As a burgeoning fuel crisis unseats the credit crunch as the downer du jour, the subprime woes of GMAC and ResCap are bubbling away under the surface. Reuters reports that GMAC has completed a $60b refinancing and funding package in hopes of returning its ResCap mortgage branch to reality liquidity. The bailout arrived just as ResCap revealed that it needed to raise $2b in cash by the end of June to meet its obligations, after losing $859m in the first quarter of this year. ResCap has refinanced its unsecured debt, renewed bank credit lines, and exchanged nearly $10m in bonds for higher-interest, longer-term debt. GMAC shareholders GM and Cerberus jointly provided $750m guarantee as part of a $3.75b line of credit extended from GMAC to ResCap, and have thereby exposed themselves to the first loss, should ResCap default. Interestingly, the bailout came in a week that saw rampant speculation (since denied) of a Cerberus sale of portions of GMAC and Chrysler. Far from punting, Cerberus is actually buying-up hundreds of millions of dollars worth of GMAC's resort funding division and ResCap's model home assets, since market conditions are slowing asset sales. "The fact that ResCap's owners – both GMAC and Cerberus – remain willing to pony-up cash in order to keep the mortgage subsidiary afloat, strongly suggests that they still see something there that's worth saving," KDP analyst Thomas Ferguson tells Reuters. Avoiding bankruptcy perhaps? Whatever it is, GM and Cerberus better hope it pays off, and soon.

Automotive News [sub] dutifully reports that the auto industry's lobbying group are arguing that proposals to strengthen vehicle roofs conflict with recently-increased CAFE standards. [Never mind the fact that heavier lids are dubious from a safety point of view.] In testimony before the Senate, the Alliance of Automobile Manufacturers' shills argued that roof-strengthening measure sought by safety advocates could hurt the fuel economy of large pickups and SUVs by up to ten percent. But since CAFE increases (along with those crazy gas prices) basically herald the demise of mainstream "large pickup and SUV" ownership, it seems that the AAM is barking up the wrong tree. Meanwhile, lawmakers are playing-up to telegenic emotional outbursts from "victims" of "heartless car companies" during their public hearings. While all of us know someone who's been killed or seriously injured in a car accident, automotive regulations should be based on proper scientific analysis of the full implications of existing and proposed regulations– research into which the National Highway Traffic Safety Administration excels. Those who criticize NHTSA's new roof crush standards– requiring roofs to support 2.5 times the vehicle's weight (up from the current 1.5 times)– should consider the possibility that not all government agencies work against the public interest. Besides, if this is such a serious problem, why are convertibles still exempt from ALL roof crush standards? 

Our fearless leader was not the only one who finds fault with the fact that GM CEO Rick Wagoner raked-in over $14.4m during a year when his employer lost some $38.7b. Automotive News [sub] reports that shareholders at yesterday's annual meeting attempted to inject a measure of sanity into GM's executive compensation. And failed. A proposal to give shareholders an annual "advisory vote" on executive pay and bennies received only 32 percent approval. Another proposal would have tied 75 percent of future stock options and restricted executive stock awards to GM's share price, market share and credit rating. Nope. That one received only 16 percent approval. A measure giving shareholder cumulative voting passed. Again. The same proposal passed in 2006… This time 'round, CEO Rick Wagoner passed the proposal to the board's corporate governance committee for review. But then, when the board has your back, why should you care about the stockholders? “And since we’re asking rhetorical questions, are there any remaining reasons to hold GM stock?” 

MINI's forthcoming Crossman cute ute is set to debut later this year at the Paris Auto Show. Spy images and details are already making the rounds on the autoblogosphere. Channel Four tells us that the Crossman is based on the next-generation generation of MINI platforms, which will accommodate larger variants like the Crossman. As a result, the MINI Ute is larger, rides about 80mm higher than a standard MINI and stretches over 12 feet long. The Crossman will offer BMW X-Drive AWD, although front wheel drive will most likely be the base configuration. An optional Efficient Dynamics start-stop system should help keep fuel efficiency reasonable. The Crossman will be closely related to BMW's forthcoming X1 baby ute (cannibalism much?). Both vehicles will be built in Austria by Magna Steyr. With a planned annual production of 80k units, there should be plenty of Crossmen available for those urban sophisticates who are willing to pay considerably more for a MINI that looks like it could handle a forest service road. The Crossman will be available stateside some time in… 2010.

