Speaking of GM’s ambivalence towards energy efficient vehicles, Bob Lutz’s determination that 95 percent of America won’t pay a hybrid premium seems to be bearing more fruit. GM’s 26/34 mpg Malibu mild hybrid has been canceled, reports Left Lane News (blog). The news is hailed as “unsurprising,” considering the hybrid Malibu’s $2,000 premium only improved mileage by 4 mpg in the city and 1 mpg on the highway over a six-speed auto, four-pot ‘bu LT.  Meanwhile, despite Penske’s rescue of Saturn, the planned Vue Two-Mode Hybrid has also been axed.

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Bob Lutz needs to clear something up. Fun lovers, report to GM Fastlane, stat! It seems that the Man of Maximum is steamed about a WaPo piece which he complains casts him as “ambivalent” towards his beloved Volt. In fact, the piece is a sweeping look at the Volt’s place in GM, and it contains more than a few anecdotes that reflect poorly on GM management (shocking, I know). And the facts of the matter clearly illustrate that the Volt’s importance arises from political considerations far more than the inherent passion  of GM’s product planners to create reliable, fuel-efficient transportation. Hence the accusation of ambivalence. But political motivation has to be disguised with pure intention (no matter how implausible) in order to work. And so Lutz is off to man the crumbling Maximum rampart.

Lutz writes,

The reporter said that we are “ambivalent” about the Volt, largely because it flies in the face of what he perceives me to be all about, namely speed, horsepower and burning rubber – and fossil fuels. In fact, he neatly expanded this ambivalence angle to describe GM, and Detroit as a whole, as the auto industry faces a new future.

Look, I know how it works. A reporter has a great idea for a story, with a terrific angle, and, even if the facts indicate otherwise, he can’t help but try to shoehorn the story into the angle. It’s just too good an idea!

Yes, Bob Lutz knows how the media thing works. And the WaPo juxtaposes the Volt and the Camaro,

. . . type of vehicle they and their colleagues in the press insist GM is all about, the gas guzzler. Trucks, SUVs and muscle cars. They would have you believe that GM and the other American auto companies are the only manufacturers on the planet that have ever built any SUVs. They would have you believe that we are secretly bemoaning the coming of the Volt because it means the end of cars like the Camaro and the Corvette, cars they don’t think any Americans want to drive anyway.

Huh? Bob, the Post quotes you as saying,

When you get out into the marketplace, it’s probably just 5 percent of the public that desperately wants something environmentally sound and is willing to pay a premium for it. I would say the East and West Coast intellectual establishment kind of lives in its own world. When you get to the broad American marketplace, excitement is still kind of defined in the way it used to be.

If that doesn’t betray some ambivalence towards hybrid vehicles, then what does? If America doesn’t want Volt, Bob, why are you building it? Actually, the Post piece addresses this directly, explaining,

In the summer of 2008, at a forum attended by other auto executives and then-presidential candidate Barack Obama, Wagoner recalibrated his position. Under increasing pressure from government officials to demonstrate GM’s broad commitment to more fuel-efficient vehicles, the beleaguered chief executive confidently restated GM’s goal to bring out the Volt in 2010.

But that doesn’t jive with Bob’s self-image. Political lackey he is not!

How many times since the concept car’s debut in 2007 have I said (and been widely quoted as saying) that this is the most exciting program I have worked on in my entire career? I meant it every time I said it – anyone in the press who’s spent any time at all covering the auto industry knows I don’t do “lip service.”

But if this were true, Lutz wouldn’t be blustering about his deep, abiding passion for the Volt. He’d say something along the lines of “you’re damn right I’m ambivalent about it. It’s a $40k halo car that doesn’t go fast or look like sex. That doesn’t make sense to someone like me.” Instead, he demonstrates his pathos-laden (and politically corect) ambivalence towards the very car the WaPo accuses him of favoring: the Camaro:

Given the tough economic times and the high priority of fuel economy, we were almost wishing we hadn’t done the Camaro. We looked at it as something radically mistimed.

