Jeremy Clarkson thinks it’s a pile of wank. Bob Lutz thinks it was a crock of bowel movement. But say what you like about global warming, if you can get credentials which make you “eco-friendly”, that’s worth a lot of marketing money. Which is why Honda is probably feeling pretty chuffed with themselves. Read More >

What does the line “It’s More Car Than Electric!” mean? Beats us, but apparently it’s supposed to make you want to buy a Chevrolet Volt. Maybe “The electric car you can just put gas in on those days when you’re not giving a crap about the environment” was too long. Perhaps “It’s actually a series hybrid” didn’t pop with consumers. And maybe “Avoid the scary Range Anxiety® you get with ‘real’ electric cars” was too aggressive. All we know is, GM has registered “It’s More Car Than Electric,” and it’s time to get used to it. Meanwhile, how did we not find the ad parody above sooner?

The flip-flopping over GM’s IPO strategy continues, as The General backs away from its “retail investor” focus and begins courting Sovereign Wealth Funds in earnest. Bloomberg reports that GM’s underwriters have approached

Riyadh, Saudi Arabia- based Kingdom Holding Co., Abu Dhabi-based Mubadala Development Co., Qatar Holdings LLC and Singapore-based Temasek Holdings Pte.

In hopes that they’ll become “cornerstone investors” in the new GM’s IPO. Who knows what will come of the negotiations, but assuming that one or more of the Arab SWFs end up with a large chunk of GM equity, a number of PR problems present themselves. Though (marginally) less emotionally-charged than a possible ownership stake by a Chinese firm, such an outcome would amount to the US-sponsored foreign takeover of an American firm. Politically, the bailout is much easier to justify if GM ends up in American hands… especially since Fiat is likely to gobble up the Chrysler equity it wasn’t handed on a taxpayer-funded platter. But beyond that, GM will have to work twice as hard to convince the American people that it’s not working to serve the interests of its oil-rich Gulf State owners. Renewed scrutiny over its most profitable business, namely gas-guzzling trucks and SUVs, would be a given. Any hesitation (however well-justified) over electrification of the automobile would be interpreted as an oil-cartel plot. And renewed turmoil in the middle east could further inflame anti-Arab or anti-Muslim sympathies, potentially bringing greater pressure on GM. Meanwhile, GM’s energy-independence rhetoric around its E85 ethanol efforts would be extremely awkward.

But will Americans notice or care? At what percentage of ownership would these factors come into play?

The recommendations are simple: Scrap the vertical label, lose the letter grade and emphasize the mpg and cost of owning the vehicle. If the EPA takes these steps, it may be successful in increasing the number of fuel-efficient vehicles on the road and communicating clearly with consumers.

Alan Siegel of brand consultants Siegel+Gale summarizes his firm’s independent research on proposed EPA fuel economy label designs in Automotive News [sub]. Siegel interviewed 456 prospective new car buyers, and found that 66 percent preferred the “horizontal” proposal, while 47 percent found the “vertical” style (which includes the letter grade) “confusing.” No word on what percentage found the letter grades to be “asinine.”

Read More >

With sales of its aging city car circling the toilet, Roger Penske’s Smart USA has reached a deal with Nissan to sell a Smart-branded version of a Nissan-developed four-door B-segment car, likely the Versa. Though Penske’s organization apparently pushed for and announced the deal, and the model will be exclusive to the US, the Detroit News calls the move “part of the growing cooperation between the Renault-Nissan Alliance and Daimler AG.” Penske says

Another day, another story on the ever-growing conflict between the UAW’s ownership stake in GM and responsibility to its members. Pre-bankruptcy, GM didn’t have to deal with the fact that the UAW is incapable of building fuel-efficient subcompact cars profitably. As a result, the outgoing Aveo was built and designed in Korea as the Daewoo Kalos, before being fitted with a bowtie and shipped to the US. But now that the General has promised to build the next-gen Aveo in Michigan’s Orion Township plant in exchange for nearly $800m in local tax credits (not to mention the political benefits of “saving or creating” hundreds of union jobs), it’s up to the UAW to square the circle and make the damn thing profitable. Which, according to Automotive News [sub] is just what they’ve done… by bumping 40 percent of the plant’s previous workers to the new “tier two” wages. Which is a nice way of saying “cutting their wages in half.” How is that possible?

The UAW’s 2009 amended contract with GM just before bankruptcy called for “innovative labor agreement provisions” that would allow GM to make a small car profitably in the United States.

Under those “innovative provisions” (which just happened to be conjured up when the government task force was elbow-deep in GM), Orion workers can neither appeal the decision nor go on strike over it. Either the UAW wants to be a union capable of building small cars profitably, or it doesn’t. Screwing less-senior “brothers” so politicians and union bosses can crow over the “green jobs” at Orion is cowardly and despicable.

