In the grand old days of the European auto industry, rival houses would battle for supremacy in endurance, road, rally and formula racing, the results of which were treated as far more important than (or, at least the basis for) such prosaic concerns as sales volume or profitability. In the modern era, this fierce competition slacked, as racing became about brand-building and competition moved into the arenas of sales and profits.  Now, however, a new competition has erupted between every brand with a presence in the European market, only this time participation is compulsory and the stakes are survival in a super-competitive, mature market. And neither speed nor endurance will win this race against time: only reaching an EU-mandated carbon emissions goal by 2015 will do.

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Lexus’s GS-series of sports sedans has been a perennial sales dog for years now, winning Toyota’s luxury brand few converts from its 5-Series, E-Class and A6 competition. In fact, it’s a testament to Lexus’s successes in building unconventional luxury niches with the RX and ES lines that it’s been able to become a major US market luxury brand without a popular full-sized luxury sedan. But with luxury sales competition heating up under pressure from BMW and Audi, it’s clear that Lexus isn’t willing to let the GS’s underachievement continue unaddressed.

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Exactly a week ago, Fiat said it would up its stake in Chrysler “within weeks,” and according to the Detroit News, the deed is now done. Having earned 5% of Chrysler’s equity by building a FIRE-family engine in the US (for use in the Mexico-built Fiat 500), Chrysler had to confirm that it has brought in $1.5b in non-NAFTA foreign revenue, and (according to Chrysler’s LLC agreement [PDF])

[execute] one or more franchise agreements covering in the aggregate at least ninety percent (90%) of the total Fiat Group Automobiles S.p.A. dealers in Latin America pursuant to which such dealers will carry Company products

in order to bring its stake up from 25% to 30%. We already know that Fiat will achieve this goal by rebadging Chrysler vehicles as Fiats for Latin American markets, a move that is technically compliant with the letter (if not the spirit) of the LLC agreement. But, it turns out that Fiat still had to get the Treasury to amend its agreement in order to bend the rules just a little bit more.

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After several abortive attempts over the last several congresses, the “Right To Repair” Coalition for Auto Repair Equality  has had a new bill introduced in the 112th Congress with the goal of

requiring that car companies provide full access at a reasonable cost to all service information, tools, computer codes and safety-related bulletins needed to repair motor vehicles.

The auto industry has long opposed such bills, which have been passed on the state level but have never been passed into federal law. Back in 2009, then-head of the Alliance of Automobile Manufacturers lobby group, Charles Territo, argued against Right To Repair legislation in a TTAC editorial, calling it “a solution in search of a problem.” More recently, the AAM opposed a Massachusets Right To Repair bill on the grounds that it would increase Chinese piracy of auto parts. Needless to say, now that CARE has finagled HR 1449 into Congress with bipartisan sponsorship (from Todd Platts (R-PA) and Edolphus Towns (D-NY)), the debate is about to get fired up all over again.

Reuters reports that auto market research firm CNW Research is projecting April transaction prices to be the highest in 15 years, when measured as a percentage of MSRP. According to the report, early April sales show average transaction prices hitting 87% of MSRP, the highest such level since 1996. By comparison, transaction prices were running at around 77% of MSRP during the industry’s down year of 2009. Looser credit (subprime sales are up 92% from last year), tsunami-related production delays and lower supplies of used cars, particularly small cars, are all given credit for contributing to the rising prices, although bailout-era capacity reductions clearly set the stage for this comeback. And with tsunami-related interruptions still working themselves through the system, demand could push prices higher still. But, says CNW principal Art Spinella, don’t look for the manufacturers to reap all of the rewards of rising transaction prices.

