Does it sound like a good idea to advertise the new Lancia Delta in the U.K. by showing Richard Gere frolicking with some Buddhist monks from Tibet? Odd? Certainly. Cute? Maybe. Problematic? Well yes, if you dislike the kind of lefty vegetarian sanctimonious Hollywood type Gere represents (which I don't). But could this spot really be a reason to apologize? Just-Auto [sub] reports that upon hearing of cockamamie protests from Beijing, Fiat kowtowed to the dictators in the People's Republic. "Fiat Group reiterates its neutrality in connection with any political matter, be it on a national or international basis. To the extent that the Lancia Delta advertising may give rise to misinterpretations of its well established position of neutrality, Fiat Group extends its apologies to the Government of the People's Republic of China and to the Chinese people." Yes, it hurts the Chinese Government's feelings that the pro-Tibet Gere is shown in some vaguely positive way in Tibet, or something. And it dismays us that Fiat, a car maker on the ascent, apparently didn't know what it was doing when it OK'd this ad, and obviously doesn't have a pair.

Does anybody need a reminder that the credit crisis is hurting our economies? Case in point: German car-industry supplier Schenk Plastic Solutions. Schenk is a small but basically healthy company that relies on Daimler for 60 percent of sales. They have a patented new product named SkinForm which was developed for premium car interiors. It's been reported that SkinForm is unique and has no real competition, since it offers superior quality at a super-low price. Mercedes wants Schenk to supply SkinForm for one million cars per year. In 2005, Schenk sold a majority interest to a private equity company named Argantis to finance their expansion plans. Surprise! Argantis is connected to IKB, a German bank which is basically bankrupt after investments in subprime U.S. real estate. So IKB pulls the plus on Argantis, which subsequently pulls the plug on Schenk. A great company with good products and healthy customers is forced to declare its insolvency. As these things go these days, the Indians come to the "rescue." Automobilwoche reports that the Ashok Minda Group, based in Uttar Pradesh, will be buying Schenk. Globalism wins, Daimler is happy and the West's industrial base is eroded a little bit more.

Parlare con CAR, VW design guru Walt de'Silva admits he isn't exactly thrilled about VeeDub's current design direction. Pensare? The Jetta looks like a Corolla and the Passat looks like a bar of soap. So VW’s styling will "return to simple design language that’s easy to understand – a clear hierarchy of grilles and rear-end treatment." Scribe Adam Towler says "Expect the next generation of VWs to have spiritually more in common with the late 1990s range of cars rather than the current set." For those of us that have long lamented the descent of VW into aspirations of ascent, this is fantastic news. The biggest question: where will this makeover leave the Volkswagen brand in the European market? When Ferdinand Piech decided to take VW into Mercedes territory, matching the Mercs models for model, Skoda and Seat filled VW's cheap and cheerful, honest and robust, everyday car remit. Maledetto! It sounds like someone has too many brands. 

The things car makers do for love… Car companies in Germany traditionally offer journalists discounts of about 20 percent on new vehicles. Until now, this offer's been restricted to one car per year. Ford's cutting that clause: Automobilwoche reports journalists can now buy as many popular models for a bargain price as they want, and enjoy. Or, more to the point, flip 'em on the market for a few percent profit, and repeat. Other makers are expected to follow suit. Historically, journalists are considered a small but influential group– "opinion leaders" in the marketing argot. "Just like taxi drivers: not a large audience, but they are important, so they are worth some special consideration," says a German VW dealer. How much consideration? VW's generosity is worth 15 percent for new cars and 10 percent for pre-owned. The quoted dealer thinks VW's vig may soon reach Ford's levels: up to 25 percent, depending on model. Mercedes-Benz also grants 15 percent for journos. Porsche is parsimonious, offering no more than 10 percent. Most makes are (for the time being) stricter than Ford: Mercedes requires a minimum holding time of six months, and allows no more than two purchases per year. We're looking into the situation stateside, but we know Ford offers scribes the Ford employee discount…

With inflation around 30 percent, interest rates over 20 percent and fuel at all-time highs, auto dealers in Sri Lanka are facing worse times than their American counterparts. (And that's saying something; ChyrCo's U.S. sales are down 19.3% year-to-date, 25.4% in May.) One dealer is trying a time-honored tactic to move the metal: a buy-one-get-one-free promotion. Lanka Business Online (LBO) reports that Diesel and Motor Engineering company (DIMO) is offering a free Tata Xeta when you buy a new Jeep 4×4 or Chrysler Grand Voyager van. Chryslers aren't selling in Sri Lanka because of "their high prices and maintenance costs and consumer preference for cheaper rival brands." LBO also points out they have lower fuel economy ratings than other cars, because "Chrysler is a US firm, where fuel has been lightly taxed compared to the rest of the world." DIMO said the promotion should also "help liquidate the stock of older models of the Xeta." Perhaps U.S. Chrysler dealers should try a reverse tactic: buy a Caliber, Sebring or Compass and get a Durango, Aspen or Commander free.