As Katie Puckrik has pointed out, GM is not the only automaker working on HCCI technology. But, as Auto Express reports, GM could be the first company to outfit a production model with the sparkless technology. GM lent Auto Express a Vauxhall Vectra fitted with a 2.2 HCCI four-banger for a first drive, and in the process let slip that the engine would eventually find its way to the Opel/Vauxhall Insignia. There is no indication as to exactly when the engine will debut, but the engine needs refinement and Auto Express guestimates that it's a good two years awawy from production. This news jives with what we've been hearing about GM taking Opel upmarket, and "democratizing technology" in the process. If GM takes the time to iron out the engines reported awkward transitions between normal and HCCI modes, the 43mpg promised by this 2.2 engine could make it a popular choice. Of course, we'll have to see if it is even offered in the US-market Saturn Aura. And check the pricing. And the reliability. And the real-world mileage. And, and, and.

Chrysler is strangely intrigued by those "hybrid" cars you keep hearing about these days. And by cars, we mostly mean trucks and SUVs, as that's all Chrysler will be offering any time soon. Because… well, we're not actually sure why. The Detroit Free Press reports that this summer's launch of the two-mode Hybrid Aspen and Durango SUVs has Chrysler curiously optimistic about its chances in the hybrid game. Up next will be hybrid versions of the Ram, employing the same two-mode hybrid Hemi as the Aspen/Durango. And come to think of it, Chrysler doesn't really have any other hybrid options in its bag of tricks (which is mostly full of unbelievably cheap interior plastics). Although the Aspen/Durango launch has Chrysler saying it is also considering making hybrid versions of the Journey CUV and Avenger sedan, one can't help but wonder what Chrysler would put under the hood of such whips. Is there a mysterious non-V8 hybrid drivetrain hiding somewhere in Auburn Hills? If so, wouldn't we be hearing more about it, given the disappointing sales of two-mode V8's by GM? Or is the truth really that Chrysler overpaid for its hugely expensive two-mode V8, and can't afford to develop a hybrid that might get better than 30mpg? Either way, when your offerings make GM's current lineup of hybrids look fresh and innovative by comparison, you know you're in trouble. 

GM has been trying to realize savings from its two-tier wage agreement with the UAW by offering veteran hourly workers (who are locked in at old wages) cash buyouts to walk from their jobs. Well, the offer has expired and the Detroit News reports that some 19k UAW workers, or nearly a quarter of the General's North American work force, has taken the money and run. Although GM hadn't set a public goal for the buyouts, the 19k number was at the high end of UAW President Ron Gettelfinger's 5k to 20k estimate, and far exceeded Ford and Chrysler's most recent buyout takes. About 4,200 workers took Ford's latest buyout offer, about half of what the blue oval wanted. Chrysler's recently bought out about 7k workers, bringing it to nearly 80 percent of its hourly headcount reduction goal. But GM had to work hard to convince so many of its 46k workers who are eligible for retirement to walk away. The General offered $62,500 to each retirement-eligible worker, who then had the choice of receiving cash upfront or rolling payments into an IRA account, on top of full pension and retirement benefits. And while the carrots for leaving GM were good, the sticks are still looming for those left behind. Ominous reports from Automotive News (sub) tell of GM's "top managers working on additional restructuring measures to deal with a declining U.S. auto market." An anonymous source tells AN that GM plans to cut shifts at truck and SUV plants, cut about 2k salaried jobs through involuntary firings (sound familiar?), and is considering "other actions." Gee, retirement is starting to sound pretty nice, eh?

