Does that headline seem ripped from the pages of TTAC’s 2008-2009 headlines, or what? But really, who’s shocked? Chrysler spent early 2009 trying to convince the government that it was worth a (second) taxpayer-funded second chance, and now that it’s looking for a private-sector bailout in order to escape the terms of its publicly-funded bailout, Chrysler’s still got some ‘splaining to do. The DetN reports:

Chrysler Group LLC does not intend to speed up plans for new cars despite media reports that investors see a high degree of risk in an automaker that has been so dependent on truck sales…

“Nothing has changed from the five-year plan,” [Chrysler Group VP of Design and Dodge boss Ralph Gilles] said.

New small and midsize cars for Chrysler, engineered by Fiat, “are coming strong and heavy,” Gilles told reporters following a speech. “There is no need to speed up.”

Now, nobody would suggest that Chrysler should mess with its product timing simply to please some bankers. If it’s even remotely possible to hurry new products to launch without cutting serious corners, Chrysler should/would be doing it anyway (ask Sergio). Still, Gilles’ “nothing has changed” sound bite isn’t exactly true.

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Why do consumers like CAFE? Well, the short answer is that a gas tax (which is infinitely superior from a pure policy perspective) hits them directly in the pocketbook, while CAFE forces automakers to absorb the cost increases before passing them along to consumers in the form of higher MSRPs. But underlying this fact is a larger issue that’s driving support of increased emissions regulation: gas is getting more expensive. As I pointed out in my recent editorial on the subject, for all the automakers’ whining about CAFE increases, it seems that energy prices are moving the market in the same direction anyway (the average family will spend $3,100 on gasoline this year).

According to a Consumer Federation of America study [PDF], the steadily-rising price of energy has consumer’s even more concerned about gas prices and dependence on the volatile Middle East than they were during the height of the last fuel price shock in the Summer of 2008. As a result, support for a 60 MPG fuel economy standard doesn’t go below 49% (among Independents) even assuming a ten-year payback period, and earns the support of 63% of Democrats. And before you dismiss this support as hysteria, consider the underlying economics for a moment…

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Who’s the most efficient automaker of them all? According to TrueCar’s projections for May, Smart, MINI, Hyundai, VW and Scion top the list for sales-weighted fleet fuel economy. Meanwhile, the industry average of 22.4 MPG might not sound like much, but when you convert it to the “unadjusted” numbers used for CAFE, that 22 MP turns into about 28 MPG. Considering the 2015 CAFE standard is 35.5 MPG between cars and trucks, that average shows the industry to be fairly well on-track to comply with the initial CAFE ramp-up. In fact, since 35.5. MPG CAFE equals about 27 MPG EPA, it seems that the top three brands on this list (Smart, MINI, Hyundai) can pretty much twiddle their thumbs between now and 2015, as they’re practically in compliance with the 35.5 MPG standard already.

Today’s sign of the times comes courtesy of the world of social media, and calls into question some of our most basic assumptions about the world of cars. France, it seems, experienced a 12.8% increase in on-road fatalities in the first quarter of this year, and the New York Times reports that the French government is responding by banning devices that scan the road ahead for speed camera radar waves.

A decade ago, the death rate on French roads was among the worst in Europe, and the government reacted in 2002 with what some drivers called repressive tactics. Radar cameras were erected at intersections throughout the country, which captured a motorist’s license plate if the car surpassed the speed limit by more than 5 kilometers an hour (3 m.p.h.), deducted points off a motorist’s license and sent a fine through the mail.

The measures were deemed successful. The International Transport Forum said France achieved a reduction of 47 percent in its road-death toll in the first decade of the century, relative to the 1990s. The ministerial report said the average speed in France also dropped 10 kilometers an hour since 2002, or 11.7 percent.

The radar cameras, however, spawned a thriving market in radar-warning devices. According to AFFTAC, 5.1 million drivers in France use them. Under the new law, users would face fines of up to 1,500 euros, or about $2,100.

The French government’s decision to not only ban radar detectors, but also to remove signs warning motorists of fixed radar cameras has generated some serious backlash. Apparently over 80,000 people “liked” the Facebook page of AFFTAC, a group opposing the measures and calling for nationwide protests, over the course of two days. By comparison, the most optimistic count of hand-raisers for a possible future Chevy El Camino is “possibly as high as 18,000 people.” Call us crazy, but we thought America’s oft-cited “love affair with the automobile” would have created some slightly different results.

Despite deep skepticism about the value of Saab’s latest “alliance” with the Chinese dealer group PangDa, it seems that the Swedish automaker will restart production next Wednesday. SaabsUnited translates a DI.se report

“I expect the plant to begin production on Wednesday of next week since they’ve come to the Saab on Tuesday this week,” said Gunnar Brunius, Purchasing and Production Manager at Saab Automobile to DI.

