Well, the headline is there and the news is there. But is it? The Freep reports that a UAW-Ford deal on VEBA has been announced by the UAW, but there’s nothing there that you can’t find in the UAW’s press release. Go figure. Sure, it may be the first reported agreement on the future of VEBA, but there’s basically nothing to go on. “We appreciate the solidarity, understanding and patience the members have demonstrated throughout the bargaining process,” says UAW President Ron Gettelfinger in his press release and nearly every news report on the item. “The modifications will protect jobs for UAW members by ensuring the long-term viability of the company.” But how? The UAW rejected stock for VEBA out of hand a few short days ago, as VEBA became the sticking point that kept union concessions out of last Tuesday’s viability plans. And like all UAW “concessions,” this one has to go to the membership for ratification. Furthermore, according to the Freep, “proposed changes to the VEBA will require court approval.” Meanwhile the only possible insight we have into the UAW’s strategy comes from a boilerplate Gettelfinger op-ed in the Washington Times. And there’s little there to indicate a VEBA deal.

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Transportation Secretary Ray La Hood is considering a transportation tax based on miles driven, to replace gasoline tax revenue. “We should look at the vehicular miles program where people are actually clocked on the number of miles that they traveled,” La Hood tells the Freep, echoing proposals being considered by Oregon, Idaho, Rhode Island, Massachusetts and North Carolina. La Hood argues that gasoline tax revenues “can not be relied on” to fund infrastructure maintenance, presumably because relatively high prices have caused a downturn in gas tax revenue. “One of the things I think everyone agrees with around reauthorization of the highway bill is that the highway trust fund is an antiquated system for funding our highways,” LaHood said. “It did work to build the interstate system and it was very effective, there’s no question about that. But the big question now is, We’re into the 21st Century and how are we going to take care of our infrastructure needs … with a highway trust fund that had to be plused up by $8 billion by Congress last year?” For La Hood the answer to that rhetorical question is “by putting GPS chips in your car and charging you by the mile.”

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In a rare turn of truth-embracing, the Freep is printing the total cost of a fully-funded auto industry bailout: a cool $97.4b. That’s “up to $39 billion in survival loans for General Motors Corp. and Chrysler LLC, a $25.5-billion rescue sought by auto suppliers and $25.4 billion in requests to retool auto plants to build more efficient models” plus $6b for GMAC and $1.5b for Chrysler Financial. “And,” admits the Freep, “it’s likely not the end.” They even mention the minor detail that “the aid sought by Detroit’s automakers is many multiples of their current market values,” but not before forcing the reader to sit through some choice relativism from Clinton Labor Secretary, Robert Reich. And they wonder where the love is?

With BMW’s newest Z4 hiking the roadster’s size and weight, Auto Motor und Sport says the Bangle-less Bavarians are planning a downsized Z2 Roadster for 2011 (planned European release). And they waste no time making Mazda Miata comparisons. The Z2 will be built on a downsized Z4 platform, but don’t expect a trademark straight six. It seems that nothing larger than a two liter four-banger will make it into this lightweight roadster. This translates into about 150 hp from a 1.8 liter four cylinder engine at the entry level, and up to 300 hp from a possible turbocharged M version of the two liter four. There’s even talk of a hybrid version. Active steering and suspension and dual-clutch transmissions will be standard, but despite all the techno-frippery the top will be fabric. Interestingly, Auto Motor und Sport lists the price in dollars rather than euros. And they say fewer than 30k of them will make a Z2 yours. Look for an auto show debut sometime in late 2010.

The Washington Post reports that “many analysts say the [TARP] pot isn’t big enough to address current plans to fix the financial system, let alone prop up the auto industry.” Since the first round of auto industry bailouts came from TARP, many considered the Toxic Asset Recovery Program the logical source for tranche deux. But if that money is needed for banks, as analysts indicate, the Obama Administration may have to return to congress for more funds. “From where I sit, it’s an executive decision,” says Republican Senator and bailout critic Bob Corker. “[The Treasury] fully understands we’re coming in with additional requirements,” said GM’s Ray Young after GM’s viability plan was released on Tuesday. “It will come as no surprise.” Who looks surprised?

