Just a week after GM CEO Dan Akerson slammed Ford’s Lincoln revival, Ford is asking its Lincoln dealers to put big money down on the brand’s future. Automotive News [sub] reports

A group of 120 Lincoln dealers had been invited to the meeting to hear Ford’s plans to rebuild its remaining luxury brand, say dealers who attended.

Ford expects stand-alone Lincoln dealers to spend an average of $1 million on renovations, dealers say. Owners of Ford-Lincoln duals are expected to spend about $1.9 million to remodel, dealers who went to the meeting say.

If dealers do not invest in renovations, Ford says it will seek to take back their franchises in exchange for compensation. The investment requirement applies only to urban dealers — for now.

And what do the dealers get in return for their hefty outlays? Hot new Lincoln product, or, in the words of a Lincoln rep “seven new or significantly refreshed vehicles coming out in the next three years.” Which means that if you want to get aboard the Lincoln express (destination:viability), you’ll have to get your store to Lincoln standards by the end of 2013, when a redesigned MKZ and a Focus-based Lincoln compact hit dealers.

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The assembly lines in Trollhättan are still down and will be down for a while. With Spyker & Saab gasping for money, another Chinese party threw them a life line today. The price: Saab will be in Chinese control if and when all is approved. Read More >

The amount of yellow warning time at California intersections would drop along with speed limits under a bill being considered by the state legislature. The Senate Transportation Committee will hold a hearing Tuesday on Assembly Bill 529, a proposal that re-writes the state’s speed trap law so that cities would be able to round down all speed limits after conducting a traffic study. The measure passed the full Assembly by a 77 to 0 vote on May 19.
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A lot has been said about the new car potential of populous India. This time, they mean it, says J.D. Power. India surpassed France, the United Kingdom and Italy to become the sixth-largest automotive market in the world in 2010. In 2020, India is expected to become the world’s third largest auto market. This according to a special report titled “India Automotive 2020: The Next Giant from Asia,” released by J.D. Power and Associates. Read More >

In the market to buy a condo in Tokyo? If you buy the right one, it will come with a car. Starting in spring 2012, Toyota plans to launch a condominium-based car-sharing program in collaboration with Japanese real estate developers. Read More >

I missed the latest twist in Chrysler’s California dealer drama when I was traveling in Iowa last week, but because it’s such a significant story (and because Ford recently proved how expensive dealer drama can be), we’ll commit the cardinal rule of blogging and take a look at some week-old “news.” California’s DMV won’t report the findings of its investigation into Chrysler’s allegedly non-compliant “company store” until September 29, but the Detroit News has reported that “about 75 percent” of these dealer complaint cases end in settlement and that

Chrysler Group LLC may be on the verge of selling its company-owned flagship dealership in Los Angeles to a private retailer, which could appease angry franchise dealers in California.

So much for ChryCo leaving the state in an angry huff. In fact, angry is about the last thing CEO Sergio Marchionne sounds about the whole thing…

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Suzuki will finally relent and will offer a plug-in hybrid version of its bestselling Swift hatchback. A lithium-ion battery will power the car for the first 30km (18.6 miles), then a gasoline engine will produce the juice, says The Nikkei [sub]. Read More >

100 years ago, just 25 years after the automobile was invented, a car reached the speed of 141.73 mph while the earth shook. The car could have done it a few years earlier. The pavement had to catch up first. The car was the Blitzen-Benz with a massive displacement. And this is its story. Read More >

NHTSA Administrator David Strickland warned automakers last week that he had no interest in making it easier to use systems like Twitter and Facebook, indicating that integration of these systems could face future regulation. But while Strickland was playing Bad Cop, his boss (and the traditional bad cop in these routines) Ray LaHood was busy playing Good Cop, telling the AP [via The WaPo] that

We are data-based. Our credibility comes from having good data. If we have good data, then we can make a case. Is messing with your GPS a cognitive distraction? Is changing the channel on the radio a cognitive distraction? We’re looking at that now.

You can see the entire war plan for the DOT’s assault on distraction in PDF here, but don’t rush. You have plenty of time. Voluntary guidelines (yes, voluntary) for visual-manual interfaces won’t come out until Q3 of this year, portable devices in Q3 2013 and voice-activated systems in Q1 2014. Meanwhile, the government won’t even have the data on which to regulate hands-free systems until Q1 2012. So, even though most research shows little change in distraction between a hands-free and handheld device, the industry should be able to sell a grip of hands-free and voice-activated systems before the government is even sure of how distracting they are.

How did the company which virtually invented automotive marketing become so piss-poor at it? How did the promotion and advertising of General Motors automobiles become reduced to a series of meaningless comparisons, numbers, and statistics? We are now in the fifth decade of General Motors’ abject failure to understand why people buy imported cars. In the Seventies, GM thought it was miles per gallon, and every GM ad trumpeted the Chevette’s ability to match the Corolla or Civic gallon in fuel economy. Forget the fact that the Chevette was a genuinely horrible car which has only recently found a reason to exist (a kick-ass, single-make ice-racing series, if you must know). In the Eighties and Nineties, GM marketing flacks got a whiff of “performance” and we were deluged with claims that the Pontiac Grand Am GTXPXT-W31-442-Z34 got better lateral “g” than the BMW L7. Of course, it took a skidpad, or a glassy-smooth racetrack, for something like a J-body to even catch sight of a Bimmer’s rear bumper.

Lately, it’s been Quality, and I’m capitalizing the “Q” ironically for all you Pirsig readers. Again and again, we are told that GM matches the best brands out there for quality. Most people read these ads to say, “OMFG, that car I would never buy is almost as good as the car which has given me eight years of trouble-free service.” Customers don’t care about JD Power numbers; they care about their own experience and the experiences of people they trust. GM spat directly into the faces of those people forty years ago and they’ve been doing it ever since.

