In news sure to disappoint the stateside fanboys who've waited decades for a replacement to Vee-Dub's Corrado, Wolfsburg announced that the new Portuguese-built Scirocco coupe will not be coming to the U.S. According to Bloomberg (the news agency, not the Mayor of NYC, although he owns the news agency), VW's sales and marketing chief Detlef Wittig told reporters at the Geneva Auto Show that "this car would fit the U.S. market but at the current exchange rate we wouldn't make any money." The currency differential combined with VWs ambitious plans for an American resurgence (1m units per year or… less!) have led the Porsche-controlled company to look at sites for a new American manufacturing plant. (Wittig said VW should be done with its tax break hunt search by June of this year.) No word on whether the Scirocco embargo is part of a scheme to get coupe-loving 20-somethings to buy more savings bonds to prop up the free-falling dollar. But we doubt it.

Green has always been an essential part of the Bentley experience… lots and lots of green. But today the British automaker unveiled its plan to join the wave of manufacturers offering more environmentally-friendly drivetrains. You know; eventually. The German-owned British brand will begin its transformation from maker of CO2-spewing playthings for the over-moneyed set to eco-conscious planetary champions by offering a flex-fuel option next year. ("James, take the Bentley down to London and fill it up with ethanol"). By 2015, Bentley will provide E85 compatibility across their entire lineup (all six models). And while you're recovering from that shock, the Bentley Boyz will begin development of an unspecified drivetrain that will deliver 40 percent better fuel efficiency than their normal gas-sucking mills. In the short term, Bentley says its socially responsible engineering efforts will focus on enhanced engine management; new, improved transmissions and drivelines and weight reduction. Torque about greenwashing…

As we reported yesterday, Ford's sale of Jaguar and Land Rover to India's Tata Motors is far from a done deal. In light of today's confirmation that the transaction will not go through this week as predicted, it looks like Tata's reach may exceed its grasp. Reuters questions the role the British brands would play amongst Tata's lineup of commercial-duty trucks and compact to sub-compact cars. Another issue: Tata's credit rating. It turns out that Moody's and Standard and Poor's placed Tata on review for a credit rating downgrade when the Indian firm emerged as the frontrunner for Jag/Landie. Not coincidentally, Tata's stock slid ten percent during its six month courtship of Ford's cast-offs, while the rest of the Indian stock index grew by nine percent. Speaking in Geneva, Rattan Tata was quoted as saying he remains "reasonably confident" that the deal will go through. Reasonably? Uh-oh.

Showcased in the Saab 9-X concept at Geneva, GM's unveiled their fifth hybrid powerplant: an evolution of their first-gen Belt-Alternator-Starter system (a.k.a. BAS or "mild hybrid"). The Detroit News says upgrades include a new, Hitachi-sourced lithium-ion battery, a new electric motor, the addition of "brief electric-only propulsion" and improved regenerative braking. At Geneva, GM hybrid guru Steve Poulos said these upgrades do not an American Revolution make. "We took the same [first-gen BAS] system and put it on steroids." GM's next gen system is three times more powerful than the existing BAS unit. That said, Poulos admitted that the new system will improve a BAS-equipped vehicle's fuel efficiency by one to two miles per gallon. CEO Rick Wagoner says this new drivetrain is "important step to make hybrid technology more affordable to a wide variety of consumers." Baby steps indeed. If GM wants to catch-up with Toyota's Synergy drive, they'll have to do better than this.

When a bankruptcy court judge ruled that Chrysler could not strip bankrupt supplier Plastech of its proprietary tooling, it looked like the two were stuck with each other. And yet, a surprisingly short extension to their interim supply agreement signaled more conflict ahead… and here it comes. The latest supply contract is set to expire at midnight on Monday. The Detroit News reports that rather than extend it again, Chrysler will appeal the ruling and try once more to remove their equipment from the Plastech plant. In their court paper, ChryCo's lawyers postulate that "the court's decision may have significant implications for the way automakers and their suppliers do business in the future." True dat. And if Chrysler's appeal fails? Industry watchers say it could put Detroit's suppliers at a huge advantage over their customers… and potentially trigger another wave of supplier bankruptcies.

