Since the $25b bailout is a done deal, it’s tempting to think of the “debate” as a fait accompli. Not so. The Department of Energy (DOE) still has to meet with lobbyists study the bill and write-up the regs. Although RF reckons the DOE won’t be rushed (that much), Motown’s white hot for the green, encouraging bailout backers to fire-off warning salvos even before the President’s signature clears the cash. As Green Car Congress reports, Senate Energy & Natural Resources Committee chair Jeff Bingaman (D-NM) is pre-threatening his pals at the DOE.

I have been told there may be some confusion about the terms of the loans as the provision creating the loan program references the “activities” that are the subject of a grant program also authorized in the same section of EISA. The grant program is limited to 30 percent of the costs of a facility. This is a fairly typical cost share for grant programs. Some have raised a question as to whether this 30 percent cap should also apply to the loan program. That is not the way I read the language of the law and was certainly not our intent in writing the provision.

Moreover, I would argue that it would dramatically limit the effectiveness of the program as it would require companies to go to tight credit markets for 70 percent of their financing, precisely the problem we were seeking to remedy with the creation of the loan program. While I don’t expect the Department of Energy to take this limited view of the program, I wanted to go on record here to help alleviate any confusion that may exist. I look forward to working with the Department to aid them in getting this program up and running.

The rich aren’t like you and me. Saying that, it appears that Wall Street’s financial meltdown is bringing some of the money men a little closer to our level. Buried in the middle of a Bloomberg article: car dealer Michael Sheehan’s revelation that the bottom’s dropping out of the used Ferrari market. “I’ve got a street-legal 1982 512 BBi series with 26,000 miles for $129,500,” says Sheehan, president of Ferraris-on-line.com in Newport Beach, California. “One owner, a former Lehman Brothers partner. The day Lehman tanked, he was asking $149,500.” That day was September 15. Sheehan says the date marks the moment when the sticker price on previously stabled Prancing Horses started sliding. By his reckoning, prices for Maranello’s high-maintenance “pre-loved” machines have tumbled 20 percent. So far. “I normally get one call a day from clients asking me to sell their cars,” Sheehan says. “I’m now averaging six calls a day and that number will certainly rise. Nobody needs a Ferrari, they need a house.” A very large one, presumably.

There have been rumors floating around that GM approached Isuzu with an offer to sell its mid-sized truck business. Rumors being what they are, multiple sources now say that Isuzu ain’t interested. Japan’s Corporate News reports that Isuzu and Toyota (5.9 percent owners) execs “sounded negative about the possibility the firm may buy General Motors Corp.’s truck operations.” According to that report, the two sides aren’t seeing eye to eye on a price for the operations, proving once and for all what a bitch the used truck market can be. Meanwhile, The Guardian reports that Isuzu President Susumu Hosoi says his firm “will struggle to hit its full-year net profit target and has ruled out buying General Motors’ mid-sized trucks business.” Hosoi-san was unequivocal, saying Isuzu is not even planning on increasing its 40 percent stake in DMAX, a North American diesel engine joint venture with GM. The only place Isuzu is currently planning a new major site? Saudi Arabia, of course. No, seriously…

Automotive News has sent an alert to its subs, and it’s not just because the autoblogsphere needs more lerts (submarine joke deleted). The publication reports the official announcement: “Daimler confirms that the company is in discussions with Cerberus Capital Management regarding the redemption of its remaining 19.9 [percent ownership of Chrysler].” Redemption? I don’t think so. Anyway, what’s up with that? Well, here’s a clue: nobody’s talking about price. Riddle me this Moustache Man: if ChryCo goes down the chute marked Chapter 11, could creditors go after the still-solvent Daimler? Uh-huh. So, just as Cerberus used OPM (Other People’s Money) to finance their original purchase of the soon-to-be-ailing American automaker, it’s entirely possible that Daimler’s paying them to take Chrysler off their hands. So why would Cerberus want that 19.9 back? It would be a lot easier to ask for an undisguised federal bailout with ChryCo as 100 percernt ‘Merican. Now matter how the deal goes down, if down it goes, it’s back to” The Big Three” ’round here. Only Honda’s bigger than Ford and Chrysler now. Oh dear.

