee buyouts and other pending obligations.” Rock, meet hard place. Meanwhile, man the lifeboats.

Alright, that’s a little misleading. You can still pick up a regular V6 Mustang from Hertz. And I’d imagine you always will be able to. But they aren’t offering the Hertz Shelby Mustang GT-H anymore than Coke still sells Coke 2. Between their popularity, the upkeep, the abuse, and the limited production runs, it makes sense that Hertz couldn’t keep it in the stable forever. But the Corvette as their fun sports car replacement? While I’m a huge (HUGE) Corvette fan, it does seem strangely defeatist for Hertz – a Ford vassal – to be renting off Corvettes when Ford has trillions of Mustangs that would fill the role. Even if the Mustang GT can’t hold a candle to the Corvette from a performance standpoint, so what? It’s part of the Ford family. Meanwhile, I’m not complaining. I’ve got my 436 hp toy booked for Tuesday.

The New York Times’ Wheels blog recently convinced Gordon Murray to answer a few questions posted by its readers. With the journalists safely out of the way, what followed was a broad, frank and fascinating conversation about the future of the automobile. Sure, there are questions about the past, like how he would update the McLaren F1 vis a vis Veyron and company. Carbon fiber brakes, admits Murray, but he “wouldn’t envisage any other change.” He’d much rather talk about his current project, the T.25 city car. It’s a plastic-bodied attempt at “the next iconic city car, from a styling point of view, as was the 1957 Fiat 500 and the 1959 Mini.” The inevitable question comes: “Why do you want to work on this type of car now, after building the worlds greatest supercar? Murray appears to have been thinking about this thing for a while. “I have built performance cars all my life, and their time, unfortunately, is pretty much over. What we’re working on is a car for the future. It has been a gradual evolution of thought, which started in the summer of 1993 when I was stuck in traffic jam on the way to work.” And he swears it’s for real. “Building an ultra-light but safe and efficient car at a very low cost and sales price requires the exact same lateral thinking and philosophy we applied to the McLaren F1.” And the rule book does seem to have been thrown out. The T.25 has been designed to “to accept any powertrain or fuel,” and Murray claims his firm “can license out our manufacturing process whether we undertake the engineering work for the program or not.” Working with speed freaks (and T.25 investors) Caparo to develop low-cost composites, Murray hopes to kill enough weight and friction to get 80 mpg on a European combined cycle. “The design,” he says, “is small, low-cost and efficient. If this comes close to living up to its potential, it’s going to be a big deal. Given Murray’s history, it’s got as good a shot as any other modular, poly-powertrain, lightweight, iconic city car currently in development. Seriously, read the whole thing.

No, obviously. Nor anyone else, apparently. Now that GM is spending more time trying to sell the HUMMER brand than the HUMMER brand’s products, there’s not much on the product news front. But there is something. “The iconic HUMMER H2 is known for going where no other four wheel drive will venture,” a GM press release proclaims [via Huliq News]. “The model breaks new boundaries for 2009 with standard E85 Flexpower capability on every H2 sold, making it the only model of its kind with can run on E85 ethanol.” Now there’s a claim. And just in case you thought boasting that your planet-killer poster child can run on a corn-based bio-fuel boondoggle that even tree-hugger’s have scorned, GM PR wants you to know… nothing much. About that, anyway. “Ethanol is an alcohol which can be distilled from a number of sources, ranging from renewable crops such as sugar cane, to biomass or waste materials. Particular emphasis is being paid to the need to utilize sources that do not affect the price of third-world food commodities. For example, GM is the leading automotive investor in developing E85 ethanol made from waste wood collected as part of forest wildfire prevention programmes. Undergrowth and dead trees that would otherwise be burned are converted into the ethanol.” Oh, OK, then. But GM is now trying to play-up the “E85 is cleaner for the air” arguement, which has never been properly verified. “In addition to reducing dependence on non-renewable petroleum resources, E85 ethanol helps to reduce greenhouse gas emissions and can reduce smog-forming carbon exhaust emissions.” H2 reucing greenhouse gasses? Talk about beating a dead horse.

