The General has settled a class-action lawsuit claiming damages from its "Dexcool" coolant, agreeing to pay up to $800 each to customers who can prove damages. Plaintiff attorneys estimate that the final number of claims could top $20 million, a bill which would cost GM of hundreds of millions of dollars. "It could be multiple nine figures; it depends on how many people make the claim," co-counsel for the plaintiffs, Jack Brady tells the International Herald Tribune . "I think it could be a huge settlement." Of course, while the people who had to replace manifold gaskets and heater cores get between $50 and $800 for repairs, Mr Brady and his co-counsels will pocket up to $23 million in fees and $2.8 million for expenses. Still, if you own a GM vehicle with the 3.1-liter or 3.4-liter V6 engines for model years 1995 to 2003; the 3.8-liter V6 engines for model years 1995 to 2004; or the 4.3-liter V6 engines for model years 1995 through 2000 and have had to pay for coolant-related damages, you should check dexcoolsettlement.com to file a claim.

The Los Angeles Times is calling it "a significant blow for environmentalists and transportation activists." On Thursday, California's Air Resources Board (CARB) voted to "slash" the number of emission-free vehicles automakers must sell in the state by 70 percent. The panel adopted new rules that would require the largest companies selling cars in the state to produce 7.5k electric and hydrogen fuel-cell vehicles from 2012 to 2014. (Down from the 25k under rules set in ‘03.) In addition, carmakers will be called upon to make about 58k plug-in hybrid electric vehicles in the same period. CARB also decided overhaul its entire Zero Emission Vehicle (ZEV) program, to align it with tougher greenhouse-gas emission standards. CARB board member Daniel Sperling says "it's my view that both plug-in hybrids and [emission-free vehicles] are tremendous stretches for the industry." But Chelsea Sexton, the executive director of Plug In America says "It's a huge blow, they sent the message to the carmakers that they can always get what they want from the board." And here's the kicker: GM asked for "special consideration" for the Chevy Volt. GM's executive director for environment, energy and safety argued that the Volt will have a longer range than rival plug-in hybrids so, you know, cut us some slack. The board granted that request, valuing extended-range plug-in hybrids more highly than shorter-range models. GM has yet to sell a single Volt, but hey, why let the facts get in the way? 

The leader Chrysler's "Project D" effort to develop a Camccord fighter has resigned after "clashes with senior management. The Wall Street Journal calls Mike Donoughe "a star engineer," and there's no doubt that the project he was heading was a top priority. The Sebring/Avenger combo is dead in the water for Chrysler, and Donoughe had some of the best product development credentials in the company, having headed truck and SUV development. So how does a 24-year Chrysler veteran in charge of a premier development project find himself on the outside of Auburn Hills looking in? The WSJ won't quote anyone, but over at Autoextremist there's a rumor On The Table that "Acting Chief Innovation Officer" Peter Arnell was behind the drama. As long as everyone has plenty of room to swing their egos around, maybe Chrysler could get back to building competitive vehicles?

In another sign that some of the more profitable aspects of the domestic auto biz have little to do with actually making cars, the Oakland Business Review (via Mlive.com) reports that the industry demand is attracting computer graphics companies to Michigan. Computer Graphic Imaging (CGI) is used across the auto industry, from prototype development to sales and marketing, and companies which once focused only on California's film industry are starting to open offices specifically to serve automakers. And these companies offering digital imaging software are attacking traditional marketing firms, offering OEMs the capability to manipulate high-quality images of products and vehicles in-house for less than Madison Avenue charges. "The cost is really driving this industry. Plus, the benefit is you can do a lot more. You can dissolve the skin away of the car," says John Willette, partner at the CGI firm Armstrong White. Dissolve the skin you say? Bring the man a Sebring!

