For the second time in just over a year, Britain’s Advertising Standards Authority has busted Lexus for making unsupported “green” claims in an advertisement. The Guardian reports that a recent ad for the Lexus RX400h has been pulled for implying “that the car caused little or no harm to the environment and gave a misleading impression of the car’s CO2 emissions in comparison with other vehicles.” The ad which asserted that the hybrid RX was “perfect for today’s climate (and tomorrow’s)” caused four complaints to the ASA, which apparently is enough to get an ad pulled in the Land of Hope and Glory. Meanwhile, Lexus said that the use of the word “climate” in the ad was meant to operate at “two levels.” As Farago says, irony is a bitch.

Where would we be without Digg? Thanks to the collective hysteria of a thousand Diggers, we learn that the Gas 2.0 blog is baffled by the fact that Toyota builds an AWD hybrid minivan that gets 40 mpg and doesn’t sell it stateside. Gas 2.0’s Nick Chambers has fond memories for Toyota’s old Previa, and damns its US-market replacement, the Sienna for being a gas hog. But the spiritual successor to the Previa, the Estima, has been sold to the Japanese in hybrid form since 2001. The baffling unfairness of it all even had the Union of Concerned Scientists in a tizzy, circulating an online petition urging Toyota to bring the Estima hybrid to the states. Which it almost certainly won’t. A hybrid Sienna is considered likely to arrive sometime around 2010, but that’s not impressing people who are new to the concept that US-market vehicles consistenly lag behind Euro- and J-market offerings in efficiency. “Yo, Toyota,” writes Chambers, “you’ve already got a minivan that half of the families in the US would kill for, what the hell are you doing investing so much energy in redesigning a has-been?” Dude, if you love it so much just buy one. Oh wait, does that say it costs $39,600? Now it’s starting to make sense…

As Farago mentioned earlier, the Senate has approved a consumer-end PHEV tax credit of $2,500-$7,500, which Automotive News (sub) modestly calls “Volt-friendly.” By which they mean it was designed specifically for the Volt, making the size of the credit dependent on how much charge a qualifying vehicle’s battery can hold. And though battery capacity is a poor measure of efficiency, choosing that metric handily favors the Volt’s EREV design which qualifies for the maximum tax break, while Toyota’s plug-in Prius won’t. And people say that GM’s $14.3m lobbying budget is a waste of money. But America’s Volt subsidy isn’t limited to DC. The Michigan Economic Growth Authority has approved $130m in tax breaks to attract Volt production to the state. The package includes a $122.5 million state tax credit over 15 years for the $838m overall investment and a $10 million brownfield tax credit for the Flint engine plant construction. Automotive News (sub) reports that GM need only retain about ten percent of the 20k jobs at the five existing sites to qualify for the tax benefits. With GM getting a chunk of the $25b bailout loans for production plus $130m in tax breaks and a $7,500 consumer tax break for consumers, the Volt had better freaking cost less than $40k. Not that anyone’s holding their breath.

Dave Niles over at the Ethanol Producer Magazine‘s Talking Stock, I mean Taking Stalks, I mean Taking Stock blog reports an E85 industry milestone: their 200th “commercial scale” production facility. OK, it’s not actually here yet. In fact, the corn-based ethanol industry is in the middle of a huge E85 glut, they’ve lost the PR war on the “food for fuel” debate (where even GM’s FlexFuel ads are talking-up [theoretical] cellulosic supplies), new facilities are on hold and planning permission for future plants faces stiff not to say stifling local opposition. To be fair, Niles does mention one of those dark clouds: “Eight small-scale plants remain offline primarily due to market conditions.”And while we’re blogging stalks, I mean stalking blogs, I mean talking blogs, J.D. Power and Associates Web Intelligence Division’s surveyed some 40m blog posts over the last six months (using the algorithm method). “The topics of ethanol and biofuels generate lower amounts of positive sentiment than other forms of alternative energy.” But that’s OK because “consumers indicate that they are skeptical of marketing efforts by oil companies that promote their efforts to pursue green and renewable energy sources.”

