Reasonable minds can disagree about the wisdom of the auto bailout, but according to analysis by the EPA and Department of Transportation (based on data from the Department of Energy and auto forecasters CSM), the Government’s rescue of GM and Chrysler may not have been the best idea (at least from a market perspective). According to data buried in the EPA/DOT proposed rule for 2017-2025 fuel economy standards [PDF here], Fiat-Chrysler is predicted to be the sick man of the auto industry by 2025, losing over half of its 2008 sales volume, while GM is expected to improve by only 3%, the second-worst projected performance (after Aston-Martin). In terms of percentages, even lowly Suzuki and Mitsubishi are projected to grow faster than The Mighty General. Ouch.

On the other hand, the proposed rule notes that data will be finalized before the final rule comes out. Besides, the agencies appropriately admit (in as many words) that projecting auto sales so far into the future is one hell of a crapshoot. Still, with the obvious exception of “Saab-Spyker” and with some skepticism about the projection’s optimism about overall market growth aside, these are not the craziest guesses I could imagine. Who knows what the future holds, but it certainly is a bit troubling that the government’s own data suggests the two automakers it bailed out may well have some of the weaker performances of the next 14 years. At least the Treasury could have sold off their remaining GM stock before this report was released…

Tesla released the finalized features and pricing for the Model S sedan this week, with deliveries of the most expensive variants to begin in “mid-2012,” the others to follow by the end of next year. More than a few people who thought they were going to be able to buy a “premium electric sedan” for $50,000 seem miffed by the final pricing. Yes, there will eventually be a $50,000 car (after a $7,500 tax credit). But it won’t have full motor power, leather, nav, or the ability to use fast-charging stations. Tick off all the boxes, and the Model S pushes double the hyped number. But, let’s face it, these guys have to turn a profit and must pay at least as much for parts as the big established car companies, on top of that big expensive battery pack. So does the announced pricing seem reasonable?

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  Editor’s note: be aware that the images are extremely large, in order to show off TTAC’s rare opportunity for amazing photo shoot locations. What makes a flagship? It’s a question that gets to the heart of one’s philosophy as a car reviewer, and no better example exists to explore the issue than Hyundai. Here […]

Germany’s luxobarge makers aren’t just happy selling their luxobarges to China. Now they want Chinese money straight up. Daimler is flirting with the Chinese sovereign wealth fund China Investment Corporation (CIC), which may want to buy 5 or 10 percent of Daimler. (Read More…)

At first glance, it’s fairly obvious that there’s something not quite right with this picture. Better than most photoshops or renderings, but not quite convincing as a real picture, this car seems trapped in the Uncanny Valley, as if it were photographed undergoing winter testing on the set of the film The Polar Express. In any case, this little Corsa-based CUV (allegedly to be named “Mokka”) will debut at the Geneva Auto Show, and will take on such B-segment crossovers as the Nissan Juke, Suzuki SX4 and Ford’s forthcoming new Ecosport.

Meanwhile, GM’s American-market interpretation of a B-segment CUV is likely to be quite different from these little rough-and-ready softroaders [Ed: Or, not]. Buick is slow-strip-teasing its forthcoming Encore on Facebook, and it’s already looking like the Baby Enclave rumors were well-founded in terms of its exterior design. On the other hand, this isn’t a wildly detailed photo, so who knows? Either way, both the Mokka and the Encore are based on a jacked-up version of the Gamma II subcompact platform, and based on a video of what appears to be some relatively early chassis testing, the short-wheelbase and tall suspension took a little taming. Hit the jump to see for yourself…
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Everyone likes a nicely customized, lowrider-style 50s Detroit bomb, but sometimes the execution isn’t so great. Such is the case with this late-50s Ford— I’m going to say it’s a ’58— that I spotted in a Denver junkyard. (Read More…)

Carnewschina has another indicator that the Chinese bubble must be bursting somewhere, somehow. I mean, didn’t we just got used to a Bling Dynasty, where any self-respecting supercar owner had his Lamborghini Gallardo covered in gold? If Chinese must economize, then they choose a gold-plated Infiniti G37?

Those heady days appear to be coming to an end. Instead of gold-plated Gallardos, now there are – silver-plated Ferrari 458 Italias. (Read More…)

The US Court of Appeals for the DC Circuit on Tuesday rejected a class action lawsuit filed against the speed camera program in the nation’s capital. Motorists Henry Dixon and Cuong Thanh Phung argued the city violated their constitutional guarantee to equal protection of law by treating drivers pulled over for speeding more harshly than drivers mailed photo tickets for speeding.