We recently reported that the National Automobile Dealers Association (NADA) was sitting-out the bailout begathon in our nation’s capital. Their decision seemed sensible enough; NADA members include all American brands, even those who are doing just fine without a federal loan, thankyouverymuch. Well, we spoke too soon. Automotive News [sub] reports that NADA is back on board for the Potomac shuffle after “automakers had encouraged NADA to support the loans because they would provide broad economic benefits.” The news comes as industry lobbyists make the final push to appropriate funds for the $25b loan program by the end of the month. Meawhile, House Democratic leaders drafted a continuing resolution which commits Dems (in writing) to appropriate the cash by the October 1 deadline. In that missive, we also learn that the total cost of the bailout will be $7.51b, with $10m of that going towards the inevitable “administrative costs.” With NADA now on board, and the Dems making all the right noises, Detroit can nearly be assured of the bailout’s passage. Up next, surviving until the checks arrive, and gearing up for round two.

Cry the beloved Detroit. As if eight percent unemployment, rampant foreclosures, and a criminal (now-ex) mayor weren’t enough, the Lions are just awful again this year. And though the oh-for-three Lions just got stomped by the lowly Niners, prompting Bill Ford Jr. to call for President and General Manager Matt Millen to step down, the Fords aren’t selling the family business. In any case, it’s doubtful that selling the Lions would have even netted $5m at this point, less than Bill Ford’s recent stock sell-off. Meanwhile, Ford’s Sales Chief and ex-Lexus maven Jim Farley reckons [what were once] new car buyers are the biggest losers. “The credit issue is becoming a big deal for them as consumers,” he told The Detroit News during a free dinner (with an open bar) Monday night. “It will affect our industry.” Hang on; that would make car dealers the worst affected, right? “Farley said the market is proving too difficult for some dealers, many of whom have been under profit pressure in recent years.” The market. Not Ford’s fault obviously. Wait a second; if dealers aren’t selling cars… “[Analyst Erich] Merkle said September is shaping up to be a bad month for the auto industry, and he said sales could fall to the 12 million unit level on an annualized basis.” Farley says Merkle’s off by one million units. But what if he isn’t?

General Motors is busy negotiating new tax breaks from Michigan and not Michigan (to hold a sword over Michigan’s head). Automotive News [sub] details GM’s latest game of taxpayer dodge ball. “As laid out in a company proposal seeking tax and brownfield incentives from the state, the potential project targets five sites in Michigan for expansion, improvements, new construction, renovations and installation of new machinery and equipment.” Under the current terms of the $25b Department of Energy auto loan program, the money can only be spent on retooling old factories for production of fuel efficient vehicles, of which the Volt is GM’s prime candidate. “The MEDC [Michigan Economic Development Corporation] said it expects the Volt project to retain 14,380 jobs and generate $644.3 million in state government revenue by 2023. The MEDC recommended that the Economic Growth Authority approve a 100 percent employment tax credit for 15 years. To receive the tax credits, GM would have to retain at least 2,000 ‘qualified full-time employees’ at the five sites. The company now has 21,718 employees at the sites.” So, tens of millions of dollars in tax credits? Yup. Done deal. Wagoner pops-in to Flint on Thursday to reveal the good news. And yes, I know: they all do it.

Much of our ire at the proposed auto-industry bailout has been reserved for the OEMs, but their supplier co-dependents are pushing just as hard for the pork picnic. Automotive News (sub) reports that Lear and Visteon were among a dozen suppliers who joined the D3 lobbying efforts in DC last week. Bosch spokeswoman Cheryl Kilborn tells AN that some suppliers were lobbying on behalf of their own projects, while others were present to support the efforts of their OEM partners. The main message of supplier lobbyists was, according to Motor and Equipment Manufacturers Association VP Ann Wilson, “we are everywhere.” And since suppliers are responsible for nearly 70 percent of the value of the typical vehicle and more than 40 percent of automotive R&D spending, it only makes sense that they be eligible for bailout money if Congress puts out. And like the manufacturers, suppliers want fewer strings attached to the government loans, arguing that asking for 25 percent increases in efficiency for bailout-funded projects is too burdensome. Having brought that message to some 40 congressional representatives last week, industry lobbyists are hoping that a united front among OEMs and suppliers helps the federal teat pop out with Janet Jackson-like alacrity. Then they can get back to gouging each other as usual.

