The Countryman is a game-changer for us. We are going from extra-small to small

The flip-flopping over GM’s IPO strategy continues, as The General backs away from its “retail investor” focus and begins courting Sovereign Wealth Funds in earnest. Bloomberg reports that GM’s underwriters have approached

Riyadh, Saudi Arabia- based Kingdom Holding Co., Abu Dhabi-based Mubadala Development Co., Qatar Holdings LLC and Singapore-based Temasek Holdings Pte.

In hopes that they’ll become “cornerstone investors” in the new GM’s IPO. Who knows what will come of the negotiations, but assuming that one or more of the Arab SWFs end up with a large chunk of GM equity, a number of PR problems present themselves. Though (marginally) less emotionally-charged than a possible ownership stake by a Chinese firm, such an outcome would amount to the US-sponsored foreign takeover of an American firm. Politically, the bailout is much easier to justify if GM ends up in American hands… especially since Fiat is likely to gobble up the Chrysler equity it wasn’t handed on a taxpayer-funded platter. But beyond that, GM will have to work twice as hard to convince the American people that it’s not working to serve the interests of its oil-rich Gulf State owners. Renewed scrutiny over its most profitable business, namely gas-guzzling trucks and SUVs, would be a given. Any hesitation (however well-justified) over electrification of the automobile would be interpreted as an oil-cartel plot. And renewed turmoil in the middle east could further inflame anti-Arab or anti-Muslim sympathies, potentially bringing greater pressure on GM. Meanwhile, GM’s energy-independence rhetoric around its E85 ethanol efforts would be extremely awkward.

But will Americans notice or care? At what percentage of ownership would these factors come into play?

With sales of its aging city car circling the toilet, Roger Penske’s Smart USA has reached a deal with Nissan to sell a Smart-branded version of a Nissan-developed four-door B-segment car, likely the Versa. Though Penske’s organization apparently pushed for and announced the deal, and the model will be exclusive to the US, the Detroit News calls the move “part of the growing cooperation between the Renault-Nissan Alliance and Daimler AG.” Penske says

It’s not that the ad itself fails to mention the car it’s actually promoting, namely the Subaru Legacy. After all, if Subaru wants to entertain enthusiasts without actually indulging in the kind of gauzy praise they lampoon so effectively here, that’s fine by us. No, the only problem with the whole “2011 Mediocrity” campaign is that Subaru’s own Tribeca was clearly styled by the very designers they mock in this spot. And in this day and age, bland, uninspired crossovers are at least as lampoonable a cliche as the bland, uninspired sedans that Subaru slams (and which earned Toyota the cash for a 16.5% stake in Subaru’s parent company). Still, this is a ballsy move for a brand that is already growing like gangbusters in the US, and it shows just how far off the mark Volkswagen’s current attempt at US market growth is likely to be.

The ad shown above seems to cement a sad reality for automotive enthusiasts: the objects of our passion are no longer considered the cutting edge of material culture. And this reality is reflected is reflected in more than just ads for mobile phones, the object that appears to have replaced cars as the touchstone of youthful cool. For a broad array of reasons, young people (the traditional arbiters of cool) are less obsessed with cars and car ownership than they once were. Even automakers themselves are rushing the automobile to the scrapheap of history by seeking to load ever more phone-like capabilities to cars, a trend that both fuels phone mania and disinterest in driving as an intrinsically rewarding experience. But, it seems, that cars can still be cool after all…
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Earlier we posted an article about the ten largest markets in the world. According to Brazilian car mag Auto Esporte, the Jato Dynamics auto consultancy group has also compiled the top ten car makers in by August 2010. They have crunched the numbers. Can you guess who is top dog?

Disclaimer: We are talking car BRANDS here. Not manufacturing groups as they are usually tallied in worldwide rankings. This puts companies like GM at a disadvantage that relies on gadzillion of Buicks and Wulings in China to get their numbers. It also should hurt that department store of brands, Volkswagen, but as we shall soon see … Read More >

The government of Sweden’s Västra Götaland County has referred Saab to the Swedish Enforcement Service (Kronofogdemyndigheten) over nonpayment of a $16.2m loan, reports thelocal.se. The bill is for repayment of a portion of a roughly $45m in aid extended by the county to Saab during its first weeks of bankruptcy. Because the $16.2m portion was used specifically to guarantee employee salaries, the County is arguing that it is not covered by Saab’s 75% writedown agreement with creditors. Saab insists that the salary guarantee portion is covered by the cramdown, and says it has paid its 25 percent of the total loan.

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No, not the silly humpbacked 911. That’s just Porsche’s latest wallet-lightening technology. Porsche’s nod to heritage is in the fact that it’s building only 356 of these 911 “Speedsters.” Because, you see, the first Porsche Speedsters were based on the Porsche 356. Oh yes, and by limiting an “exclusive” to a few hundred units means Porsche can charge $204,000 for a 408 HP 911. Which, after all, is actually the more significant nod to Porsche heritage: the 911-based Speedsters, which arose in the cocaine and yuppie-fueled 80s, have long been a high point in Porsche’s proud tradition of charging silly money for ever-so garish “special editions.” Doesn’t heritage just make you feel all warm and fuzzy inside?