Talk about a sign of the times… Just as GM announces it’s done running Super Bowl ads, Hyundai tells BrandWeek it will be running two 30-second Super Ads for its Genesis Coupe. The announcement comes as Hyundai transitions ad agencies from Goody (which will handle the new Genesis spots) to South Korea’s World Marketing Group. Hyundai has spent $155m this year on measured media advertising, while GM franticly slashes at its $2b ad spend. Last year marked Hyundai’s first Super Bowl ad, an opportunity well spent promoting its landmark Genesis sedan. Yes, well, the Genesis sold only 1,826 units through August. Of course, the product is a major shift for Hyundai’s brand image, and it was launched into the weakest new car market since the last time bankers were jumping off buildings. Regardless, Hyundai marketing boss Joel Ewanick says the Genesis is on track to hit its goal: 8k sales by year’s end. And Hyundai is gaining market share despite down sales. So get used to seeing foreign firms like Hyundai fueling the advertising spectacle that is Super Bowl advertising. Who knows, we may even get to watch Tsingtao and Tsingtao Light throw down in an annual “Tsingtao Bowl” at halftime.

From wings to wingdings, the automotive industry has long been obsessed with adding technology to its products, often simply for the sake of adding new technology to its products. Two such “innovations” are coming down the pipeline from Honda and Audi, the first a camera system to offer a birds-eye view of your vehicle and the second a system which communicates with traffic lights. Automotive News (sub) brings news of the Honda system, which is set to debut o the J-market redesign of the Honda Odyssey minivan. The system would offer a bird’s-eye view of the car to help with parking and visibility in blind corners and intersections. Four wide-angle cameras placed around the vehicle offer the Gran Tourismo-like option of viewing your vehicle in the third person, theoretically making it easier to drive in congested urban environments. Similar technology has already been developed by Nissan. From Audi comes word of a new system known by the annoying “Travolution” moniker, which combines the terms “travel” and “convolution.” According to Automobile magazine, the system communicates with traffic signals and tells drivers how fast they should drive to minimize their time at red lights. After spending two years and 1.2m Euros to develop the system, Audi Audi has produced an A5 and an A6 Avant capable of communicating with three traffic lights in its hometown of Ingolstadt, Germany. That’s 400k Euros per light, in case you’re wondering. Undeterred by such expense, Audi plans on expanding the pilot project to include 20 cars and 50 lights. Automobile sums up its chances of a US debut with snark-laden terseness. “There is no word yet as to when such a system could migrate to the United States, although ‘never’ might be an appropriate guess.” And technology marches on.

We recently reported that the National Automobile Dealers Association (NADA) was sitting-out the bailout begathon in our nation’s capital. Their decision seemed sensible enough; NADA members include all American brands, even those who are doing just fine without a federal loan, thankyouverymuch. Well, we spoke too soon. Automotive News [sub] reports that NADA is back on board for the Potomac shuffle after “automakers had encouraged NADA to support the loans because they would provide broad economic benefits.” The news comes as industry lobbyists make the final push to appropriate funds for the $25b loan program by the end of the month. Meawhile, House Democratic leaders drafted a continuing resolution which commits Dems (in writing) to appropriate the cash by the October 1 deadline. In that missive, we also learn that the total cost of the bailout will be $7.51b, with $10m of that going towards the inevitable “administrative costs.” With NADA now on board, and the Dems making all the right noises, Detroit can nearly be assured of the bailout’s passage. Up next, surviving until the checks arrive, and gearing up for round two.

Though Automotive News [sub] is better known for their comprehensive industry news coverage than their take-no-prisoners opinion pieces, Editor David Sedgwick doesn’t pull any punches while slamming the Volt in a recent editorial. Sedgwick admits to “a queasy feeling that GM has painted itself into a corner by generating so much hype for a car that is too limited for most consumers,” noting that weaknesses in both price point and capabilities will limit the Volt’s effectiveness in the market. The price point issue is well documented, but the Volt’s performance is what worries Sedgwick the most. In particular, GM’s apparent decision to use the E-Flex’s range-extending motor to simply generate electricity and not to recharge batteries looks to be an extremely limiting factor. “If you can’t plug in your vehicle at night,” argues Sedgwick, “that high-tech battery pack will be as useful as an anchor for your bass boat.” Sedgwick reckons that the forthcoming Cruze should be getting at least as much attention as the Volt. “We’ve been down this road before. GM doesn’t need a halo car. It needs a car — a small car — that can make money. If GM can’t learn to make money on small cars, it won’t survive.” Given a choice, Sedgwick would pick the Cruze, and if GM wants to stay in business it would do well to listen. After all, if a man who lives and breathes cars and is well-compensated enough to consider “your bass boat” a folksy analogy thinks the Volt isn’t worth the money, well… you get the picture.

