London's new Mayor Boris Johnson has scrapped his predecessors plans to hike congestion charges to nearly $50 per day, reports the Times. Not only has BoJo repealed Ken Livingstone's proposed fee bump, but he's even paid Porsche's six-figure legal bill after the German automaker lead the charge against the increase. "I am delighted that we have been able to scrap the £25 charge, which would have hit families and small businesses hardest," said Johnson. "I believe the proposal would actually have made congestion worse by allowing thousands of small cars in for free." And what makes "Red" Ken Livingstone most angry about the reversal of his controversial legacy? Environmental damage? Long commute times? No, it's the lost revenue for the city government. "The claim that £10m has been 'saved' by scrapping the CO2 charge is entirely false – in reality London will lose £30 million – £60million expected annual revenue from the scheme," said Livingstone. With that admission, any pretext that the beefed-up congestion charge is actually an environmental or traffic-calming measure is well and truly put to bed. Along with Mr Livingstone's political career. And good riddance too.

CAR Magazine is reporting that VW's 2002 concept car– the 1 Liter Car– is headed into production in [The Year of Our Overload] 2010. The name comes from the fact the VW uses 1 liter of gas per 100 kilometers (a standard European fuel economy format). Ferdinand Piech was seen cruising around in this puppy during his final days (or what we thought were his final days) at VW's helm. The crazy car, which looks more like a rolling fighter jet canopy, is mostly carbon fiber. It weighs an estimated 660 lbs. CAR figures it will have a two-cylinder diesel engine. The 1 Liter Car would likely be assembled in VW's prototype shop–  limiting production to 1000 units per year. The price is not yet determined, but reckon somewhere between 20k and 30k Euros. With such a small production run, this sounds more like a glamour and "we can do it" car (reverse halo?) from VW, rather than a true plan to save the world. And it'll still probably breakdown in my driveway.

While we wait for automaker bankruptcy filings, we have a little schadenfreude from a different (but equally deserving) sector to keep you going. Reuters reports that spiraling foodstock costs are tearing a giant hole in profit margins for domestic ethanol suppliers, causing a spate of bankruptcy filings. Corn (the main ingredient for domestically-produced ethanol) was already hitting record prices before the recent deluge in the Midwest. Post-flooding price spikes have wrought havoc on the whole ethanol business plan. Alex Moglia of Moglia Advisors, a biofuel consultancy group, tells Reuters that 12 biodiesel and ethanol plants have declared bankruptcy in recent months, with more to follow. The plants that are still open are typically producing at about half capacity, says Moglia. Ironically, a major problem for domestic ethanol producers is the transportation of their fuel. The majority of ethanol refineries are in the Midwest, which has a massive oversupply of corn juice. High fuel costs are preventing America's alternative fuel from reaching larger markets on either coast at competitive prices. Ultimately, the big boys of ethanol– your ADMs, and VersaSuns– will survive the hard times for ethanol producers, thanks to agribusiness diversification. It's the little guys that are being forced out of business, as reality begins to hit home for America's "magic fuel." Even so, their elected officials are probably lobbying for bailouts as we speak. 

Programs to buy back beaters have been implemented in California and Texas, pulling thousands of polluting vehicles of the road each year. Canada's program to buy back old, polluting cars is set to roll out in January of next year. The Detroit News reports that the three-year Canadian program is targeting 50k buybacks, or about one percent of all cars on the road. While provincial governments have implemented similar programs, this will be North America's first nationwide buyback program. The $92m program will offer drivers $300 per running beater, or discounts on bicycle purchases or a public transit pass. Busting-out the old calculator, it becomes obvious that buying 50k cars at $300 a pop would set back the Canucks $15m. Some $77m of the program will be going… somewhere else. But don't expect opposition to the program. The Alliance of Automobile Manufacturers spokesman Charles Territo says "we strongly support efforts to get older, less-efficient vehicles off the roads and help consumers." Because they'd rather you buy new than drive your clunker till it breaks, of course. Which means the only people who won't be thrilled by this program are people who care how their government spends money… and know how to use a calculator. 

Last year, France introduced a system known as "bonus-malus." Under the scheme, people who buy gas guzzlers have to pay a €200 – €2600 penalty. Consumers option for something more "environmentally friendly" get a €200 – €1,000 bonus. Automotive News [sub] reports Environment Minister Jean-Louis Borloo plans to "amplify" the program. Car buyers who purchase "extremely polluting" vehicles will soon pay an additional annual fee. As in carbon tax. Borloo didn't say when he plans to start the extortion new program. But here's the best part: "Borloo has said in the past that the system of penalties and rewards applied to vehicles could be extended to other products such as electronic goods." Liberté, Egalité, Fraternité!