First of all, the National Labor Committee says that less than 15 percent of its money comes from labor unions. So this is not a United Auto Workers' front organization. Second, in a phone call [below] Director Charles Kernaghan was clear that Toyota's Japanese factories adhere to the country's labor laws (even though you may be surprised to learn that ToMoCo's been on a two-tier wage system for decades). Kernaghan's beef is with the automaker's suppliers. "Toyota's much admired 'Just in Time' auto parts supply chain is riddled with sweatshop abuse," he insists. "Including the trafficking of foreign guest workers, mostly from China and Vietnam to Japan. They're stripped of their passports and often forced to work– including at subcontract plants supplying Toyota– 16 hours a day, seven days a week, while being paid less than half the legal minimum wage. Guest workers who complain about abusive conditions are deported." The organization's report is low on stats, big on anecdotes and focused on pious Prius celebs. And yet, it's a point we've brought up before. International automakers'– and their customers'– willingness to turn a blind eye to their suppliers' working conditions is a black eye for the business– albeit one cleverly covered by makeup. 

Yeah, that sucks. But hey, they're banking billions while they count worry beads. And increasing production by half a million barrels of crude per day won't exactly hurt Saudi income. PLUS it wins the Saudis friends in the U.S., which still has a couple of aircraft carrier groups here and there. The New York Times reports that the reported increase comes on top of another reported increase. "Saudi Arabia is currently pumping 9.45 million barrels a day, which is an increase of about 300,000 barrels from last month." The Times theorizes that the Saudis largesse is based on the possibility of diminished demand (as above) and the threat that "current prices are also making alternative fuels more viable, threatening the long-term prospects of the oil-based economy." Yes, well, the increase will add one percent to world oil supplies. Meanwhile, The Gray Lady claims bipartisan Congressional support is "growing" for a bill allowing the Justice Department to "engage in antitrust proceedings" against OPEC accusing them of "curbing supplies to drive up prices." Good luck with that.

Commerzbank (Frankfurt, Germany) senior commodity analyst Eugen Weinberg joins the growing chorus of finance gurus predicting the popping of over-inflated oil prices. Weinberg sees oil dropping below $100 per barrel in 2009. His crystal ball also tells him that crude prices haven't yet quite hit their peak in this rally. He expects the price of oil futures contracts to collapse only after soaring to $150 and $170 in the next three months. Who's to blame? Weinberg say, "The trigger for this extremely fast-growing bubble is above all the poor performance of other investment classes, like stocks, bonds and property."  (I swear, Herr Weinberg must read TTAC!) I guess this means that I'll keep my Jeep parked and drive the Honda until next spring. Over to you, Stein…

Okay, so the rumors were wrong and the UK's car magazine was right. The European Focus RS will not have all wheel-drive or 350 horsepower. Ford's officially official announcement: the hot hatch Focus RS will have 278 horses and 295 lb ft of torque from the same turbocharged straight five found in the Focus ST (222 hp), Volvo S40 T5, S-Max, and all manner of other cars. Like the Mazdaspeed3 and Opel Astra OPC, the ponies are harnessed to the front wheels. While this should still be a very entertaining car to drive [for Europeans], it's not the stat-sheet blowing hot hatch we hoped for. And the numbers arrive during the same week as the Lancer Ralliart and Mitsubishi Sportback specs. Ouch. Well not entirely. While the Evo has a high profile in Europe, it's not thought of as the hatchback of choice (until now, it wasn't a hatchback at all, really). The Focus is one of the go-to cars for mainstream buyers. And we conclude this post with the obligatory "it's not coming to America or Canada." Damn!

Mitsubishi has unveiled the Lancer Sportback, which is their fun language for "hatchback version of the Lancer." While it may not be the world's finest execution of a hatch in the history of cars, the Lancer is already a good looking vehicle and the added flexibility is most welcome. Mitsubishi's also announced  the Ralliart version of the Lancer, which we've been waiting on since we realized that the regular Lancer is as much fun as eating glass. The Ralliart retains the 2.0-liter DOHC engine, but turbocharges its way to 236hp and 253 lb ft of torque. All that power is routed through a clever all wheel-drive system. While we can't yet confirm it for the US, the SST dual-clutch transmission IS go for European production. Considering the American love affair with automatic transmissions and Mitsu's desperate need to move metal here, the dual clutch gearbox's entry into the North America market seems highly likely. Sounds like the Evo's little brother will make for a great WRX competitor.

