The Oakland Business Review [via MLive.com] reports that intellectual property-related lawsuits are on the rise. Brinks Hofer Gilson & Lione in Ann Arbor says the car industry has abandoned their previous tendency to settle technology-based patent infringement disputes out of court. "Before the year 2000 there were sporadic [auto IP] cases, maybe one, at the most two every year and often zero," says managing partner Steve Oberholtzer. "In the period from 2000 to 2007 there were 46 cases." Oberholtzer says the increase is down to outsourcing. "Now that the suppliers have more of an investment in engineering, they're more likely to want to protect their investment." Talk about a sign of the times…

The ever-increasing technological sophistication of cars is fast becoming a pet peeve of home mechanics and car tinkerers. But Linux Insider reports that the open-source operating system may just find a new home in automotive applications, improving the at-home tweakability of production vehicles. Open-source technology guru David Schlesinger: "The increasing value of [open-source software] will result in greater use of open-source software in automotive systems, largely in … communications, navigation and the like." This development could replace proprietary operating systems with a single open-source, Linux-based OS which could control everything from engine management to on-board navigation and computing. But we're not quite there yet. While Linux offers immediate options for on-board computing, it still needs to be optimized to handle real-time tasks like engine control. Still, the manufacturers' desire for broader management of services in cars and consumer's desire for greater tweakability may just add up to an open-source future for the industry.

As we reported earlier, Hyundai Chairman and convicted embezzler Chung Mong-koo faced a challenge to his leadership at the annual shareholders meeting. Amazingly, Chung was able to retain his position despite having been convicted of "appropriating" $100m of company money and creating a bribery slush fund. Reuters reports that Chung survived opposition from Korea's National Pension Fund, the company's sixth-largest stakeholder as well as from other minority shareholders. Chung's popularity is said to be based on Hyundai's need for "strong and experienced leadership to cope with tough market conditions." Our guess is that shareholders want to hold onto Chung's battle-proven bribery rolodex in order to keep the Korean currency weak, as the cheap Won is Hyundai's major competitive advantage in light of rising commodity costs and increased competition. Stock value one, rule of law nil.

With U.S. orders pouring in for its miniscule smart fortwo, Mercedes is wishing it hadn't cut the larger forfour from production. At the Detroit Auto Show, Benz honcho Rainer Schmückle revealed that a second-gen forfour was in consideration, although the decision hadn't been made to brand it as a smart or a Merc. Now MotorAuthority is showing a Schulte Design rendering of a potential successor to the forfour. Whereas the original was a reskinned Mitsubishi Colt with a conventional front-engine front-drive setup, this rendering suggests that the new model will be a stretched fortwo… rear engine and all. Don't take the rendering as gospel though, MB could well be pursuing other options. After all, pushing four passengers with a three-cylinder engine doesn't sound very… American.

It seems the National Research Council is trying to recruit pistonheads to the global warming cause. What's the pitch? Climate change could be catastrophic to America's roads and highways. NPR reports that the NRC has identified 60,000 miles of highways, major airports, railroads, low-lying tunnels and ports which could be increasingly vulnerable to flooding and sea-level rise. Hotter summers could also buckle asphalt, stress bridge joints and deform railroad tracks. The NRC's warning comes on the heels of a federal study of 48 Gulf Coast counties, which are expected to experience sea level rise sooner than most of America. That study found that a four-foot rise in sea level would inundate 24 percent of interstates in the area and 28 percent of arterial roads. Oh well… by the time oceans rise four feet, "enthusiast cars" will likely be banned. And the best driving roads are in the mountains anyway.

Ford and GM shares were down sharply yesterday after a wide-load of bad financial news hit markets. The Detroit Free Press reports "Ford stock fell to its lowest level since 1985 and the price of GM stock fell to its lowest level since 2006, near the height of speculation that the automaker would need to declare bankruptcy if it didn't speed up its turnaround." Analysts believe Morgan Stanley triggered the plunge, when they cut sales and earnings estimates for the two firms euphemistically citing "near-term headwinds." Bottom line: analysts no longer expect GM to turn a profit next year, and Ford's loss expectations dipped further. Meanwhile, Lehman Brothers issued a client note stating that rising commodity prices would add about $350 to the manufacturing cost of the average car. As the Brits would say, the Big 2.8 are getting knocked from pillar to post.

Tata's prospective purchase of Jaguar and Land Rover from Ford is reportedly foundering on Tata's insistence on price guarantees for Ford engines. The Detroit News quotes sources "close to negotiations" (as opposed to?) as saying Ford is unlikely to agree to any such guarantees in light of price increases in key commodities. Garel Rhys, director of the Centre for Automotive Industry at Cardiff University, calls Tata's request "absurd, and they know it." BUT Rhys reckons it's in Tata's interest to drag-out the purchase process while it secures financing. And, perhaps, a better price. With no other offers tabled for the two FoMoCo "premier" brands, the Blue Oval Boyz have little choice but to duke-it-out with Tata. Ford's "Wish We'd Gone from Sir Anthony Bamford" deal has already been pushed past two informal deadlines. Ford now says an agreement with Tata Motors is expected "mid year." 

Bloomberg reports that Hyundai's been hit hard by rising steel prices. Apparently, China's Olympic building boom is causing localized shortages and driving up prices. Rising raw materials costs cut especially deep for the value-minded Hyundai brand, who can ill-afford the hike. "The higher prices come at a difficult time,'' says Mirae Asset Securities analyst Kim Jae Woo. "Hyundai won't be able to pass on the higher costs to customers as the slowing global economy is already damping auto demand.'' Steel prices are expected to continue rising for the considerable future; raising an interesting challenge to the strategy of manufacturing in east Asia. Although low labor costs have made the region popular among budget automakers (e.g. GM's Daewoo), China's economic boom is putting increased pressure on commodity prices. In the cutthroat global automotive industry, there's nowhere to hide.

