After all the fuss and negativity (I'm looking at you, Justin) about the upcoming new Prius gaining three to four inches (still shorter than a Corolla) and some additional power, the really big news was left off the table. According to Auto, Motor Und Sport (paper version), Toyota has achieved its most important goals for the gen3 Prius: a 50 percent reduction of the hybrid components' weight and cost. In the words of a Toyota manager: "Our hybrid will then be cheaper than a modern diesel." Given that the new Prius will have a substantially more powerful electric motor and battery range than the last gen, this is impressive stuff. Despite Volt vaporware, or perhaps because of it (thanks Bob!), it looks like ToMoCo's gas – electric sedan is set to continue its domination of the American hybrid market. Last month, in a VERY down market, Prius sales rose 7.7 percent to 20,635 units.

While GM say it turns to face the strange ch-ch-changes, it seems old pork barrel habits die hard (with a vengeance). The Detroit News reports that US Rep Joel Knollenberg (R-MI) has proposed $1.2b in federal spending and $3.2b in tax rebates to help American automakers achieve recently-increased CAFE standards. The bill sports a nausea-inducing acronym: "Bridging Industry and Government Through Hi-Tech Research on Energy Efficiency Act." Yup, that's the BIG THREE Act. The easiest of the bill's provisions to stomach: $750m over five years for "advanced battery research and development" The hardest? The $50m to pay for 200 hydrogen fueling stations, and the $150m to buy fool-cell vehicles for government use. The big-ticket spending comes in the form of a 20 percent refundable tax credit for research and development costs connected to meeting fuel efficiency standards. Figure that at $3.2b. The Detroit automakers are lining-up to fawn over Rep Knollenbergs fiscal irresponsibility bold leadership. Which was probably the point of the exercise anyway. Knollenberg is locked in a tight race for re-election (with suicide Doc Jack Kevorkian amongst others). To differentiate himself from his opponents, he's been emphasizing his support for the auto industry. Sounds like several billion well spent.

Plug-in Volt, hydrogen fuel cell Equinox, two-mode hybrid Tahoe, belt-assist hybrid Malibu, yada, yada, yada. With all this high mileage hype, how come GM's not making a big deal out of the XFE (eXtra Fuel Efficiency) Cobalt? If it weren't for our good friend at AUTOSAVANT, we would've never known that as of May 17, all Cobalts with the five-speed manual tranny get 36 mpg on the highway. (That's second in its class to the Honda Civic Hybrid AND the Cobalt XFE offers class-leading hp from its 2.2-liter Ecotec engine.) GM squeezed the last few mpgs from the Cobalt by calibrating the engine, decreasing the tires' rolling resistance and (probably) offering a taller fifth gear. These are exactly the kind of common-sense efficiency improvements Chevy (et al) should spread across their lineup. Yes, well, come the '09 model year, the Cobalt sedan will no longer be available with a manual transmission. So if you want best-in-class horsepower and efficiency from a four-door, buy a Cobalt XFE now or you'll be looking at the Civic. Because practical, efficient cars just aren't Chevy's future, are they? Oh wait… 

VW recently released details of its forthcoming North American-market diesel engine, known as Blue TDI, at the Viennese Auto Symposium. The common-rail turbodiesel boasts the latest and greatest in clean-diesel technologies, like a particulate filter and a maintenance-free NOX catalytic converter. Of particular note: the first-ever application of both high- and low-pressure exhaust gas recirculation systems on a diesel engine. VW says all the new-fangled diesel wizardry delivers a 90 percent reduction in acid rain-causing NOX emissions while delivering 140 hp and 320 nm of torque. Oh yeah, and meeting Euro 5 as well as U.S. 50-state, Bin 5 tier 2 emissions standards. Look for the Blue TDI as an option on US Jettas starting this summer.

Car and Driver reports that the Audi S4 will ditch its normally-aspirated 4.2-liter V8 for a 3.0-liter V6 in the name of fuel economy (of all things). The uber A4's new six will feature some form of forced induction. "At the very least, we expect the new V-6 to be supercharged," C/D says. "Although what will allow the S4's version to generate 50 or so more horsepower is still a mystery." Twincharger? I just met her! Seriously folks, the brainy boys at C/D add that the new Audi mill "will generate something close to the 340 horsepower found in the outgoing S4's 4.2-liter V-8." Ya think? Apparently, the new S4 will get 23.3mpg, compared to a V8-powered S5's 19.4mpg. So the S4's reduced cylinder count not only improves S4 fuel economy (this does matter for CAFE) AND it makes the V8 RS4 and S5 that much more special. The bad news? The S4 will shed only "20-100 pounds" to make up for the cylinder envy. 

