As evolutionary as the changes to Toyota’s third-generation Prius may seem on the surface, beneath the familiar sheetmetal lurks enough new technology to justify over 1,000 new patents. The Wall Street Journal reports that through three generations of the Prius, Toyota has generated over 2,000 patents on hybrid technology, half stemming from the latest generation alone. Toyota’s hybrid patent filing nearly doubles the number filed by Honda, its closest hybrid competitor. And the WSJ casts this “thicket of patents” as Toyota tightening its stranglehold on the hybrid market.

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Autoexpress claims that Mazda is working on a downsized MX-5 Miata roadster, fanning the flames of enthusiast optimism the world over. AE estimates that the mini drop-top could come with engines of 700cc to 1.6 liters, with a 160 hp turbo 1.6 four-pot topping the range. “Insider” sources say a 2012 launch is being discussed, and that a concept should appear on the car show circuit shortly. Though the engine displacements seem to indicate that the baby Miata isn’t likely to come stateside, hope springs eternal when it comes to these things, no?

You know this one is going to be good. Auto Motor und Sport says the two giants are having a little klatsch about platform and technology sharing, with typically crazy rumors flying out of the discussion. Mercedes hasn’t planned its next-generation A- and  B-classes yet, and Toyota is looking to rationalize its European production capacity. Could the Merc A/B end up sharing parts, platform or even production with future Toyota models? It sure looks like the possibility is on the table. But that’s not the weirdest rumor. There’s even talk of sharing costs between future generations of the Mercedes S-Class and Lexus LS. Plus Toyota is reportedly interested in Mercedes’ battery technology. Or is that Tesla‘s? As tempting as it is to simply dismiss this all out of hand as just another wild-ass rumor, the Aston Cygnet proves that Toyota is more willing to enter into ridiculous deals than you might imagine.

According to Time magazine, a federal highway bill moving through congress would require mandatory breathalyzer ignition interlocks be placed on all cars belonging to DUI convicts. The interlocks would require the driver to pass a blood-alcohol level breath test before an equipped vehicle can be started. Currently several states require interlocks for citizens convicted of DUIs, while others require them only for repeat offenders. The highway bill would block federal infrastructure funds to any state that does not approve mandatory interlock laws. Mandatory interlocks have been a hotly–debated topic for some time, but few had expected the old highway-funding canard to be warmed up for the battle.

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Toyota‘s sales last month fell 34.6 percent, moving 131,654 units. Bread-and-butter Camry and Corolla sales were down 39 and 54.6 percent respectively. In contrast to calls by the media and government for greater efficiency, sales of the frugal Yaris were down 40 percent, although Prius sales increased 6 percent to nearly 13,000 units. Scion nameplates were all down by 60 percent or more. RAV4 continues to be one of Toyota’s most resilient models, holding steady with a .6 percent increase to just over 10,000 units sold in June. Highlander held on with only a 3.8 percent drop in sales, but other SUVs were off by between 38 percent (Land Cruiser) and 80 percent (FJ Cruiser). On the Lexus front, the RX was up 21 percent and the IS dropped a mere 23 percent. Otherwise Lexus results ranged from mediocre (ES down 34 percent) to bad (GS, LX both down over 60 percent.)

But, like Ford, Chrysler is talking retail. As in Chrysler increased “retail market share more than 1 percentage point compared with June 2008.” Actually retail sales declined 16 percent, and combined with a 95 percent drop in fleet sales (despite selling nearly 3k vehicles to the feds in a single go), Chrysler’s overall sales are down 42 percent compared to June 2008. When sales were off 36 percent year-on-year. Talk about bad to worse.

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In the wake of JD Powers’ Initial Quality Survey, several other lesser-known awards are giving OEMs a whole new reason to cobble together a press release touting their top place, improvement or mere presence in one of these meaningless satisfaction surveys. And why not? It’s summer, and things (sales, in specific) are slow. And the award fandango is win-win. The awards allow OEMs to ridiculously inflate the importance of their results, while publicizing the research firms that created the awards. Case in point, the Dodge Ram.

The NYT dug through Abrams Consulting Group data on car rental prices, and it seems the cost of part-time wheels has gone up considerably in the last year. By how much?

