Several European countries are introducing severe taxes and penalties against vehicles with high CO2 emissions (read: SUVs). Auto Motor und Sport reports that Porsche Cayenne S buyers in the Netherlands will have to pay a luxury tax of about €38k at purchase. Finland's surcharge plans are relatively moderate at €26k, as are France's €10k– especially when you compare them to Norway's penalty of 54 friggin' thousand Euros. That means the Cayenne S is effectively twice as expensive in Norway as in Germany. The UK's €23.7k surcharge for Porsche's turbotractor is nothing to sneeze at, either. France also plans to introduce a yearly CO2 tax which, for the Cayenne, will amount to €3k; Austria is following suit with €5k per year. According to CSM Worldwide (a consultancy), the market for SUVs is collapsing in several European countries. This year, sales of large SUVs were down 46 percent in France and down 40 percent in Spain. It looks like Porsche has a bit more legal action in store; merely going to court against London's road-pricing autocrats won't cut the mustard. Perhaps Porsche was smart to buy those VW shares after all. 

MSNBC reports on dismal sales of the overhyped Dual Mode Yukotahoe Hybrid, currently running hundreds of units per month. Given its $50k+ price tag and complete lack of wiggle room on price (especially compared to its non-hybrid counterparts), this comes as little surprise in the extremely price-sensitive US market. Unfortunately GM and their hybrid transmission factory, projected sales were 10-15k units this year. That's not quite as bad as TTAC's whipping boy (the Cadillac BLS), but underutilized capacity is a Very Bad Thing in this economic climate. What does this mean for the upcoming Saturn Vue Dual Mode Hybrid? It's estimated $30k price tag just might be the sweet spot. Or not. GM's losing ground in the hybrid SUV race on a daily basis. In the Yukotahoe Hybrid's price range, Toyota's already sold 5,553 Lexus RX 400h's this year. And in the Vue's venue, they've sold 8,889 Highland Hybrids. Even Ford is leaving them in the dust, with 7,132 Escape and Mariner Hybrids out the door since January 1.  

Concerned that demand for "green cars" could be fueling marketing gimmickry more than real improvements, Auto Express UK ran a test of seven supposedly low-carbon cars (full results not available online) with interesting results. The Times Online reports the test revealed that several vehicles perform much worse in the real world than their manufacturers claim (and repeat ad nauseum in marketing material). One such offender is the VW Polo BlueMotion, which was launched as "Britain's cleanest car" with a claimed C02 output of under 100g/km. In the Auto Express, the Polo failed to achieve its lofty benchmark, and received low scores. Honda's Civic Hybrid has a claimed C02 emission of 109g/km, but in testing it delivered 171g/km, enough to bump it into a higher carbon tax category. The Lexus GS450h claims an impressive 35.8 mpg, but delivered only 26.7 mpg in Auto Express' tests. Ford's ECOnetic 1.6 diesel Focus returned about 45 mpg, a good 20 mpg off the 65.6 mpg claimed by the manufacturer, although carbon output is decreased compared to standard Ford diesels. In short, carbon emissions and fuel efficiency are almost universally overestimated and hyped in marketing efforts. While EPA ratings are often better than anyone receives on the road, we don't base vehicle taxes on carbon output. With tax incentives in place for less-polluting cars, Britain's government will probably want better verification of actual C02 output levels going forward.

Break out your recyclable paper party hats! Toyota's just sold it's one millionth sorta cute, kinda ugly sensible hatchback with Hybrid Synergy Drive. While the Prius is not quite the Model T (Henry Ford the Senior sold 501,462 Tin Lizzies in 1915 alone), a million vehicles sold in ten (or eleven) years is nothing to scoff at– at least these days (cough Lutz cough Ghosn). Right now, sales are jumping. In April, Priora sales rose 66.6 percent vs. last April. Year-to-date, they're up 22.6 percent. Happily (for Toyota), Priora are also selling like hot, gas/battery-powered hotcakes in Europe, where sales ascended by nearly 33 percent. Japanese Priora sales are up 24.5 percent. ToMoCo's press release calculates that the 1m hybrids silently cruising all over blind pedestrians the world have cut 4.5m tons of CO2 emissions compared to regular vehicles (et tu, Sequoia?). The Moving Forward folk claim that they'll be selling 1m hybrid vehicles per year. Chevy's Volt? Not so much.