Like us, Edmunds.com keeps an eye on monthly car sales. And by God they have noticed a trend! Or, a "Seismic Shift," as they demurely put it. Yes folks, its true: Americans are *gasp* buying fewer trucks and SUV's in favor of *gasp* more fuel efficient crossovers and compact cars. But don't ask the year-to-date sales numbers or blame four dollar gas, because Edmunds has analysis. "The (seismic) shift" writes Edmunds scribe Dale Buss "has occurred both in actual transactions and in shopping trends measured on the Edmunds.com site. Until March, this pattern of segment migration had been accelerating markedly but rather gradually. But a 10 percent increase in U.S. gasoline prices in March and April alone, to an average of $3.44 a gallon, appears to have provided the catalyst for a shift that is bigger and faster than any ever tracked by Edmunds.com." Wait, did he just say "shopping trends on the Edmunds.com website"? To be fair, you could learn a thing or two from Edmunds. Take their insistence on categorizing the Honda Accord and Chevy Malibu as "compact" cars. Sure, the EPA calls the Accord a "large car" and the Malibu a "midsize"… but they only base that off of the actual interior volume. Jamming these cars into the "compact" category and then calling it a statistical "seismic shift" is a pretty laughable ploy. Ultimately, the facts of auto sales trends speak pretty well for themselves. And yes, by facts I do mean actual transactions.

American Axle CEO Dick Dauch hung tough against the United Auto Workers (UAW) for 87 days. As the smoke clears, it's clear Dick Dastardly came out on top. The new union contract cuts the company's average hourly labor costs from $73 to about $40. The Detroit News reports that DD also sliced some 2k workers from AA's 3,650-member North American workforce. All in all, the parts maker will realize some $300m in annual savings. To help show these workers the door, AA secured some $215m worth of OPM from GM. That's roughly half the $450 to $500m tab. Meanwhile, AA shed some $370m in lost sales. Put those numbers against each other, and it looks like AA recovers its strike expenses in less than a year (excluding lost sales), and powers on from there. Meanwhile, Automotive News (sub) reports that AA has a $1.4b in backlogged orders to be filled between now and 2013. Mr Dauch celebrated the good news today by promoting his son, David Dauch, to the position of President.

Even before Tata Motors bought Jaguar and Land Rover from Ford, the Indian automaker's investors were not well pleased at the prospect. A dropping share price reflected their central worry: $3b or so in debt. These worries are proving well founded. Tata has announced a $1.86b equity share offering. The stock offering amounts to a 30 to 35 percent increase in equity capital; investors are heading for the hills rather than watch their shares take the hit. "The magnitude of this offering is unexpected and could adversely affect short to medium-term stock performance," Citi analyst Jamshid Dadabhoy tells the Detroit News. Amit Agarwal of Kotak Securities tells Market Watch that servicing all the extra debt could cost Tata 19 to 22 percent of its earnings per share. Meanwhile, Jaguar and Land Rover need considerable investment to develop the products needed for profitability, and Tata has yet to build its much-vaunted Nano. Tough times.

Auto Motor und Sport's spy photographers spotted this near-production crew-cab version of Wolfsburg's global pickup undergoing street testing. Although VW has stayed true to its legacy of unnecessarily creative nomenclature, the "Robust" is a new day. First, it's a "real" VW, not a rebadged Toyota HiLux (i.e. the Taro which the Robust replaces). Second, VW won't be sending the Robust to America. VW's manufacturing the pickup in Germany, South Africa and Argentina aimed at the bounciest of developing-world roads. The engine offerings wouldn't have played well in Peoria anyway; the Robust will harbor four cylinders (gas and diesel) powerplants, with a V6 for "select markets." Volkswagen has threatened to take pickups seriously for some time. Aside from the infamous "Golfamino" of the 70's, the rebadged Toyota and a few over-the-top studies like the V10 diesel AAC concept, it's been all talk. The Robust's no-frills, (presumably) fuel efficient utilitarianism is a good place to start from scratch.

