According to an Automotive News Europe report yesterday, Mercedes is set to have an entirely turbocharged automobile lineup by 2010-2011. You might have noticed that while the "big boys" blogged it immediately, we at TTAC did not. The story, which was originally published in Europe based on a European presentation, was just too many steps removed from Dieter Zetsche to race to press – and a little too wild. Rather than pull an Autoblog on the CTS-V/Europe (rush to report, then recant ), we held off until getting confirmation from the author of the original news story, James Franey. Well it turns out that the madness, in this case, is true – until Mercedes changes its mind. In the meantime, the plan is to go all turbocharged, aside from perhaps the hybrid models set to debut in the coming years. You can see in the attached PDF that Daimler is defecating a brick over the upcoming European emissions regulations and their very European fines for noncompliance. Everything will end up with some kind of marketing-lover name – Bluetec, BlueEfficiency, and DiesOtto. The latter is the most exciting from an enthusiast point of view, with the concept DiesOtto engine delivering 238 hp, 294 lb ft of torque, and 40 US MPG from a 1.8 liter gasoline engine in an S-Class. And from Zetsche's presentation, it looks like it'll be happening. Oh yeah, and everything will get turbos, too. 

Edmunds Inside Line has dropped some cash for spy photos for Honda's new Prius-fighting dedicated hybrid model. And it seems that IL and Honda are in the same boat: they've both dropped good money on something that looks identical to a Prius. Go ahead and follow the link for actual photos, or you can just feast you eyes on any image online of a current Prius, because you're basically getting the same thing either way. KGP photography caught the forthcoming Honda Hybrid undergoing hot weather tests in California's Death Valley, going head-to-head with Honda's Civic Hybrid and a current Prius. They say the new Honda is larger than a Prius and will be a global model, though its name and performance details remain under wraps. Expect its finalized looks to be very close to the fuel-cell FCX Clarity, itself something of a dead ringer for the Prius. It's obvious that Honda wants a model that screams "saving the planet" as it drives by. Still, one can't help wondering whether a hybrid Fit (the standard version of which faces high demand from eco-types) wouldn't have achieved a similar statement with a more flexible package and more familial resemblance.

GM's CEO heir-apparent and current COO Fritz Henderson revealed GM's latest product-planning philosophy in an interview with the AP (via CNN Money). "Let's do cars that people love, even if they're small." And WTH, let's make some money doing it! Fritz's recipe: "close the price gap versus the market segment leaders and drive more volume. You're significantly improving aggregate profitability." The former CFO [who isn't Rick Wagoner] wants to aggregate profitability "one or two models at a time." But Fritz realizes "one product launch does not a success make… if we get the car right and we get the promotion right, we can make progress and we can actually bring people back to the car." Uh, what about all those cars GM's already launched? Fritz's remarks bring to mind an image of Wile E. Coyote, realizing he screwed up one of his Road Runner traps, racing the burning fuse to get to the dynamite before it goes off. And anyone who has ever seen a Road Runner cartoon knows how that scene plays out.

After its M250 concept went down in flames, many thought Lotus wouldn't try to build a "real-world" sportscar again. Though the Europa brought a little more livability (and a lot more ugly) to the hardworking Elise platform, it hasn't done much for Colin Chapman's progeny. Car reports that Lotus is having another go, reviving the M250 concept back with a new set of clothes and a new 'tude. With a 276hp Toyota V6, the Eagle (not its real name) does zero to 60 in five seconds, hits 160mph and laps the Nurburgring considerably faster than its Elise stablemate. Unlike the spartan Elise, the new 2+2 offers traction control, cup holders, AC, Alpine ICE and antilock brakes. At about $90k, the 2009 Eagle is a little short of the "911 for Cayman money" goal. Speaking of which, the new, 2010 Porsche Cayman jumps from 245hp to 265hp. The Cayman S will offer 320 directly-injected horses. And here's news: the S gets an optional PDK dual-clutch gearbox (all versions will be more fuel-efficient). So it's Lotus prestige and limited production versus Porsche performance and cost advantages. I call dibs on the comparo.

