Despite early indications that the Obama Administration did not want to follow the toll road policies of the previous administration, the US Department of Transportation is spending millions in federal taxpayer dollars to encourage states to impose tolls on new and existing roads. On Monday, the DOT published formal rules for states interested in applying to receive $1.5 billion in federal tax grants under the new “Transportation Investment Generating Economic Recovery” program. “TIGER discretionary funding will open up the door to many new innovative and cutting-edge transportation projects,” Transportation Secretary Ray LaHood said in a statement.

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Well, not officially. Officially, I’d be extremely surprised if GM doesn’t follow decades of precedent and save its ultimate bad news for either Friday (the 29th of May) or the weekend (a Sunday electronic filing). That said, the practice was designed to give the markets the weekend not to flip out about the latest red ink tsunami, fire sale, asset sale, etc. By now the market couldn’t give a shit, knowing as it does that General Motors stock is about to be completely worthless. Still, a new GM filing with the SEC [full press release after the jump] reveals that The General will report the failure to secure “debt reduction agreements” with the UAW and bondholders on May 27. Once that’s done, well, it’s all over bar the shouting.

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Wednesday, May 20^th 2009. Final deadline for anybody who’s seriously interested in taking over Opel. Today, concrete and final plans and bids must be presented to GM and the German government in Berlin. Today, Chancellor Angela Merkel, Vice Chancellor Frank-Walter Steinmeier, Economy Minister Guttenberg, Finance Minister Peer Steinbrück und Minister of Labor Olaf Scholz are meeting in Berlin to decide next steps, Automobilwoche [sub] writes. GM emissaries from Detroit are also standing by in Berlin to check the bids, Handelsblatt learned.

A bridge loan, estimated at €2 billion, has already been arranged. Condition: There needs to be a viable partner, and GM needs to agree to the German trustee model, which hasn’t been met with a lot of applause in Detroit. But they are running out of time and money at RenCen. When GM goes bankrupt by the end of the month, and no Opel deal is closed, all bets are off. Only two bidders seem to stand a chance in Berlin:

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While sales of hybrids and plugins languish in the US, and are, for all intents and purposes, non-existent in Europe, in Japan, “the popularity of Honda Motor Co.’s Insight hybrid and the even greater popularity of Toyota Motor Corp.’s new Prius highlights that eco-friendly models are one of the few bright spots for automakers,” the Nikkei [sub] reports.

According to the Nikkei, “Honda’s Insight hybrid, released in February, became the best-selling model among all passenger cars, excluding minivehicles, in April.” Sales will heat up further after Toyota unveiled their third-generation Prius on Monday.
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One hundred billion dollars. Small change? Not even for Bill Gates. For $100 billion you could give 400,000 students an Ivy League education. If we’re talking about a quality state education, we’re looking at closer to two million graduates. That’s absolutely massive. Amazing . . . and think of our long-term GDP growth? Now consider our current spending on Detroit Inc.

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Reuters is reporting that GM’s bankruptcy plan is just like Chrysler’s . . . only without the Italian middleman. “A quick sale of the company’s healthy assets to a new company initially owned by the U.S. government,” is how the Reuters source puts it. “Bad GM” would linger in bankruptcy to help pay off claims. Meanwhile, the $15.4 billion we (the taxpayers) have already given GM will be “forgiven.” Not literally, of course, but GM won’t be paying taxpayers back. A new BOD will be set up with “the tacit approval of the government,” but Fritz Henderson is said to be staying as GM’s CEO. How long does the government plan on owning GM? What’s the endgame? Why are GM secured bondholders being paid off while Chrysler’s were demonized? Details are still emerging, but nothing answers these or a million other questions yet. Stand by.

Two new Nissan GTRs were some of the first sales to be recorded after the UK introduced its clunker-rebate scheme yesterday. “Buyers pounced within five hours of the initiative starting this morning,” reported Autotrader.co.uk. Britain’s scrappage incentive offers about $3K per scrapped ten-years-or-older vehicle, but unlike other EU nations, Britain did not place carbon emission limits on qualifying new cars. Because, as Autotrader points out, proponents of the bill worked with the assumption that rising efficiency averages means all new cars are less polluting than the vehicles they would replace. Nissan’s GTR emits 298g/km of CO2, earning it a spot in Britain’s most-polluting tax band. We can only hope our own eventual scrappage rebate will be vulnerable to similar abuse.