What will be the fuel of the future for cars? Gasoline? Diesel? Ethanol? Electric? Hydrogen? I might as well ask “What are the numbers for next week’s lottery?” No-one really knows; which is why everyone is hedging their bets. To invest in a particular technology and ignore the rest is basically playing Russian roulette. (There you you. We forgot  CNG.) This next evolution of the car industry is going to be critical. While Ford is looking at other types of alternative propulsion, at the moment it is pretty much playing it safe, sticking to more efficient ICE’s, hybrids and electric cars. Very good bets to make. But now, it seems, Ford is playing it a little riskier. Read More >

U.S. passenger vehicles emit about 20 percent of the nation’s carbon emissions and consume about 44 percent of its oil. With that in mind, the Obama administration will reveal (some time this week, Thursday probably) its proposal for fuel efficiency and emissions requirements for cars and light trucks for model years 2017 and beyond. Read More >

Volvo, now in the hands of China’s Geely, may revolutionize the way electric and hybrid cars are built. Currently, you have to shove a big honking battery into an electric car, and a simple honking battery into a hybrid. This adds weight, and obesity is a killer when in come to mileage.  Volvo, working with the Imperial College in London has a wild idea: Why not dispense with the big honking battery and use the whole auto body to store electricity. Say what? Read More >

Despite the worse than lackluster uptake of EVs in China, and disappointing sales of hybrids in the Middle Kingdom, companies and the government are still convinced that electric cars are the wave of the future. Toyota will join the fray and will introduce an electric vehicle in China, Vice Chairman Katsuaki Watanabe told The Nikkei [sub]. While announcing that Toyota will enter the electric vehicle market in 2012, Watanabe said, “we’re favorably considering a move into China as well.” It’s not that the market is screaming for plug-ins, or even hybrids. Read More >

Hyundai demands its fair share of a market that doesn’t exist. The Koreans are stepping up the development of EVs. Two days ago, Hyundai held a test drive event in the suburbs of Seoul. The invitees could drive a (blue is the new green) Hyundai BlueOn EV. The Nikkei [sub], who was invited, reports: Read More >

For all its size and big talk about technical excellence, Daimler doesn’t seem to be doing much of its advanced powertrain R&D itself. News that the firm’s future hybrids will be Toyota-developed is joined by the revelation that Mercedes, not GM, is the mystery OEM which has hired Amp Electric Vehicles to develop an EV SUV prototype. AutoSpies reports that

It seems when Mercedes representatives  visited AMP a while back they were so impressed with the [Amp-electrified Chevy Equinox], that they quickly commissioned a ML-350 test mule for further evaluation.   Our exclusive spy photos reveal that a previously unregistered 2009 Pearl White ML-350 bearing manufacturer plates has arrived at AMP’s facility and is currently in the process of electrification by their engineers.  Upon completion this now all electric ML is slated to undergo testing later in the month.

Which is an interesting turn of events for Daimler’s EV partnership strategy. With a $50m stake in Tesla, one might assume that Daimler would turn to the California firm to electrify its ML. After all, Toyota also has also invested $50m in Tesla as well, and Tesla is electrifying a RAV-4 prototype for Toyota. On the other hand, Daimler has not had much luck with its Tesla-powered Smart EV, so perhaps the Germans are diversifying away from the hype-driven Silicon Valley startup. If so, that’s not a good sign for Tesla or Toyota. Watch this space…

If you want to offer hybrid cars, but don’t have the money / time / run rate / wherewithal to do it yourself, who’re gonna call? Toyota. But who would have imagined that haughty Daimler picked up the phone, dialed 0081, and said: “Let’s talk?” Daimler considers joining the growing list of automakers that source their hybrid systems from Toyota City.  Toyota is in talks to provide technology and core components for hybrid vehicles to Daimler, after having been approached by the Germans, says The Nikkei [sub]. Read More >

Who is the most sustainable car maker? And by “sustainable” I mean everything, like fuel-saving ideas, green practices, etc. It’s bound to be a Japanese car maker, right? Toyota, with their hybrid technologies, Nissan and their electric cars or Honda and their Hydrogen FCX Clarity? Nope. Maybe it’s General Motors and their Volt? The answer lies in Munich. Read More >

Here is one way to find out whether a company is serious about its long term plans for a given product: Find out whether they worry about what to do with their products after they are dead. That usually separates the serious players from the wannabes. Word reaches us from The Nikkei [sub] that Nissan has teamed up with the venerable zaibatsu Sumitomo, and established a joint venture to recycle electric car batteries. Read More >