Korea's Kia has released photos of its Soul. To herald the U.S. arrival of its new citycar– which looks to have the Chevy's Aveo Beat– Kia's announced the Soul's engine lineup. Globally, the Soul will offer three powerplants. Yanks are denied the 1.6-liter turbodiesel with 128 horsepower. We get to choose from either a 1.6-liter, 124-horse four (the new NA class leader) or a 2.0-liter with an unspecified amount of power. The fuel economy– which RF would call "mission critical"– has not yet been rated by the EPA. Although the new car's based on the Rio platform, Kia promises that the Soul "won't drive like a mailbox." Return to sender? Let's just hope Kia's Soul has more eponymousness than its other efforts, which tend to put inhabitants in econobox Hell. 

After Rick Wagoner's announcements this morning, GM Car Czar Bob Lutz was bubbling over with product news. Of course, Maximum Bob overlooked the fact that someone else's year-old warmed-over Pontiac leftovers may be nourishing, if they're seldom appetizing or appealing. Anyway, MB revealed that the Chevrolet Cobalt will be around for a lot longer than we'd been led to believe. It's "no where near the end of its life-cycle" and it's "finally coming into its own" (whatever that is). So what about the Cruze? It'll be sold eventually but not as the Cobalt's replacement. And then there's the news that's upsetting Autoblog's readers: the Beat won't go on, at least not in the U.S. Apparently, the small car that GM needs right now wasn't designed with federal crash and safety standards in mind (doh!). It would cost too much and take two years to fix that short-sighted screwup prepare the car for compact-loving 'Mericans. So when CEO Rick Wagoner said earlier today that GM has "a global operating framework that allows us to respond to changes in the U.S. market, a commitment to technology leadership, and an ever stronger and competitive product line-up," he wasn't talking about small cars. Except the Aveo and Cobalt. And the Pontiac-nourishing G3 and G5. 

Kia sent out some press shots of its new Forte compact sedan last week. But real world pictures of cars are always a step up. Those candid photos, along with scans of the Korean brochure, are here for you to peruse, thanks to the fans at Kia-World.net. IMHO, the Forte looks quite good in the metal. The biggest improvement over the Spectra: the interior. It appears to be made from something other/better than cardboard this time (no word on whether the traditional Hyundai-Kia interior crayon smell will remain). Americans probably will not get the 1.6-liter with 124 horses; the 2.0-liter engine with some 150 horses is a lock. And we're all holding out to see if Kia decides it wants to put its money where its auto show mouth is and give us a version of that 2.0-liter with a turbocharger. Not surprisingly, the Korean brochure shows all sort of high-end kit, from keyless go to Bluetooth to navigation. How many of these doo-hickeys will make it to North America is your guess. Looks like it might be the best Kia yet, though. And that's saying something. I think.

Tesla Prez and CEO Ze'ev Drori has e-mailed customers with important news! "In large measure we deliberately limit the production until we install our own born and bred final transmission by mid-September, at which time production will start to ramp up leading toward a monthly rate of over 100 cars in December." Translation: Tesla owners at the front of the line will receive damaged goods. And the aspiring EV maker's got another promised production date for the rest of its "non-founders" customers, who were told Tesla went into "full production" on March 17 (of this year). Ze'ev also proudly touts Tesla's high-profile hire: 24-year Chrysler vet, ex-VP, and former chief engineer of future midsize products Mike Donoughe (out of the frying pan into the frialator?). Tesla's Prez highlights the fact that The Big D was tapped to head-up ChryCo's Project D. Uh, wasn't that the "emergency project" designed to rescue the craptastic Chrysler Sebring and Dodge Avenger from being the worst new cars sold in America? Whatever happened to that, anyway? Was it ever finished?