Cry the beloved Detroit. As if eight percent unemployment, rampant foreclosures, and a criminal (now-ex) mayor weren’t enough, the Lions are just awful again this year. And though the oh-for-three Lions just got stomped by the lowly Niners, prompting Bill Ford Jr. to call for President and General Manager Matt Millen to step down, the Fords aren’t selling the family business. In any case, it’s doubtful that selling the Lions would have even netted $5m at this point, less than Bill Ford’s recent stock sell-off. Meanwhile, Ford’s Sales Chief and ex-Lexus maven Jim Farley reckons [what were once] new car buyers are the biggest losers. “The credit issue is becoming a big deal for them as consumers,” he told The Detroit News during a free dinner (with an open bar) Monday night. “It will affect our industry.” Hang on; that would make car dealers the worst affected, right? “Farley said the market is proving too difficult for some dealers, many of whom have been under profit pressure in recent years.” The market. Not Ford’s fault obviously. Wait a second; if dealers aren’t selling cars… “[Analyst Erich] Merkle said September is shaping up to be a bad month for the auto industry, and he said sales could fall to the 12 million unit level on an annualized basis.” Farley says Merkle’s off by one million units. But what if he isn’t?

We’ve long held that in order to return to a sound financial footing, GM needs to cut a huge number of dealerships from its bloated portfolio. The General is still working on the “huge number” part, but having already cut 226 dealerships this year, things seem to be headed in the right direction compared with smaller reductions of 260 and 87 stores in the last two years respectively. With 6,550 outlets still in operation, GM’s Mark LaNeve tells Automotive News (sub) that he wants the cuts to reach 400 by the end of the year.”We see (sales) recovering, but not immediately,” says LaNeve. “In that kind of a market, you’re going to have less dealer throughput, a lot of pressure on profitability.” Luckily for LaNeve, dealerships are not waiting for nasty letters from Detroit to motivate them to exit the market.  “It’s no secret the business climate out here is very difficult, and there’s pressure from all sides, particularly the credit side,” says the manager of a Georgia dealer group. “GM has to get involved with this at some level to ensure the right dealers stay. It’s very difficult, and they just can’t save everybody out here.” And why would they?

Much of our ire at the proposed auto-industry bailout has been reserved for the OEMs, but their supplier co-dependents are pushing just as hard for the pork picnic. Automotive News (sub) reports that Lear and Visteon were among a dozen suppliers who joined the D3 lobbying efforts in DC last week. Bosch spokeswoman Cheryl Kilborn tells AN that some suppliers were lobbying on behalf of their own projects, while others were present to support the efforts of their OEM partners. The main message of supplier lobbyists was, according to Motor and Equipment Manufacturers Association VP Ann Wilson, “we are everywhere.” And since suppliers are responsible for nearly 70 percent of the value of the typical vehicle and more than 40 percent of automotive R&D spending, it only makes sense that they be eligible for bailout money if Congress puts out. And like the manufacturers, suppliers want fewer strings attached to the government loans, arguing that asking for 25 percent increases in efficiency for bailout-funded projects is too burdensome. Having brought that message to some 40 congressional representatives last week, industry lobbyists are hoping that a united front among OEMs and suppliers helps the federal teat pop out with Janet Jackson-like alacrity. Then they can get back to gouging each other as usual.

Dodge is launching its 2009 Ram into some rough sales seas. And don’t they just know it. Automotive News [sub] reports that Dodge is quietly offering $1k incentives on every all-new Ram to get sales going. But even cash on the hood of an all-new truck might not be enough. “You need money on it because you’re trading somebody out of a truck they’re upside-down in,” says Earl Hesterberg, chairman of a Houston-area Chrysler dealership group. In other words, Dodge salesfolks will have to sympathize with potential customers’ pickup depreciation before talking them into yet another (sure to depreciate like a Phoenix suburb) pickup truck. And all while the new Ram sits on lots cluttered with ’08 Rams with up to $10,500 on the hood. In other words, not good. A new 2009 Ram quad cab 4×2 SLT will sticker for $30,675, better equipped and a grand less than a comparable 2008. Remember when we told you that ChryCo was having a hard time pricing its RamBox option to be available on the new Ram Crew Cab? Well, Tom LaSorda’s baby will cost a tidy $1,895 as an option… but not until November. For that money you get lockable boxes on each side of the bed, each capable of holding “240 12-ounce beverage cans, with enough ice to keep them ready for a party,” according to Chrysler. And a stern lecture on not drinking and driving. You also get a bed divider and a bed extender. But is it gimmick enough to turn down ten grand on an ’08 model? In this economy, you’d have to guess no.