So far, just a blurbette. “Reuters reported that Ford Motor Company has had exploratory talks with Renault SA to sell Volvo, but the initial talks broke down due to price differences. The two parties have spoken again after their initial discussions, which were held last fall.” So that’s why Ford CEO Alan Mulally was telling the world that Volvo wasn’t for sale back in November: he couldn’t sell it. So I guess Volvo still isn’t for sale– unless someone like Renault wants to buy it. Makes sense to me. Just for fun, here’s Edmunds’ take at the time. “What this means to you: Despite ongoing financial uncertainties, Ford does not appear willing to give up all of its “halo” brands just yet. — Anita Lienert, Correspondent” TTAC’s take: say halo to my little friend!

Automotive News [sub] reports that Porsche Holdings has raised its stake in VW from 31 to 35 percent, finally gaining a controlling interest over the MUCH larger German automaker. Porsche CEO Wendelin Wiedeking, already the world’s highest paid car biz exec (now with billions in bonus bucks), quickly moved to quash rumors that VeeDub’s new masters would kick Audi out of the fold to avoid product overlap. (As if.) “We see Audi as an integral part of VW group and have no interest in taking the company out of the group.” And that ain’t the half of it. Literally. “Wiedeking said the sports car [and SUV] maker intends to raise its stake in VW to more than 50 percent at a future date. ‘Today’s step is a further milestone on the way to world domination.'”

Last we checked in on the unfolding Porsche family drama, cousin Ferdinand “Phaeton” Piech had made a play for the CEO spot at Porsche Holdings. Turns out cousin Ferdie may have overplayed his hand by taking on Wendelin (I’d tell you my salary but then I’d have to kill you) Wiedeking, current Porsche Holdings CEO and darling of the Porsche clan. Wiedeking’s patron d’overcompensation and Porsche paterfamilias Wolfgang Porsche tells Focus Magazine (by way of Automotive News [sub]) that Piech will pay dearly for going after his Wendelin. After a particularly “turbulent” meeting of the VW advisory board, Wolfie told Focus “I am horrified by the behavior of the chairman,” and that Piech’s removal from that position was imminent. “It is not a question of ‘if’, rather ‘when’ and ‘how’,” Focus quoted one Porsche manager as saying. But don’t expect Piech to simply fade away into that good night. Sure, the Porsche clan damns him and the oversized Passat he rode in on. But Piech still has VW CEO Martin Winterkorn, the massive VW Unions and all of their paid politicians on his side. These interests aren’t backing Piech because they particularly like him or his ideas; they’re scared of Wolfie and Wendelin and their curious “profit fetish.” Is a family being torn apart because Wolfgang Porsche don’t understand the importance of company-funded brothel outings for labor leaders? Because that would just be so tragic. And hilarious. Watch this space.

Think GM has it bad? Or that they’re too big to fall? Think again. Lehman Brothers has just announced it’s filing for Chapter 11 bankruptcy protection. The 158 year-old bank decided to exercise the nuclear option after attempts at bailouts and takeovers failed. Lehman Brothers owes $128b in debt, which will probably be paid out at 60 cents on the dollar. (For reference, General Motors has $43b in long term debt). Thousands of Lehman workers were fired immediately after the Chapter 11 filling. The rest were told that they will be paid through Friday, at the most. John McCain – who probably realizes getting New York’s delegates is beyond the limits of reality – told the International Herald Tribune that he was “glad to see that the Federal Reserve and the Treasury Department have said no to using taxpayer money to bail out Lehman Brothers.” Floyd Norris from The New York Times reminds us that Lehman claimed it had ample capital and liquidity as late as last week. Sound familiar? It should. General Motors is in a similar predicament– only worse. Along with Bear Stearns and Merril Lynch, incidents like Lehman are using-up the market’s feelings of shock and surprise at major business failure. If General Motors is hoping for a bailout, they had better get on it soon, or no one will throw money in their direction, even post-C11.

A member of our Best and Brightest sent us some interesting auto industry stats, compiled by Senior equity research analyst at the Credit Suisse Group (CSR). Et Voilà!