Toyota President Katsuaki Watanabe has once again acknowledged ToMoCo's recent quality issues. The AP reports that Watanabe attributes the company's product-related failures to its rapid rise to global dominance. The growth has taken its toll in various areas, ranging from development and design to production, suppliers and maintenance. Watanabe says time pressures and the shortage of experts has exacerbated their quality control problems. What's more Watanabe admitted that Toyota is suffering from some of the symptoms of "big company disease:" arrogance born from success. Putting the pro in proactive, Toyota's CEO said some unspecified products are being delayed to ensure the "total quality" on which Toyota's reputation depends. The automaker is going over every problem, "tracking root causes, analyzing and coming up with ways to prevent a recurrence." 

The Telegraph reports that a new "showroom tax" will add between $500 and $2k to the price of new cars in Britain, depending on their level of carbon emissions. Oh wait, and add nearly $1k in annual taxes thereafter. Chancellor of the Exchequer Alistair Darling says the tariff are educational; a way for consumers to understand the environmental cost of their purchase. But these measures are not simply targeting "Chelsea Tractors," the luxury SUV's that haunt London's wealthiest neighborhoods. Middle-class family haulers such as the Ford Mondeo Estate and Renault Espace would be hit hard as well. Critics point out that the measures are as disingenuous as they are patronizing. An anonymous spokesman for The Society of Motor Manufacturers and Traders says "Trying to force people out of high-value cars has no environmental merit and will be seen as a smokescreen for revenue raising." And then what?

Talk about the rush hour fender-bender from Hell. The Khaleej Times reports that over 150 cars piled up on the Abu-Dhabi to Dubai highway yesterday, in the worst wreck in the country's history. Authorities report four deaths and 317 injuries in the crash, which also involved 12 buses. About two dozen cars caught fire, triggering a massive rescue operation and snarling traffic for hours. Officials say that foggy conditions and rush hour congestion contributed to the disaster, pointing out that the close quarters driving of commuters makes such pileups more likely. Armed Forces personnel and helicopters were called in to clear up the crash zone, a task made all the more difficult by bad weather and the presence of 12 destroyed buses. Be careful out there!

Reuters reports that United Auto Workers Veep General (no relation) Holifield predicts that Chrysler's employee buyout program will fall short of its 10k goal. That said, Holifield reckons the union will have a better picture of how many employees will take the offer "in a few weeks." Meanwhile, surprise! He suggested management should improve the buyout terms if it wants to make the 10k buyout goal laid out in its turnaround plan. Holifield did not indicate just how stupid employees would feel if they took a buyout now, only to have the offer improve later. The union boss did reveal that the union is in talks with Chrysler in an attempt to keep the company's Durango/Aspen SUV plant in Newark, DE open. "As long as that plant's running, there is hope. We never say die." Hey, isn't that the New Chrysler motto?

In an interview with Auto Motor und Sport, GM Car Czar Bob Lutz said proposed California tailpipe regulations are "an absolute mistake" that would be "impossible to meet." And yet, Maximum Bob predicted that The Golden State is likely to win the court battle over the stricter standards. "The judges aren't scientists," Lutz said. Maximum Bob warned that diesels would not be an easy route to clean air compliance. "We can currently meet 50-state Bin 5 standards, which is six times stricter than the Euro 5 norms, with our existing particulate-catalyzing systems. But these new California standards are not achievable in my opinion." GM's Veep of Global Product Development said that high diesel fuel prices and the $2k premium for oil burning engines made diesel-powered passenger cars unpalatable to American consumers. In other words, diesels and California regulations are a crock of shit. 

Iconoclasts that we are, we love it when people experiment with automotive irony. Case in point: LHT Performance's K20a Insight. The Floridian tuners (tunas?) stripped a red Honda Insight of its earth-friendly gas – electric innards and dropped in a Civic Type-R K20A engine. We're talking over 200 horses mated to a six-speed tranny. (How kinky does that sound?) The resulting car "goes like a rocket" and still gets 48mpg. The K20a is no stripped-out street racer. You got your power steering, AC, ABS, and an uprated suspension and frame. While building what could be the ultimate sleeper, LHT has raised (however unwittingly) an important eco-point. While automakers spend billions in a technological arms race to develop ever more complex drivetrains, these guys have proven that simple, small, aerodynamically efficient cars can be fun, fast and frugal. Who knew?

Current federal regulations require that car and truck roofs support 1.5 times their vehicle's weight. According to The Detroit Free Press, the Insurance Institute for Highway Safety (IIHS) is recommending that this standard be upgraded to 2.5 times the vehicle's weight on the driver's side. The industry-sponsored safety campaigners released a study concluding that the strongest existing SUV roofs reduce the risk of injury by 39 to 57 percent. The Chevy Blazer fared the worst in their roof crush test, while Nissan's X-Terra, Jeep's Liberty and third-gen Ford Explorers scored the highest. (Both the Explorer and the Grand Cherokee showed significant improvement in newer models vs. previous generations.) The new study does not deal with the impact of seat belt use (or lack thereof)– judged by "real world" analysis to have greater impact on rollover deaths than roof strength. Also, as TTAC's Bob Elton pointed out back in '06, reinforcing SUV roofs would raise the vehicle's center of gravity, potentially increasing the likelihood of a rollover. Although the IIHS called for active handling for all SUVs, the laws of physics cannot be ignored– or revoked.