Russia has complained long and bitterly that Western firms refuse to share technology with its home-grown auto industry, but now the billionaire owner of the New Jersey Nets has introduced Russia’s first home-grown hybrid cars in hopes of proving that Russia can compete in the global car industry. But, according to the WSJ, the launch of the brand known as “Yo” (“ë” in Russian) was not without its problems

Mr. Prokhorov said he intends to “break the stereotype saying Russia can’t produce good cars,” even though an executive needed three attempts to successfully start the prototype car with a mobile phone using a remote-start feature.

But then what do you expect from a Russian-built prototype of a hybrid car that’s set to cost only $10k?
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GM’s troubled Australian division Holden has maintained its place in the GM empire for years now as the development center for GM’s global rear-drive architecture. The Holden-developed Zeta platform began as the basis for Holden’s Commodore full-size sedan, and has been put into use on a global basis by cars as diverse as the Chevy Camaro, the Chinese-market Buick Park Avenue and the Pontiac G8. But now GoAuto reports that the next-gen Commodore could be moved to Holden’s plus-sized version of the Epsilon II midsized front-drive chassis known as “Super Epsilon II,” the platform that will underpin the next Chevy Impala and the Cadillac XTS. The era of the Aussie RWD sedan may well be coming to a close…

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Typically when a major automotive manufacturer is preparing to spend a billion bucks on a new manufacturing facility we’ll see multiple reports on the investment. That’s why it’s strange to see only a single report, from rediff.com, on a new manufacturing plant in Punjab province that will reportedly be built by a US automotive firm. According to the report

A United States-based automobile company may set up a car manufacturing facility in Punjab with an expected investment of $1 billion, as audit and consultation firm Deloitte has made enquiries on behalf of the firm with the state government.

“There is some American company which has made enquiries and has shown interest (for setting up a manufacturing facility) here,” Punjab Industry Minister Manoranjan Kalia said on Friday.

Asked about the name of the automobile company that has evinced interest, Kalia said that the company’s name has not been disclosed.

However when contacted, a senior official of Punjab State Industries Department revealed that Deloitte has approached Punjab government on behalf of US-based automobile company  to look at the possibility of setting up a car facility.

State industry secretary S S Channy said Deloitte has indicated an investment of $1 billion for putting up a car facility and the company requires 750 acres of land for manufacturing facility and 150 acres for ancillary units.

The automaker in question probably isn’t Chrysler, as Fiat is leading that firm’s international efforts. It probably isn’t GM either, as The General has subordinated its Indian campaign to its Chinese partner SAIC. That leaves Ford, which has recently targeted India with its Figo small car, as the most likely builder of this plant. But does Ford work with Deloitte? Are there any other hints as to who this American investor is? Over to you, Best  Brightest…

Volkswagen has announced that its 256 HP, AWD Golf R is coming to the US market just like the R32 and other über-Golfs before it. And though switching the enthusiast’s Golf from a V6 to a turbo-four was the right decision, there’s just one minor problem: this Golf has competition. Subaru’s WRX may not be the prettiest car out there, but it offers 265 turbocharged horsepower to the Golf R’s 256, and it starts at a budget-basement $25,500. Previous R-badged Golfs have cost upwards of $30k, or approaching the $34k, 305 HP WRX STI. Of course the Golf R does have some advantages: an optional dual-clutch transmission, a cleaner look, a European badge… but in addition to having less horsepower than a WRX, it weighs a good 100 pounds more. In short, the Golf R may be manna from heaven for Volkswagen fans who are disappointed in the new Jetta, but it’s not exactly going to turn America’s performance market upside down.

Chinese car sales were strong this year, increasing by 34.1% in the first 11 months of this year according to the China Association of Automobile Manufacturers and the WSJ. But those numbers have largely been driven by government incentives on cars with 1.6 liter engines or smaller, a segment that accounts for some 70 percent of the passenger car market. But, according to the CAAM

China will likely extend one incentive for small-car purchases–a cash subsidy of CNY3,000 a car for purchases of certain fuel-efficient vehicles with 1.6-liter or smaller engines. The purchase tax for small cars, however, will likely rise to 10% from the special low rate of 7.5% currently

Moreover, some cities (including Beijing) could start regulating the number of car puchases allowed, and this combined with a reduction in subsidy levels could cause sales to start declining.