The Daily Mail reports that the UK's new carbon tax works spectacularly… as a revenue-builder. The recently-increased "showroom tax" costs consumers between $500 and $2k on cars based on their  C02 emissions. According to her Majesty's Treasury, the carbon tax will add nearly $5b to the government's coffers. And here's the kicker: the gov's own figures will only decrease auto-related greenhouse gas emissions by… wait for it… less than one percent. Conservative Treasury spokesman Justine Greening discovered the discrepancy between the cost to consumers and benefit to the environment during that awesome fixture of the British Parliamentary government known as "Parliamentary answers." "This is a massive tax hike which will have virtually no impact on the environment," said Greening. "Despite their claims, the Government don't expect this move to change behaviour at all – it is just another eco stealth tax of the worst kind." Hear hear.

Poetically enough, The Wall Street Journal's Holman Jenkins wants to know if "GM is a genius or a dolt for developing the Volt." Why would a company that's lost $4.3b in North America the last three years throw billions into developing a car they know will lose money? Jenkins notes that when gas prices dropped after the original federal Corporate Average Fuel Economy (CAFE) regs, the standards devolved into "an elaborate scheme engineered by Washington and the UAW to keep auto workers busy manufacturing small cars in the U.S. at a loss, subsidized by the profits of big pickups and SUVs." Jenkins reckons GM– "America's biggest near-dead car company"– plans a similar tactic with the new standards. "[I]t's hard to see why a reformed GM would bother building such a car now unless it's planning to throw its lobbying clout behind a final set of CAFE rules designed to disadvantage its rivals." Then they'll "bribe consumers to drive Volts off the lot" because it'll let them "build and sell other cars bigger and more powerful than the cars its rivals can afford to build under the CAFE rules." And it's all because "GM intends to beat Toyota at its own game of selling bogus green symbolism to Washington and Hollywood." Let's hear it for the home team! 

While we await GM's next Next Big Thing, one of The General's generals is touting one of its last next big things: the new Chevrolet Malibu. Speaking to the Detroit Free Press, Chevy Chief Ed Peper revealed that "38% of Malibu buyers are trading in a non-GM vehicle, another key goal, and that the Camry is the car most frequently traded in." So, what time period are we talking about? Since the new 'Bu debuted? Last month? Quarter? Not specified. If Ed's talking about March, 38 percent of 15,082 total sales equals 5731 Camry defectors. During that same month, Toyota sold 40,487 Camrys. Oh, are those stats for ALL Malibu sales– including fleets– or just retail? Not specified. But hey! The International Tribune reports that GM's new six-speed gearbox has finally made it to the four-cylinder Malibu. What's more, it bumps highway mpgs by two, beating Camry and Accord by one (and equaling the Malibu Hybrid's highway rating). Unfortunately, the new 'Bu's new box is restricted (until next year) to the $27,745 LTZ trim level– $7500 more than the four-speed base 'Bu. Or $7975 more than the base, five-speed Camry. We now return you to your regular cheerleading.

At the Geneva Auto Show, VW showed off its 70mpg diesel-hybrid Golf Concept. The German automaker promised that "the model wouldn't just stay a show car". According to the in-depth preview of the Golf VI in the March 27 issue of Auto, Motor und Sport (print edition only), the "forward-looking diesel-hybrid is already a thing of the past." The culprit (once again): it's too expensive. "Eventually" there will be a hybrid Golf, but it will be a gasser, using the 1.4 TSI engine. In the shorter term, VW will rely on further engine downsizing and an optional start-stop system to meet efficiency targets. The Golf VI, which hits European streets this fall, will never see the USA anyway (except in GTI form, perhaps). In a contrast to the platform-globalization programs of the most other big manufacturers, VW is developing lower-cost replacements for the Rabbit and Passat to be produced in their future US plant. The current Passat costs $4k more than the (Camcord) competition, according to VW. Look to a return of twist-beam rear axles.

