On Tuesday, the junk bond market sneezed and General Motors caught a cold. Less poetically, the money men behind the buyout of GM’s Allison transmission unit postponed a junk bond offering designed to pay for same. According to market sources, when the “spread” (the extra yield investors demand to compensate for their risk) widened by about 100 basis points, Merrill Lynch, Citigroup and Lehman Brothers pulled the plug. GM spokeswoman Renee Rashid-Merem said the company wasn’t worried about the sale: “The buyout remains on track.” Maybe so, but GM can’t afford this kind of setback. Literally.

Congestion charging (CC) proponents often justify the regressive tax by citing the need to reduce vehicular pollution in city centers. In their campaign to stymie a local CC scheme, Manchester Against Road Tolls (MART) points out that the Manchester City Council's plan singularly fails to tackle the real cause of the city's air pollution: buses. "Buses and indeed any vehicle with a large diesel power unit that repeatedly puts the engine under load – like pulling away from bus stops – emit the two most carcinogenic chemicals known to science, labelled 3-NBA and 1,8-DNP," MART's press release opined. "Buses are also heavy emitters of nitrogen dioxide and general particulates, both of which are respiratory irritants." It does seem odd that Manchester hasn't retired its smoke-belching buses. The city has one of Europe's busiest bus routes (Oxford Road/Wilmslow Road). It was also the first municipalities to introduce the diesel – electric Econo Optare Solo hybrid bus.

Former GM subdivision Delphi filed for bankruptcy on October 8, 2005. Despite potential deals with a number of financially well-endowed suitors (including Chrysler's eventual buyer), there they remain. Still bankrupt. Still making parts. The CEO of one of Delphi's partners in the global exhaust biz is none-too-happy with this state of affairs. In an interview with Just-auto.com [full interview by sub], Borsal boss Bos slammed U.S. Chapter 11 rules, claiming that firms emerge from bankruptcy protection with an "artificially low asset base." The exec of the family-run firm says the post-bankruptcy company can then offer products at lower price than companies that have been run responsibly. "I feel that it is grossly unreasonable and unfair." Bos proclaimed. Yes, well, Delphi ain't out of Chapter 11 yet. 

The court case pitting Ford against engine maker Navistar continues, as both sides wrangle over liability for $800m worth of warranty work performed on Navistar's 6.0-liter diesel. According to Dealer Magazine's resident legal expert, Navistar's looking to lay blame for the big ass bill at the doorstep of Ford dealers for performing unnecessary repairs, failing to follow proper repair procedures and, in some cases, not actually doing claimed repairs. Rich Sox says Navistar's subpoenaed 24 dealers (his clients) in Florida, Georgia, Ohio and Texas requesting thousands of pages of warranty documents. Sox' dealers aren't happy about the prospect of Ford and Navistar pawing over their warranty records– not because they have anything to hide, right? "Of course, we have to be careful how we object to these subpoenas. It would not go over very well with the judge to argue that the warranty records shouldn’t be produced because dealers may have done something wrong." Sox' strategy: resist the legal request on the grounds of confidentiality, inappropriateness (go after Ford first) and, failing all that, squeeze some money from the deal (make sure Navistar pays for the time and expense of assembling the paperwork). And that's why Sox gets the big bucks.   

Tens of millions of American motorists know the routine: to check if your tires are worn out, insert a penny in between two treads. If you can't see the top of Honest Abe's pate, it's time for new shoes. The Tire Rack says it's time to upgrade the coinage involved from a penny to a quarter, from Abraham Lincoln's head to George Washington's noggin. According to the South Bend, Indiana tire vendors, the switch raises the old test's 2/32-inch (1.6mm) or less standard to 4/32-inch (3.2mm). To justify the switch, The Tire Rack tested a 2006 Ford F-150 Super Cab 4×2. Shod with Abe-compliant rubber, the truck averaged 499.5 feet to stop from 70 miles per hour on wet pavement. The same vehicle riding on quarter-compliant tires stopped almost 122 feet (24%) shorter. We'd like to see more tests conducted using a range of rubber and vehicles in a variety of conditions performed by an organization that doesn't sell tires. Still, point taken. Is it time for tire testers to replace the quarter with penny?

