The Detroit Free Press is reporting that the United Auto Workers have reached a “tentative” agreement to modify its 2007 employment contract. But wait! “The UAW is withholding the terms of the tentative understanding pending completion of the VEBA discussions and ratification of the agreements,” says UAW boss Ron Gettelfinger. But give them the money anyway, is the clear subtext. Or, as the Freep puts it “the announcement by the UAW on Tuesday shows that the union and the companies are making significant progress.” When asked by the Freep, GM’s Rick Wagoner couldn’t even give a number just now. Wagoner claims that they went into talks with “ambitious” plans. And now there are now details. But everything’s peachy! GM’s take (from the viability plan): “As of February 17, the Company and the UAW have made significant progress on costs/work rules, which represent major steps in narrowing the 8 competitive gap. However, these revisions do not achieve all of the labor cost savings comprehended in the Company‘s financial projections.”

Full report now available at GM Media (pdf) (summary html).

Automotive News [sub] is reporting that GM’s new viability plan includes a request for an additional $22.5B in government funds. Without this money GM would run out of operating cash by sometime March. GM’s plan also calls for cutting 47,000 jobs globally by the end of 2009 and shuttering five unspecified US factories by 2012. GM CEO Rick Wagoner just thanked government officials “around the world” for “their openness.”

As Farago noted earlier, GM received tranche deux of its already-approved $13.4B loan today. They also request $4.6B per their December 2 request to round it all out to an even $18B. There’s also a request for $4.5B to pay of a revolving credit line that comes due in the fall of 2011. And then there’s the request for a $7.5B line of credit GM could tap “if” sales worsen over the next two years. This would bring GM’s taxpayer butcher’s bill to about $30B dollars. Incredibly, GM expects to begin repaying these loans by 2012.

GM also predicts that its North American operations will break even at an annual market rate of 11.5m to 12m units. Interesting. “The operating and balance sheet improvements outlined in GM’s viability plan are forecasted to result in a significant enterprise value and positive net present value, positive adjusted EBIT in 2010 and positive operating cash flow for its North American operations in the same year.”

Audi has become the top premium brand in the European market, according to Auto Motor und Sport, selling 45,124 vehicles last year. This is no small achievement, as competition among Germany’s premium brands is fierce. Mercedes was the second best-selling premium brand in the market with 39,748 sales and BMW fell to third with 36,832 units sold. Only a year ago, Audi was in 3rd place with 3.9 percent of the market; now it boasts 5.1 percent. In the same period, BMW and Merc market share dropped by less than half of one percent. Audi marketing maven Peter Schwarzenbauer credits Audi’s young vehicle lineup, telling AM und S that new models like the A4 Allroad (above) would keep sales momentum moving.

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It’s been a while since we’ve been graced with a good emotionally-charged argument for a “moral obligation” to bail Detroit out. These canards were a dime a dozen during the initial bailout push, as every Michigan-based opinion writer spilled ink by the barrel describing the myriad ways in which America owed Detroit big time. From winning WWII to spearheading racial tolerance. From fighting for the rights of the proletariat to exercises in moral relativism. It seemed that Detroit backers had leveraged every possible emotionally-charged issue to clear the way to the federal teat. But just when we thought that the flow of intellectually dishonest bailout blackmail had slowed to a trickle, we found one of the best examples yet.

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Via Motorauthority come these first official images of Mercedes’ 2010 E-Class Coupe. Daimler claims a frontal Cd of .24 for its CLK replacement, “a figure that is comparable with cars like the Toyota Prius and upcoming Chevrolet Volt.” And as much as the romantic in me wants to believe that solid aerodynamics lend an innate beauty to a vehicle’s design, the three vehicles mentioned seem to make the opposite argument. What say you?

Our deadbeat automakers will turn in their viability plans today, but, according to a number of reports, these plans (like their predecessors) will be short on workable details. Which helps explain why GM and Chrysler will be turning in their plans after the close of the markets today. The Treasury will receive the “plans” electronically at 4 p.m. today, but a public press conference won’t happen until 5:30 p.m. Which is probably for the better. GM’s stock price has dropped by double digits today, despite reports that their second tranche of bailout cash has already been approved. But having “scored a trillion dollars” as Bowie puts it, there’s still plenty of panic in Detroit.