Autobloggreen (ABG) is all over Mercedes' EV plans. The tree-hugging bloggers report that Stuttgart's first EV will be an A Class. Digging deeper, it seems that Mercedes will be using a battery pack from Tesla Motors, confirming Elon Musk's hint of a "small deal" with Daimler. The rumor hasn't been confirmed by Mercedes, and ABG points out that Daimler claims to already have li-ion battery thermal issues licked. Furthermore, Continental has been named as the official battery supplier of Mercedes' forthcoming S 400 Hybrid. So we'll wait to hear from official Daimler sources before we credit Tesla with its first supplier contract. And don't even ask when the EV A Class will hit the market. Automobile Woche is prognosticating an industry-standard 2010 release. Battery supply notwithstanding, the A-Class was designed with a "sandwich floor" that can accommodate either fuel-cell or EV conversion. Which means that they're good to go. Or not. 

Andy Grove, the man who led Intel to dominance, has a new cause: The Electric Car. Ken Thomas of the AP interviewed Grove on his new passion and found a true believer. Grove notes that "the beauty of electric power is its ability to be produced through multiple sources such as coal, wind and nuclear, and its 'stickiness' — it can be transported only over land." Typically the ability to transport stored energy by sea is considered an advantage for coal, oil and the like. But Grove touts the fact that electricity cannot be readily traded on the global market. Coming from the former leader of the quintessential modern multi-national, Intel, this is quite a surprise. Indeed, Grove says that the inability of the US to export electricity to voracious China means that electricity prices can be kept lower than they otherwise would be. He may have a point. Back in the 1960s a crash in US automotive sales would be paired with plunging steel prices, but not now. Grove's other hot button is the promotion of aftermarket plug-in conversion kits for hybrid cars. He sees parallels between plug-in conversion kits of today with the way hobbyists and home users got the whole personal computer industry up and running a few decades ago. 

It looks like New Mexico's SOL. The Land of Enchantment tempted Tesla with a $7m incentive package (or was that $20m?) to locate the plant for their sometime-or-other upcoming electric sedan. Despite a big announcement from the then-governor's office, Tesla's changed their mind. The San Francisco Chronicle reports the electric car manufacturer promoter will announce today that they've chosen the Bay Area as the ertswhile production site for the vehicle formerly known as WhiteStar, in honor of the owners of the ill-fated Titanic (as far as we know). What swung the deal in the favor of the Golden Gate State? Well, besides the governator placing an order for his own $100k toy, Tesla will get a sales tax exemption on purchasing manufacturing equipment and grants for training new employees. The company says they'll start production of the $60k sedan (when else but) in 2010– even though there doesn't seem to be even any concept drawings of the new car.Time to revive the Tesla Birth Watch?

Credit Justin Berkowitz. On a recent podcast, Justin chastised Ford President Mark Fields for begging for bucks for hybrid batteries. "Stupid schmuck," Justin said [paraphrasing]. "Ford should concentrate on getting small cars like the Focus and the Fiesta to market as soon as possible." And now Bloomberg reports that FoMoCo is committing itself to NOT developing a plug-in electric hybrid (PHEV). Ted Miller, Ford's senior manager of energy storage, said Ford would not take an "overly aggressive approach" [as opposed to a conservatively aggressive approach] to introducing plug-ins. That would be "akin to a Hail Mary." And that's bad. "A Hail Mary means that we're probably going to have to neglect a lot of other things." In other words, Ford can't afford to chase rainbows. Despite the common sense, Bloomie Scribe Greg Bensinger feels compelled to warn his readers that Ford's non-tack might leave the automaker high and dry when GM or Toyota introduce a massively popular PHEV. See? Now that's funny! Meanwhile, Blue Oval Boy Said Deep revealed there'll be a hybrid Mercury Milan and Ford Fusion in Ford showrooms by year's end, for a total of four gas – electric models. A new-ish Mercury! More Jill Wagner ads! Rejoice!

The Detroit News reports Los Angeles has a new hydrogen fuel pump. A commercial hydrogen pump, rather than a fenced-off hydrogen-only fueling station. LA City Councilman Bill Rosendahl showed up in a GM-furnished Equinox Fuel Cell and announced it was "the most joyous moment I've had since being elected to office." Of course, even though it's a commercial fuel station, drivers of the approximate 100 fuel-cell vehicles won't have to pay for the hydrogen they pump. They're all part of "demonstration programs by the motor companies." So what happens when the owners start having to put their debit card in the pump to pay for their fuel like the rest of us? Good question. So far no one's saying how much it costs to produce or dispense the stuff. And apparantly no one cares. The California Air Resources Board is spending $7.7m of the taxpayers' money to open three more fueling stations so they can give away more free fuel to people driving cars they don't have to pay to operate so the anti-ICE crowd can get more propaganda free publicity.