Who will pay for the REAL ID act? The law stipulates which ID documents states must require before issuing a driver's license, in order for the the document to be recognized as valid by the federal government (social security, ID for plane travel, etc.). Although Congress set aside $40m to pay for start-up costs, the question of who will foot the estimated $11b bill for REAL ID remains unresolved. Speaking to TTAC by telephone, Neil Berro, Executive Director, Coalition for a Secure Driver's License, suggested a partnership. "We believe the feds should pay for the lion's share, the state's should cover some of the costs, and individual license holders should make a contribution." Berro said a token fee would educate citizens about the importance of homeland security. Berro also said a Zogby poll pegs support for REAL ID at 70 percent, but activists from both the left (open door) and right (anti-feds) have united to oppose the legislation every step of the way. 

When faced with a choice between paying $12.95 a month for 170 channels of XM satellite radio or 130 channels of Sirius, many consumers bought neither. In an effort to lure new customers, the merging satellite radio companies are switching to a la carte pricing. So instead of a straight either/or choice, it's either XM or Sirius and THEN a choice between one of eight packages in seven price ranges (with a .25 per additional channel option on a la carte 1). If you thought the two companies would merge content, they have, kinda. "SIRIUS customers will also be able to choose a family-friendly version of SIRIUS programming that includes select XM programming. And XM customers can select a family-friendly XM programming option that includes select SIRIUS programming. These packages will cost $14.99 per month, a credit of $2.00 per month from the cost of the "best of" packages." Confused? You will be.

Automotive safety has improved by leaps and bounds over the years. The Herald Sun reports on the not unexpected corollary: comparing like-to-like, new cars are vastly safer than their antecedents. According to a study of 2.8m real world crashes by Melbourne-based Monash University, larger locally-made cars (e.g. Fords and Holdens) are less safe than smaller European cars, which still "lead the way in safety features." The report lists five vehicles to "avoid in the used car lot:" Mitsubishi Cordia 1983-1987; Ford Falcon XE/XF 1982-1988; Mitsubishi Starwagon/L300 1983-1986;Toyota Tarago 1983-1989; and the Toyota Hiace/Liteace 1982-1995. Interestingly, the official list also scores "How seriously your vehicle is likely to harm another road user."

Automotive News writes that Carroll Shelby's Children's Foundation– set-up in 2002 after The Man's heart switch– has doled-out less than one percent of its $2.9m stash. (The money is supposed to help children who need organ transplants.) The revelation is bound to embarrass FoMoCo, as The Glass House Gang have provided four new Shelby vehicles for Carrol's charity to raffle and auction. It could also reduce the Foundation's ability to raise funds, as donors learn that their money's destined for a charitable parking lot. Although there are no implications of financial impropriety, and the Foundation now promises to "professionalize," it is worth mentioning that the Texas legend hasn't donated a single dime to his own cause.  

Despite The Big 2.8's mantra that their declining market share and evaporating sales volume reflect a concerted effort to reduce dependence on low-margin bulk sales, Automotive News [AN, sub] reports that Detroit's fleet sales have declined by just one percent during the first five months of '07 vs. '06. Fleet sales still account for roughly 25 percent of GM's total, 32 percent of Ford's and 35 percent of Chrysler's (a slight increase from last year). Into the breach dear Horatio: the transplants. Toyota/Lexus/Scion's fleet sales have increased from seven to 11 percent. Fueled by corporate demand for the new Altima, Nissan's fleet sales rose from nine to 15 percent. One fourth of all Kia sales now sail with the fleets (up from a fifth). And Mazda's fleet sales jumped from 18 to 24 percent of their total. The numbers reveal a stunning lack of resolve by Detroit, and a residual-threatening expansion for their competition.