Dealers are the primary beneficiary of these dwindling discounts since they are using fewer of their own dollars to close a deal than was necessary just a few years ago

American auto enthusiasts often bemoan the lack of diesel options offered on the US market, looking to Europe as the promised land of oil-burning efficiency. But Europe’s love affair with diesel, which has been manifested in a 50%+ diesel sales mix for years, may be coming to a close. The WSJ reports

The European Commission–which has executive powers in the European Union–will propose to levy a minimum EUR20 per metric ton of carbon dioxide emitted on products like gasoline, diesel, natural gas and coal starting in 2013. But it will also propose adjusting the existing legislation by gradually increasing a minimum levy on the energy content of diesel to bring it to the same level as that of gasoline starting in 2018

Here’s the key: in addition to basing taxes on C02 emissions, the EU tax structure shift will result in fuel taxation based on energy content rather than volume alone. Accordingly, diesel’s higher energy content means it will see a more dramatic increase in taxation levels. And this single common-sense proposal is unleashing an intense debate in Europe about energy, taxation and the future of the auto industry.

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Ford Motor Company has benefited immensely from its investments in its Blue Oval Brand, improving sales and profits, while wrapping its entire operations in an aura of invulnerability. But underneath all the Ford-branded success lies a problem that, more often than not, has been conveniently swept under the rug: Ford’s luxury offerings are in chaos. The last time we checked in on Lincoln, Ford was trying to convince dealers that Lincoln’s future product would be competitive in the tough luxury market… without disclosing any details that might give salesmen hope that future Lincolns will be something other than an obviously tarted-up Ford. But as tough a sell as that is, Lincoln’s dealers seem to be even more worried about the more prosaic elements of Ford’s luxury brand turnaround…

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Saab ended last week with “no solution in sight,” but after a busy weekend it seems that the Swedish brand has found a way to keep rage, raging against the dying of the light. Bloomberg reports that

The Swedish government has agreed to let Saab free up collateral now used to back the EIB loan, of which Saab so far has drawn 217 million euros, the people said. The freed-up collateral allows Saab to sell property to Antonov’s company. The property to be sold would include at least parts of Saab’s factory in Trollhaettan in southwestern Sweden, where the carmaker is based.

Saab (technically still called Spyker Cars) also recently sold its Spyker sportscar business to Antonov who continues to be the only major investor involved in Saab and its ongoing rescue. And though Antonov continues to be happy to pour his money into the firm, it’s not as simple as just writing a check: Antonov keeps offering support and governments keep shooting them down. Where’s the private capital love?

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We recently asked our Best And Brightest to help Chevrolet look back through its past and find the designs that should inform the brand’s future design direction, an assignment that touched off a number of fascinating conversations. Now, with news of Alfa’s US launch being delayed at least in part due to problems with the design of its all-important D-segment sedan, we reckon it’s time to help Alfa navigate its current design crossroads. Only this time, it’s even more important. Though once-famous for its crackling V6s and flat-fours, Alfa’s have become increasingly dependent on their non-mechanical attributes: style, flair, and Italian-ness. And unlike Chevrolet, the brand has more recent design heritage to draw on as it approaches a US launch just as automotive designs are becoming increasingly emotive. But whereas Chevrolet lacks design identity, Alfa suffers from too much identity: though the 8C is a gorgeous car and a sublime halo, its design cues are becoming something of a crutch for Alfa’s designers.

And so we ask: if Alfa is looking for a new design direction to help launch it as a global premium/sporty brand, what past designs should it turn to? My personal top choice, the Alfetta GTV6, may not be the most beloved design amongst true Alfisti, but it’s a distinctive design at the crossroads between old- and new-school Italian brio. If Alfa is to succeed, it needs designs that reference both heritage and modernity, and to my eyes, the GTV does just that. But that still leaves nine more choices…

Audi’s upcoming A3 may represent a certain amount of a break from recent Audi strategy, but as new sketches of the compact luxury car emerge, it’s clear that Audi isn’t taking any steps into the unknown with its design. Park this sketch next to a new A6, and the only difference appears to be some extra nose and rear deck. I suppose that if the fashion gods are smiling upon you, as they seem to be smiling upon Audi these days, you keep your designs consistent and conservative. But with Mercedes-Benz breaking out of the “one sausage, different lengths” mold and throwing funky, expressive hatches into the A3’s competitive space, shouldn’t Audi be trying a little harder to beat off the oldest trap in German luxury sedan styling?