On Tuesday, he initiates the process of agreeing with Saab’s 800 suppliers so that they start to deliver the components again after a six-week shutdowns.

The major suppliers, including IAC, Sweden, Plastal and car seat manufacturer Lear, are invited to personal meetings, while many other contacts are handled through e-mail.

Saab will reportedly restart production at a rate of 230-240 cars per day, but first it will have to pay off suppliers. We’ll see if that actually gets accomplished before we take this report too seriously, especially since CEO Victor Muller has admitted that negotiations with suppliers could take “several weeks.” But, Muller tells Saab employees that “we will never give up,” so who knows how long Saab’s death throes could last.

Yesterday we gave GM kudos for addressing its lingering vehicle weight issues by redesigning the head of its popular 3.6 liter V6, and shedding 13 lbs in the process. It was, we noted, the kind of news that showed GM is staying focused on the nitty-gritty of product development, sweating the details. But, according to a fascinating piece by GMInsideNews, new-product development at GM still has its issues. Specifically, Cadillac’s development of a new BMW 3-Series fighter, known as ATS after its “Alpha” Platform, has faced more than its fair share of what GMI calls “drama.”

Turf battles, unnecessary “wants” on checklists and ultimately a severe case of “Mission Creep” have created a vehicle that now needs a crash diet, according to GMI’s sources both within GM and at suppliers working on the Alpha/ATS program. For a vehicle that’s taking on an institution like the BMW Dreier (not to mention costing a billion dollars to develop), these are troubling signs indeed.
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Ford’s arduous Lincoln turnaround is having another one of those awkward moments, as Ford and its dealers seem to once again be at odds about how to go about fixing Lincoln. And though it’s tough to tell what exactly is going on in Ford’s fandango with Lincoln dealers, it’s easy to see that it ain’t good. For starters, last week, Automotive News [sub] ran a blog item that noted

In just a few weeks, a group of Lincoln dealers will converge on Detroit for an invitation-only brand meeting with Ford Motor Co.

Mark Fields, Ford’s president of the Americas, promises that the meeting in early June will spell out some specifics about Ford’s plan to reignite its luxury brand.

But some dealers have put their invitations in the round file.

One says he won’t “waste” his money on airfare, adding that when Ford has “actual future product to show us, then I’ll go meet with them.”

One Lincoln dealer with a stand-alone store did not get an invitation, but he doesn’t care.

So, clearly things don’t sound happy in Lincoln Land. And what does Ford have to say to the non-attending and uninvited dealers? Ford’s Alan Mulally personally delivered a response the next day at Ford’s annual shareholder’s meeting…

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One of the most consistent and valid criticisms of GM’s product development, even in the post-Lutz era, is the class-leading weight that so many new GM products carry around with them. To a number of industry observers, the lingering weight problem that so many of GM’s cars struggle with is a sign of corners cut in the design process. GM’s cars may look, feel and drive better than they did five, let alone ten, years ago, but clearly the battle for truly “world class” products isn’t over.

And now we’re getting some of the first indications that GM is taking the weight issue seriously, as GreenCarCongress reports that GM’s engineers have pulled 13 lbs out of its 3.6 liter direct-injected V6 simply by redesigning its head. Given that the 3.6 is already one of GM’s better engines, and is used in a huge number of its vehicles, that’s a solid first step as The General takes on the battle of the bulge.

As Steve Rattner described in his book “Overhaul,” the Presidential Auto Task Force very nearly decided not to rescue Chrysler, with the decision coming down to a single vote. Now, it seems, that with Chrysler blaming the “shyster” interest rates on its government loans for its lack of profitability, Chrysler’s viability now depends on rounding up a “lender of second to last resort.” And, according to the latest reports, that rescue-of-a-rescue effort is still very much hanging in the balance as well. If CEO Sergio Marchionne thought the government’s loan terms were “shyster”-ish, he was clearly in need of some context from Wall Street… and he doesn’t seem to be liking it.
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When Lotus showed five new cars at the Paris Auto Show last summer, the British Sports Car brand raised a number of eyebrows amongst the motoring press. Not only was Lotus abandoning its lovable but hugely unprofitable enthusiast/trackday niche, but it was also reaching for Ferrari and Porsche-style brand recognition while offering an ambitious but underwhelming (on paper anyway) vision of its future product lineup. Five new vehicles (three mid-engine, two front-engine, four two-door coupes, one four-door sports sedan) is a lot of development work, and initial reports that Lotus would use Toyota power including hybrid drivetrains didn’t create much for enthusiasts to get worked up over. Lotus has since backed away from using Toyota power, but developing engines for five new vehicles creates a whole new set of challenges. And, as it turns out, Lotus has wuietly backed away from the most ambitious elements of its plan, and the firm now plans to launch only two cars at first. Has Lotus turned the corner from hype machine to credible competitor?

