Most car enthusiasts bemoan the rise of electronic systems in automobiles because they create a layer of interference between ourselves and the direct, mechanical control of our cars. Sure, electronic controls are cheaper, lighter and allow for easier diagnostics, but they rob automobiles of the elemental simplicity which is so often fundamental to their appeal. And, as a study by researchers from the Universities of Washington and San Diego [in PDF format here, via ArsTechnica] shows, the various electronic systems in your car actually makes it vulnerable to hackers who could disable key systems remotely. Titled Experimental Security Analysis of a Modern Automobile, the study explains that the electronic complexity of modern cars actually leaves them extremely vulnerable to all kinds of attack, raising serious concerns about how safe we really are in our cars (especially if we happen to have an enemy or two).
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Look at this car, it’s horrible. How did this get through so many people?

We’ve all thought something along these lines when we first sat in a Chevy Cobalt, but few GM employees would ever say it out loud to a reporter. At least they wouldn’t until a much-improved replacement was waiting in the wings. But because the Cruze launches this year, GM execs like VP of global vehicle engineering Karl Stracke can bash on the old Cobalt to his heart’s content, knowing the Detroit News will dutifully report it as a sign that GM “gets it.”

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Officials working with the Department of Energy tell the Detroit News that GM and Chrysler face no major obstacles in their quest for huge retooling loans from the DOE’s Advanced Technology Vehicle Manufacturing Loan program. GM is seeking $14.4b and Chrysler has asked for $8.55b in low-cost government loans. Says Matt Rogers, a senior adviser to the Energy Department

Project finance details need to be worked through, but those things are working out just fine as we work directly with the companies. It’s really a process of making sure that each of the projects that they have are in fact competitive.

Er, competitive compared to what?

Given what it’s been through over the last several decades, GM is lucky to have any hard-core fans left at all. And yet sites like GMinsidenews.com [full disclosure: GMI is owned by TTAC’s parent company, Vertical Scope] have thrived as havens of near-unadulterated GM pride, bankruptcy and bailout notwithstanding. So when true-believer sites like GMI run works subtitled GM Annual Feature “Deletions” Continue: 2011 shows that not all of Old GM’s habits are dead–yet, TTAC sits up and takes notice (as soon as we come sniffing around and find it, anyway). The piece opens:

Just the other day, we posted the product changes for every 2011 General Motors product in the United States. This has become an annual feature on GMI, as it is always interesting to see what tweaks or screw-ups GM is adding to the next model year. The main problem we find in the annual model year changeis is the practice of removing content from products. After glancing at the 2011 stuff, I was surprised to see “New GM” continuing the trend of deleting content.’

To be fair, the 2011 changes show fewer content “deletions” than previous model years; however the fact that any content is being entirely deleted from a product is almost laughable considering GM’s dire attempt to win back U.S. customers. Perhaps other OEM’s delete features as well (trust me, they do), but they also don’t have a perception problem to deal with. GM, you’re building great products now…stop deleting content off of them every year.

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Hybrid/electric cooperation between Volkswagen and Suzuki appears to be yielding fruit already, as the Japanese automaker is announcing a plug-in hybrid version of its Swift subcompact. According to Bloomberg BusinessWeek, the new plug-in will combine lithium-ion batteries supplied by Sanyo, paired with a 660cc three cylinder engine. An electric-only range of just under ten miles is being thrown around, after which the gas engine will apparently be used to generate electricity along the lines of GM’s Volt Extended-Range Electric concept. 60 test units of the plug-in Swift will be delivered to Japanese dealers for testing “later this year,” although official plans regarding when and where the vehicle will eventually go on sale have not yet been announced. Suzuki had previously said that one of the goals of its cooperation with VW was to develop electric vehicles for the Japanese market.

From John Dillinger to Nicolas Cage, the car industry has always needed villains. In fact, one could almost make the argument that the entire top quarter or so of the luxury car market is wholly dependent on scumbags of one kind or another. As Raymond Chandler once noted, there’s no honest way to make a hundred million bucks… and spending millions on cars is a great way to advertise one’s comfort with the moral ambiguities of ostentatious wealth. So when America’s most notoriously crooked car dealer, a certain Denny Hecker, auctions off his personal fleet as part of his $767m bankruptcy (itself triggered by 25 counts of fraud and related criminal charges), you expect to see some good stuff hitting the block.

