The Detroit News reports that GM has reached an agreement with UAW workers in Parma, OH over  new, union-negotiated, two-tier wage structure. The sticking point: the definition of "core" (higher tier) and "non-core" (lower tier) jobs. While the accord still needs final approval from the United Auto Workers' (UAW) 1600 local members, its ends the threat of a strike at the plant which makes Cobalt components. That leaves four more union locals still threatening to walk over job designations. GM is negotiating with the remaining discontented union locals, which are nearing the end of their five-day strike warnings. Look for GM to try to put out these remaining fires as the week winds to a close; the ongoing American Axle strike has left the General highly vulnerable to any supply shocks.

True story. Market Watch reports that Goldman Sachs has sold $500m worth of Chrysler debt at a discount, reducing its exposure to the troubled firm. The investment house– which underwrote Cerberus' purchase of Chrysler along with JP Morgan, Citigroup, Morgan Stanley and Bear Stearns– sold the loans at the discount price of $.63 (they currently trade between $.64 and $.66). Sources close to the deal (as opposed to those with a faraway look in their eyes) say Goldman Sachs made the sale to an investor group that included hedge funds. Goldman had already sold some $300m of its $1.6b exposure to Cerberus' $7b first-lien loan (used to buy the automaker from DaimlerChrysler). As disconcerting as the fire sale is for Chrysler, it actually signals an improvement. In August and November of last year, underwriters collectively failed to find interest in $2b and $4b chunks of Chrysler debt at any price. The risky debt now returns some 20 percent on investment; which helps investors accept the clear and present danger inherent in holding debt for the struggling American automaker. Good luck with that.

We reported yesterday that Autocar UK had "found" top secret renderings of a forthcoming RWD coupe being jointly developed by Toyota and Subaru. Well, today we have confirmation from the two firms that the new coupe is definitely in the works. A joint press release tells us, "The compact rear wheel-drive sports car is envisioned to offer a new 'fun to drive' experience based on an all-new vehicle platform." The release also confirms that Subaru's boxer four will be the only initial engine offering, and that production will begin in 2010. [Ed: there's that number again.] Subaru will launch first, sometime late in 2010, while the Toyota version will not be available until 2011. Watch this space for official images and further details as they become available.

The ties between Tata Motors and Fiat are plentiful; Ratan Tata sits on Fiat's board, and the two firms run several joint manufacturing ventures in India. And with Tata's recent purchase of Jaguar and Land Rover comes an opportunity for Fiat's performance brand Alfa Romeo to piggyback on Jaguar's existing rear wheel-drive sedan architecture. Fiat development boss Harald Wester tells Auto Motor und Sport that the two firms are already discussing details of the possible platform share. "We have diverse worldwide cooperations with Tata," said Wester, "because of this, it makes sense for us to seek opportunities with Jaguar and Land Rover. Naturally, a properly-dimensioned rear-wheel drive platform would serve Alfa well, and we're working on that. But there are more options. One alternative is developing a unique platform for Maserati, Alfa and Lancia. Another is that Maserati would get a unique platform, while the other two brands would share with a partner (Jaguar)." A Jaguar XF in a sharp Italian suit with Alfa badges could be exactly what the brand needs when it launches stateside in 2010, while platform-sharing would help Jaguar improve its profitability.

Environmental issues have topped cost reduction as the major concern for the auto industry for the first time according to a survey by DuPont and the Society of the Automotive Industry (SAE) [via CNN Money]. The survey of automotive designers and engineers picked a basket of challenges– from CAFE standards to emissions controls– as the industry's top concern, unseating cost reduction after 14 years. Fifty-three percent of those polled selected environmental concerns vs. 32 percent who went with cost reduction, Some 54 percent also say consumers are most concerned with improvements in fuel efficiency; only 37 percent think improved comfort and convenience float purchasers' semi-metaphorical boat. In less surprising news, alternative fuel-powered vehicles were named as the technology with the greatest impact on the car industry for the fifth year running. Biofuels and weight reductions also climbed in importance in this year's poll, completing the snapshot of an industry in transition.