The Six Series has always been one of the more soberly-styled coupes on the market, favored primarily by the more conservative members of the medical and dental professions. And though the Bangle-designed outgoing model was no exception to this rule, it may end up making history as the most dynamically-styled 6-Series ever. After all, if these shots show the “concept” of the forthcoming 6-Series, and they make the outgoing model look like a concept car, you know BMW is atoning for Bangle’s excess. Next stop, Anonymityville.

The last time Lotus trotted out an “Elite,” it was a funkily be-hatched, sports tourer which, at about 2,000 lbs, was already nearly a thousand pounds heavier than the sleek fiberglass coupe it replaced. Thirty five years later, the beat goes on: as part of its mainstreaming effort, Lotus is showing a new “Elite” concept at the Paris Auto Show that is the heaviest and most powerful model the brand has ever produced. At 3,700 lbs, and offering a hybrid five liter V8 (reportedly based on the Lexus LS600h drivetrain) and a folding hardtop, this Elite appears to be aimed at Ferrari’s California… and more generally, at people who don’t know who Colin Chapman was. Lotus CEO Danny Behar tells Autocar

Make no mistake, there’s a definite market requirement for the Elite. It’s the ultimate compromise of sports car feel with comfort and space. There will always be those who say Lotus should stick to small sports cars, but we didn’t take the decision to design something like the Elite lightly. It is based on months of careful research and planning.

What Behar apparently doesn’t get is that McLaren would be more than happy to take Lotus’s status as the preeminent British sportscar maker if it takes its eye off the ball for a second. And going from the Elise to the Evora to a full-fat, hybrid hardtop convertible tourer is quite the leap of faith for Lotus. Business is business, but brands are brands… and we didn’t realize just how mainstream Lotus was aiming for.

Despite rising global sales and recording good profits ( Ray LaHood’s best attempts just aren’t good enough), the bad news keeps coming in for Toyota. Recently, Toyota lost a preliminary hearing that ruled they hid safety evidence (I think it’s safe to say that Dimitrios Biller is off Toyota’s Christmas card list). Now their brand has taken an official  hit. Read More >

Via Hemmings News comes this delightful find from Chevymall.com: an officially licensed poster comparing women to cupholders. So, did Susan Docherty sign off on that when she was GM’s marketing boss, or is this just more evidence that GM really is a “testosterone saturated, white, American male culture”? Either way, it cements the impression that Chevrolet’s values and image stopped making progress around the same time its market share did… which, incidentally, was about the same time the poodle skirt went out of fashion.

It’s just too bad that, between the ’59 Impala, the poodle skirt, GM’s US market dominance and casual sexism, only the casual sexism seems to have survived.

Scion brand manager Jack Hollis tells the WSJ [sub] that

The sales are nowhere where they should be and they will never be this low again

And with only 29,672 units sold through 2010, he ain’t kidding either (well, except for maybe the last part). Meanwhile, with the Yen headed up, profits on Scion’s small, Japanese-built offerings aren’t in great shape either. In short, it is with good reason that Scion is the subject of the most-recent TTAC Deathwatch. Meanwhile, Scion’s bid for renewed relevance hangs on the success of two cars: the neo-Corolla Coupe tC, and the A-Segment Scion iQ three-seater. TTAC will have an early review of the tC before the end of the week, but before we get into the specifics of that vehicle, let’s ponder the wider question of Scion’s viability. Will these two cars bring back Scion’s sales to their previous levels? Let’s take a look at Scion’s historical sales for answers…

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Several weeks back, Lamborghini CEO Stephan Winkelmann was hinting to Forbes that weight loss would be crucial to the Lambo future (he also revealed that the brand’s best-selling colors “are white, black and the grey tones”). As the hype builds towards the release of the new Murcielago-replacing Jota, Winkelmann has released a “manifesto” that he says will guide Lamborghini into a sustainable future.

Alternatively, it could also be seen as an after-the-fact justification for Lamborghini’s decision to ditch the V12. After all, the Jota teaser image released with the Winkelmann-ifesto hints very strongly at a ten-cylinder drivetrain… which means the era of V12-powered Lamborghini flagships is probably about to end. Can one little manifesto really explain that kind of brand-defying break with tradition? Hit the jump to judge for yourself. Read More >

This is the Hyundai ix20, a a European-style subcompact MPV in the style of Honda’s Fit. Or, more precisely, in the style of Kia’s Venga. In fact, the similarities between the new Hyundai and its Kia-branded predecessor are strong enough to hint at a future of GM-style brand differentiation issues for the Korean concern.  And here’s the real irony: both cars share a platform with the Kia Soul, an American-style B-Segment MPV (possibly the only car to fit that description). Couldn’t Kia have rocked the Soul and left the ix20/Venga segment to Hyundai? Or was the Venga simply too good-looking to die? Either way, these two taught twins are a bit close for comfort.