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One of the last vestiges of the Daimler-Chrysler union is being swept away, as Daimler has announced that it will delist from the NYSE. Daimler initially listed itself on Wall Street in 1993, as it began its “marriage made in heaven” with Chrysler. Since then, Daimler says advances in electronic trading make it easier for traders to buy and sell its Frankfurt listings, and that the low volume of NYSE trading isn’t worth all the financial regulation that comes with a Wall Street listing. According to the company, less than five percent of its trading volume comes through its US listing. This means no more SEC filings from the German firm, although it insists that the US market remains important to its business and that it wants to maintain open communication with American investors who own 17 percent of Daimler’s shares. And it definitely has nothing to do with the company’s recent settlement of a bribery investigation by the DOJ. Or the fact that Chrysler could find itself back on the exchange within another year.

With talk of a 2010 profit breaking out at Ford’s annual shareholder’s meeting, the UAW’s criticism of the Blue Oval’s decision to restore merit pay to white-collar workers is gaining some traction. UAW boss-in-waiting Bob King laid into Ford yesterday, arguing that the union’s sacrifices entitled it to a bigger piece of Ford’s success. As a result, Nasdaq reports that Ford is in talks to restore tuition assistance to its 41k hourly, UAW-represented workers. [UPDATE: Automotive News [sub] reports the deal is done]
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After four straight profitable quarters, Alan Mulally’s forecast today of a “solidly profitable” 2010 shouldn’t come as a huge surprise. But, as Executive Chairman Bill Ford put it to Ford shareholders at the company’s annual meeting [via AP],

It is the very early days in our recovery. We still have a lot of debt

And he’s not kidding. As of the end of Q1 2010, Ford was carrying $34b in debt. And though Ford faces a higher cost of borrowing because of its staggering debts, Bill Ford was clear that he wouldn’t trade places with Ford’s Detroit competitors, which cleaned out their balance books, at the expense of government bailouts and accompanying PR problems. After all, while GM and Chrysler were rebuilding, Ford managed to outperform both of them last year by gaining sales and market share. And Ford’s leadership sees that momentum carrying forward into next year.

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News that GM is considering a number of options for a return to captive finance, has lit a fire under Chrysler CEO Sergio Marchionne, who tells the Detroit News that

One of the things that we do not wish under any circumstance is to have an uncompetitive relationship vis-À-vis GM

GM’s now-infamous advertisement touting the payback of government loans “may have elasticized the reality of things,” in the words of Steve Rattner, but stretching the truth apparently pays off. Automotive News [sub] reports that a London public perception-tracking firm surveyed some 5,000 consumers, and found that The General’s image has improved since the ad started running. Of course, on YouGov’s brand image scale of 100 to negative 100, GM is up only five points to “17.” Clearly there’s still work to do.

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How did this not make it into our Illustrated History Of Checker Motors? Because TTAC commenter whynotaztec didn’t send it in soon enough. Better late than never, though.

Whenever TTAC took GM to task for branding run amok and excessive platform sharing, the example of Volkswagen has always been the key counterfactual. With seven brands available in Europe, the Volkswagen-Audi group is the continental GM, always looking for another way to repackage a pedestrian FWD platform. The only difference is that VW has actually been growing.  But Wolfsburg’s brand profligacy is starting to bear some GM-style bitter fruit. Skoda has been surprisingly strong of late, actually making problems for the Volkswagen brand in certain markets. Seat, on the other hand, is not doing so well. With only one factory, at Martorell, near Barcelona, Seat has always been a slightly niche player, offering older VW designs with some Pontiac-style “emotional” styling flair and a sportier image. The problem now, as Seat CEO James Muir tells The WSJ [sub], is that

The brand really is too small for this plant

Running at only 60 percent of its 500,000 unit capacity, Seat is too small for its lone plant. As a result, VW is launching a last-ditch effort to save its dying brand.
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After a solid six months of cringe-worthy Jeep ads, Chrysler is replacing ad agency Global Hue for the launch of the forthcoming 2011 Grand Cherokee. The Grand Cherokee’s launch materials will be developed by Wieden + Kennedy, which is currently the lead creative agency for the Dodge brand, and recently created the trippy “Alright, Kittens” spot for the Grand Caravan. According to AgencySpy [via Jalopnik], GlobalHue will continue to be Jeep’s lead agency, despite offering few signs that it actually understands the brand. What do we mean by that? Hit the jump for more.
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When something that sounded too good to be true (say a cheap, compact, diesel-powered pickup) keeps getting delayed, you eventually just make your peace with the whole “too good to be true” part. That’s the only explanation for our recent lapse in Mahindra coverage: the news is depressing enough as it is. We last updated our Mahindra tag back in December, with news that a “Middle Spring” launch would be the latest of several delays for the Indian pickup venture. A news clipping [PDF] touting a March launch is still available at the Mahindra USA website. The latest from an actual human being? Mahindra’s US distributor John Perez tells Automotive News [sub]:

I don’t want to speculate anymore

Ruh Roh!

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