Chrysler's told its suppliers to cut their prices by 25 percent and get the Hell out of Dodge. ChryCo Purchasing Czar John Campi unveiled his employer's latest supplier initiative to hundreds of Chrysler suppliers. Here the deal [via Automotive News, sub]… ChryCo promises to give its suppliers 30 days' notice of its production schedule (rather than seven), share more parts among nameplates, and reduce late engineering changes. Suppliers will split the savings with Chrysler– unless they fail to reduce component costs by 25 percent. If not, they'll have to cut prices and eat the loss. (The 25 percent reduction benchmark applies to parts both old and new.) With "the vast majority" of Chrysler components coming from America, Campi is encouraging suppliers to move operations overseas to facilitate the costs. Holy shit! It's bad enough that Chrysler's driving itself into the ground, but pwners Cerberus seem hell-bent on taking its entire American supply chain down with it. You can't squeeze blood from a stone; with the price of nearly every raw material rising, Chrysler's audacious cost-cutting will only yield more bankruptcies. And lower quality products. And American job losses. This will not make Chrysler any friends when it hits the bankruptcy buffers, nor should it.

Porsche has categorically denied nearly every speculative report recently revealed on the internet– and there've been lots. Stateside Cayenne SUV production? Nein. A Porsche spokesperson reminded Automotive News [sub] that the model's supply chain is in Europe; production can't be moved to the states. (At least not until the next generation Cayenne debuts in 2015.) Baby Cayenne? Chilling with Auto Motor und Sport, Porsche's Sales Boss says the "Roxster" is a non-starter. "We don't want to chase volume," Klaus Berning soothed, ignoring the whole Cayenne deal. "We'd rather make money on every car we sell. The larger the segment, the harder it is to make money, so a small SUV is certainly not Porsche's way forward." Rumors of a two-door Panamera (news to us)? What's German for fuhgeddaboutit? The Panamera provider said why would we? The four-door Porsche will increase volume by 25 percent. Which kinda contradicts his "no-volume chasing for us" assertion, but never mind. We're just happy to set the record straight. Until next time.

Photochop by Andrei Avarvarii

All the big boys test their latest performance gear on the Nurburgring's Nordschleife. But only the truly committed (and confident) campaign their gestating hotness at the Nurburgring's 24-hour endurance race. We've already reported that Toyota will be challenging the event with their Lexus LF-A supercar (despite its being a good year off from launching). But even before ToMoCo's hypercar turns a wheel in anger, they've been one-upped in the ballsiness department. The tiny Gumpert Sportwagenmanufaktur is entering the grueling endurance race with a hybrid-electric version of its Apollo supercar. Out comes the Apollo's 4.2-liter Audi V8; in goes a 3.3 bi-turbo V6 with a Lithium Technology Corporation battery mated to a 100kW electric engine. The EV will charge its batteries by plugging into the electrical grid prior to the race. During the event, the car will beam its battery management data to the team's pit crew via sat phone. Former F1 Champ Heinz-Harald Frentzen (along with Dirk Muller) will helm the ambitious challenger, capitalizing on improved efficiency to pursue a less frequent pit strategy (as Audi did with its diesel Le Mans challengers). "Motor sports cannot ignore the necessity to save energy," say Frentzen (excepting private jets and helicopters). "I see a chance that our sport will go back to the forefront of technical development."  I for one would like to see these guys chalk up a few extra laps while the LF-A is in the pits, if only to put Toyota in the unfamiliar position of wishing it had invested more in hybrid technology.

VW's announced a new North American factory and whittled down the short list of locations in Alabama, Tennessee and (yeah right) Michigan. Volkswagen has only one problem with its U.S. market strategy, which calls for sales of 1m units per year: "we need models for the US market." Yes there is that. In an interview with Auto Motor und Sport, VW works council boss Bernd Osterloh says that picking the right models for the American market is a far more important (undecided?) issue than the American factory's location (yes way). That said, Osterloh claims the decision is not urgent; VW's Mexican facilities can begin production of the new, as-yet-undecided American models before the new factory is online. Osterloh calls the U.S. market a herausforderung (loosely translated as a pain in the ass) for the entire industry. Apparently VW doesn't even have a coherent diesel strategy for their deeply respected American consumers. For a German firm, that's saying a lot. Machts schnell burschen!