Deutsche Welle reports that Porsche is officially the Maus that Roared. Porsche Automobil Holdings will shell-out $15b for the final 20 percent of Volkswagen shares. Subject to regulatory approval, Porsche will gain controlling interest in Europe's largest automaker. Porsche CEO Wendelin Wiedeking called the deal "a new and collegial partnership"– immediately evoking unpleasant memories of Daimler’s "merger of equals" with Chrysler. Anyway, there’s a lot of work to be done: VW’s non-existent market positioning, overlapping brands, U.S. product quality, etc. Still, if there's even a remote chance that Porsche’s takeover– sorry, “assistance” will lead to stateside VW's becoming even a little more Porsche-like, the deal has our unqualified blessing. We’re not holding our breath.

The Economic Times of India reports that Tata's any-day-now-they-swear $2b acquisition of Land Rover and Jaguar has been delayed by the Unite union's insistence that Jag continue to source powertrains from Ford's UK plants. (The two brands will be kept as a single package because Jag and Landie share UK-sourced powertrain components.) Ford PR flacks aren't concerned that these unresolved issues may prevent the deal from going through by the projected March fifth deadline. "There will be a strong relationship between Ford and Jaguar-Land Rover post the sale, so it's important any agreements are fully understood by all the parties and work to the mutual benefit of all concerned. However, this shouldn't be seen as a delay or issue or roadblocks in the process." This should probably be taken with a grain of salt, considering Ford previously claimed the announcement had been held back "so as not to overshadow the launch of the new Fiesta at the upcoming Geneva Auto Show." Insert mirthless laugh here.

As part of GM's ongoing greenwashing campaign efforts to save the environment, The General has formed a partnership with one of the few companies in the world with an even greater responsibility for production of greenhouse gases: Virgin Atlantic Airways. In a splashy New York press conference [publicized via PRNewsWire], Virgin Atlantic and GM executives touted their agreement to provide fuel cell-powered Chevy Equinox limos as part of their Upper Class Limo Service. Initially, the vehicles will only be available only at LAX. If all goes well, the program will expand to The Big Apple, where Virgin customers will "experience the next generation of cars but also reduce their carbon footprint." Well, as long as they can afford the Virgin "Upper Class Experience" and ignore the energy-intensive hydrogen production techniques. In fact, the whole project serves only serves to reinforce the worst aspects of the so-called "green consumption" movement: offering immature technologies to alleviate the guilt of those who can afford to pay huge price premiums. How about focusing on reducing carbon intensive air travel or delivering cost-effective, fuel efficient vehicles across a model range?

With the UAW less than a week into its strike at American Axle (AA), International Business Times reports parts shortages are set to idle a fifth GM truck plant sometime this evening. The Moraine, Ohio plant which manufactures Chevy Trailblazers and GMC Envoys will not be closing its doors; management told workers to report to their normal shifts for training. Striking union leaders at AA's Three Rivers, Michigan plant reported over the weekend that they are "ready for serious bargaining at any time." GM is unlikely to lean on either AA or the UAW for a quick resolution, considering their huge overstocks on nearly all of the truck-based models made using American Axle parts. J.D. Power notes that Envoys sat on dealer lots for an average of 59 days before sale in the December-February period, while Trailblazers languished an embarrassing 75 days. Without real leverage, the onus is on the United Auto Workers to explain to its 3,600 striking AA employees why it's worth disrupting production at plants which collectively employ over 12k union brothers and sisters.

Morgan has long been known as the maker of quirky British cars with technology, materials and looks straight from the early 20th century. With the de rigeur pre-Geneva release of its jointly developed prototype Lifecar, it seems that Morgan has decided to skip a hundred years or so of automotive development and go straight to fuel cells. Based on the Morgan Aero 8, co-developed by a consortium of British Universities and defense companies, the Lifecar concept features a relatively small 22kw fuel cell. With supercapacitors replacing batteries and regenerative braking, the Lifecar is pegged to scoot to 60mph in seven seconds and have a 250 mile range (now why does that sound so familiar?). The key to Lifecar's performance: a lean 1,500lb curb weight. Morgan's woodworking prowess helped give the Aero 8's crash diet a little class, fitting the concept with a super-lightweight wooden interior and seats. Morgan is not ruling out possible Lifecar production if there's an "enormous response." And if the idea of a totally silent lightweight Coupe based on an unavailable fuel source doesn't tickle your "enormous response," Morgan might just throw in a pair of headphones which will playback the sound of their five-liter V8 in time with the movements of your right foot. Now where's that checkbook?