In the wake of last week's revelation that FoMoCo ain't out of the woods yet, the blue oval is in full-on cost-cutting mode. Detroit News reports that Ford VP Jim Farley has announced a 10-12 percent cut in its U.S. salaried workforce to go into effect by August. Saying that Ford is struggling to cope with "a structural change to our economy," Farley told employees at a company "town hall" meeting that the approximately 2k layoffs would be involuntary firings rather than voluntary buyout offers. But Farley isn't losing sleep over the firings, as he sees Ford's problems as being caused by external economic forces over which he has no control. "I would expect other car companies to make similar announcements," Farley told employees when announcing the cuts. "They have the same issues that we do — even Toyota." Even Toyota, eh? Meanwhile, FoMoCo is also trying to tart up its troubled Volvo division by throwing consultants and suppliers under the bus. Automotive News [sub] reports that Volvo has announced that it will pay consultants and suppliers ten percent less than the current contracted rate for services. Proving that shit always runs downhill to the supplier, Volvo spokesfolks blame weak U.S. sales (which they expected) and weak European sales (which they didn't), saying "We're looking into how we can turn the business around." What, so soon? Look for this to simultaneously increase speculation of a Volvo sale (why not screw the suppliers if you've already written the brand off?) and decrease the likelihood of said sale (same reason).

Exclusivity is as integral to Ferrari's branding strategy as blistering performance. Since the 1950's Ferrari has turned its cars over to a number of coachbuilders who have wrapped the Scuderia's finest in unique, emotive designs. Over the years, the relationship between Ferrari and its coachbuilders has evolved, and the design of recent factory Ferraris has been handled by traditional partner firms like Pininfarina. Recently limited-edition coachbuilt Ferraris have been making a comeback, as evidenced by such offerings as Pininfarina's $4m Enzo-based 612 P4/5 and 612K, and the Vandenbrink Design 599 GTO Mugello. But Motor Authority reports that Ferrari doesn't want to be left out of the tiny market of folks with the commitment to one-upmanship exquisite taste to pay millions extra for a wholly unique version of their favorite Ferrari model. Accordingly, the Scuderia will collaborate with its three favored design houses, Fioraventi, Pininfarina and Zagato to create a range of factory-approved one-off custom designs. Initially only the F430, 612 Scaglietti and Enzo will be eligible for the Italian design treatment, although if the program meets with sufficient approval, the newer 599 Fiorano and California may become eligible as well. Expect the well-dressed supercars to begin appearing in the second half of this year, led by a Fioraventi-designed offering.

Can you tell we're a little excited about the planned Toyota-Subaru joint RWD sports coupe? Well, the more we learn, the more we want to know, and luckily Edmunds Inside Line has some new info on the project. The coupe's RWD platform will be developed from Subaru's existing AWD architecture, and will be powered by "a revised version of (Subaru's) naturally aspirated boxer 2.0-liter unit generating around 220hp." We're guessing that Subies 2.0 won't make that many ponies without a turbo, so maybe Edmunds got the "naturally aspirated" part wrong. Since the Integra Type R is identified the project's performance benchmark, expect a 0-60 time of about 6 seconds. With 220hp pushing only 2.866 lbs. using an STI-sourced six-speed manual, it sounds like the Toyobaru is going to be up to task. And maybe it's time to stop calling it a Toyobaru. The coupe will be based on Subaru kit and built at Subaru's Gunma factory, while Toyota's main contributions will be in the areas of planning and quality control. In fact, the Toyota version (little more than revised exterior styling) won't even be offered outside of Japan. Then again, if you could buy a sub-3k pound, 220 hp RWD coupe from Subaru with ToMoCo quality control, why on earth would you be tempted by the same thing with a Toyota badge?

The Detroit Free Press reports that a little-known loophole in California's greenhouse gas emissions standards will allow some foreign manufacturers to avoid meeting the tough standards. Under the 2004 rules set by the California Air Resources Board (CARB), automakers averaging fewer than 60k annual unit sales in the Golden State would be exempt from the 2016 emissions standards. The Big 2.8 and Toyondissan would have to meet the 35mpg by 2016 standards; Volkswagen, Hyundai and (possibly) BMW would not. The loophole was revealed in discussion of a Senate bill designed to overturn the EPA's decision not to allow California to set its own emissions standards. GM spokesmouth Mark Kammer was unimpressed. "There's a lot of cherry-picking opportunities for a [foreign] manufacturer." The United Auto Workers' Legislative Director Alan Reuther also spoke on behalf of the his members' employers and… the planet. The loophole "undercuts the effort to reduce CO2 emissions and improve fuel economy. And it gives a major competitive advance to newer entrants into the auto market." CARB rules indicate that the exemption sales limit could drop to 4k units per year after 2016, but the proviso is not legally binding. At least not yet.