Detroit Free Press columnist Mark Phelan proves that even those in the mainstream media can handle a little bit of automotive truth-telling. His recent column hammers Chryslers decision to shut down factories for two weeks this summer. Actually, Phelan's beef is not with the plan itself, but its implementation. His main point? People spend all year planning their vacations; forcing employees to change all of their plans is not good for a company as fragile as Chrysler. "Forgetting that other folks have family obligations and less vacation time than you is what Type A executives do," argues Phalen. "The problem is that it has to be somebody's job to tell the boss when he's about to step in something that will stick to his shoe and smell bad." Apparently, skimping on consideration bears bitter fruit down the road. "The company should do everything it can to minimize confusion and communicate its message clearly. Sending a mass e-mail telling everybody to go home for a couple of weeks only fuels doubt and speculation," says Phalen. He definitely has a point there, re: TTAC's rumor report that Chrysler will file when everyone's on hols.

Indian investors aren't thrilled with Tata's acquisition of Jag and Land Rover (JLR). Not only have JLR lost billions of dollars for Ford, but apparently Tata wasn't just pulling a fist full of coins out of the sofa to pay for the brands. Reuters reports this morning that "Tata has announced plans to raise $4 billion, expected to help finance the Ford deal and the manufacture of the Nano." And considering the added "earnings volatility" the JLR deal brings (translation: nobody knows what the hell could happen to Tata's bottom line), the purchase is sending ripples through the Indian stock market. It seems people are realizing Tata just bought companies that don't make money. You would have thought Tata already had the cash for the deal; this is not the best time to be looking for $4b on the credit market. And what happens if Tata can't raise the cash? Just sayin'…

The situation has gotten so bad for parts suppliers, that even USA Today has an article describing the industry's abysmal conditions. After chronicling the travails of supplier bankruptcy poster child Plastech, the story notes that times will be tough for everyone in the biz. "I can't in my 21-year history in the auto industry think of a time when it's been more difficult than this," wails Laurie Harbour-Felax of consulting firm Stout Risius Ross. "More Chapter 11 filings are imminent in the next three to six months." The wide load of industry pressures: weak demand, rising commodity prices, increased overseas competition, tightened credit and cost-cutting pressure. Craig Fitzgerald, a partner at Plante & Moran, predicts that 50 percent of small and midsize suppliers will go out of business in the next five years, either selling out or shutting down. This is gonna get rough. I mean, rougher.

Dick Dauch plays for keeps. The Detroit Free Press reports that the American Axle CEO has no qualms about taking his business elsewhere. Dauch, who founded the company, said he had no intention of turning it into an offshore company. HOWEVER "we have the flexibility to source all of our business to other locations around the world, and we have the right to do so." When the Freep asked the UAW for their thoughts on Dauch's threat, they declined to respond. But a couple of weeks ago on a radio talk show,  UAW president Ron Gettelfinger insisted as long as AA maintains "the attitude that they're not going to negotiate– that they're going to dictate– we're not going to get an agreement."  Meanwhile, the strike is beginning to affect those GM plants they can't afford to close. The pressure is on for AA to get back to work, one way or the other. So who will blink first? Given that Dauch has already moved some production to a plant in Mexico and has the means to increase production in other countries, and the UAW gave in to the Big 2.8 so easily, the smart money's on the union backing down. And GM forking out.

…and yet they're not on a plane to Vegas or ringing-up their stockbroker. Anyway, the mag's posted a roadmap of Jaguar and Land Rover's (JLR) product plans for the next umpteen years. Oh, one qualification: Tata has only committed to follow Autoweek's guide for the next five years. Might I remind everyone that the Indian automaker has guaranteed Ford it will follow JLR's five-year plan. And it will… right until it doesn't. Anyone who thinks Ford knows how to run JLR for the next five years should look at the last five years. Or ten. And I'm sure Tata's done that due diligence. The only Autoweek prognostication you can reasonably expect to deliver 100 percent truthiness is the arrivals of the new, 5.0-liter V8; the engine's development is nearly done. Autoweek estimates that the new powerplant will stump-up a reasonable 380 horses in naturally-aspirated form and nearly 500 when supercharged (the latter being a little optimistic). And without a doubt, this engine is bound for Jags and Range Rovers alike. (Well, duh.) Otherwise, the real vision for Tata's future are in Ratan Tata's brain, and he ain't sayin' nothing. Yet.