They say hope dies last, and GM's damned-to-strategic-review HUMMER brand certainly doesn't have much else to run on. Accordingly, HUMMER GM Martin Walsh has posted a reality-efficient, truth-sipping take on his brand's beleaguered fortunes to GM's Fastlane blog, utterly confirming that website as the place bad spin goes to die. Anticipating "speculation" about HUMMER's future, Walsh wants us to know that in his opinion, "the HUMMER name, and it's line-up of iconic vehicles, will still be purchased and enjoyed by customers around the world." In fact, Walsh seems to think the overseas market will rescue HUMMER. "Outside the US, where the world has been living with high fuel prices for the past decade, 2008 sales through April were up 34.8% compared to 2007." Yes, well, as Bloomberg reports, these sales spikes are the result of recent introductions of the brand to countries like Japan, complimenting a steady trickle of sales from gas-subsidizing countries like China and Russia where HUMMERS are still nouveau-riche icons. Walsh trots out every possible reason to think HUMMER isn't completely effed– truck mags love HUMMERS, there's a HUMMER biofuel concept, etc. He finally concludes that he "wholeheartedly believes that HUMMER can have a bright future." So is Walsh trying to stimulate pity-purchases of H2 and H3s, or is this just brand inflation leading up to a sale to Mahindra or Tata? Or is this just empty reassurance to HUMMER dealers that their recent million-plus dollar GM-mandated dealership upgrades were not complete wastes of money? Hand the guy some jam. HUMMER is toast.

AutoExpress has released details of the next generation Vauxhall Astra (that's our Saturn Astra) VXR. The hot version will go on sale in– you guessed it– 2010. To comply with stricter fuel economy regs, GM's European ops will downsize the engine in the GTI-competitor, from its present 237 hp 2.0-liter to a 1.8-liter turbo, with something around 240 horsepower. Vauxhall claimsthe new powerplant will be more economical and efficient– both of which are probably true. But I'd imagine it's also because the torque steer in the 2.0-liter turbo model is supposedly driver-wrist-destroying. Is it coming to America? Considering how meager the American Astra sales have been– around 1000 a month (Cadillac still shifts 1500 Escalades)– the idea that we'll be getting the next gen Astra is sounding increasingly preposterous. It's too bad, because the car itself (both the regular Astra and hot versions) are credible Golf competitors. You know; in Europe.

But my God, does Roger Cohen take his time getting to the point. Before the New York Times op ed writer argues for your elected representatives to allow cheap[er] Brazilian ethanol into the U.S., Cohen attempts to entertain us with a discussion of national "re-branding." He begins with the most elliptical lead I've ever read. "Perhaps there’s something to treadmill wisdom. We’re all so narrow-band these days, using the vast resources of broadband to direct ourselves into a chosen news and ideological tunnel. Polarized pluralism defines us." Translation: Cohen was running on a treadmill (geddit?), watching an unknown news channel (broadband) when he fell into a reverie about his Brazilian exile, when the country's economy was almost as hyper-inflated as his prose. And then he thought, wow! "Energy is the country’s new brand." I'm thinking Brazil needs something a bit sexier, but the point– yes! the point!– is corn ethanol bad; sugar cane ethanol, good. "Sugar cane is not a staple. It’s eight times more productive than corn. It grows year round. It must be processed fast, so CO2-spewing transport to distant ethanol plants is impossible (unlike for corn)." The environmental impact of shipping Brazilian ethanol, pathetic workers' wages and the deforestation be damned. See? That wasn't so hard, was it?

It used to be that Europeans could get diesel for a lot less Euros than regular petrol/gas. Combined with increased fuel economy, consumers had every incentive to pony-up for the oil burning engine. Now that the cost of diesel has increased substantially, and thanks to direct injection, turbocharging, and other high tech features; gas engines are regaining lost territory. (TTAC's Paul Neidermeyer is on record saying gas, not diesel, is the future.) A sign of the times: the hot Skoda Fabia– currently a 1.9 liter 130 horsepower turbodiesel praised by no less than Jeremy Clarkson— is ditching diesel. The next gen vRS model will shelter VW's twincharger turbo and supercharged 1.4-liter unit, with an estimated 174 horses. Unfortunately, it likely cannot match the old model's 228 lb ft of torque at 1900 rpm. For European buyers, this is really small news (though good small news). The bigger message: even European brands selling cars in Europe are moving away from diesel. (source: Škoda)

AM-online reports the European Commission has unveiled new safety rules that– it says– could save 5k lives a year. Oh, and help cut fuel consumption. If the rules are approved by the European Parliament, all new cars sold in the Eurozone from 2012 will be equipped with tire pressure monitors, electronic stability control (ESC) systems and low-resistance tires. The Commission expects the measures to add €100 – €300 to the price of a new car. But hey, the extra cost would be more than offset over the car's lifetime by savings on fuel. As we Germans say, the Teufel is in the details. Tire pressure monitors are sensible; so many people waste fuel and (through longer braking distances) endanger others when they drive with flabby rubber. But, at the same time, tests have shown that low resistance tires can result in significantly longer braking distances. The Commission contends that, in normal driving conditions, ESC can reduce the number of accidents by around 20 percent. The science on compensatory behavior is not yet clear enough to make that claim; some studies show people drive more dangerously when they have ESC. What was that about die Straße to Hölle?