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When GM introduced the Chevrolet Cruze to the market some three months ago, it wasn’t just launching a car, it was trying to change one of its most persistent perception problems. GM managers know that their firm has never built a memorably successful compact car, a fact that was underlined by President Obama’s bailout-era question “why can’t they build a Corolla?” The Cruze was supposed to change all that, but a short three months after its launch, even the hometown cheerleaders at the Detroit Free Press are beginning to wonder if GM is “running out of time to kick Cruze sales into high gear.” After all, the Cruze was just fifth on the C-Segment sales chart last month, losing out to such aging offerings as the Civic, Corolla, Focus and Elantra, all of which are due to be replaced within the next 3 to 12 months. And since the Crue took its time getting to the US market, one analyst concludes

As a result of having been in production two years, it will age more quickly. The relevance in the market is one of the things consumers are willing to pay premium for

This seems to reinforce the conclusion drawn by the WSJ’s Dan Neil who wrote of the Cruze

But I’m sorry to say Chevrolet’s compact car of tomorrow feels more like its car of this afternoon, about 3:48 p.m. This is a car of quickly expiring market advantages.

GM CEO Dan Akerson may believe that

There’s more to life than money,

but he tells the Freep that GM is running the risk of losing top managers to the competition, and must seek more flexibility on pay rules from the Treasury. Akerson wouldn’t clarify what kind of concessions he’s asking for from Treasury, but says that the risk of losing employees in the short term is very real. Meanwhile, even though the government isn’t the majority stakeholder in GM any longer, it will have to OK executive compensation packages until the bailout is paid back. Which prompts The Atlantic‘s Daniel Indiviglio to suggest

there may also be ways to structure pay to minimize cash in compensation packages. For example, if a large portion of compensation is awarded in GM stock that does not vest until the company has paid back the bailout, then this would provide additional incentive to these executives and limit their immediate cash compensation. Unfortunately, there’s no perfect solution to this problem, because the government shouldn’t be involved in the business of bailouts in the first place.

“Wow,” said my lovely life partner when she saw this picture of the new 1 Series M Coupe alongside an E30 M3 in Evo Magazine, “they really haven’t let it grow too much, have they?” I shot her a look. “You know that only one of those is a 3 Series, right?” She grinned sheepishly. Wishful thinking never looked so cute. “3 Series, 1 Series, what’s the difference?” she asks with the air of someone who doesn’t expect an answer. There’s a slight pause while I wonder what the hell to say to that. Nothing leaps out, so she’s the first to break the silence. “Besides,” she says as she turns the page, “it’s got 100 horsepower on your M Coupe and it’s awfully cute. You know, I could really use one of those.” I silently resolve to keep new issues of Evo to myself in the future. “Let’s look at the Veyron SuperSport,” I say.

The last time we discussed the idea of “crash taxes,” it kicked off quite the debate. After all, it’s a question that cuts to the core of political philosophy: to what extent should individuals take responsibility for using public resources? As motorists, would we rather know that we’ll be taken care of in case of a crash, or would we rather have financial incentives to take care to not crash? Well, New York City has decided that, philosophy aside, it simply doesn’t have the money to send emergency responders to car crashes without charging some kind of fee. The WSJ reports

The FDNY plans to start sending out bills July 1. A vehicle fire or any other incident with injuries will cost $490. A vehicle fire without injuries will cost $415. And incidents without fire or injuries will cost $365. These charges apply to every vehicle involved in the incident.

Except, of course, when they don’t…

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The Compass has long been Jeep’s answer to the Cadillac Cimarron, failing to live up to the brand’s ideals while simultaneously cannibalizing its platform-mate(s). But apparently the refreshed anti-Jeep is about to get a dose of Jeep’s signature marketing: Trail-Rated status. According to the rarely-wrong-about-these-kinds-of-things Allpar.com

the 2011 Jeep Compass with Freedom Drive II will be Trail-Rated, the first time a Compass has achieved that designation. To accomplish this, the Compass moved the rebound springs to the same architecture as the Grand Cherokee, and raised the height by one inch for models with Freedom Drive II.

And if a Patriot can be “Trail-Rated,” why not a Compass? On second thought, why invest in a new Compass at all, Trail-Rated or not? Either way, we’re tits-deep in irony considering Dodge’s Ralph Gilles recently “revealed” that Dodge’s outgoing models all rode higher than the competition, and that

Lowering the car looks better. It looks a little bit smarter. It handles better. And more important is the fuel economy

Or, as Ripley doubtless said with his dying breath, not.

Senate Democrats confirm that an extension of the full 45 cents/gal tax credit and 54 cents/gal import duty has been included in the Senate version of a Bush Tax Credit extension, prompting an angry response from the Brazilian sugar cane ethanol lobby. With Brazilian subsidies set to drop by nine cents per gallon, the Brazilian Sugarcane Industry Association (UNICA) claims that the American subsidy is no longer an “offset” but a full-fledged barrier to trade. UNICA’s President Marcos Jank tells brighterenergy.com

It is clear that the United States is not committed to open and fair trade in clean energy, particularly ethanol. We will have exhausted all options to resolve our differences through informal dialogue and the U.S. legislative process. It will then be time for the WTO to resolve this matter in accordance with applicable international rights and obligations.