In May, the average rate for a weekly airport rental of a compact car booked seven days in advance was $345.99, up a whopping 73 percent compared with $199.65 for the same month last year . . . In mid-June, weekly airport rental rates for a compact car averaged $347.44, compared with $210.38 a year ago.

Abrams Consulting blames falling demand, which has rental agencies cutting fleet sizes and jacking up prices. One example from the NYT piece is from Portland, Oregon, where personal experience proves that renting a car can be hilariously difficult. A recent attempt at renting a car mid-week here in Stumptown had me calling every rental agency in town before finally finding an available ride at the last agency on the list. One factor that the NYT piece doesn’t consider: falling residuals for the kind of fleet-queen Detroit iron that rental agencies used to cram onto lots. With resale bringing in less than it used to, it’s no wonder rental firms are trying to cut fleet size and bring up prices.

Fresh off its widely-copied “Assurance Program,” Hyundai is reaching into its bag of tricks for a new gimmick. And found inspiration in Chrysler’s 2008 gas-price guarantee promotion. Automotive News [sub] reports that Hyundai will offer customers who buy or lease a new Hyundai between July 1 and August 31 the opportunity to lock in a $1.49 per gallon price for gasoline for one year or 12,000 miles. According to research publicized by Hyundai North American President John Krafic, “40 percent of potential new car buyers were staying on the sidelines due to uncertainty over gas prices.” But Chrysler’s promotion didn’t save the farm a year ago when gas price anxiety was at an all-time high. After all, at three dollars a gallon, the estimated savings on a base, four-pot Sonata aren’t likely to top $725. Has Hyundai’s success at selling cars based on America’s insecurities peaked?

“A rapid emergence from bankruptcy creates the highest probability of avoiding the catastrophic and expensive meltdown in GM auto sales that virtually all industry observers predicted,” Harry Wilson of the Presidential Task Force on Autos tells Automotive News [sub]. Note the use of “auto sales.” Because bankrupt automakers don’t sell cars, right?

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Saturn dealers ignore the plea. Or, so reports the Wall Street Journal. Word is that GM has asked Saturn to keep the Pesnke-fuelled optimism to a minimum “lest it overshadow the Saturn brand name.” After all, the deal isn’t expected to wrap up until Q3 of this year. But The General might as well be whistling into the wind. “We were on death row,” Saturn Marketing Director Kim McGill tells the WSJ. The brand is in “remission,” thanks to Mr. Penske, but “is not yet totally cured” is she adds, for emphasis. Which makes GM corporate the cancer? Someone’s gotta take the rap for the 58 percent drop in sales (and counting . . . June’s results should come this week). But is Samsung (or???) gonna make buyers glad the Opel era is over? Not that it will be any time soon. And GM is right about one thing: the deal ain’t done yet.

Automotive News [sub] reports that finals rules for America’s own scrappage scheme will be released on or around July 23rd. The notice comes with a warning to dealers that they are legally responsible for any trade-ins they structure prior to that date. Violators of the program’s rules could face a $15K fine per illegal transaction. And just to add to the mounting concerns about the effectiveness of scrappage schemes, consider the top-10 beneficiaries of the UK’s scheme, via Autoexpress. Hyundai/Kia is the big winner there, although of the vehicles on that list only the Yaris and Fit are sold in the US. Will US automakers benefit from this attempted subsidy considering their weakness in the budget compact segment? Don’t count on it . . .

Hat Tip: GM re:tardation

Automotive News [sub] indulges in the optimism that dare not speak its name, courtesy of the omnipresent Center for Automotive Research. “A happier GM? Billions in costs disappear,” runs AN‘s headline. And then comes the equivocation [emphasis added]:

During its reorganization, General Motors should be able to shed about $12.5 billion in annual costs — paving the way for possible profits, higher product spending and improved supplier health once U.S. vehicle sales recover to more normal levels.

Inspiring stuff! Why, if these “shoulds” and “possibles” come true, CAR research shows that “GM could even eliminate almost $3,000 per vehicle in incentive spending, adding an additional $8 billion in savings when compared with the pre-bankruptcy GM.” It’s already a stretch to believe that GM can hold steady at a 10m SAAR, given its long-term market share losses, but eliminating incentives? Why not a flying, carbon-neutral Camaro?

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