And now, finally, we have Nurburgring times. The CTS-V is supposedly the fastest sedan around the ‘Ring. Nobody seems to care. If ‘Ring times ever really meant anything to anyone beyond frothy-mouthed teenagers pounding a keyboard in skid-marked underwear, the endless controversy about Nissan’s latest GT-R has more or less killed that goose. The GT-R’s times around the ‘Ring vary by nearly forty seconds, depending on who is driving, which tires were on the thing at the time, and whether or not anybody actually checked the boost controller before the car went out. ‘Ring times are worthless, useless, forgotten. They’re as played-out as the PT Cruiser…

…so naturally GM has an HHR for us to watch.

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The WSJ [sub] reports

California regulators want zero-emission vehicles—those that don’t run on petroleum—to comprise up to 5.5% of new-car sales in the state, or roughly 81,300, in 2018. The target would rise annually to 14%, or more than 227,600, by 2025…

Tom Cackette, chief deputy executive officer of the California Air Resources Board, says his agency’s goal is to test whether electric cars can become mainstream vehicles, or wind up serving a “niche” market. Mr. Cackette said the state is investing in charging stations and other infrastructure, and he pointed to the sales of new plug-ins on the market to show that there’s a demand for the vehicles. He said he believes the California targets are feasible.

“That is a question we’ll only find out by trying,” he said. “I think [car companies] are making a pretty big investment in these vehicles, and they wouldn’t be doing that if they didn’t think there was a market there.”

Industry lobby groups are pushing California to roll the ZEV mandate into the forthcoming national CAFE standard. Small automakers like Mazda complain that placing a California ZEV mandate on top of national emissions standards would create a “costly burden…in light of the uncertain marketplace and infrastructure for electric vehicles.” And since CARB is leading the federal government by the ear towards a national standard anyway, it could simply push for a higher CAFE rate, which would at least allow firms the flexibility to comply on their own terms. Adding a major ZEV mandate won’t fundamentally change the national standard, but it absolutely will force automakers to spend huge amounts of money to develop a kind of vehicle that has major shortcomings, is only as green as local electricity generation, and has yet to prove itself with consumers. Whatever you think of emissions standards increases, it should be clear that consumers should determine what mix of technologies can best serve their needs while lowering fuel consumption and pollution.

Opel workers in Germany are getting increasingly frustrated and are banging the table. Rainer Einenkel, head of the works council in Bochum, today demanded that GM management in Detroit “immediately makes a clear and unambiguous statement, and to deny the plans of a sale without ifs and buts.” Rainel Einenkel writes on the website of the works council in Bochum that “ambiguous statements aren’t helpful, neither for the workers nor for our products.”

Yesterday, Germany’s chancellor Angela Merkel also demanded clarification from Detroit after the German newspaper Die Welt had written that China’s BAIC had made an offer for Opel. The paper said that GM’s board is tilting towards cutting Opel loose. On Thursday, Der Spiegel and Auto Bild had written that “GM is slowly wising up to the fact that the reasons that led to the planned Opel sale in 2009 have not changed.”  Media reports said that GM CEO Dan Akerson is getting impatient.

Now, it seems, there is impatience all around.

In the meantime, I finally tracked down my former Opel executive who always had been a dependable source. Read More >

Cadillac dealers were disproportionately targeted by GM’s bailout-era dealer cull, with some 900 cut before GM reinstated many of them after enduring a downturn in Cadillac sales. The problem, as we noted in a meditation on “Detroit’s Small Town Luxury Lament,” is one of identity:

Is Cadillac a European-grade maker of world-class, dynamically-focused and fashion-forward driving machines, or the small-town America symbol symbol of petty-bourgeois success, with an emphasis on the old-school American  values of wide seats, big power, and a cosseting ride? The brand’s product line displays this identity crisis (compare CTS and DTS) as much as the dealer network does.

The answer: yes. GM is keeping a lot of small-time Cadillac dealers on the roster, and is asking them to upgrade their facilities to a new design created by San Francisco-based architecture firm Gensler. GM talks up the new look’s “contemporary architecture and premium materials” in its presser, but it too seems to try to bridge the yawning gap between a fashion-forward, Euro-inspired look and a more traditional, conservative  look aimed at a more “traditional” customer (see image above?). But does it work? Does the new look communicate “Cadillac values” to you, or does it strike you (as it does me) as a bit of a compromise?

An Ohio judged has ruled [full ruling in PDF here] against Ford in a 2002 case alleging the automaker overcharged dealers by selling commercial trucks at unpublished prices between 1987 and 1998. According to the summary judgement, Ford’s “CPA” program violated its contract with dealers by publishing “unrealistically high” wholesale prices and using “secretive, unpublished discounts” on an uneven basis, thereby overcharging some 3,000 dealers by an average of $1,650 for each of the 474,289 medium- and heavy-duty trucks sold in the applicable time period (about $1.2b of the ruling is for unpaid interest). The story is intriguing in its illustration of the differences between consumer and dealer incentives: while consumer-end incentives can be applied on a market-by-market basis, dealer invoice prices must be evenly applied across all markets according to Ford’s contract with its dealers. The story is also of major significance considering Ford’s still-shaky financial position, with automotive gross cash exceeding total debt by a mere $1.4b. Ford will appeal the ruling, but because the damages awarded are material rather than punitive, an expert tells the Cleveland Plain Dealer, Ford’s appeal could be “interesting.” Which doesn’t sound like great news to us…

While walking down memory lane to the dark days of diesel, I came across this gem in the archives of the Volkswagen History Department: The prototype of the first Golf Convertible. It was developed and produced by Karmann in Osnabrück. The company went bankrupt. Volkswagen bought Karmann, and inherited this find. Read More >