Which it is. But Lutz’s conspicuous ambivalence only shows how willing he is to reshuffle his priorities based on political considerations. If Lutz was brought into GM to provide clear-sighted leadership on product quality, he has clearly lost the independent, instinctive edge he once promised. Absent the need for a working compass of the American consumer psyche (thanks to bailout billions), Lutz has become little more than a breathless apologist for a program he clearly doesn’t think will be successful on its own merits. The curse of governmental control can already be felt at GM. What a crock of shit.

The sale of Chrysler’s assets to Fiat is complete, reports the New York Times. Paperwork (and the transfer of $6.6 billion in Treasury money) was completed at about 9 a.m. Eastern, after news came yesterday that the Supreme Court would not hear the Indiana pension fund challenge. News reports refer to the speed of the Chrysler bankruptcy as “an important victory” for the Obama auto industry restructuring effort. Perhaps to avoid talking about the substance of the bankruptcy. Either way, she’s a done deal. Chrysler is dead, long live Chrysler!

The House of Representatives has passed Rep Betty Sutton’s $4 billion scrappage scheme [download full text here], reports CNN Money. The bill now goes to the Senate. Under Sutton’s bill, clunkers with a combined 18 miles per gallon rating or worse would be eligible for a scrappage rebate. Purchasing new vehicle which exceeds its replacement’s rating by four miles per gallon would earn a $3,500 rebate. Improve the combined EPA average by 10 mpg and snag $4,500. Offer good for one year. Or until we tear through $4 billion in a wholesome, American display of redemptive consumption. I’m sorry, I mean “shore up millions of jobs and stimulate local economies . . . improve our environment and reduce our dependence on foreign oil. The [Consumer Assistance to Recycle and Save] act demonstrates that we can free ourselves from the false argument of either you are for the environment or you are for jobs. You can do both, you must do both.” As the bill’s author modestly puts it.

Not thrilled meaning, I suppose, that they’re not in favor of it. Using that definition, AutoPacific’s summation of their survey of 900 Americans is an example of English understatement. According to their poll, “Fifty-four percent of respondents believe that General Motors should have been allowed to fail, while 58% believe that Chrysler should have been allowed to fail.” Not too bad you say, the words “simple majority” springing to your lips. Anyway. It’s a done deal. Yes, well, “Eighty-one percent of the respondents agree that the faster the government gets out of the auto business, the better.” The government’s counter-argument? We agree with your agreement! Meanwhile, don’t worry: good things are going to happen! The voters aren’t quite so happy-clappy at the prospect . . .

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Last Wednesday, the Arizona Supreme Court made it easier for prosecutors to convict intoxicated individuals who were not driving of driving under the influence of alcohol (DUI). The expanded policy was handed down in the context of a case involving Vincent Zaragoza who was arrested on April 29, 2006, for sitting a car with a blood alcohol content of .36. On that day, Zaragoza had gotten into an argument with a woman at an apartment complex. He went to his car in the parking lot of the complex, got in and—according to Zaragoza—put his key in the ignition briefly to lower the window and turn on the radio. Before anything could happen, a police officer ordered him out of the vehicle. The car’s engine had not been started, but Zaragoza was on his way to jail.

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Nezir writes:

Sajeev, I drive a 2004 Mazda RX-8 that I bought new. It currently has around 48k miles. As of late the seating has become uncomfortable and I seem to get strange cramps in my hamstrings from how the seat is pushing into my leg.

I’ve looked at some possible cars to replace it with such as the Evo X, etc. Love the Recaros on there and that alone would make me want to switch. However, I still love the RX8 and short of buying another one in R3 guise is there anything I can do to upgrade my seats?

As has become the custom these days, the seats have the side airbags built-in. So I’m not sure what options I have in the aftermarket for this. I know Recaro has the Sportster CS with airbags though I’m not sure how ‘universal’ they truly are. Mazda wants like 4k per seats for the R3 Recaros, so that’s not really an option either.

Also, I’d be ok with going for a seat without airbags, but I don’t know what effect that has on the rest of the SRS system.