Previously it was reported that the ethanol Blender’s Credit would be extended at a lower rate of 36 cents/gal, but with the tax credit extension debate snowballing into a lame duck slugfest, it seems that the subsidy extension was included to bring farm-state legislators on board. In addition to pissing off the Brazilians and possibly sparking a WTO battle, a full five-year extension of ethanol subsidies and tariffs at the current rate will cost the government no less than $31b. But don’t start planting corn yet… House Democrats seem set on scuppering the Senate’s tax credit extension deal (even though they support the ethanol extension). If they keep anything from passing during the lame duck session, the subsidies will expire completely, forcing the industry to champion new legislation. The battle rages on…

When you think of cars and Saudi Arabia, you’d be forgiven for thinking of incredibly expensive European cars, typically modified in a particularly distasteful fashion by one of the more crass tuning houses. And indeed, the first Saudi-designed vehicle was a fairly garish SUV known as the Ghazal. But the second-ever Saudi-developed vehicle is actually a very modest, entry-level compact car, known as the Aseela (“Original” in Arabic). This strange little vehicle was developed by the King Abdul Aziz City for Science and Technology’s National Program for Automobile Technology, and debuted this week at the Riyad Auto Show. According to themedialine.com

officials said it was to serve as the basis for a domestic auto manufacturing industry that Saudi Arabia is trying to develop

Yes Virginia, Saudi Arabia is trying to develop an auto manufacturing industry. Well, sort of. According to the report, the Saudis plan on building a $16m production line which will build between 2,000 and 5,000 of the $13,000 Aseelas per year… which makes this more of a “hobby project” than a true “industry.” By contrast, the plan is to build 20k of the ghastly Ghazals over the next three years, at a cost of about half a billion dollars. But then, Saudi Arabia might be one of the few countries where an ugly SUV would fare better than an inoffensive little compact.

It’s a strange question to ask, considering that Hyundai is already selling the Genesis and Equus luxury sedans, but apparently Hyundai decided to bring out the cars before launching a brand. According to the Wall Street Journal

There are three branding scenarios under consideration. The most likely is to create a subbrand called “Genesis,” and sell the models under the same dealership roof as Hyundai but in a separate part of the showroom, possibly with dedicated salespeople, said John Krafcik, the president of Hyundai Motor America.

The other scenarios are to keep the premium cars badged as Hyundais, or—in the most ambitious move—spin off the brand into separate dealer facilities, much like Lexus or Honda Motor Co.’s Acura

Those are the options, but for a little more context, let’s check in with Hyundai USA boss John Krafcik…

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The relationship between automakers and automotive journalists can be extremely difficult, as automakers often hold access to cars hostage based on a journalist’s coverage of them. If, as an automotive journalist, you like every car you drive, the world is your oyster. Automakers invite you to every launch, PR guys gaze longingly into your eyes, and all is right with the world. If, on the other hand, you write negatively about a car, you can find yourself watching the gravy train pull out of the station without you… or, as it turns out, you could even be sued. At least in Italy.

Carscoop reports that Fiat is suing the Italian TV show AnnoZero for “defamatory” remarks about the Alfa Romeo MiTo Quadrifoglio, after the program asserted “the overall technical inferiority of the Alfa Romeo MiTo” in comparison to the MINI Cooper S and Citroen DS3 THP. The details of the case are sketchy, but you can find Fiat’s press release on the matter after the jump.

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According to Acura’s press release:

On sale at Acura dealerships on November 23, the 2011 TSX sedan with 2.4L I-4 engine has an MSRP of $29,610 for both manual and automatic transmission models. Equipped with the available Technology package, the MSRP is $32,710. The TSX sedan with 3.5L V-6 engine has an MSRP of $35,150, or $38,250 when equipped with the Technology Package.

The 2011 TSX Sport Wagon goes on sale December 21 with a base price of $30,960. When equipped with the available Technology Package, the TSX Sport Sedan will have an MSRP of $34,610 [emphasis added].

But even if we ignore Acura’s confusing typo, there’s still plenty here to not understand. Why is the “Wagon Tax” $1,350 for standard TSX models, but $1,900 for Technology Package-equipped sportwagons? Put another way, why is technology $550 more for five the five-door models? And another thing: if there’s no price difference between the manual and automatic transmissions, why isn’t a manual transmission even an option on the Sportwagon? Why not put a price on the autobox and let Wagon buyers get their Technology Package for the same price as sedan buyers? Remember when things were simple in Acura pricing-land?