Tata Motors has become the first major automaker to enter the 70-team field competing for the Automotive X-Prize. Having recently announced the development of the world's cheapest car and the purchase of Jaguar and Land Rover, taking on a bunch of guys who would probably be happier at the 24 hours of LeMons the uncanny X-Prize is probably just another day's work for Ratan Tata's lads. Of course, credit where credit's due: Tata is not signing up to lap Altamount in a Big Lebowski-themed Grand Torino. According to the requisite press release, Tata will be fielding an EV for the two-passenger, 200-mile range "Alternative" class, and a "Dominant" (serial?) Electric Hybrid in the four-wheel, four-passenger, 200-mile range "Mainstream" class. To win either category, Tata's entries must achieve a minimum 100 mpg, finish the race in first place, and meet numerous other requirements. Sure, as the only major automaker (thus far) to enter the competition, Tata may have a technological leg up on some of its rag-tag competitors. But, as the only team competing with a "win on Sunday, sell on Monday"  strategy, Tata also has the most to lose.  

Green Car Congress reports that GM will offer two new engines in 2009, based on its global Ecotec four-cylinder architecture. The 1.4-liter direct-injection turbocharged four-banger and 1.6-liter Compressed Natural Gas (CNG) turbocharged four-cylinder will debut in "Europe and other regions." The uro 5 compliant 1.4-liter four will offer between 120 and 140 hp and eight percent better fuel consumption than a higher displacement naturally-aspirated engine with similar output. Direct injection and independently-variable camshafts account for much of the improved efficiency, and provide a platform onto which GM's HCCI technology can be transferred. The 1.6-liter CNG mill should pump out about 150 hp and 155 lb/ft of torque. This announcement cements the trend towards smaller engines with forced induction, as championed by Ford's forthcoming Ecoboost line of turbocharged mills. Although we're not holding our breath to see GM launch a sub-two liter engine in the U.S., the 1.4-liter engine would likely make the Cobalt or the Aveo a force to be reckoned with– at least in terms of fuel economy.

Autospies reports a probable reason for Audi's recently revealed R8 incenttives: an engine upgrade. The dons of Ingolstadt are looking to drop the Lamborghini Gallardo's V10 under the R8's freshly-minted hood. Sure, Sant'Agata may be embarrassed by all of the Audi-sourced components in its exotic whips, but that's not stopping Audi from raiding its corporate cousin's engine bin for a little go-fast. No one seems sure if the V10 will fully replace the V8, or if it will be offered as a higher performance trim (SR8? R8S?). But you can (supposedly) hear the extra cylinders by watching the video which seems to have sparked all this speculation here. Audi has yet to comment on the cylinder count speculation, so, caveat gawker. Meanwhile, the Pagani Zonda is "downgrading" from its AMG-sourced V12 to the McLaren-Mercedes SLR AMG SVP ASAP STAT's kompressor V8. AMG is phasing out its V12s, and the V8 in question ups the ante-matter from 540hp to 680hp (as well as improving fuel efficiency). Check out the prototype next-gen Zonda here.