• Big 3 dealer stocks declined by about 79,000 units, or 4.9%, to 1.55 million vehicles in August from 1.63 million in July. The 4.9% decline is favorable relative to the increase of about 1% normally seen this time of year.
• The larger than normal declines were a result of a combination of sharply lower production and significant incentive events. By maker, GM inventory fell 1.7% from July to August, while Chrysler and Ford shed about 7% and 8% of their dealer stocks, respectively.
• The smaller sequential decline in GM’s stocks, despite a very sharp sequential increase in the automaker’s selling rate, was the result of a relatively aggressive production schedule. GM’s production was down 25% year-to-year in August, versus a 49% cut at Ford.
• At August-end we find Big 3 dealer stocks to be about 16% above normal, with cars 12% overstocked, and trucks 18% overstocked. An increase in our truck mix assumption, to 47% from our previous 44%, contributed to a jump in our calculation of passenger car days’ supply, and to a decrease in light truck days’ supply.
• By maker, we find GM stocks to be about 17% above normal, with cars 14% overstocked, and trucks 18% overstocked.
• We find Ford to be about 12% overstocked, with cars about 9% above normal, and trucks about 13% above normal.
• We find Chrysler to be about 21% overstocked, with cars about 10% above normal, and trucks about 24% overstocked.
• We saw significant improvement in full-size pickup Trouble Spots at each of the Big 3 in August. A drop in the days’ supply was driven by an incentive driven sales surge at GM, and by deep production cuts on the Ford F-Series and Dodge Ram.
• Based on current production schedules, we see the Big 3 ending September about 26% overstocked. We see both GM and Chrysler overstocked by about 30%, while Ford should have a more modest 15% overstocked level.
• By the end of the year (under current production plans) we think GM will still be about 30% overstocked, with the overstocked position concentrated on the car side. Ford could find itself modestly understocked by year end.
• The excess car inventory at GM is being driven by an aggressive production schedule that calls for a 21% year-over-year increase in car output. By contrast, Ford is cutting car output in the second half. We think GM’s production schedule is aggressive and needs to come down.

In keeping with tradition, GM announced it latest “wait ’til the weekend” share-price-rattling revelation: the automaker has agreed to provide an additional $4.6b support to former division and bankrupt parts maker Delphi, from $6b to $10.6b. Justifying the cash burn to Automotive News [AN, sub], GM said it’s doing the deal “to speed the auto parts maker’s emergence from bankruptcy.” Here’s the break down [via The Detroit News]  “Under the deal, reached after months of negotiations and outlined in a court filing late Friday, GM would assume responsibility for $3.4 billion of Delphi’s hourly pension obligations — up from $1.5 billion — and make payments totaling $1.2 billion through Dec. 31 to boost the supplier’s balance sheet.” In its press release, Delphi said the cash infusion will put it in a position to pursue exit financing, through an equity-based rights offering. “Pursue” and “secure.” Two different words. In other words, with Delphi’s U.S. business experiencing the same kind of turnaround that GM’s currently “enjoying,” the clock is still ticking on Delphi’s Chapter 7 liquidation.

Fortune Senior Editor Alex Taylor snagged GM’s attention with an editorial posted at CNN Money, in which he posthumously advocates for the General’s failed 2006 alliance with Renault/Nissan. “According to recent interviews with parties involved in the discussions, as well as a confidential analysis prepared for the deal that was obtained by Fortune,” Taylor writes. “The tie-up could have produced as much as $10 billion in operating earnings per year for GM by 2011.” So, why did GM just say no? Because its executives were making enough already, thank you. “One proposed strategy called for a ‘repopulation’ of GM’s executive ranks with outside talent. That presumably would have forced some incumbent managers out of their jobs – a shocking development at a company where executives seem to enjoy lifetime employment regardless of their performance.” The General’s Spinmeister General penned a mealy-mouthed response to Taylor’s “woulda, coulda, shoulda” analysis. Steve Harris compared Taylor’s dietribe to speculating “if Time-Warner, your magazine’s parent company, had not done the AOL deal.” Oh snap. So what are Harris’s points of substance? The Renault/Nissan merger plans “could have effectively foreclosed (GM) from entering alliances with other automakers.” And “benefits from the potential joint projects were highly skewed to Renault-Nissan.” None of which sounds bad enough to turn down up to $10b in annual revenue. But, says Harris, “today General Motors is focused on the future, not the past.” Like… a federal bailout.