Ever since the messy collapse of solar panel maker Solyndra just two years after it received over half a billion dollars in government loans,  the political climate around all green energy loan programs has heated up considerably. As the White House opened an investigation of the Department of Energy’s entire loan portfolio, loan recipients and startup automakers Tesla and Fisker found themselves under attack. And why not? Fledging firms with unproven products in brutal, scale-driven industries are hardly safe bets, even in the best of times. And with the government drowning in deficits, who’s in a gambling mood?

What gets left out in the hue and cry is that Tesla and Fisker between them represent “only” about a billion dollars worth of DOE loans in a program that was supposed to be able to loan out $25b (the final tally could be closer to $18b). Dwarfing the half-billion-each investments in Fisker, Tesla, and Solyndra are projects that seem a lot less risky in contrast to the startups. Here, in Smyrna, TN, I got to see one of them being built.

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With all the attention being paid to Volt sales, production and turn time in the wake of recent congressional criticism, I thought I’d update our recent chart of Volt sales versus production to see how GM’s wonder car is doing a month on. As you can see, there’s not much obvious change on the year-to-date chart, with both sales and production trending upwards. But if we zoom in on the most recent months, we can see something strange happening…

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Germany’s Autobild continues to bang the drum about HFO-1234yf, an air-conditioning coolant sold by US supplier Honeywell as an “environmentally-friendly” alternative to other refrigerants. Problem is, C02 seems to be not only more environmentally safe, but safer for humans (notably rescue workers) as well…
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MyFordTouch was supposed to build on the SYNC system’s momentum, extending Ford’s edge in mass-market infotainment gizmology. Instead, MyFord nearly killed the golden egg-laying goose, by earning Ford a sharp downgrade from Consumer Reports and widespread criticism. Ford has decided that 40-minute training sessions weren’t going to cut it as a response to the complaints that the system was balky and confusing, and The Blue Oval is now trumpeting the all-new for 2013 version of MyFordTouch. Because, in the words of Ford’s spokes-interior-designer-person

As you can see, with a software platform like SYNC, it’s easy to continuously improve and upgrade your system.

You know, in comparison to the all-new Ford Escape she’s sitting in. It’s still not quite as easy as a computer software update: instead of downloading the reflash, you have to go into a dealer to get the upgrade. Meanwhile, this is just the latest hurdle in the hot-hot in-car gizmo side of the business. The big one comes in 2014, when the government issue rules on distraction-mitigation in voice-activated in-car systems. That could make this minor public beta testing fiasco look like nothing…

Of all the Japanese automakers, none are as far behind on hybrid technology as Nissan. For some time there was a sense that Nissan’s (relatively) huge investment in electric vehicle production would represent a “leapfrogging” of hybrid technology, but now the firm is using the common industry response to questions about future technology: a suite of options, rather than one single technology, will meet tomorrow’s low-energy transportation needs. As a result, Nissan’s been playing catchup, as it admits in a recent press release [PDF]

“We must have a tougher job than any other hybrid team in the industry,” says Mitsunobu Fukuda, a senior powertrain engineer at NATC. “Because our CEO, Carlos Ghosn, used to be known as skeptical about the value proposition of hybrids we had to make a really compelling case that we could deliver value to customers to get him to validate a hybrid program.

In 2004, as a stopgap measure, Nissan licensed hybrid technology from Toyota for use in certain markets.

“It was a bit of a blow to our pride, but that was the right thing to do under the circumstances,” Fukuda says.“Instead of rushing out a ‘copy-cat’ hybrid we wanted to take the time to develop our own hybrid, one that is clearly different – and better. I think we’ve managed to do that.”

What makes Nissan’s forthcoming hybrid system so different? For one thing, it uses Nissan’s “one motor, two clutch” system (currently found only on the Infiniti M Hybrid), which enables a compact design. For another, it’s supercharged.

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Reuters reports that GM Europe President Nick Reilly is retiring just as his successor predicts a slowdown the European auto market in the turmoil of the Euro crisis. Replacing Reilly is Opel’s CEO, Karl-Friedrich Stracke, who just last week told Automotive News [sub]

We expect that the automobile market in Europe will experience a painful cooling, and we expect a significant shrinking of the market.

And as if slow sales projections weren’t bad enough, Opel also faces a tough union boss in Klaus Franz, who is pushing for ever more production or not just Opels but Chevies as well, in the Euro zone according to AN [sub]. But despite the challenges facing Stracke, he’s still got a song in his heart… in the tune of GT. Though GM has no lightweight rear-drive platform to draw on, and in spite of all the gathering storm clouds, Stracke tells Auto Motor und Sport that

I can well imagine a car like the Manta, but with new technology and a new design. I could also very well imagine a proper Opel GT which recalls our classic model of 1968.

Ludicrous teasing? Possibly. An understandable escape from the depressing reality of mid-debt-crisis Europe? Definitely. I mean, what would you rather imagine, a cascading collapse of confidence in sovereign debt, or the scenario depicted above? Yeah, that’s what we thought…

Sales analysis for calender-year 2011 hasn’t been easy, as supply disruptions in Asia have caused sales dips that may not be related to actual market demand. So, it’s not entirely surprising that Subaru’s sales numbers seem to be drooping this year, after two years of spectacular sales growth. Indeed, the brand’s sales releases make much of its inventory woes, although Subaru USA’s Thomas Doll still insists that

Based on the continuing strong demand for our products, increased supply through December and the launch of the all-new Impreza we expect to finish 2011 with the fourth consecutive year of sales growth for Subaru.