Ben writes

Sorry if this is not the right way to send something, but this car has been bugging me. It is obviously a disguise job because it was on a TV show. But I have not been able to put my finger on what is beneath the modified design. My best guess is a Pontiac G6, but some of the lines just dont match up. THIS IS DRIVING ME NUTS!

If Chrysler’s five-year business plan were taken at face value, one might be forgiven for thinking we were supposed to have a four-cylinder, stop-start-equipped diesel Wrangler in the US by now. Not so, clarified Jeep’s bosses, while keeping the window open. Now Jeep CEO Mike Manley is hinting at diesels again, telling the Freep that the Wrangler and Grand Cherokee could  get oil-burning engines “within three years,” and that

Diesel in some of our models makes absolute sense.

Europeans certainly seem to think so, as the vast majority of Jeep sales on the continent are diesel models. And no wonder: on the European test-cycle (non-EPA), the 3.8 liter gas-powered Wrangler (with manual) is rated at 15.5MPG city, 29 MPG highway and 22MPG combined, while the diesel 2.8 with manual and stop-start (offering less horsepower but more torque) is rated at 28.5MPG city, 36.2MPG highway and 33.1MPG combined (converted from l/100km figures). It might not be long before that kind of efficiency advantage becomes worth the $1k-$3k projected price premium (assuming the EPA test reflects an equal advantage).

A report from Automotive News Europe [sub] says that Alfa-Romeo’s return to the US market has been delayed from late 2012 to 2013, as its parent company Fiat struggles to work out a satisfying turnaround strategy for the sporting brand. According to ANE’s sources,

In a presentation to bond holders held on March 29, [Fiat CEO Sergio] Marchionne showed a slide that said the Giulia sedan and wagon, which will replace the 159 sedan and Sportwagon, would be made in the United States starting in 2013. A year ago that slide, which was part of Fiat Group’s presentation of its five-year strategic plan, showed the Giulia models being built in Italy and debuting in North America in late 2012 as part of the brand’s return there. The Fiat spokesman now says the company still needs to decide where the make the Giulia.

Once again, Fiat finds itself torn between competing government backers. Should Fiat build the Giulia, which will be closely related to the replacement for the Chrysler 200 and Dodge Avenger, in the US (as a thank-you for receiving a bailed-out Chrysler) or in Italy (to keep jealous politicians and labor unions happy)? But it turns out that this isn’t even the extent of Alfa’s problems…

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The sun is shining into the shrouded windows here at TTAC HQ, seriously tempting me away from the computer for the first time since Oregon’s long, grey winter set in. In celebration of the fine weather and the impending weekend, we continue our March sales coverage by taking a look at the cars we call “weekend toys.” There’s no real rhyme or reason to this “segment,” as it spans a variety of sizes and price points. So rather than seeing this as a segment of directly-competing models, just think of it as an update on the world of (relatively) irrational vehicle purchases. The chart above represents the most popular vehicles that we think qualify as sufficiently irrational… hit the jump for an extended chart, including the higher-priced, lower-volume models.

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Saab’s inability to pay suppliers led it to request a release of some of its debt collateral by Sweden’s National Debt Office, reports Reuters. The NDO has loaned Saab €400m, but with its Russian backer Vladimir Antonov still unable to inject cash into the company, Saab was forced to ask for some of its NDO loan collateral in order to cover its supplier debts. But, according to another Reuters report, NDO spokesfolks say

It is clear what the problem is and everyone possible is trying to solve the problem… a solution to the problem had seemed in sight, but that in the end it did not work out.

The NDO says it will keep working with Saab, and the automaker predicts a resolution by next week (without offering any further details). After a year of independence from GM, the Swedish brand could well be reaching the end of the line.