Rumors are flying that Chrysler is in talks with a second Chinese manufacturer. They already have an agreement with Chery to rebadge subcompacts for Mexico and South American markets markets and develop a subcompact for the U.S. (all under the Dodge brand). Now Reuters says they're looking into an alliance with Great Wall. Great Wall builds small SUVs, a small CUV and pickup trucks with some of the coolest model names going: the Wingle (say "Great Wall Wingle" fast three times) and the Socool. Obviously, Chrysler doesn't need more SUVs or CUVs. However, Chrysler hasn't had a small pickup since the rebadged Mitsubishi pickup they sold in the previous century. With sales of the Dakota "midsized" pickup in the cesspool, and big truck sales circling the toilet, they could be looking at Great Wall to provide a small truck– a vehicle Chery can't supply. So if the rumors turn out to be true (and inside sources say they are), the next small Dodge truck could come from the People's Republic of China. And pave the way for… the end of domestic car production.

The Age reports that the last of the great V8 Interceptors… Hold on, that's not it. Right. The last Australian-built Mitsubishi will roll off the line at Tonsley Park this Thursday, ending 28 years of production Down Under. Since it took over a Chrysler plant in 1980, Mitsu has built over a million cars in Australia. Production peaked back in 1997, when the Japanese automaker built 58,391 Magna sedans for domestic and export markets. Mitsubishi imports have seen strong demand, but the domestically-built 380 sedan will soon be sleeping with the fishes. Although Mitsu's laying off a thousand workers, it's not a post-apocalyptic scenario. They're receiving what's being called "the best-ever redundancy package in the automotive industry:" up to two years of severance pay. 

"Uh oh." That's the unofficial line out of Ford Australia today in response to FoMoCo's announcement that they're developing a rear wheel-drive (RWD) platform in America. Officially, the Australians have responded with "it's too early to speculate." Ford OZ already has a RWD platform underpinning the Falcon. Thanks to a lack of engineering foresight (i.e. international beancounting), the Falcon can't be built as a left hand drive car for the U.S. market. Since the dollar is weak and engineers plentiful, Ford chose to keep the new platform's development stateside. The Australians are hitting the Pepto-Bismol over [entirely justifiable] concerns that all of Ford's RWD operations would be relocated to the U.S., denying the Blue Oval's Australian subsidiary a chance to design the next Falcon– or much of anything else, really. Roughly a thousand engineers' jobs are at stake. 

Ford invited journalists over to check out its "virtual assembly" technology. (Our invitation was lost in cyber-space.) The Detroit Free Press came, saw and geeked out, leading off their breathless coverage with "If you want to know why Ford Motor Co.'s quality is improving so much…" But what exactly is this strange and mystical technology which makes otherwise credible journalists into so many ad copy writers? Combining motion-capture and computer modeling technologies, Ford "builds" model factories and inhabits them with avatar workers who virtually assemble vehicles. By analyzing how production operates virtually, Ford engineers can streamline and simplify the process. The result: better ergonomics and fewer injuries for production workers, improved production efficiency and quality improvements. AND the computer modeling allows Ford to develop production processes faster, so it can bring new products to market in less time. (Where? What?) Ford is so proud of their sim factory it boasts that productivity master Toyota is curious about the technology. Then again, ToMoCo knows that the map is not the territory. 

Fiat has been talking-up a stateside launch for Alfa Romeo, and even suggested manufacturing in the US or Mexico. Now Fiat CEO Sergio Marchionne tells the Financial Times that his company is seeking suitable partners for North American production. "Nobody making anything in Europe is going to make profits in the US," says Marchionne, indicating that the losses on imported cars would be acceptable as long as a production partner could be found. Although the Financial Times makes much of Detroit's recent downsizing of North American operations, and stresses that The Big 2.8 have "overcapacity," other reports indicate that BMW is also a likely candidate for a FIAT partnership. For now, Marchionne is staying mum on the partner search, but makes it clear that BMW is on their radar… as competition. "We need to replicate the [BMW-owned] Mini phenomenon in the US," says the Fiat CEO. And yes, he does mean by bringing the popular Fiat 500 to the states. Toppolino!