Whenever we talk about alternative powertrains in development, some people (this writer included) inevitably say: gasoline and to a lesser extent diesel are past, present, and medium-term future. But a number of sources claim Mercedes Benz is thinking otherwise; they're dumping the need for petroleum-based fuels in their future products in favor of electric, fuel cell, and (yuck) biofuels. Apparently Benz has spent billions of Euros on a "sustainable mobility" plan. According to the UK's Sun, Mercedes plans to spend another $14b or so in the next seven years to further develop the petroleum-free lineup. Will Mercedes give up sales in all the parts of the world in which there is no infrastructure for electric or fuel cell cars? The hedging response: their cars would still be capable of running on gasoline or diesel– meaning that biofuel flex fuel cars would satisfy this wild claim from the British tabloid. Even still, huh?

A federal district judge has dismissed an auto-industry request to delay implementation of California's new emissions standards. The LA Times reports that the Alliance of Automotive Manufacturers' request to delay the 30 percent reduction by 2016 time line was slapped down by Judge Anthony W. Ishii. He ruled the petition was "without support in law, logic, or grammar." (Apparently the grammar police have a grammar court in California.) The shellacking extends the industry's losing streak to three, having already lost battles against California standards in Vermont and Massachusets. But don't count your carbon footprint just yet; California still has to win a lawsuit against the EPA before implementing the new standards. Except that the waiver was denied against "the unanimous recommendation of the (EPA's) legal and technical staffs." That's right, the EPA's own lawyers think they'll be forced to grant California the waiver. In other words, do start counting your carbon footprint. Meanwhile one of the best things about California: you don't have to live there.

As part of its Great Five Year Plan For Great Leap Beyond Carbon Economy, the California Air Resources Board (CARB) will require "Environmental Performance" labeling for all new cars sold in the state, starting in 2009. "Consumer choice is an especially powerful tool in our fight against climate change," CARB chair Mary Nichols insists. We'll gladly concede labels are a far less draconian approach than what one might otherwise expect from an unelected environmental agency with a broad mandate and an $800m budget. But if CARB really wants to give its labels a fighting chance, they should ditch the laissez-faire and mandate permanent labels. That must be visible from twenty yards. Then they could decriminalize keying vehicles which score below a four on "Smog" and "Global Warming." And casual observers wouldn't have to look up your eco-friendly car's EP score at driveclean.ca.gov. Especially when that website is "temporarily down for maintenance," as it was at the time of writing.

A widely touted goal of the environmental movement: increasing American's percentage of renewable energy use to 25 percent by 2025. According to a report by the RAND corporation, meeting the so-called "25 by 25" goal without significant consumer cost will require "major technological developments." Green Car Congress reports that 9.5 percent of electricity and 1.6 percent of motor vehicle fuel currently comes from renewable energy sources. The RAND report identifies biomass and wind energy as the two greatest opportunities for meeting the 25 by 25 goal. But it also points out that both require significant improvement to make a low-cost impact on renewable energy usage. For motor vehicles in particular, biomass-based (non-foodstock) "second-gen" biofuels must become significantly cheaper and more prevalent. Reducing renewable fuel goals to 10 or 15 percent by 2025 would also disproportionately reduce consumer expenses. Then again, the higher the cost to consumers, the more competitive renewable fuels become. The preceeding was brought to you by the Energy Future Coalition of UAW Boss Ron Gettelfinger's "Marshall Plan" fame. Over to you, taxpayers. 

We've argued for some time that OEMs should respond to high fuel prices by improving and lightening existing models and drivelines, rather than developing moon-shot, "game-changing" technologies. Et voila! Green Car Congress reports on the Pintle Regulated Venturi (PRV) induction system, developed by PRV Performance. The PRV-9 induction system is a bolt-on replacement for stock intake manifolds. By inducting air through a venturi throat, the doo-hickey burns a high-velocity homogeneous fuel-air blend more efficiently than standard induction; eliminating throttling losses and improving fuel vaporizing, precluding cylinder wall stratification. [You can read all the gory technical details at Green Car Congress] PRV Performance tested its intake on a JDM D15B SOHC-equipped Honda Civic, driving it at a steady 65 mph on a hilly 203-mile test run. The Civic achieved a reported 52 mpg, up from 41.7 on an unmodified Civic, with similar reductions in pollutant emissions. The EPA has tested an earlier prototype at 48 mpg, and will test this newer system later this year. PRV Performance claims that the technology is hybrid-compatible.