The US District Court for the District of Columbia ruled against Nixon and Phung, finding no violation of the Fourteenth Amendment (through the Fifth Amendment) because drivers apprehended for speeding by police officers are not similarly situated to motorists photographed and accused of speeding by a photo radar device. The district judge reasoned that the camera is unable to confirm that the owner was the driver, so the greater punishment should not be imposed. The three-judge appellate panel agreed with the lower court’s conclusion, but for a different reason. The speed camera law can stand under the “rational basis test” used to insulate government actions from constitutional challenge.

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The video above, which has been circulating through the Mustang community, shows what can happen when you pull the speed limiter from a stock Mustang V6 and run it to 135MPH: the driveshaft takes a hike and chews up everything around it. Obviously there are some compromises involved in delivering a 305-horsepower, rear-wheel-drive sporting car for the price of a loaded Chevrolet Cruze, and this is one of them.

On the plus side for Ford, the other famously fragile part of the current ‘Stang — the manual transmission fitted to all non-GT500 models — has just passed an NHTSA investigation with flying colors.

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If, a few years ago, I would have suggested that the Chinese would buy more Mercedes, BMW and Audi than the Autobahn-addicted Germans, you would have suggested an increase in dosage. But the condition is incurable. China may overtake Germany as the world’s second-largest market for luxury cars, says Bloomberg. The largest market for upscale units remains the U.S. — until further notice. (Read More…)

A week ago, we predicted that „Toyota will start the year with guns blazing and the lines rolling.” Toyota agrees, and delivers the numbers to back-up the claim. According to data released today, Toyota and Lexus alone intends to grow global production in the coming year by 24 percent to 8.65 million units. This number does not include Daihatsu and Hino. This is an ambitious plan, slightly exceeding the peak level of 2007.

Toyota/Lexus Projections 2012 (Ex Daihatsu, Hino)

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Brethren, we are once again gathered together to mourn the passing of another automobile company. Saab was of that rare breed of car that always had a band of devoted, aye, fanatical followers. In her prime, Saab could not fail to ignite the after-burners of anyone with a predilection to genuine character, speed, innovation, intelligence, and even sexy good looks (at times). Not bad for a company that never once designed a clean-sheet new engine and borrowed more platforms than Heidi Klum. But when you’re small and from Sweden, resourcefulness is essential: Saab finagled an existence in this brutal industry far longer than might have been expected.  But now she joins an august group of other fallen automotive heroes in Valhalla: Borgward, Panhard, Tatra, Kaiser, Glas, TVR, Jowett, etc…better that then whoring herself to another rich benefactor. But Saab’s story is worth retelling. (Read More…)

I never was a New Beetle kind of guy. But then I am a guy. Unless a cute car handles like a Miata, I’m not interested. For 2012 Volkswagen has redesigned the New Beetle, dropping the “New” and the bud vase (every review must mention this) in the process of attempting to broaden the car’s […]

One question that Bertel and I find ourselves returning to again and again in our regular conversations is “what will be the first Chinese-made car sold in North America?” We’ve agreed for some time that the groundbreaking first Chinese-made import would come from an established non-Chinese brand, rather than one of the many newer Chinese brands, but our usual suspects typically ranged from GM to Volvo (EV maker Coda builds what are essentially “knock down” Chinese made-cars, but technically they qualify as US assembled, as does Wheego). I don’t think the name “Honda” ever came up in these discussions, but sure enough, the NY Times reports

the Japanese automaker Honda is crossing the threshold by importing subcompact cars into Canada from one of its plants in China. This month, Honda Canada began receiving its smallest model, the Fit, from China instead of Japan, as part of a strategy to produce more vehicles outside its home country.

The decision allows Honda to eke out higher profit in a segment of the auto market where margins are extremely thin, especially since the high value of the yen cuts into all Japanese automakers’ overseas operations.

“The yen has been getting stronger and stronger,” Jerry Chenkin, executive vice president of Honda Canada, said on Tuesday.

Of course, Honda has yet to bring a Chinese-made Fit to the US, where antipathy towards Chinese products is greater and automotive diversity is lesser than in the Great White North. Also, the importation of Chinese Fits is seen as a temporary response to the high Yen, while Honda builds a new plant in Mexico for Fit production, scheduled to open in 2014. Still, this is a significant development, presaging the inevitable importation to the US of Chinese-built vehicles.

Users of BMW Online in the US can now access Yelp in their vehicles, BMW says. Customers can yelp for everything from the best local restaurants and boutiques to parking garages and banks.

If you subscribe to the BMW Assist Convenience Plan and have a navigation-equipped vehicle capable of receiving the BMW Online you can yelp today, BMW promises. Mor apps are on their way.