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GM’s Jill Lajdziak has written a letter (PDF) to Saturn dealers and customers warning that the General is actively pursuing a spin-off for its “different kind of car company.” Explaining that Saturn Distribution Corporation is “already an independent subsidiary,” Lajdziak says that Saturn dealers would be able to source GM products until 2011, and “if successful, SDC at that point would source products from other manufacturers.” Meanwhile, sit tight and enjoy the ride. “GM will support the continued availability of Saturn parts and service as needed,” says Lajdziak. So while Saturn struggles along under the toxic stench of rejection by GM, let the speculation begin! Will a German government-backed Opel take on the distribution net? Will an upstart Chinese firm see this as a cheap entry to the American market? Or is 2011 the end of the road for Roger Smith’s experiment?

Reuters reports that Chrysler Canada has been charged with a $500m CD ($400m USD) tax lien as a result of a tax liability reassesment. According to the document filed in Canadian federal court, the Canada Revenue Agency notified Chrysler Canada in 2002 that it owed “substantial increases” in taxes “targeting the pricing of automobiles and parts that crossed the border between Chrysler Canada and its Detroit parent” for three years starting in 1996. The document does not reveal the amount that Chrysler owes the Canadian government, but the $500m CD lien was filed against Chrysler’s Brampton, Ontario, operations. The lien is though to be the largest ever filed by the Canadian government, and likely represents an even larger tax liability than the lien amount. Chrysler is seeking shelter from the assesment in the Canada-US Tax Treaty, and according to reports, the court dispute has been shelved while the various governments negotiate a bailout for the auto sector. Needless to say, another half-billion in liabilities doesn’t exactly do wonders for Chrysler’s viability.

Accounting firm Grant Thornton LLP caught our eye with a press release (via PRNewswire) warning the auto industry of possible “going concern opinions” as auditors complete fiscal year-end reporting. “Going concern opinions” are an auditor’s statement in SEC Form 10-K annual reports that there is substantial doubt about the entity’s ability to continue as a going concern. “It’s important for the public, the supply base and all of the parties involved in restructuring the auto industry not to overreact if they start seeing ‘going concern’ opinions,” says Kimberly Rodriguez, co-leader of Grant Thornton’s global automotive team and a principal in the firm’s restructuring practice. “We’re in uncharted waters and auditors face extremely difficult decisions.” Translation?

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Auto Motor und Sport‘s latest images of the 2011 Mercedes SLK show it looking Crossfire bad. Sure, that’s better than leaf blower supercharger bad, but it’s still really bad.

Detroit’s hometown newspapers are reacting positively to the most recent requests for another round of automaker bailouts. Shocking, I know. After all, Detroit’s media is fast becoming the most notorious bailout boosters on the block. But titling an editorial “U.S. auto producers make a solid case for federal aid” is really stretching things, even by Detroit News standards. And as conditions worsen, the rose-colored-glasses act is really wearing thin. To paraphrase an old Soviet joke, there are two ways Detroit can be turned around: the natural and the miraculous. The natural way is that the Archangel Michael and his bands of angels descend to earth and work 24 hours a day to save the city’s economy. The miraculous way is that the automakers do it themselves. Detroit’s local media clearly believes in miracles.

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“Sweet” Peter DeLorenzo, the self-styled Autoextremist, has some extreme thoughts on the General Motors predicament. Specifically, his latest “Rant” suggests that General Motors is so compromised as a brand that he’d go as far as to rename the artist formerly known as “the world’s largest automaker.” “If GM is able to emerge from all of this with a strengthening pulse,” writes DeLorenzo (without getting too hung up on that “if”), “then I have a recommendation. Substitute the word ‘Precision’ for ‘General’ in the company title and then move on, burying the old company name – and the associated negativity – once and for all.” Holy unpronouncable symbols, Batman! Precision Motors? What, was “Patriotic Motors” taken? More importantly, how can Sweet Pete think a name change will make a lick of difference, while rejecting bankruptcy, brand cutting and other meaningful reforms? For more insight into DeLorenzo’s Extremist Makeover Branding Edition, check out some of his thoughts on GM’s brands over at the New York Times.

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Via Green Car Congress comes a number of perspectives on Plug-In Hybrid (PHEV) adoption fom the 2009 SAE Hybrid Technology Symposium. And there are some interesting lessons to be learned. One consumer study by Dr. Ken Kurani of the UC Davis Institute of Transportation Studies indicates that mainstream consumers favor less PHEV capability than manufacturers are developing. The ITS study asked a sample of plausible early market households (neither pioneers, advocates nor experts) to design their own PHEV, and found that expectations of all-EV range and battery capacity were remarkably low. Says Dr. Kurani, “consumers right now, given the opportunity to manipulate the idea of a plug-in vehicle, are designing not only very different vehicles, they are designing vehicles that are much more possible than the experts are assuming.” How so?

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