The First Ever Second-Generation Biofuel Plant established in Saxony, Germany opened April. As we reported previously, a German/Dutch joint venture named Choren claims they'll soon be converting wood scraps into 13k tons per year of "SunDiesel." The list of claims for this venture is long: 90 percent fewer CO2 emissions than conventional diesel, less dependence on oil imports and less disturbance to world food markets than conventional biodiesel. Meanwhile… Autobild (print edition) says complex production processes means it will cost about one Euro to produce a liter of SunDiesel. Choren responded to the news by pointing-out that their first plant is not "optimized for low production costs." What else, then? never mind. Choren is busy talking-up its large-scale plant, set to begin production in 2013 in Brandenburg, Germany. That new factory would/should/could produce around 200k tons/year of SunDiesel, at a cheaper price. That's enough fuel to satisfy 0.6 percent of Germany's demand for diesel.

AutoblogGreen reports that Brazil is launching a "diplomatic offensive" to promote its sugarcane ethanol exports to the EU, culminating at this November's World Biofuel Summit in São Paulo. Underlying the push: a Brazilian ethanol glut that American corn farmers have sworn their lives to keep on the other side of the border (and yes, we do have a border). Speaking to the Europeans, Brazil's Director of Energy tried to contrast Brazilian sugar-based ethanol and American corn-based ethanol. André Caranha Correa arguies that his countries product does not impact foodstocks. Of course, Brazilian ethanol does present a number of less-than-feel-good challenges, from widespread ecological impacts to the near-slave labor conditions of workers in the sugar industry. But hey, what else are charm offensives for? 

California's Air Resources Board (CARB) has been a Detroit boogeyman for some time, occupying the angry, bitter section of auto exec's hearts (normally reserved for the UAW and the folks who control Japan's currency). But The Detroit News reports that tensions may be easing between the industry and the the California cloudchasers. CARB Chairwoman Mary Nichols told reporters at the Society for Automotive Engineers (SAE) Government/Industry session that the board is considering modifying California's emissions controls to become regional, rather than statewide rules. Details are still emerging as to what exactly just what the Hell that means. And that means the thaw in relations is largely rhetorical, with the industry accepting that CARB regulations are basically unstoppable and CARB reaching out to quell manufacturer and dealer concerns. "We can have a national fuel economy policy and still allow California a role as a laboratory for innovative approaches to reducing carbon dioxide emissions," says Alliance of Automobile Manufacturers President Dave McCurdy, stressing that a national approach is better. Nichols, for her part, says the regulations will entail only "a small increase in costs" and "a little bit of creative repackaging." Meanwhile, Green Car Congress reports that California's Pavely regulations would reduce greenhouse gas emissions by 41 percent more than new CAFE standards, if applied nationally. How great is that?

We've don't pay that much attention to automakers' charitable contributions. While we're pro pro bono and love largess, we get hundreds of press releases each year, all touting contributions to causes from adult literacy to wounded veterans of Ford Granadas. Cynics might suggest that these payments are all drawn from carmakers' PR budgets, but we couldn't possibly comment. Well, in this case, we will. After Toyota's $20m contribution to the Audubon Society stirred-up a hornet's nest of questions surrounding SUVs and global warming, ToMoCo has announced the donation of $1m– and five vehicles– to the Florida Everglades National Park. This new donation is also targeted to "environmental education initiatives" rather than, say, culling gators. This is about as obvious as greenwashing gets, but moral relativists have already clicked through. And we agree: it's better for the Everglades to get some dough from Toyota than not. Victor vado share a little spolium. 

London has voted out Mayor Ken Livingstone. While the BBC frame the election of Conservative Boris Johnson as London's new mayor in the context of a widespread shift of support from Labour to Tory, "Red Ken's" call for increased congestion charges (to $50/day) and 20mph speed limits in residential areas helped turn the tide in Johnson's favour. Johnson has pledged to review the congestion charge scheme, particularly in London's West End. Note: review and adjust. Not eliminate. Yes, there's little doubt that the UK motorists will continue to be targeted by revenue-building environmental measures, including Ye Olde CG. How long before New York City or Seattle of Portland or San Francisco revive this idea?

According to The Economic Times, your local Audi will be singing the car body electric 2018. In fact, Audi chairman of the board Rupert Stadler says he expects diesel and battery technology "to dominate" automotive propulsion in the next five to ten years. "By then we will offer cars without exhaust emissions," Stadler promised, revealing his evil plan to transfer all the carbon burning stuff to power plants. When asked if he felt Audi was "falling behind" rivals Mercedes and BMW in the whole lithium-ion battery-powered hybrid thing, Stadler claimed Audi has a greater [flux] capacity for research than its German competitors. So… Stadler claimed "electric cars offer great opportunities, which we have already seized on." Ooooh. We LIKE hints. But then we're not stock manipulators. 