Would it be churlish of us to suggest that GM Car Czar's Volt-related pronouncement is the most unintentionally ironic statement we've ever heard? Never mind then. Anyway, in a characteristic burst of unbridled bravado optimism, Maximum Bob Lutz is declaring a major victory in his employer's efforts to kick Toyota's ass with the electric – gas hybrid Chevrolet Volt. "Today is the first day [Volt drivetrain mules are] running on the street on battery power," Maximum Bob proudly told Edmunds Auto Observer. What's more, GM's Hail-Mary-on-wheels is "reliably meeting its objectives. Even with a rough calibration, even with the wrong drive unit, the wrong body, etc. etc., it has been hitting its 40 miles on electric power." Hey, who put the wrong drive unit on this thing? Anyway, the winner of TTAC's 2008 Bob Lutz Award didn't mention the speed used to achieve this triumph, and Edmunds didn't ask (surprise!). But who's quibbling– other than us? And we're just glad Bob's back to trash-talking the press and Toyota. Bob says the Volt [test] triumph shows "the fallibility of Toyota and the American press, which is totally enamored with Toyota… When we say lithium-ion is good and Toyota says they don't trust them and they are unproven, people say we're taking a huge risk." Huh? Toyota has already announced that lithium ion cells will power the plug-in Prius as of 2010. Oh right, we forget stick to the spin. Sorry, we were too busy gazing longing at all things Toyota.

Car Magazine reports that Infiniti will be building a convertible version of its G37 coupe as part of Nissan's planned new model blitz. To give its new boulevardier the coupe-cabriolet look that's launched a hundred thousand SLKs, Infiniti will fit the drop top with a folding hardtop. As for drivetrain and handling, I got nothing. The usual rendered speculation is typically conservative, and given Infiniti's rep for, um, restrained styling, it's probably not far off the mark. Look for the G37 convertible to hit the mistress' hot button in February of next year. Meanwhile, Motor Authority reveals that Cadillac has axed plans for a CTS convertible. While noting that the two-door CTS coupe is still FAB, GM has refused to officially comment on the rumored stillbirth. While it's tempting to lambast GM for skipping an opportunity to build a vehicle which could boost The General's image, a half-baked convertible with an insufficient development budget would be disastrous for its premium brand. (Just ask Pontiac how it likes its drop-top G6.) Not as disastrous as, say, an entry-level model below the CTS, but bad. No word on whether there'll be a CTS-V Coupe, but we're reasonably optimistic Caddy's fascination for the Green Hell will continue apace. Literally. 

You know BMW is serious about improving efficiency when you hear they're equipping the M5 with a stop-start system. But what else have the bayerische wissenschaftlers been cooking up to improve efficiency? Auto Motor und Sport brings us up-to-date on the innovations unveiled by BMW at its unimaginatively named "Innovation Day 2008." One concept that's sure to have green chins wagging: solar roof panels designed to run the cars' electrical systems. BMW estimates a square meter of roofspace in northern European conditions could deliver 200 watts; more still if the entire roof's covered in photovoltaic cells. Solar panel could be used to reduce dependence on efficiency-sapping alternators for on-board systems, which could deliver small improvements to efficiency (0.3 fewer liters per 100km driven) or pre-heat the engine and fluids, improving inefficient cold start fuel consumption. Bimmer's boffins are also looking at generating electricity from excess engine heat. BMW claims that current thermodynamic generators from aerospace applications could deliver 200 watts of electricity today, with up to 1k watts available next Thursday (or so). The combination of thermodynamic generators, solar panels and engine pre-heating could yield a five percent increase in efficiency. We'll wait until we see a cost – benefit analysis, but the propeller people deserve credit where CAFE credit's due.

Autocar UK has the latest details and a rendering of Nissan's updated 370Z sports coupe. The pic reveals an gently evolved version of the current Nissan offering. The Z's proportions, curved roofline and vertical door handles remain virtually unchanged. Other than new LED headlights, you'd be hard-pressed to tell elder and younger Zs apart. From what we can tell, a better-handling shortened wheelbase is the only major cosmetic change. The new sports car's 3.7-liter V6 will make 326hp, up from the 309hp offered by the outgoing 3.5-liter mill. Autocar speculates that the Z's new powerplant will sing a slightly more grunty tune than the G37's engine, thanks to variable valve lift and timing. Expect six-speed manual and seven-speed paddle-equipped automatic transmissions, as well as a welcome diminution of interior and road noise. Autocar suggests a diesel version, but they're going to pull the other one (it has bells on it).