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Editor’s note: Car News China has some pictures of the Dongfeng EQ250 in police livery, accompanied by the nearly-unbelievable tale of the HMMWV’s Sinification, which we have excerpted here. Do surf over and check out one of the better Chinese car blogs out there.

AM General tried to sell the HMMWV to the People’s Liberation Army (PLA) in the late 1980′s.

The PLA however had no interest in the vehicle by that time, they thought it too big and heavy. AM General left one HMMWV in China, hoping the Chinese would change their mind. They did after the first Gulf War in 1991 when the HMMWV was on every TV screen in the world, seen as a winning vehicle that could cross every desert.

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It started as a flippant Twitter comment, in which GM Global Marketing Officer Joel Ewanick agreed to champion a return for the “El Camino” if 100,000 potential buyers raised their hands for it. Smelling an opportunity for some publicity, Jalopnik quickly picked up on the “challenge” and urged readers to leave a comment in support of the trucklet. At first Ewanick tried to hedge, saying he needed 100k deposits, rather than blog comments, to approve an El Camino for the US market. But now the former Hyundai marketer has taken Jalopnik’s challenge to Chevy’s Facebook page, giving a surprising amount of credibility for a “challenge” that began with a throwaway tweet. What makes Chevy’s endorsement of the “El Camino Challenge” even more surprising: the total lack of apparent enthusiasm.

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TTAC has paid close attention to the fortunes of ethanol in the United States, where grossly wasteful subsidies have forced the corn-derived fuel into the fuel supply in growing percentages, drawing backlash from small but vocal portions of the population. But much of the ethanol ire is directed at higher blends like the recently-approved E15 and the increasingly-unpopular E85 mixtures. Meanwhile, most Americans regularly fill up their tanks with E10, which has become standard at pumps across the nation. But in Germany, where E10 was only just introduced, people are rejecting the low-ethanol blend that even the most vocal American ethanol opponents use every day. Initially, the biofuel industry in Germany blamed a lack of education for suspicion of E10, but according to Autobild, some 75 percent of German drivers now know whether their vehicle takes E10 (and most do)… but still, only 17 percent actually chose E10 for their last fill-up. And only 39 percent who know for a fact that their car can take E10 have ever used the ten-percent ethanol fuel. Why? Despite the high level of education, 52 percent of respondents still feared motor damage from the ethanol. Another 50 are opposed to “filling up with food.” Sometimes the more you know about something, the less you like it.

The reboot at Lotus has been much discussed in the motoring press, but amidst all the talk of styling and strategy, one of the brand’s major competitive issues has been widely overlooked. Lotus’s strategy is, in essence, to build up its brand to the level of a Porsche or Ferrari… in other words, reviving the UK’s position in the brutally competitive world of European sportscars. But just as Lotus is eying a return to greatness, targeting the top-tier of the sportscar market, another UK competitor with (at least) equally-burnished credentials is making is own play for a slice of the high-performance road car market: McLaren. Unlike Lotus, McLaren’s racing roots aren’t just deep, but are recent as well; the brand is rebuilding its legacy on the strength of its Formula One racing heritage as much as its legendary F1 road car. And unlike Lotus, McLaren has already delivered one of the more intriguing road cars in recent memory, the MP4-12C, which is lighter and faster than Ferrari’s lauded 458, while breaking new technical ground with its carbon fiber monocoque and adaptive hydraulic suspension.

And now Autocar reports that McLaren is following up its Mp4-12C with a limited-edition flagship hypercar boasting 800 HP from a 5 liter V8 that should hit 100 MPH in 5.5 seconds. With a 2014 launch date, the “Mega Mac” should hit the market just after Lotus introduces its first, rapidly-developed sportscars… and make Lotus’s task of capturing the position of UK’s top sportscar brand much, much harder. Can Lotus make up the difference with branding alone? We’ll sure enjoy watching the battle unfold, as nerdy, product-led, race-tech-happy McLaren takes on splashy, branding-led, glamor-happy Lotus.

The war of words over a possible 62 MPG 2025 CAFE standard is accelerating this week, as letters in support of the standard [sub] are vying with industry responses against the proposal for media attention. And though environmentalists are quick to point out the often-misunderstood difference between EPA and CAFE mileage ratings (a fact that even the industry-friendly Automotive News [sub] concedes, if only in a blog post], the industry’s response is miles away from any kind of compromise, saying

The alliance believes it is inappropriate to be promoting any specific fuel economy/greenhouse gas at this point

How’s that for some old-school, don’t-tread-on-me corporate attitude? No room for compromise, no sense of nuance… and yet, that doesn’t actually represent the industry’s position at all.

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