The DOT wants to raise CAFE standards even higher. To meet the new standards, automakers will have to downsize and lighten everything they offer. However, their expertise (and profit) is in large trucks/SUVs. Whatever will they do? Well, there's always China. The Associated Press reports China's nouveau riche auto buyers think size does count. They're going for gas guzzlers like large SUVs and luxobarges; they're the fastest-growing market segments in the People's Republic. And the automakers know it. The star of the GM display at the Beijing Auto Show is the Escalade, which they'll introduce to the Chinese market next year. Mercedes says China is the second-largest market for the S-class (the U.S. is the largest), R-class sales are up 110 percent in the first quarter and the M-, G- and GL-class sales are up 100 percent. Remind me again why we're raising our mileage standards to cut fuel consumption here? Oh yeah. We're giving up our gas guzzlers so the most polluted country in the world will have plenty government-subsidized fuel for theirs. Got it.

Last month we told about Ricardo's 2-Stroke/4-Stroke breakthrough, a very promising technology for sure, but one that is still just a series of gleams in a bunch of engineers' eyes. Much closer to prime time is the Scuderi Group's Split-Cycle engine. How close? Motor Authority is citing Automotive News who's claiming Scuderi's tech will be for sale within 12 months. This is big news, as the Split-Cycle internal combustion engine will be 40% efficient, compared to regular 4-cycle mills which are only 33% efficient. Scuderi is also promising lower emissions of NOx. So, how's it work? Just like it sounds, actually. The four-strokes of the Otto-cycle are split across two cylinders. One cylinder is used to compress the fuel and then "gas passages" move the compressed mixture into the detonation or power cylinder. The fun comes when you start playing with the bore and stroke of the various cylinders. For instance, you can make the power stroke longer than the compression stroke to take advantage of the Miller Effect (less energy is used by the compression cycle than the power cycle). Or you can increase the size of the compression piston to in effect supercharge the fuel mixture. We say not a moment too soon, as clean alternatives continue to (not) sputter along.

Yahoo! Finance reports that Ford's chief engineer for Research and Advanced Engineering will spend part of his day telling the Society of Automotive Engineers that his employer is counting on their EcoBoost technology– not hybrids– to meet and greet federal mpg standards and appeal to buyers. Andreas R. Schamel's speech will tout "volume-based, near-term actions… within the next five years." [In case you hadn't heard, EcoBoost combines direct injection and turbocharging some 20 percent better fuel efficiency, 15 percent lower CO2 emissions and "superior driving performance versus larger displacement engines."] Although Schamel will toss diesel and hybrid powerplants a rhetorical bone– "hybrids, diesels and technologies such as plug-ins and fuel cells have a role"– EcoBoost it is, starting with the cetacean-snouted Lincoln MKS. From there, The Blue Oval Boyz promise "A 4-cylinder EcoBoost engine with the capability of producing more torque than a larger 6-cylinder engine — nearly an entire liter larger in displacement." Sounds like a plan. [thanks to jthorner for the link]

CAFE standards could rise as far as 75mpg by 2030. So sayeth the director of the Environmental Protection Agency's Office of Transportation and Air Quality, speaking to (at?) the Society of Automotive Engineers. The Detroit News reports that Marge Oge told the assembled throngs that making a 50 percent (from 2000 levels) cut in greenhouse gas emissions by 2050– a widely-held goal amongst the green movement's chattering classes– would require steady improvements in vehicle efficiency. Ya think? She think. "The political, economic and regulatory landscape in the United States and globally has changed dramatically over the past year," said Oge. "The reality is the pace of change will not be letting up anytime soon." With one billion cars projected to be on the road globally by 2030, and oil demand by China and India set to double in the same period, Oge says the industry "needs to be thinking of those investments for the long term basis." Oge also revealed an internal EPA study which concludes that automakers will be able to meet the 2020 35mpg CAFE standard by 2018 with cost-effective measures, despite industry grousing. How's that then?

You'd think with an advertising budget of over $2b per year, GM could hire an advertising agency that "gets it." But you'd think wrong. We've seen plenty of "Pontiac Is Car," which is apparently is meant to appeal to illiterate Victorian-era men more accustomed to horses. And now we have an ad for the Cadillac Escalade that declares that it offers "The best highway fuel economy in its class." Do they know who potential buyers of Escalades are? Apparently an ad man was envisioning a fiscally-conscious, sensibly green guy sitting at the computer and having an epiphany. "Hey Miriam, call the dealer and cancel our Lexus hybrid test drive. The Escalade has the best highway fuel economy in its class." A proper Escalade advertisement would sell a combination of three things: instantly recognizable styling, supreme luxury, spaciousness. Maybe if we're lucky, this same agency will do ads for the iPod adapter in the new Buick Lacrosse. Or maybe Chevy's Corvette, which offers the biggest trunk in its class.