The New York Post says police are investigating the link between car dealer loan fraud at Universal Auto World in Lawrence, L.I. and the murder of 27-year-old salesman Collin Thomas outside the showroom. According to a civil forfeiture lawsuit, Universal employees paid "straw purchasers" (co-conspirators with a good credit history) to sign loan documents for more than $1.3m worth of luxury vehicles, which were then transferred to customers who didn't want their names to appear on the loan papers. Police say car salesmen Dexter Bostic and Robert Ellis, who stand accused of firing upon officers, were involved with the scam. Bostic worked as a car salesman at nearby Five Towns Mitsubishi, which once employed the slain salesman. Ellis, who lived with Bostic, also may have once worked at Five Towns. 

When it comes to the debate over proposed increases in U.S. Corporate Average Fuel Economy (CAFE) standards, rational argument takes a back seat to politics as usual, as this article in Pennsylvania's Patriot News illustrates. Hometown rep Todd Platts, lead Republican is lead on a bill raising federal mandated fuel efficiency by 40 percent (to 35 miles per gallon) by 2018. Platts: "The auto industry, as it does today, said it was impossible– it would compromise safety, choice. Obviously, history has proven that their statements were untruthful and technology did allow the advances." The opposition (a.k.a. "one industry lobbyist"): "Under this bill, in wanting to make the U.S. more like Europe, every American would be driving a Toyota Corolla. I don't think most Americans want that." Will Platt compromise with the forces of evil? Sure! "We believe there is technology that would allow you to go beyond 35, but we also know that given the special interests that are lined up against us — the auto industry and the oil industry — you have to be realistic," Platts said.

Sebastian Thrun should work for GM; he promises a self-driving vehicle within the next twenty years. Actually, perhaps not. After all, this is the same Stanford University scientist whose team actually built a robotic VW Touareg that drove itself 212 klicks across the Nevada desert to win DARPA's $2m prize. As globeandmail.com reports, Thrun has no compunctions of removing control from automobilists, to ensure that older drivers can maintain their freedom. The personal side of the story: last May, Thrun and his brother confiscated their father's driving license after their old man caused an accident. Thrun's father faded away soon after. “It was a very sad episode. I caused it by deciding it would be unethical for my dad to drive.”

The Shrevesport Times reports that Martha Ritter's hapless husband tried to take his wife shopping for a new Ford, only to discover that Harry Potter and the Deathly Hollows (not a singing group) had captured all her attention. "My husband had the nerve to try to take me out to buy me a new car," Ritter said. "I said I can't look at new cars, I have to read the book." According to people who've read the latest novel in the Potter opus (not a type of sea-going mammal), Mr. Weasley's flying 1962 Ford Anglia does not make an appearance in the final installment of the interminable internationally successful saga. Our sources insist that this lack of automobile-related chicanery has nothing to do with the fact that the car used in the movie was stolen from Cornwall on 26 October 2005, as the Harry Potter series is a work of fiction. 

Given hurricane Katrina's impact on our gasoline supplies, why hasn't the federal government taken action to assure America's oil refinery capacity? Today's New York Times reports that an "invisible hurricane" of mechanical breakdowns at oil refineries around the country has pushed-up gas prices 50 cents, to over $3 a gallon. Analysts reveal that a third of the country’s 150 refineries have reported operational disruptions since the beginning of the year. As this website has pointed out, the U.S. refining industry is hamstrung by a patchwork of state regulations that make shifting supply nearly impossible. The industry says the laws and questions about maintenance schedules put it in a no-win position. “Refiners want to keep running in today’s economic environment,” said Charles T. Drevna of the refiners association. “But when they shut down they are accused of gouging the system. When they don’t, they are criticized for overrunning their facilities.”