In another of the long, slow trickle of sneak peeks of vehicles set to premiere at the Geneva Auto Show (just hold the damn show already people!), Italian design atelier Zagato has released the first official shots of its Bentley Zagato GTZ. Following the tradition of years of luscious Zagato re-skins of unattainable British whips, the design adds sleeker lines, crisp folds and its trademark double-bubble roof to the already hot Bentley GT Speed. A two-tone paint scheme in British Racing Green, a toned rear-end and Zagato's "Z" emblem on the front quarter round out the subtle, yet wholly distinctive re-skin. Like every other Zagato concept, the GTZ is being called a non-production prototype designed to inspire enough money-no-object offers from the bloated plutocrats of the world to eventually produce a tiny run of GTZs. We'll start looking for the whip on the streets of Monaco once several prominent charities begin to report downturns in donations in the next year or so.

On a you-can't-make-this-up page of news briefs from Moscow News Weekly (featuring such hilariously Russian headlines as "Newborn Babies Dumped In Chelyabinsk's Trash" and "Lemur Smugglers Caught In Southwest Russia") comes a little warning to companies looking to cash-in on Russia's booming car market. Thirty-six-year-old Vyaches­lav Shirshov was found stabbed to death in his apartment in the town of Tolyatti. Shirsov was the head of procurement for the enormous AvtoVAZ group, known to the west as the makers of the infamous Lada. The responsibility of choosing raw material suppliers is a risky proposition, at least in Russia, as investigators are pointing to Shirsov's job as the likely cause of his untimely death. The news brief concludes by stating that Tolyatti "has a reputation for turf wars between criminal gangs seeking control over the lucrative auto industry." As GM has been in business in this quaint little burg since 2001 (jointly manufacturing the Chevy Niva with AvtoVAZ), it has no reason to worry about it's recently announced joint venture just up the Volga in Nizhny Novgorod. I'm sure it's figured out whom to bribe by now.

Troubled Chrysler supplier Plastech's bankruptcy proceedings just got a little more complicated. Automotive News [AN, sub] reports that Johnson Controls Inc. (JCI)– which accounts for over half of Plastech's $1.4b annual business– filed a motion yesterday to force the plastics manufacturer to either accept or reject their sourcing agreement. In the motion, JCI claims that Plastech is incapable of producing the 6000-odd parts it buys from Johnson at the agreed price; an issue which has forced JCI to "bail-out" Plastech several times in recent years. Although firms in bankruptcy usually take several months to arrange a reorganization plan before accepting or declining contracts, JCI argues that it can't afford to wait. "If the debtor cannot assume the (agreement) and perform according to its terms, the debtor cannot reorganize." The key issue appears to be Plastech's ability to secure capital coming out of bankruptcy. JCI, Chrysler and other Plastech customers have made it clear that they will no longer pay out lump sums above the negotiated cost of sourced parts. Meanwhile, Plastech's $31m line of credit is nearly gone. The firm has 15 days to respond to JCI's motion. This is getting really ugly really fast.

Everyone knows that when you travel to say, China, and someone offers you an amazing deal on a Swiss watch, you might not be getting the genuine article. Buy a discount Ferrari in Italy though, and you can safely assume you are getting the real deal, right? Wrong. The International Herald Tribune reports that Italy's financial police (?) have broken a ring of Ferrari counterfeiters who had built 14 fake 360 Modenas using, get this, "mostly Pontiacs as their base, but also Mercedes and Toyota." While visions of the notorious "Fiero-rrari" body kits are probably racing through your head, these fakes actually were fairly well done (if equally targeted at the chest-rug sporting crowd). Authorities say that seven of the faux-rraris were sold to people who knew the cars were fake, and simply wanted to impress the neighbors. Said neighbors were sadly unavailable for comment as to the full glory of a late-model Ferrari with the exhaust note of 20-year old Pontiac V6.

According to The New York Times, Big Apple mayor Michael Bloomberg is about mandate that the City's 10k car service limos must average 25 mpg by 2009 and 30 mpg by 2010. As the vehicles in question currently average between 12 and 15 mpg, they'd almost certainly require hybrid drivetrains to achieve Bloomberg's lofty goals. The plan requires approval by New York's Taxi and Limousine Commission. Passage seems likely. Commissioner Mathew W. Daus' says "it is to the great credit of black-car industry leaders that they have collectively embraced Mayor Bloomberg's efforts to reduce harmful emissions." Daus' willingness to green-up may something to do with the fact that Hizzoner isn't going force limo companies to comply with the new standards through punitive fines. Instead, Bloomberg is proposing a state sales tax waiver on purchases of more efficient limos and low-interest financing, through corporate partnerships with Deutsche Bank, Lehman Brothers, and Hudson Toyota/Penske Auto Group.