And he may be right (note: our estimate of declining 2011 volume above is non-seasonally-adjusted). In fact, through October, Subaru was less than 1% off its pace for the previous year’s sales through October. On the other hand, if you look at Subaru’s sales over the last 18 months, you’ll find that not all of its sales slippage can be blamed on the tsunami….

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Subaru’s first preview of the next-generation Legacy, 2010’s Hybrid Tourer Concept, was an uncluttered vision of Subaru’s future as a junior-Audi, entry-premium Sedan. With this latest look, called the Advanced Tourer Concept, the new Legacy is starting to look a lot more like, well, a Subaru. Sure, the open-mouth, hexagonal grille is a new look for the brand that even the new Impreza doesn’t yet sport, but the strange, pontoon-like wheel arches bring just enough awkwardness to the party to let you know that this is a Subie. After all, if it’s slightly awkward, lacking a cohesive family design, different from anything on the road and yet somehow slightly derivative, chances are it’s a new Subaru.

Of course, the final product could well look quite a bit different than this… remember the last Impreza Concept? But here’s what may make it to production: a turbocharged 1.6 liter boxer engine mated to an electric motor and CVT, which Subaru says can replace the performance of its long-running, 2.5 liter, naturally-aspirated engine.

Tired of being teased? Can’t wait for the FT-86 to get here already? This picture won’t help…

Despite UAW President Bob King’s insistence that the UAW is not riven with divisions, Chrysler’s latest union contract is inflaming intra-union conflict, as the Detroit News reports that the Autoworker’s Caravan splinter group is protesting the union’s decision to approve a contract despite being rejected by Chrysler’s skilled trade workers. According to Autoworkers Caravan’s Alex Wassell,

We voted down the tentative agreement. But they used a procedural loophole to ratify it. We think it’s a very bad agreement and a very bad precedent, and we’re going to do everything we can to overturn it.

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Though the original A6-based Audi Allroad was designed for the US market, it hit the market at the height of SUV mania, and as a result never sold more than 6,357 units per year (in 2001, its second year on the market). By the end of 2005, Audi pulled the “Avant Outback” from the US where it was replaced by the hulking Q7 SUV, but the brand did develop a new version for Europe, which debuted in 2006. In many ways, this evolution mirrors the Subaru Outback’s shift from jacked-up wagon to full-blown CUV, and reflects America’s growing preference for unique-bodied car-based crossovers. And with a Q5 already on sale in the US, and a Q3 on its way, it seems unlikely that Audi will bring this smaller, A4-based Allroad to the US. But fashion being what it is, doesn’t it seem likely that the pendulum will eventually swing back, and that air-suspension-equipped wagons will once again enjoy a moment of vogue? And if anything is going to bring about such a fad, isn’t it this freshly facelifted A4 Allroad?

With October’s compact segment numbers reflecting Midsized segment’s return to the Toyota-Honda duopoly, the year-to-date graph shows that 2011 saw the rise of a new contender in the compact class: Chevy’s Cruze. With “virtually zero” 2012 Civics at Honda’s dealers (allegedly) due to Earthquake aftermath and Thai flooding, it’s beginning to look like Civic could be  kicked out of the new triumvirate, leaving Cruze and Corolla to fight it out to the finish.  To celebrate the drama, we’ve included a special bonus graph showing the “Big Six” compact horserace from January through October, to go along with the YTD graph. Enjoy!

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With Hyundai’s Genesis being handily outsold by the updated Mustang and Camaro, we’ve been expecting Hyundai to update its rear-drive sports coupe… and here is the first official fake image of the new look to fool us into thinking it was official. As expected, the new GenCoupe sports the new family front end, and a more sculpted hood. With more power from its updated V6 engine, expect the new-look Genesis to take the fight back to the Detroit muscle cars… especially when it’s joined in the Hyundai stable by a more performance-oriented Turbocharged version of the Hyundai Veloster.

With a 35% import tax on new cars, Argentina is already a touch market for foreign brands seeking to bring cars into the country. But the Argentinean government has just made it  little bit harder by demanding that importers export an equal amount of Argentina-made goods for every car imported. As a result, Bloomberg reports that Porsche’s importer is exporting Malbec wines and olives, Mitsubishi’s importer is getting into the peanut export game, and Subaru’s representative is shipping chicken feed to Chile. BMW, which has had recent difficulties importing into Argentina, is focusing on its core business, exporting auto parts and upholstery… and a little processed rice to make up the difference. But why are these major manufacturers getting into all kinds of strange side businesses just because Argentina wants to improve its trade balance and foreign currency reserves? Simple: Argentina is South America’s second-largest economy, and it’s been growing at over 5% per year since 2007 (i.e. when other markets were shrinking). So if the government wants imports balanced with exports, well, Porsche’s importer is just going to have to get into the wine business, isn’t he?

In a luxury market that’s always looking for the next big thing, “Compact Luxury” has become something of a hot trend. And with GM’s Buick brand saved from the bailout-era brand cull, a compact Buick is a key test of whether The General has moved past its bad habits of cynical badge engineering. Thus the […]