Despite the gloomy economic outlook in the NA car market, VW is surprisingly chipper. VeeDub’s convinced that the demand for the diesel Jetta may be higher than the forecast. “It certainly met and probably exceeded our expectations,” claims Mark Barnes, CEO of VW NA. August sales of totalled 2,417 units, 11,217 year-to-date. One reason for the cha-ching: the diesel Jetta qualifies for a $1300 federal tax credit. That put its “diesel premium” at just $770 over its gas-powered sib. VW CEO Martin Winterkorn sees the Jetta’s success as the particulate end of a NA wedge. Marty predicts a U.S. “diesel trend” based on the current oil burner’s robust powertrain and high resale values. Mike Omotoso is equally bullish. “We expect the diesel market to grow and actually overtake the hybrid market over the next seven years,” J.D. Power’s “engine analyst” remarked. Never mind the forthcoming release of the Chevrolet plug-in electric – gas hybrid Volt, the Mississippi-built Prius and the increasing popularity of frugal fours. In other words, in your dreams boys.

Londoners know (because a fleet of almost 100 is already running): the electric Smart fortwo is an big improvement on the original. It’s economical and smooth, without the wheezy engine and the miserable, jerky transmission of the gas-powered (or God forbid, Diesel) version. Greeny Berliners think: electric cars would be the zero-emission way to go, if you could just charge them somewhere (who has a garage in the city?) Bringing both factors together and hoping that they gel, the German government has started a project with the generic-sounding name “e-mobility Berlin”. It will be the world’s biggest e-car pilot project, involving Daimler and RWE, a utility, which will install 500 public charging stations. The charging stations will have token solar cells, but are basically about coal-derived electricity (take that, global-warming activists!) Daimler’s main motivation is to field-test its e-Smarts, scheduled for massive roll-out in the magic year (guess!) On TV, I saw Angela Merkel, Germany’s often dour, physicist-by-training head of government talk about the project with bright eyes: “It only takes two hours to re-charge the batteries? Just the time you need to go shopping!” As they say, some ways of thinking die hard.

As the U.S. struggles to adjust to fuel prices that the rest of the world has been living with for years, European cars offer the most obvious template for model-line reform. Flexible, fuel-efficient vehicles have thrived on the continent for decades, and the European’s have gotten good at squeezing space for a whole family from compact platforms. So when GM first started showing images of its new Cruze compact, this blogger bemoaned that “while the old Chevy Cruze (Suzuki Ignis) was a tall, flexible wagon, the new model sports a long front overhang and a tight greenhouse.” Long, low and wide, the new Cruze felt like downsized Americana (we don’t need no headroom or no stinkim’ hatchback), rather than a platform built for utility and flexibility. Well, my worries were mistplaced (sorta). GM is showing pictures of its Orlando concept, a three-row MPV based on the Cruze platform and aimed squarely at the Mazda5 and Euro-proven Ford Focus C-Max, headed stateside in 2010. Jalopnik notes that there aren’t currently a huge range of small, fuel-efficient family haulers for sale in the states, but this simply proves that (for once) the General may actually be ahead of the curve. There are likely  shortcomings, including an emphasis on “American” styling that appears to sacrifice space and visibility for the tight greenhouse that is so fashionable here. Still, by leveraging platforms and offering fuel-sipping transport for large families, GM only improves its chances of success. And no, I’m not kidding. Now, get ready for some major brandgineering….

Yes, we all hate the alphanumeric nomenclature, snaking over the auto industry like poison ivy. And with only so many letters and numbers, we always expect some repeats (Lexus LS/Lincoln LS, Chrysler 300C/Mercedes C300, BMW X5/Mazda MX-5). Has Hyundai gone a character too far? The car we North Americans know as the Veracruz is being introduced to Europe as the ix55. Not only is this a bizarre thing to say down at the pub (Oh, I drove my ix55), but it’s awfully close to, well, a lot of other cars. Hyundai’s new scheme for European car names is to begin with the letter “i,” because if it worked for Apple, it’ll work for them. Or Mitsubishi’s “i car.” The X we can assume refers to this vehicle being an AWD crossover, and of course the 55 is because it has a 5.5 liter V8. Erm, no. Instead, it sounds to me like a mish-mash of BMW (xDrive 50) and the 55 immediately conjurs memory of a trillion Mercedes AMG cars with 55 at the end, from C55 to E55 to S55 to CL55 to CLK55 to ML55 to G55). Besides, what was wrong with Veracruz?

It was Marx (Karl, not Groucho) who said that history repeats itself-– albeit the first time as tragedy, the second time as farce. Between the World Wars, Talbot built cars that were among the most expensive in Europe, and amongst the most beautiful ever. The post-war period of austerity was hard on Talbot; the company was integrated into what was later the European affiliate of Chrysler. When Peugeot bought Chrysler’s European operations in 1978, it unearthed this proud but almost dead brand, and sold some undistinguished cars for a few years (until it changed its mind about the whole idea). Fast forward. According to Automobilwoche, PSA Peugeot Citroen is now planning the add further disgrace to injury. Renault-Nissan’s Dacia marque of superaffordable cars is a runaway success, which Peugeot would like to emulate without damaging its present brands. So it’s thinking of importing cheapo third-world-built cars and marketing them under the Talbot name. Aaargh! Dacia is a great idea whose time has come, managed with considerable skill. But some marketing people have no respect for historical significance. Why not just think up a new brand name? Personally, I’d rather drive something called Guglhupf or Superfromage than a made-in-India Talbot.