Nikkei Tech-On says Toyota Fuel Cell Engineering Manager Taiyo Kawai told the NHA National Hydrogen Conference that plug-in hybrids (PHEVs) won't deliver a tremendous reduction in fuel consumption. According to Toyota's calculations, given a 20 to 40 mile plug-in range and U.S. driving patterns, "the maximum contribution that PHEVs can make in an effort to break dependence on fossil fuels or to halve CO2 emissions is a 20 to 30% reduction in energy." Kawai told the crowd that the plug-in Prius' cell system's power storage performance is "far below that of gasoline and hydrogen." Hang on. Did we just learn an inconvenient truth about PHEVs, or is this just so much pro-fuel-cell hot air?

Auto Motor und Sport  has a sneak-peek at a CLK Shooting Brake concept set to debut at the Paris Auto Show this October. The coupe-wagon previews the new look of the CLK, which will premier early next year as a 2010 model. The next-generation of Mercedes design aims at positioning the E-class and CLK closer together in terms of both construction and styling. The Shooting Brake shows many of the design features of the next generation of MB styling. Look for those sharper creases and the four sharp-edged headlights to dominate the new look, taking cues from the latest S-class to their logical conclusion in the rest of the Benz family. Although Benz is remaining stum on the production chances of the Shooting Brake, the Germans reveal that the forthcoming E-class will get a hybrid V6 powertrain making 224hp. Sehr Gut!

Dow Jones Market Watch reports that tight credit, expensive gas and the economy in recession, four cylinder engines are becoming increasingly popular. Four-pot models now make up 37 percent of the U.S. market, up from 30 percent three years ago (when gas was last under $2/gal) Eight cylinder models fell from 28 percent to 18 percent over the same period. Tracing the development to purely economic factors, the report shows that hybrids do not yet offer enough savings to overcome their price premiums; hybrids only make up three percent of the market. "For now, the easiest, cheapest way for new-car shoppers to get better mileage is to choose a model with a conventional four-cylinder engine," says J.D. Power analyst Jason Rothkop. "And they are." The poster child for the four-banger revolution? The Toyotas Yaris. Sales of the four-pot economy car were up 83 percent in March. [For more info on last month's sales, check out Frank Williams' March By The Numbers.]

Chrysler's forced summer vacation will not include all North American plants as previously reported. The Aurora Advocate reports that the Twinsburg Stamping Plant and the Windsor Assembly plant might stay open during the planned two-week idle, along with a possible third, unnamed factory. Chrysler Manager for Manufacturing Communications says the Windsor plant could continue making vans– if demand stays [?} high into the summer. "We will make adjustments to consumer demands," Ed Saenz announced. Meanwhile, some Chrysler employees have already used their paid vacation day; they'll be forced to take unpaid vacation days during the shutdown. Saenz proves that he is, at least a friend of a friend of the working classes. He reassured Chrysler employees that next year will be easier– they'll be aware of the fact that they have no choice as to when they'll take their vacation. Provided the company isn't already in C11.

In a twist on the "unintended acceleration" debate raging here and elsewhere, a jury has found Chrysler liable for $5m in damages in a case of park-to-reverse transmission malfunction. The Saint Bernards Parish (LA) jury decided that a defect in a Grand Cherokee's automatic transmission caused the Guillot family's SUV to reverse suddenly, trapping the pregnant Mrs Guillot against a carport column, rupturing her uterus and fatally injuring their unborn (en route to a hospital for delivery). The police had considered charging Mr Guillot, who was driving at the time, with criminal negligence. Although Chrysler had sent an investigator to look into the incident, the Guillots found out about the Chrokee's long-standing park-to-reverse transmission defect when contacted by the L.A. Times– more than two years after the accident. "We suffered the worst loss any parent can experience," Mr. and Mrs. Guillot told reporters. "When we learned that Chrysler knew for years that its vehicles had a defective transmission, we were outraged and determined to hold the corporation accountable. We thank the jury for its careful review of the evidence and verdict against DaimlerChrysler."