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We’ve given you the heads-up on the federal government’s plans to favor domestic automakers with “stimulus sales.” And so it has come to pass. The U.S. General Services Administration (GSA) reports—eight days after the fact—that they’ve ordered 17,205 “fuel efficient vehicles” at a cost of $287 million. Breaking it down: Uncle Sam bought 2,933 Chryslers ($53 million); 7,924 Fords for ($129 million); and 6,348 General Motors vehicles ($105 million). Does it strike anyone as odd that FoMoCo gets the largest contract? Not-so-secret hat tip for NOT taking bailout bucks, while competing against those who have? Or just a reflection of the fact that the Crown Vic rules! Which reminds me: by NOT revealing the exact models ordered, one has to wonder about the depth of the GSA’s commitment to greening-up the fed’s fleet. On this point, the press release is suitably vague, and yet completely revealing . . .

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We are an equal opportunity auto news provider. Don’t like the news that China’s sales exploded by 55 percent in May? No problem! Go to Russia! In May, Russian car sales tanked by nearly 60 percent, Automobilwoche [sub] reports. The former great hope for car growth and member of the BRIC (Brazil, Russia, India, China) states turns into a basket case. It’s down to BIC now to re-ignite growth. Ooops, Brazil’s first-quarter GDP shrank 1.8 percent, so let’s make that a bIC. Back to Russia’s implosion: Who’s to blame?

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Kawasaki Heavy Industries and Japan’s National Institute of Advanced Industrial Science and Technology have co-developed a nickel-hydrogen battery that recharges in less than 10 seconds, the Nikkei [sub] reports. That should get your plug-in EV or hybrid back on the road much faster than getting a tank of gas, a coffee and a doughnut. The new battery’s performance barely declines even after 1,000 quick charges, the developers say. That’s the good news. The bad news:

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After a short, suspense filled couple of laps under the yellow, the US Supreme Court has dropped the green flag on the Chrysler-Fiat deal. The New York Times sums up the court’s view that “the Indiana funds ‘have not carried the burden’ of proving that the Supreme Court needed to intervene.”  Also, earlier today, the Chrysler dealer slaughter was also given the go ahead when Judge Gonzalez approved that aspect of the deal. So, that pretty much closes this chapter of the saga. The deal is going down as planned by Fiat and the US Treasury. Now the really hard part begins.

An anonymous reader sent us the before and after agreements sent to GM dealers by the post-bankruptcy corporate mothership. Here’s the controversial post-bankruptcy GM dealer agreement before the National Automobile Dealers Association intervention (and media condemnation). And here’s the controversial post-bankruptcy GM dealer agreement after they faced the dealer revolt. The differences between these two documents are not as profound as their similarities. As Casey Raskob (a.k.a. Speedlaw) points out in a comment below, “In short, Dealer agrees to let GM dictate cars purchased, the buildings they are sold in, and this deal is subject to change at the whim of GM. Now GM dealers know how we normal folks feel signing a car lease.” Make the jump to read the analysis provided by our sharp end tipster.

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As GM stares down the barrel of bankruptcy—oh wait, they’re already bankrupt. My bad. You see, I was reading Ed Welburn’s rant on GM’s FastLane blog. Eddy’s pissed-off at Gerald Sindell’s “Open Letter to GM CEO Fritz Henderson,” which says GM’s designs reek of “Older white guys wearing suits to the office in Detroit, except for one woman and one black guy.” As the one black guy in question, Welburn’s on the warpath. Hence my confusion. I mean, with GM in C11 and all, you think the head of design would have something better to do than accuse the media of race baiting—even if it is. Which it isn’t. To steal a line from another legendary zombie, can we talk?

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Roger Penske has got to be a busy guy these days. His purchase of Saturn is a characteristically audacious move that is simultaneously compelling and terrifying. Penske’s Saturn dealers will sell current GM products until they reach the end of their lifetimes. “Concurrent with that, we’ll go around the world to see what products could be brought into this country,” Penske tells Edmunds Inside Line. The “World Market” approach seems to do away with much of the industry’s basic understanding of branding, but Penske insists that aerodynamics, fuel efficiency, safety and styling will continue to be the defining characteristics for new Saturn products.

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