The Mazda3 is a perennial TTAC ten-bester, and a top pick for those who want some fun with their practical transportation. Now Mazda President Hisakazu Imaki worries aloud to Automotive News (sub) that introducing its Mazda2 subcompact could cannibalize sales of its long-soldiering Mazda3. “The Mazda2 is a very good product, and we’ve received very strong requests from dealers. But it is still under study,” says Imaki of the 2’s chances at a North American debut. “But I must also say that I don’t regret that we haven’t been able to supply the car thus far.” Beyond cannibalization of the 3 in the short term, Imaki worries that a moderation in fuel prices could slacken demand for the 2. Mazda sister company Ford has already commited to bringing the Mazda2-based Fiesta to America, but then it doesn’t have to worry about squeezing its volume sales leader to fit the Fiesta into its portfolio. Still, Mazda would be crazy to not bring the Yaris/Fit Fighter stateside. The 3 has set a consensus standard for fun-to-drive compact cars, and bringing the Zoom-Zoom attitude to the (on fire) subcompact market could only expand Mazdas brand. Honda’s Fit sells briskly even with dealer markups, in large part because it’s economical, practical and fun to drive. For some reason, nobody at Honda worries about it munching into Civic sales. Dear Mr Imaki, your concern is well taken, but it’s largely unnecessary. For a textbook example of real automotive cannibalism, please reference GM’s Lambda Platform. And bring on the 2 already!

Forget the Colbert Report, the real comedy arrives when Maximum Bob comes in contact with uncontrived Canadian earnestness. George Stroumboupoulos gazes deep into the Car Czar’s eyes and asks him “what happened to the North American auto business,” with all the bewilderment the question deserves, Lutz fumbles around a bit before hitting the punchline. Not enough taxes! Seriously folks, the lack of European-style taxation and investment in mass transit created a “Darwinian Environment” in which people demanded large V8 vehicles. But Mr Lutz, didn’t Detroit benefit from cheap gas? And what do you say to those who accuse automakers of colluding with Big Oil? “If there is a conspiratorial relationship between the oil companies and the automobile companies, could we see our 50 percent please?” deadpans Lutz. Ba-doom-boom! Anyway, GM does sell small, high-technology, high-efficiency cars– in Europe. ‘Cause Americans won’t pay for them. Having “just looked at the numbers,” Lutz said the average Swiss transaction price on GM products was $42k. Switzerland? When George confronts Lutz with his “global warming is a crock of shit” quip, MB lashes out at his quotee and insists he must “plead the fifth amendment.” “You’re in Canada!” George reminds MB, and then draws the Czar into his sunspot rant. Up next: Vegas! [Thanks to emro for the link]

Once upon a time, Barack Obama and John McCain actually disagreed about the proposed automaker bailout. Obama took his cues from the UAW and backed the proposal. McCain remained principled– until he realized he had to win Michigan. Now, not only is McCain camping-out in Obama’s rhetorical territory, promising that “change is coming,” he’s also pushing to be seen as Detroit booster-ier than thou. His new ad literally opens on the corporate logos of the Detroit three, while a honey-voiced narrator coos that “Michigan families depend on the auto industry.” But can McCain really win by following his opponent into populist positions? A post over at Wired indicates that not only is he pandering after already-committed voters, but he’s also helping to fuel protectionism, corporate welfare, and jingoistic anti-innovation. Because there is less daylight between the McCain and Obama positions, McCain is coming under increasingly narrow and divisive attacks, the latest based on his opposition to “buy American” stipulations for (get this) secret service motorcycle purchasing. McCain’s opinion that mandating the purchase of Harley-Davidsons is “unnecessary and counter-productive” has caused the Obama campaign to start a “hybrids and Harleys” initiative. At a recent rally in Grand Rapids MI, Hybrids and Harleys for Obama banned all foreign-built hybrids from the parade of vehicles. Er, all non-D3 hybrids, anyway. Canadian Silverado hybrids were welcome, as were Mexican-made hybrid Vues. Holding Americans and their presidential candidates to an impossible standard of driving American-made, eco-friendly hybrids is the result of a lack of substantive debate. When neither side refuses to take a principled stand on an issue, contrast is derived only through pandering and empty symbolism. For two candidates who claim to be agents of change, this is a lot of the same-old tired politics as usual.