Across the e-transom this AM:

Both the existing Lorinser Limousine as well as the prototype of the extremely bold countenances: in particular their black coated grill makes them both “masked heroes of the autobahn”. The “bad touch” is additionally underlined on the four-door by the dark headlight caps and is expressed on the sports car prototype by the black-coated bonnet and roof. The fast duo also draw attention to themselves with a muscular front spoiler which is elongated further to the front. A colour-contrasted middle section of the bumper, the typical Lorinser gills in the fenders as well as the voluminous side sills skilfully underline the biceps of the automobile. In addition, the clearly-purist design of the basic bodywork is given interesting new optical emphases, including a firm rear, which the Lorinser rear apron forms with the diffuser. There is also a dynamic spoiler on the roof as well as something powerful for the ears: four sonorous exhaust pipes set off acoustic fireworks when you put your foot down. This power produces a tingle in the base of the stomach just like the power of the performance-improved engines from the Mercedes tuner.

Chrysler bondholders have officially rejected the Presidential Task Force of Automobiles’ (PTFOA) “offer” to exchange 85 percent of their secured debt ($6.9b) for a stake in a reconstituted ChyrCo. The Wall Street Journal reports the bondholders’ counteroffer: the lenders would cut Chrysler’s first-lien debt by $2.4b, in exchange for a 40 percent equity stake and a Chrysler board seat. Oh, and they want Fiat to put up a billion dollars. Which Fiat won’t do because. . . it doesn’t have it. The bondholders’ position sounds about right. Remember: this is secured debt. If/when Chrysler is sold off in pieces, the bondholders would recoup about 65 cents on a dollar. Settling for anything less would be against their financial interest. But not their political interest. Not only has the U.S. Treasury rejected the bondholder’s proposal, they’ve cast aspersions on the banks’ patriotism. No really.

Hello Robert,

I dropping you a note to alert TTAC readers about a growing problem in the autoblogosphere. There’s been a marked increase in fraudulent collectible car ads posted on www.trader.ca. Normally, the bogus ads are easy to spot: they tout pristine classics at firesale prices. In many cases, the “seller” only provides an e-mail contact. If they list a phone number, it’s usually a fax. But even buyers who forget that “too good to be true” means just that should caveat their emptor. Some of the ads offer desirable cars at prices that seems good but not great. I recently inquired about a Mustang. I became suspicious. When I asked for close up snaps (to see if the seller could provide them), the seller became indignant. When I stated flat out that I wouldn’t pay a cent without these “proof of life” pics, the “seller” disappeared.  

In short, be careful out there! You don’t have to be a complete fool to be parted from your money. 

Nicholas

It’s nice when Detroit News auto journalist Mark Phelan and I agree. We recently had a head-to-head on BBC World Service where I called GM and Chrysler zombie automakers, and Phelan didn’t. In a piece in this morning’s Free Press—“Bankruptcy no fast cure for GM“—the Irish scribe shares my belief that a GM C11 will be, as the Brits might say, the bunfight to end all bunfights. But first, let’s put the pro in prolepsis, and begin with Phelan’s final paragraph: “GM’s cost-cutting progress has allowed it to pass on some of the loan money the government has promised, but the company’s own projections say it could need another $4.5 billion to $12 billion if the economy remains moribund.” That’s what I call a big spread. But there’s something else about Phelan’s finale that gets my goat . . .

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Loose cannons. Where would TTAC be without them? Now that GM Car Czar Bob Lutz has his bankruptcy-proof pension to think about (no thanks needed for the early heads-up, Bob), the man of Maximum has somehow learned to shut the f up. Bob “Operationally Bankrupt” Nardelli hasn’t said boo to a goose since telling the feds he wasn’t earning any salary for driving Chrysler into the history books. Ford’s Presidente del Americas Mark Fields is flying low, maybe even commercial. The head of the Presidential Task Force on Autos, Steve “Chooch” Rattner, is as taciturn as he is tyrannical. These days, GM’s VP (“Very Profitable”) Mark LaNeve is about as good/bad as it gets. At least until last night, when former Ford CEO Bill Ford played BMOC (big man on campus) at the green love-in known as this year’s Fortune Brainstorm Green conference. The MSM has yet to chronicle the PC hoedown. But according to earth2tech.com (who supplied our headline quote), Former FoMoCo CEO Bill Ford’s mea culpa was mucho maxima.

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Earlier this week, one of our Best and Brightest wondered how Chrysler and GM’s collapse into receivership would affect minority dealers. He wondered if political correctness would color the Presidential Task Force on Automobiles decisions about which dealers get the axe and which don’t. Ford is proactively addressing the issue by launching a new program that allows roughly a quarter of its minority-owned dealers to buy their store from Ford for a $1. For some reason, the Detroit Free Press fails to mention the amount of money Ford has invested in these dealers. Anyway, in a letter to the 64 eligible minority dealerships (out of 255 Ford Motor Minority Dealers Association members), FoMoCo says the “I’ll buy that for a dollar!” deal’s only good “if you are able to provide adequate operating capital at the time of the buy-out.” Good luck with that. On the other hand, the offer expires September 30. A LOT’s going to happen between now and then: cash for clunkers, GM’s C11, Chrysler’s dissolution, etc. A smart man might have a weapon under there. If he did I’d have to pin his head to the panel. I mean, a smart man would wait to see how this plays out before signing anything.