Canada (like most other developed countries) has a hard time attracting/keeping auto manufacturing jobs due to high labor and tax costs. To counteract these competitive disadvantages, provincial governments often offer car companies tax holidays and other incentives. The problem with these handouts is that they do not guarantee a long-term presence by the bought-off manufacturers. Exhibit A: GM got handouts worth nearly $250m in provincial tax money (and about $200m in federal funds) for its Beacon project aimed at revitalizing its Canadian production facilities. Now, a few short years later, they're cutting some 1400 jobs at their Windsor transmission factory, with another 900 lost due to production cuts at the Oshawa truck plant. Having spent some $7b on various automaker subsidies without receiving a single job guarantee, Ontario Premier Dalton McGuinty is coming under fire. "The more money this government invests in a company, it seems the more jobs are lost," says Progressive Conservative MPP Bob Runciman. But McGuinty ays he "doesn't regret" giving the money to GM (at least until the next election). Report on Business tells us that GM is set to ask the Ontario government for another $140m to build transmissions at its St Catharines plant. Oh, and don't expect GM to offer any job guarantees, either.

As body-on-frame SUV sales crater, a number of manufacturers are prepping a new generation of lighter, compact soft-roaders. One such cute ute is Audi's Q3, based on the A3 platform and closely related to VW's Tiguan. Motor Authority has a rendered preview, showing off styling cues from the recently debuted Cross Coupe concept. Expect Ingolstadt's standard 2.0-liter TFSI four-banger, the 3.0 diesel V6 or the 3.6 FSI V6 to motivate the three and five-door Q3s. With Toyota's Urban Cruiser, Ford's Kuga, Landies LRX and BMW's X1 all coming online soon, the Q3 will have plenty of competition when it debuts in July of 2009. An official concept will hit the Auto Show circuit sometime before this time next year. While a higher roofline should help alleviate the A3's cramped cabin, the sharply-falling rear C-pillar won't win any friends amongst those relegated to the Audi's backseats. Let's also hope Audi designers do something about the rendering's weird flank lines, which have a confused, Bangle-on-PCP feel– especially compared to the clean lines of the A3. 

Some say it's bad enough that Porsche sullied its brand by building an SUV. Automotive News [sub] reports that Porsche is looking to add sacrilege on top of brand defilement; Cayennes may soon be produced stateside. Word first came out in Handelsblatt magazine, which cited "internal sources." VW spokesman Andreas Meurer confirmed the gastric rumor. "When we discuss whether to build the [VW] Touareg and [Audi] Q7 in the USA, we also talk about the Cayenne." Previously, we'd heard that the new U.S. plant would produce Jettas. But since The Land of the Free is the major market for the VW/Audi/Porsche SUV triplets, and the dollar's weaker than the V6 Cayenne's on-ramp acceleration, there's a compelling case for bringing VW Group truck production stateside. Germanophiles note: all three utes are currently built in Bratislava, Slovakia; BMW builds (and exports) their SUVs in South Carolina while Mercedes does the same in Alabama. As Big 2.8 supporters will tell you, as long as Cayenne profits end up in Zuffenhausen, it's still a German car. Technically speaking. On both points. 

Regular readers should know by now that Autoblog Green will say nice things about anything that it considers "green enough." But as chic as it may be at the moment, the "green at all costs" posture has its downsides, particularly when you end up saying that the demise of the Bajaj three-wheeler is "unfortunate." Then again, maybe there really is something to be said for third-world three wheelers, because now ABG is all thrilled about the prospect of another pedicab special, this time from Thai firm Tuk Tuk, hitting the US market. The Tuk Tuk is currently undergoing EPA and NHTSA testing to see if the mainstay of Bangkok's taxi industry is ready for U.S. sales. And yes, for those who must know, the two-stroke engine which gave the Tuk Tuk it's goofy name is staying in the developing world where it belongs, to be replaced for American duty by either a 200cc or 650cc liquid-cooled four-stroke. It will be offered in a variety of body styles, for passenger, cargo or truck duty. The three-wheeled oddity may even be offered with an LPG drivetrain, which is sure to have the eco-friendly ice cream vendors lined up around the block.