Chevy has its Cobalt XFE, VW its special Polo Bluemotion edition. And now Ford has joined the party, at least in Europe with a special edition Focus called ECOnetic. Manufacturers are getting this down to a bit of a formula and that's a very good thing. Better bumpers, more flush wheel covers, lower resistance tires, and in this case "lower viscosity transmission fluid" all contribute to the mileage and CO2 improvements. The benefit? Fifty-five American miles per gallon on the combined cycle (though their testing methods are considerably more forgiving than American fuel economy standards) and low enough CO2 emissions that the car will be exempt from London's congestion charge. The secret, of course, is that Ford's Focus 1.6 diesel already qualifies for exemption, but don't tell the advertising guys. Still, this is unfortunate news that perhaps the market can adapt to more intense fuel and emissions standards, albeit with limited run special edition versions of existing cars. And no, for the last time, we can't have the Euro Focus in America for a few more years because Ford hates each and every one of us.

Finance and Commerce reports that it was a close-run thing– 20 to 18. But despite strenuous lobbying by Minnesota's ethanol industry,  the state's finance committee recommended adopting California's controversial car emissions standards. For one year. John Tuma, a lobbyist for the Minnesota Environmental Partnership, was a happy camper. Ish. "[For now,] consumers are going to be paying for vehicles that are not as fuel efficient as they could be so they will be paying more at the gas pump. And [there will be] more global warming pollution for a year. But it puts [standards] in place and that’s a step forward." [The bracket brigade in in da house!] Chris Radatz, director of public policy for the E85 FlexFuel-lovin' Minnesota Farm Bureau, is not so happy with The Gopher State's Clean Car Act. "“We’re depending on a state to set standards that has a whole different infrastructure,” Radatz said, referring to CA's lack of corn juice pumps. To placate the E85 crowd, a last-minute amendment stipulated a [taxpayer-funded] study of how the bill would affect the availability of flex-fuel vehicles. Availability as in sales? You betcha! Look for this legislation to fall on the floor and flop like a fish. 

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.

Motor Authority reports that AMG is ditching its 6.2-liter V8 and 6.0-liter twin-turbo V12s in favor of a new 5.0-liter twin-turbo V8. As with Audi's recently-announced downsize from V8 to V6 in the S4, Mercedes claims they're losing the big bore mills to increase fuel efficiency. Not only do Merc's massive 12-pots struggle to break 15 mpg in typical (for a V12) driving conditions, but they lack the low-end shove of previous AMG engines (notably the old supercharged 5.5-liter V8). The "entry-level" version of the new V8 twin turbo– replacing the normally-aspirated 6.2 unit (called a 6.3 for nostalgic reasons)– will boast 570hp and 665 lft.-lbs. of torque. A higher performance unit will get turbo upgrades to create 700hp and 885 ft.-lbs. of torque (to replicate turbo V12 shove). Apparently a "BluePower" (not a Smurf racist group, it turns out) version will offer epic hybrid performance from the same V8. If you just have to have yourself a V12, fill out a pre-order now for the SLC Gullwing, launching in 2010. The tasty retro-coupe will be the last application for Ye Olde 6.2, cranking-out over 600 horsepower, mated to an 8-speed automatic.

Is GM abandoning hydrogen fuel cell-powered vehicle hype development in favor of battery-powered electrics? Newly enriched Car Czar "Maximum" Bob Lutz seems to be hinting in that direction. In an interview with PetroZero.org, the Volt's godfather indicated The General is considering building a Volt. No seriously. Building a Volt "without engine and all the plumbing" to meet California's new Zero Emissions Vehicle (ZEV) mandate. The engineers responsible for the test fleet of hydrogen-powered Equinox will be delighted to learn that Max Bob "agreed" that "pure EV was the most sensible route [to meet the ZEV requirements] compared to expensive hydrogen powered fuel cells." But MB didn't stop there. (As if.) He concluded if GM builds an EV Volt, they'd have "a pure electric with more range." More range than what? The EV1? And does this indicate that GM's already working on an all-electric Volt, or is Bob just putting his bid in for next year's Bob Lutz Award? Or both? But definitely not neither.