Speaking yesterday at an Automotive Press Association event, Chrysler Vice Chairman and President Jim Press revealed that Chrysler has “been approached by outside individuals who want to work with us to buy the asset and sustain Viper going forward.” Who are they outside individuals? Well that’s a secret, of course. But someone, hopefully, maybe, wants to buy the rights and equipment to make the Viper in the future. As a car fan, I think this is a nice development. No matter what happens to Chrysler, the legendary Viper would live on the way that the Seven or Cobra live on today. At this point, Chrysler is selling about 80 Vipers per month– which is probably more than a low volume hand-assembler could handle in production. But presumably the amount of interest would drop when you could no longer get a car with a dealership warranty (even though it would have been at a Dodge dealership, that’s something). From Chrysler’s business standpoint, why? What is the entire Viper program really worth? $100 million perhaps. That’s barely enough money to put up new wallpaper in the bathrooms at Chrysler’s headquarters. Meanwhile, when they eventually do sell the entire Dodge brand off, the Viper is an absolutely crucial asset to its image. But then, that wouldn’t fit the perfect profile of a Cerberus strip and flip. And by selling off little pieces of the company– like the Viper– that’s exactly what we’re seeing.

The great Detroit bailout of 2008 will not be debated in terms of economics. Free market considerations will take a back seat to the “consensus” on what’s good for our “national interest.” But Detroit is just one among many industries now nuzzling towards the warm embrace of a federal bailout. So what makes the American auto industry more equal than say, the mortgage sector or the airline industry? Not much, as it turns out.

Troy Clarke, President of GM’s North American operations, decided answer back on some issues plaguing GM while addressing students at Southern Methodist University (home of the George W. Bush Presidential Library). Clark started with the usual PR blurb; GM is one of the largest auto manufacturers in the world, and that they bring us household brands, like Chevrolet, Buick, Saturn, Pontiac, Hummer and Cadillac. Well, until they kill Pontiac and sell off Hummer. And Buick slips in the shower and dies. While we could read into Clarke’s reference to GM as “one of” the world’s largest automakers rather than calling it “the largest,” there were other gems from the presentation. Clarke went on to trumpet GM’s phenomenal fuel economy stable: they have 18 models that get 30 mpg or better. Ray Wert trashed this myth previously: these 18 cars represent 30% of GM’s overall line up, whereas Toyota’s and Honda’s 30+mpg club represents 55 and 60%, respectively. Then came the thorny issue of “the bailout”. Or not. Because it’s not a bailout. Is it? Clarke told the crowd that actually, it’s not a bailout. It’s just a return for the taxpayer. Nice! “Congress has mandated an industry average of 35 mpg or better by 2020,” Clarke said. “This was the figure that they thought was reasonable and would not bankrupt the car companies, but it just depends on how valuable sooner results in this facet are to the American taxpayer.” Fancy that! Even though, I’m not a United States’ taxpayer, I’d hazard a guess that citizens would want their taxes spent on things like roads, defense and fixing social security, rather than a company run into the ground by clueless executives.

Is TTAC’s influence spreading like butter on toast? David Welch of Business Week seems terribly underwhelmed by GM’s “Facts and Fiction” website. He believes that, in theory, it’s a good idea. In practice, he gives GM a right, royal kicking. “But the site itself is mostly unconvincing.” he writes, “In one entry, GM scoffs at the notion that the company ‘still doesn’t make cars that people want to buy’. As proof, GM cites that sales for cars like the Chevy Cobalt are up 10% this year. Malibu sales are up 32%. Yawn. Most of the company’s new vehicles have won praise from the motoring press. Why not refer to a good review in, say, Car and Driver?” Ouch! But wait, there’s more! He then questions GM’s version of events, ass-kicking style. In the “GM didn’t anticipate the shift towards fuel efficient vehicles” section, he points out that while the Saturn Aura and Chevrolet Malibu are good cars, they came to market AFTER the fuel jumps. “When GM got in trouble in 2005, it spent extra money to rush its large SUV’s to market, not its cars.” Even Toyota get an honourable mention, “And the company didn’t make a push to get advanced hybrids to showrooms until it had lost the technology image game to Toyota. That’s reaction, not anticipating.” His pièce de résistance: GM’s so-called evidence to support their claims. “There are five of them (websites and blogs) and all come from the company’s PR staff.” It’ll be interesting to see Bob Lutz’s reaction to all of this. “Business Week? It’s a crock of shit!”

Because China’s five, huge showrooms just weren’t meeting the market’s demands, Rolls Royce has opened its sixth showroom in The People’s Republic. The new 4300 square foot palace resides in the relatively well-off region of Hangzhou, and should be large enough to shelter Rolls’ expansive, cough, lineup: the Phantom, long-wheelbase Phantom, Phantom Drophead Coupe and Phantom Coupe. In 2007, Rolls sold 1010 land yachts globally; 70 of which were in China, where they are are now impressing a populace that could no more afford an Anglo-German uber-sedan than you can pay off the U.S. debt with your Capitol One card. That said, there are over 6000 people in China worth more than $30m. Of course, there is something of a history of limos for the Chinese elite, where some members of the Cultural Revolution were more equal than others. Same as it ever was? Same as it ever was.