PickupTrucks.com reports that Ford's veep for product development, Derrick Kuzak is considering (what's the hurry?) "right-sizing" the F-150's power plant. Ford may stick an EcoBoost four-banger into the base the F-150 pickup truck. And why not? The current V6 F-150 is dead for 2009; the base V8 offers better performance and fuel economy. So FoMoCo needs something smaller and more fuel-efficient underhood to elevate sales from apocalyptic to merely catastrophic. At the same time, FoMoCo needs to satisfy upcoming CAFE regs: 28.6 for light trucks by 2015. Headline: a V6 with the performance of a V8 and the fuel economy of a V6! In the F-150, the 2.5-liter turbocharged direct injection straight four would be good for 260 horses, 300 lb ft of torque and around 28 highway mpgs. This is all just potential product planning (for 2013, no less). With the smaller F100 being planned (and not ten years too soon), the four-banger F-150 would have a kid brother to share engines. Upon hearing this news am I the only person thinking "260 hp EcoBoost Mustang, please" or at least "Mmmm, Compact pickup."

Motor Trend (MT) is filling-up bandwidth and hyping-up baby boomers with a post on the forthcoming New Beetle Mk II. The bulk of it isn't all that earth-shattering: there will be a new New Beetle. MT reckons it will be based on the next Golf and it should arrive in 2010. There will likely be a hybrid version. Motor Trend says VW should (or could) make the New Beetle a hybrid-only model since "its distinctive style lends it the same kind of instant recognition as the Toyota Prius." Except that the Prius is actually aerodynamic; a far more important feature for efficiency-oriented cars than boomer nostalgiamobiles. But that isn't even MT's wildest bit of speculation. They speculate that VW's forthcoming city car, the up! could be restyled to look like a "Baby Beetle." Hmmm. The VW up! was planned as a rear-engine car, and it will cost enough to place it in the "small-but-premium" category. By giving it a Beetle-inspired shape, VW could use nostalgia to trump the price point. A light, rear-engined baby Beetle would capture more of the original kaeferwagen's appeal than another reskinned Golf. But there's a small problem with the theory. As Mr Berkowitz pointed out, the up! is no la rear-engine, rear-wheel drive car. That doesn't mean a baby Beetle isn't coming. But if it does, it will be just another reskinned FWD VW. Or will it?

It turns out that Fiat and BMW's axis of platform-sharing may help facilitate Alfa's stateside arrival. Automotive News [sub] reports that the Fiat version of the automakers' joint agreement states that "as part of possible cooperation, BMW Group will provide Fiat Group Automobiles with support in launching the Alfa Romeo brand in the North American market." And really, it's perfect. BMW already has a chain of boutique dealers in the more "sophisticated" American markets: MINI. And sure enough, Fiat spokesfolk tell AN "Mini U.S. dealers would have the possibility to also sell Alfa Romeo cars." Official details of the agreement have not been publicized, nor has BMW officially commented on MINI becoming a multi-brand retailer. Still, it's hard to think of too many downsides. MINI stores are already located in the markets that will be interested in Alfas, and the idea of an 8C Competizione gracing a MINI showroom is hardly the stuff of MINI salesman nightmares. Though the two brand's FWD offerings may not be as coordinated as they'd like, the platform-sharing plans mean that the two brands could grow around each other. Besides, a MINI-Alfa dealer would hearken back to the good old days of "import specialty dealers." Only without the horrendous products and service support. We hope. 

In a move bound to raise howls of protest from the Chevy Volt's cheerleaders, GM (along with nine other manufacturers) has asked the National Highway Traffic Safety Administration (NHTSA) to lower the 4.5 percent annual increases in the CAFE standards projected between 2011 and 2015. To justify the request, GM stated they won't have enough Volts and Vue plug-in hybrid electric vehicles (PHEVs) on the road by 2015 to meet the more stringent standards. GM "strongly discouraged" any assumptions that their PHEVs would impact their corporate fleet average. Their NHTSA filing flatly stated "GM's game-changing (extended range electric vehicle) technology should be treated as a low-volume application." (Only GM could use "game changing" and "low volume" in the same sentence.) How low is "low volume"? The Detroit News reports GM plans to build fewer than 200k Volts in the first five years (40k per year average). To make matters worse– for the U.S. PHEV crowd– GM says many of those will be exported. Of course, this all assumes GM will start producing Volt and PHEV Vues in late 2010 as promised. So now, it's put up or shut time. The sad thing is that GM will do neither.