After all the interest in identifying the old Mazda junkyard pickup last week, we’re going to start a regular contest, called Curbside Classic Preview Contest. You’ll get a snippet of the upcoming CC feature. No prizes yet, but we’re working on that. On your mark . . .

Bloomberg is all over Bill Reinert’s presentation to a National Academy of Sciences panel today in Washington. And why not? Toyota’s US national manager for advanced technology says plug-in hybrid vehicles are a non-starter. “Toyota estimates sales of hybrids that can be recharged at household outlets may be 50,000 units a year at most and could be as few as 3,500.” Not expressed: those kind of numbers wouldn’t even pay the HVAC bill for the building where Chevy engineers are busy trying to cobble together the new plug-in electric/gas hybrid Volt. Reinert’s not dancing on the Volt’s grave, but that’s only because it’s not dead. Yet. But the signs—admittedly as provided by the vehicle’s competitors—are not good.

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The Toronto Star reports that Canadian Auto Workers (CAW) president Ken Lewenza is repeating his call for import restrictions to protect his members’ livelihoods. But the chairman of the union’s bargaining committee isn’t making it a “do or die” precondition for Canadian bailout bucks for GM. “The union has repeatedly told Ottawa to fix the trade problem and limit imports, but Buckley would not comment on whether the federal and Ontario governments should refuse GM’s current requests for loans if the company plans to increase imports here.” Meanwhile, Lewenza said there are “multiple proposals for active workers which are much different” than what Chrysler employees recently accepted—so that company could qualify for Canadian aid. That said, “We are close to the end of our ability to give . . . Sooner or later, GM and the federal and provincial governments will realize that.” Reassuringly enough, there is some common ground: both (all?) sides agree that GM’s pension plan is in far worse shape than Chrysler’s after years of minimal contributions, made possible by a special provision in provincial legislation. See how that works?

Speaking with the New York Times, Ford Marketing maven Jim Farley had some soothing words for Ford dealers: we’re not going to cap yo ass [paraphrasing]. Yet [extrapolating]. Farley’s also taking the opportunity to hammer home Ford’s mantra: we didn’t take government money, so we’re cool, right? This time, Farley went further, predicting that FoMoCo could benefit from the death of those Detroit automakers who did/do. “Mr. Farley was particularly critical of the Chrysler plan, noting how it would affect millions of consumers with little warning. ‘It seems very abrupt and unplanned,’ he said. ‘You don’t orphan four million customers overnight without some fallout.’ Some of those customers, primarily those in rural areas, will migrate to Ford dealerships, he said. ‘It really depends on how G.M. and Chrysler handle these orphan owners,’ he said. ‘If they don’t give them a lot of attention, it will result in consumers going to other brands.’” Hint. Hint. Of course, there be dragons. And Farley knows it.

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George writes:

I own a 1999 Honda Accord EX V6 Coupe with 103k miles.  Should I sell it now or keep it?

The Positives:

1) Purchased new with 9 miles on the odometer.

2) Used Mobil 1 synthetic oil changed at 5k intervals.

3) Stays in a garage at night.

4) Reliable with only Delphi alternator failure outside of warranty.

5) Still looks good.

The Negatives:

1) Design defects in automatic transmission.

2) Only drained and replaced transmission fluid at 90k miles per manual instructions.  Should have replaced earlier.

3) Due for expensive timing belt replacement.

Normally a fairly well maintained used car is worth more to its original owner than to someone else, but the 1999 Accord has an unusual combination of a high resale value combined with significant transmission problems. Looks like a case where I should sell it now before I have to spend more money on the car. Any thoughts?

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According to Forbes, German automaker Daimler has purchased a 10 percent stake in Silicon Valley’s EV sweetheart, Tesla Motors. “The two companies are already working together on using Tesla’s lithium-ion battery packs and charging electronics in Daimler’s electric version of its two-seat Smart car. The stake’s value was not disclosed, but [Daimler’s R&D meister Thomas] Weber said it was in the double-digit millions.” Don’t you just love it when German managers go all coy about their American acquisitions, like, say, when Daimler bought Chrysler? Of course, we mustn’t forget Musk. Announcing the news, Elon did what he does best: pile on the hype. “Tesla Chief Executive Elon Musk said in a statement that the partnership would help it bring the Tesla Model S car to production faster and ‘ensure that it is a superlative vehicle on all levels.'” Excuse me? Other than providing cash for battery packs for the Smart, where’s the bit about Mercedes helping Tesla develop the Model S? Oh maybe it’s something to do with this . . .

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