Back at the beginning of March, GM and its camp supporters were touting the fact that they could go all the way ’til April without a fresh infusion of federal funds—sorry, “loans.” See? Things aren’t as bad as they seem, GM CEO Fritz Henderson pronounced. Cuts are paying dividends already! Deeper, faster, oh baby! Yes, well, as we said at the time, bullshit. The actual reason for GM’s small push away from the bailout buffet: GM’s outgoing CEO had sucked a cool half a billion dollars from The General’s Canadian subsidiary. And now it turns out that current CEO Fritz Henderson’s prediction that GM would need “between $2 and $4 billion” to get it to June 1 misled taxpayers by a billion dollars. “General Motors Corp. will get up to $5 billion and Chrysler LLC $500 million in short-term aid, according to a 250-page government report obtained Monday by The Detroit News.

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The Washington Post reports that Chrysler Financial turned down $750 million worth of federal loans to avoid executive pay limits. Surprised? Me neither. And that’s not a whole lot of money in the grand scheme of things ($1.5 billion already “loaned” to Chrysler Financial, $6 billion for GMAC, $7 billion for Chrysler, $17.4 billion for GM, $5.5 billion for suppliers). Anyway, the WaPo sure has its dander up. “In forgoing the loan, Chrysler Financial opted to use more expensive financing from private banks, adding to the burdens of the already fragile automaker and its financing company . . . The company’s decision comes amid a firestorm on Capitol Hill and elsewhere over the lavish pay of executives at companies being aided by government money. The uproar has made companies skittish about taking federal aid and hindered the Obama administration’s effort to revive lending by replenishing the coffers of the nation’s financial firms.” Ah. OK. So, NOT accepting federal support is bad. Welcome to Bailout Nation. And its media dupes, like Autoblog, who called ChryCo execs’ explanation (after the jump) “disingenuous.” Folks, the LESS taxpayer-funding in the US auto industry, the better. Period.

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KTAR.com reports that Phoenix, Arizona, police have arrested a suspect in the fatal shooting of a civilian photo radar operator. According to the Arizona Department of Public Safety (DPS), witnesses called police to Phoenix Arizona’s Loop 101 and Seventh Avenue at approximately 9 pm last night. They found operator Doug Georgianni, 51, dead from multiple gun wounds. The victim worked for Australia’s RedFlex Traffic Systems Inc., which operates photo radar vehicles for the AZ DPS. Police viewed the tape made by the radar van immediately after the shooting, and traced a gray and white Chevy suburban with a roof rack carrying a spare tire to a suburban driveway. They arrested its owner, 68-year-old Tom De Stories. Redflex pulled its 40 radar vehicles on state highways out of service until further notice.

Props to automotive consultant Maryann Keller for calling for GM to get its shit together, I mean “create a sense of urgency” since 1875, or thereabouts. Kudos for Keller’s willingness to predict a GM C11 early and often. And praise be for loaning TTAC the writing talents of Mr. Ken Elias. OK, so. . . Keller’s column in Automotive News [sub] is suffused with Annie-like optimism for a post-C11 GM. With one a catch. Chevillac’s success depends on the “smaller, leaner and cost-competitive company‘s” ability to secure a champion who can administer strong medicine to GM’s poisonous corporate culture. Before we deal with Ms. Keller’s “if you build it, he will come” theory, here’s a taste of her sunwillcomeouttomorrowism:

Mike Dulberger recently gave us the 411 on Forbes magazine’s “Most Dangerous Vehicles of 2009.” According to the safety campaigner, Forbes spiked his concerns about the [S]mart ForTwo’s safety. During the course of our discussions, I asked Mr. D. to right that wrong: send me the “real” 10 most dangerous new vehicles for sale in the US. And so he did. Those of you of a statistical bent can download Dulberger’s data dump for the dangerous decern here, including all the factors that comprise his SCORE index. And here are the updated stats for ALL 315 new vehicles for which Dulberger’s non-profit, informedforlife.org, has calculations. As you might expect (if you knew the man), Mike’s got something to say on this terrible table. Jump for same, and his list of the ten most potentially deadly vehicles . . .

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It’s been a while since we’ve run an E85 BOTD. The big news on the corn-for-fuel front: the E85 lobby is pressuring the Environmental Protection Agency (EPA) to allow states to raise the minimum required amount of ethanol from 10 to 15 percent. For some reason, Agweek seems to think ethanol producers haven’t yet hit “the blend wall”: the point at which there’s more ethanol than demand. (The fact huge swaths of the food-for-fuel industry have gone bust may have provided a clue). But at least they acknowledge the Everest ahead. “Many environmental and consumer groups and small engine and car manufacturers are concerned that the increased blend rate might damage pollution control equipment, reduce air quality, and undermine vehicle and equipment performance and warranties. The EPA and Department of Energy are currently testing the effects of higher blend rates on engine performance and emissions.” We’ll keep an eye on that one. Meanwhile, the Minnesota Auditor’s office has had a look at the state’s $93 million worth of ethanol subsidies and asked the logical question WTF is that all about?

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