The Detroit News reports that Volvo CEO Fredrik Arp is the third Ford big boss in the last month to fall/get pushed from power (after Canada and Australia’s suits). Arp has handed the reins to Stephen Odell, a former Ford Europe exec. Odell’s got a full proverbial plate: massive layoffs (1200 workers), rising raw material costs, a weak dollar, a weak sales in their core market (that’s you Yanks), the dud S80, the D.O.A. C30 and falling demand for SUVs (e.g. the XC90 and soon-to-be-released XC60). Leaving those issues aside, Ford’s Executive Vice President exchanged the usual PR pleasantries. “Fredrik has decided that now is the right time to hand over to a new president and CEO,” Lewis Booth pronounced. “Who will lead the Volvo team through the next stage of its recovery.” The next stage of recovery? What recovery? Doesn’t Booth mean the next stage of Volvo’s sale? According to Ford’sofficial profile, Stephen Odell’s speciality is sales and marketing. Who better to prep Ford’s ailing Swede for sale?

What is a safe car? A car that prevents a crash, a car that protects the car's passengers, or something else? Safety testing groups around the world have their own, varying definitions. Euro-NCAP (the European benchmarking organization, or New Car Assessment Program), has decided it needs a new standard which will integrate several safety factors. I spoke with Cordelia Wilson of Euro-NCAP: "Consumers have told us they find the present system of star ratings which differentiates according to adult passenger crash protection, child passenger protection and pedestrian protection, confusing. A modern SUV will often get five stars at adult protection and one star at pedestrian protection, but how good is it in sum? So starting in 2009, we intend to introduce a fairer, clearer system which rates overall safety performance". Will car makers continue to advertise with excellent results in selected areas, but conveniently forget to mention when they score dismal results in others? "We won't use stars anymore. Instead, you can expect a percentage rating which will integrate adult safety, child safety, pedestrian protection, and 'safety assist', meaning electronic devices such as ESP". SUV makers are said to be horrified, since while perceived safety is a strong SUV selling point, they are normally lousy at pedestrian protection. Let me guess: Honda is happy about these changes in the benchmarking rules, while BMW and Land Rover are having a fit? "You said that, not me".

I've never understood why Britain became the most virulently anti-speed nation in the world. After all, we're talking about the island of TVRs, Mad Caterhams and Stirling Moss. Maybe Old Blighty's regrettable love for the security camera metastasized into speed cameras. In any case, Britons have long taken to venting their surveillance-repressed ids on the French autoroutes. Not that France doesn't have cameras, they just haven't applied cross-border enforcement. Yet. And once on French soil, even the 80mph speed limit isn't enough to satisfy what the Times calls "British speed freaks." In response to a French request for help with the menace, the UK now sends bobbies to help bust speeders around northern French ports. To some effect. "In a four-hour period last weekend, on the A26 motorway near Saint-Omer , a Franco-British patrol stopped 30 cars for breaking the 130km/h (80mph) limit. All but two were from Britain." According to at least one gendarme, Brits just tend to go wild whenever they escape their island home. "The mentality of letting go across the Channel seems to be the same one that makes les Anglais get drunk as soon as they leave their country."

Despite the headline claims of, um, some Motor Authoritative sources , Peugeot is not coming to the United States any time soon. And Canada would be a real stretch. The basis for the claim is that Peugeot is looking to expand the number of markets in which it sells cars, and the French company brass said "with the American dollar being weak, sure, it's possible." But that's not enough. This story comes out every few years , and it's no more true this time around. As much as this writer and probably many other European car lovers would be excited at the prospect of another affordable marque in this country, it's not gonna happen any time soon, or any time not as soon. Americans are still politically not so hot on the French, then there are dealer/service/parts infrastructure issues (namely that there isn't much of anything left from 20 years ago), the added cost of engineering for our emissions and crash standards, and the inconvenient reality that most Americans still aren't truly warmed up to small cars. Not to mention, the current Peugeot lineup is seriously strange.

While GM PR is milking the plug-in electric – gas hybrid hybrid Chevrolet Volt for all its worth, the automaker is shifting emphasis towards it latest savior. The Camaro. Wait. No. That's not it. The Beat. Nope. Hybrid SUVs? Uh-uh. The Cruze! "Wider and longer than most of its competitors, Cruze has a purposeful stance…" Yada, yada yada. Engines? At its European launch, the Cruze control will feature a choice of a 1.6-liter (112 hp), 1.8-liter (140 hp) or a new 2.0-liter turbo diesel (150 hp) four banger; with a five-speed stick or all-new six-speed auto. U.S. spec? Mpgs? No se. But here's the real news: GM reckons they can make money on building and selling this sucker in the U.S. "Small cars are becoming a permanent feature of the U.S. market, and the odds of earning a decent return have gone up" for domestic auto makers, auto analyst John Casesa told CNNMoney. "The window of opportunity for GM is now." Only, as Dow Jones' anonymous writer points out, "GM is counting on one more critical – but still uncertain – element to turn small cars into money makers, which is that consumers will ante up thousands of dollars more for a new small Chevy." Now what are the odds?