New Corporate Average Fuel Economy (CAFE) standards are enshrined in federal law. It's 35mpg by 2020, or a 4.5 percent annual increase. So why would The Big 2.8, Toyota and Porsche renew their efforts to raise the bar? Especially as someone might be looking for federal loan guarantees… As mob boss Carl Rojeck said in "My Favorite Year," "the fighting is in rounds." Now that the The National Highway Traffic Safety Administration's (NHTSA) writing the fine print, the kvetching starts afresh. To switch movie references, "Can you squeal like a pig?" The Detroit News reports that The Big 2.8 have filed paperwork urging NHTSA's pen pushers to "roll back proposed 4.5 percent annual increases in fuel efficiency requirements between 2011-15." Apparently, "the new rules will force them to slow the rollout of some advanced vehicles." Huh? Wouldn't it make them speed-up? Go figure. GM: We can't build enough Volts [more on that in a separate post]. Toyota: the 2011 requirements are "too aggressive." Ford: the proposal "seems to impose a disproportionate share of the burden on domestic manufacturers." Chrysler: ""It will cost Chrysler LLC thousands of dollars per vehicle in additional technology, not hundreds of dollars." Porsche: We might have to "leave the U.S. market until such time they develop new vehicles with advanced propulsion systems." Hyundai: bring it on! 

Automotive News China [sub] managing editor Yang Jian has a column warning Chinese firms not attempt to buy Volvo anytime soon. Yang considers the Shanghai Automotive Industry Works (SAIC) and First Auto Works (FAW) as the most likely suitors for Ford's Swedish division. They alone have access to the state-controlled bank financing needed to make the deal happen. Never mind that, Yang says, there are a wealth of lessons that China is still not ready to buy-up western car brands. The first-ever Chinese purchase of a western brand, Nanjing Auto Group's takeover of MG, led to an overleveraged NAG being bought up by SAIC. When SAIC bought Korean firm Ssangyong, it had to endure labor walkouts over plans to shift production from Korea to China, followed by a slide into unprofitability. As a friend of Yang's at SAIC puts it "SAIC certainly won't consider buying (Volvo) since we know how much hassle an overseas acquisition could create." So it turns out that a booming market isn't enough for Chinese firms to overcome their unfree-market disadvantages. 

Fiat makes some really wonderful small cars. But as always, it's more fun to do it with someone else! And so Fiat likes to take lovers, much like the Italian Prime Minister does (e.g. former topless model/current Minister for Equal Opportunities Mara Carfagna, Ministers of Parliament Gabriella Giammanco, Micaela Biancofiore and Nunzia De Girolamo and Venezuelan Model Aida Yespica). Consider: The Fiat Panda and 500 share a platform with the upcoming Ford Ka. Fiat partnered with PSA Peugeot-Citroen for the (these are real names) Fiorino, Bipper, and Nemo small vans. In Europe, Fiat sells the car us North Americans know as the Suzuki SX4 as the Fiat Sedici. And Fiat has been rumored to be talking to Tata about accessing Jaguar's RWD platforms for future models. And now, BMW! Automotive News reports that Fiat is looking to hook-up with BMW for future platform engineering and powerplants. In particular, BMW and Fiat may co-develop the next gen Fiat 500 and MINI. Considering the 500 is reported to be not the most phenomenal car to drive, this would be good news for the Italians. For its part, BMW realizes the importance of collaboration. The current MINI Cooper's 1.6-liter mill was co-developed with PSA Peugeot-Citroen, which also makes a home in a number of small French car-things. And BMW has declared that future BMW branded 4-cylinder engines will be shared with PSA. So how long is it, really, before there are just two car platforms in the world: one RWD, one FWD, with 30 different badges?