We reported earlier that Toyota had upped its stake in Fuji Heavy Industries, maker of Subaru cars. We mentioned one possible fruit of that merger: a jointly-developed rear wheel-drive (RWD) sportscar. Autocar has "top secret" sketches of what the Toyobaru lovechild might look like. The coupe will use Subaru's 175hp boxer four as a base engine motivating the rear wheels only (to keep weight down and handling sharp). Apparently, there is also talk of an all wheel-drive 2.5-liter turbo-engined top-of-the-line model; a throwback to Celica GT4s of yore. With the Miata squarely in its sights, the Japanese-built coupe's could sticker as low as $20k. The United States is pegged as the main market for this tasty little slice of hoon, which should hit dealers sometime in 2010.  Could this possibly be the RWD Scion tC that's hit the rumor mills?

Ford apparently just realized that blind spots in rear-view mirrors are an issue for drivers. In a move to get out in front on this brave new challenge to modern motoring, Ford will be offering special blind spot viewing mirrors on the upper corner of side-view mirrors. That's right, drivers of America, what you once had to pay ten bucks for at Autozone will now come as standard feature "on a few Ford, Lincoln and Mercury models to start, eventually making them standard across most of its lineup." But if cheap, uninspired solutions to the silent killer we call blind spots aren't for you, maybe you'd prefer something overly complicated and gimmicky? Ford has you covered there too, announcing an optional radar-based blind spot warning system as a (doubtless) expensive option on select models. With a little light on your rear view mirror to warn you that an intruder has penetrated your blind spot sector, your "Cross Traffic Alert" system will ensure that you never have to be aware of traffic around you ever again. 

Nissan is switching production at its Canton, MS factory from the Quest minivan and Infiniti QX56 SUV to light commercial vehicles (LCV). USA Today reports that the commercial-grade trucks will start rolling off the line in 2010, and that Nissan has yet to decide if the outgoing Quest and QX56 will be replaced. "When we get to the end of each vehicle's cycle, we look at the market" and decide the fate of each vehicle, says Nissan spokeswoman Frederique Le Greves. "The decision has not been finalized. The intention is to continue them, but we don't know where we will manufacture them." Parse the PR-speak, and you get "maybe we'll replace them if minivan and SUV sales pick up." Canton will continue to produce Titan pickups and Altima sedans, while the $118m production switchover takes place. New LCVs will be built for the US market in the eight-ton gross vehicle weight class, powered by 50-state emissions control compatible Cummins turbodiesel engines.

The American Axle strike got confrontational today, as UAW workers picketed an AA replacement-hire orientation in Kalamazoo. MLive.com reports that some 20 striking workers picketed a hotel where testing sessions were taking place, shouting "Unfair Labor Practices!" and other niceties at potential scabs. The company says that they're creating an applicant pool in preparation for forthcoming buyout offers, but spokesfolks won't deny that the new workers could replace strikers. "(AA) seem to be more concerned with pushing through new workers," said Kevin Bushouse, an executive board member of the Three Rivers local union. "We'd rather see them negotiate with us, settle with us." AA has received "thousands of applications" since it advertised for replacement labor, and will continue holding testing until Friday. Meanwhile, a UAW "informational picket" will continue in Detroit where UAW-AA talks are said to be improving.

The Hindu Times reports that the Society of Indian Automobile Manufacturers and TATA Motors have asked the Indian government to slap a 35 percent duty on Chinese goods. The duty's proponents argue that Beijing's enforced yuan-to-dollar parity has given Chinese manufacturers up to 30 percent advantage on exports. The proposed duty will supposedly level the playing field. Of course, what's bad for Indian manufacturers is good for Indian consumers. But protective tariffs have become a worryingly commonplace phenomenon in the Asian auto biz. Once one country gives its industry a small advantage, it tends to create a protective tariff arms race and from China and Korea to Malaysia and Indonesia, everyone is jumping in on the action. If India further legitimizes the practice, there will be few remaining incentives for fair competition in the fastest growing auto markets in the world.