When we reviewed the VW Polo, we noted that it's a good and useful car let down by staid styling and a high price. VW is addressing… the former. According to Autobild [print version of July 31], the 2009 VW Polo will finally ditch the slab sides and become more stylish. Since the Polo already  has similar interior space as the MK3 Golf, this means the Polo might well become a lot more important for VW– to the detriment of the Golf, which suffers from what you could call generational bloat. For the Polo, VW plans to offer double-clutch automatic transmissions and a wide arrange of engines. Popular Mechanics reports that VW will also create a hovercraft hybrid version– just kidding. The mag reports (prays?) that VW may bring a clean-diesel, 70mpg Polo stateside. We say currency exchange rates mean VW can't make a dime on that deal unless they build the new Polo in Mexico, which they won't do because of the aforementioned cannibalism. 

Car makers like to take the credit, but auto suppliers have invented much of contemporary car technology. So when the boss of Germany's Bosch (the world's biggest auto supplier) talks about the future of automotive technology, people listen. Here's what Bernd Bohr had to say to Auto, Motor und Sport . "For the year 2015, we expect a total world market of 80 million new cars, of which only about 2.5 to 3 million will be hybrids and 800,000 will be purely electric. So gasoline and diesel engines will continue to predominate. Actually, we calculate that the world market share of diesel cars will rise by another 5 percent, to reach 28 percent." How come? "Despite disproportionate price increases for diesel fuel, in places such as France the share of diesels has increased from 70 to 80 percent, because of a new CO2 tax. Diesels are 30 percent more efficient, too. There is a political dimension: the EU's ambitious plans to reduce CO2 emissions are only reachable if Europe stays at least 50 percent diesel." But the U.S. has shown that diesel is a no go, no? "This is mainly because of high prices for low-sulfur diesel fuel which is caused by low refinery capacities. This bottleneck should be gone around 2010. We expect a diesel market share for the U.S. of 15 percent by 2015". Are you betting the company on these predictions? "We plan to reduce our dependence on auto technology from currently 61 percent to 50 percent."

After two months of declining sales, analysts are losing faith in the European market. They predict that the down cycle could last until sometime in 2009. That's bad news for everyone, but it comes at a particularly bad time for America's automakers, who are banking on overseas sales to make up for a moribund US market. The Detroit News reports that Europe accounted for nearly a quarter of GM's global sales last year at 2.2m units, while Ford's (non Jag/Landie) brands sold 2.4m vehicles in the Eurozone. And though overall European sales are down only two percent on the year, declines have been increasing, with eight percent drops in May and June. The European automakers' association predicts a 2.7 percent decline this year, though individual executives say it could be as much as four percent. "Having seen the developments in some European markets in the last six to eight weeks, I think it could be worse than that (four percent decline)," Daimler's Dieter Zetsche told analysts during a quarterly earnings conference call. Even the once-hot eastern European markets are declining, eliminating further opportunities for European sales growth. Which means the D3 have less opportunity to squeeze sales from abroad while the American market corrects itself. Not good.

With the McLaren-Mercedes SLR set to end production, McLaren wants to build a new supercar of its own (front mid-engine THIS). Auto Motor und Sport reports that Mercedes, which owns some 40 percent of McLaren, reckon the new hot rod would compete with its forthcoming Gullwing super-SL. And? Racing boss Ron Dennis and partner Mansour Ojjeh each own 15 percent of McLaren; the royal family of Bahrain own the other 30 percent. They're all hot for a new McLaren road car. Accordingly, two mid-engined prototypes are currently undergoing track testing, one of which sports a German-built V10 race engine. Mercedes is livid, threatening to cut all payments to McLaren if it doesn't halt development plans. Ultimately, Mercedes is going to have to bite the bullet and buy out the last 11 percent of McLaren if they want to call the shots (outbidding the royal family of Bahrain ain't gonna be easy). Meanwhile everyone has to make nice and work together on the F1 circuit, where McLaren-Mercedes pilot Lewis Hamilton is kicking ass and taking names. So who's writing the novel?

High gas prices are achieving what thousands of Euro-lusting domestic fanboys couldn't: an influx imported premium European sub-compacts. Automotive News [sub] reports that Mercedes has revived plans to bring its next gen A and B-Class stateside. Expect four-door, coupe and crossover variants to jump the puddle sometime after they make their 2011 European debut. And yes, we'll also get long-awaited, much-anticipated battery-powered versions– provided they escape development Hell. Meanwhile, Daimler's considering another U.S. price increase. "We will continue to go for pricing and lose some volume rather than see our contributions deteriorate," says CEO Dieter "Chrysler What Chrysler" Zetsche. So what's with the mass market A and B, then?