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Holy Mother of Malaise! As the bad news keeps coming for Detroit, the reactions are becoming increasingly agressive. And now word comes from the Detroit News that US automakers are “taking a cue from their Japanese competition” by reducing the number of trim options on their vehicles. “The industry has way too many brands, too many models, too much choice, to be efficient,” Mike Maroone, president and COO of AutoNation, tells the DetN. The import approach of limiting options to trim levels “may not serve every niche but it’s a much more efficient business model.” But despite Detroit’s apparent acceptance that less complexity is a good thing, they still lag behind. Sure, Ford has cut the number of available configurations for the new Fusion from 2,600 in 2008 to 104 in 2009. But GM has only “streamlined” its Malibu and Cobalt to four main trim levels, while Chrysler can brag only of trying to cut its Sebring configurations down to 1,000 versions. On the engine simplification front, Ford is out ahead of its Detroit rivals as well.

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No prizes for guessing “not so much.” But with its product line dead in the water, Chrysler desperately needs to generate some kind of enthusiasm for its continued existence. And at this point, the promise of what Auto Motor und Sport call “retro-flitzers” like the Fiat 500 and 500 C shown above is the only shot they have. And sure enough, Automotive News [sub] reports that Fiat may export European-built cars in order to speed up the timeline for integration with Chrysler. “We are currently working on a plan to begin shipping the Fiat 500 minicar and the Alfa Romeo 940 [entry-premium car] to the U.S. in about a year,” says the anonymous source. who These cars would be sold at “some” Chrysler-Dodge-Jeep dealers in advance of production of the 500 at Toluca, Mexico and the 940 at an undisclosed American plant. Which means taxpayers will be funding a premium captive-import-led “turnaround.” Oh boy. Meanwhile, Fiat is considering building its production purgatory-bound 169 upper-premium sedan on Chrysler’s LX platform. I can see the “Italian Engineering” ads now.

Pity the print journalists. You work hard to live up to stringent standards of journalistic ethics, collect quotes, confirm sources and generally bust your hump only to have some snotnose with a laptop beat you to the punch. Ken Bensinger of the LA Times knows what I’m talking about. He has a piece today that compares the Chevy Malibu with the Chevy Impala, a contrast he spins into a number of critiques of GM’s product overlap, cannibalism and image-weakening products. Sound familiar? I thought so. As tempting as it might be to blame the family bankruptcy for falling standards, or guffaw at the very notion of a newspaper criticizing an automaker’s business decisions, this isn’t Newspaper Deathwatch. On to the cars.

The Automotive Lease Guide is slashing projected residuals for 2009 GM and Chrysler vehicles, reports Automotive News [sub]. ALG says that their new 36-month projections reflect the brands’ “uncertainty,” heralding the arrival of yet another dire consequence of bankruptcy that the bailout was supposed to prevent. Oh well, what’s a few billion among friends? Now let’s take a look at the nitty-gritty.

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Autocar reports that GM will import 100 left hand drive Camaros to the UK. All UK Camaros will come with GM’s 500bhp 422bhp 6.2 liter V8 and will list at 35k pounds sterling ($50k). But will anyone short of the Hamster (get it? He’s short!) actually buy one?

Barack Obama’s plan to appoint a “car czar” to oversee the auto industry bailout has been shelved, reports the New York Times. Rather than appoint a single individual (presumably of Romanov extraction) to administer the government handout, the President has ordered Treasury Secretary Timothy Geithner and chairman of the National Economic Council, Lawrence Summers, to lead a “Presidential Panel on the Auto Industry.” Or Presidential Auto Task Force. Or Presidential Task Force on Autos. Or something. Either way, it’s time to start spreading the inevitable blame around. After all, GM’s top dogs have evaded responsibility for decades of disaster by embracing complexity. And it’s just so much harder to burn a committee in effigy.

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Panamera S: $92,660 / CA$115,100
Panamera 4S: $96,846 / CA$120,300
Panamera Turbo: $124,781 / CA$155,000

Now how much would you pay?

It can be so hard to tell when the firm’s CEO is so notoriously at odds with reality. So let’s just say that we’re entering Elon Musk’s world, grains of salt available upon request. In fact, the news comes from a Musk email that Jason Calcanis has posted verbatim to his blog (cross posted at Tesla Motors). The main point of the email seems to be to convince the reader that Tesla isn’t about to disappear with the credit market, citing a deal with Daimler to electrify the Smart, a $40m investment round and the near sellout of all 2009 Roadsters. Even better, if you lay out $100k for a Roadster now, you might just have a new cashflow opportunity to get you through the hard times. “Due to our order backlog, it seems that owning a Roadster can be a good investment,” writes Musk. “Last September, as the financial and real estate markets began crashing, a Roadster was sold at the Sonoma Paradiso in California wine country for $160,000, well above the current list price of $109,000.” And if you buy that, I’ve got some mortgage-backed structured invesment vehicles that you might be interested in. But the big news is that Tesla may or may not get funding from the biggest sucker of them all: the US Federal Government. Or not. (Hat Tip: minion444)

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