The $13K-$15K American compact market is going to get another player, as Automotive News [sub] reports that VW’s Polo is coming stateside. But VW won’t be selling the traditional Yaris-fighting small hatch version of the Polo here, says VOA CEO Stefan Jacoby. Instead VW is easing into the segment Toyota-style, offering an Echo-echoing four-door sedan version of the Polo alongside a “Polo Plus” mini MPV. “It’s more like a cross between a compact minivan and a hatchback. In other words, it’s more like the Honda Fit,” says Jacoby of the “American fatty” version of the Polo. Expect the Polo to be built in Mexico in hopes of keeping the cost down, a consideration that takes on more importance thanks to VW’s decision to focus on the sedan/MPV approach. “We have to come in at the sweet spot of this market or else it makes no sense—and we come too close to the Jetta,” says Jacoby. So why sell a sedan at all? More importantly, why go with the cheap Hecho-En-Mexico approach when it prevents the US Polos from offering the real jewels of VW’s small-car portfolio: high-tech engines like its direct-injection, turbo- and super-charged 1.4 TFSI.

The mainstream media has finally discovered that America’s Motown-based automakers are in dire straits. (Was it the bailouts?) The Detroit-based automotive media are in full counter-insurgency mode, scouring the autoblogosphere for stories that say “SEE! They’re in trouble, too!” When Toyota recently secured bank financing, cries of “Bailout! Bailout!” echoed throughout the Motor City. And now Automotive News [sub] seizes on the Automotive Lease Guide’s [ALG] revised depreciation stats for proof that GM and ChryCo are not alone. “Toyota’s residuals take a dive” AN’s headline proclaims. “Not only are Toyota Division’s new-vehicle sales plunging, but so are residual values on its used cars and trucks. That is depriving Toyota of one of its best marketing tools: the healthy residuals the brand long has been able to brag about.” Uh-oh. Hang on. Context?

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A reader writes:

“Would you have any idea on the auction value of a low mileage 2007-2009 Toyota Tundra CrewMax Limited 4×4 5.7? I have been looking to upgrade from my current 2005 Tundra to one of the new ones but hate all of the new car dealer shenanigans. Thanks so much for your time and response. I really appreciate it.”

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TTAC reader Mockard writes:

As a web-savvy car enthusiast and budget autocrosser, I try to do a lot of reading before pulling the trigger on a big purchase. With a set of R-compounds now hitting the $800 mark, I want to make the most of my investment. The consensus seems to be that shaving tires can make them perform better and last longer, but I remain skeptical… The cynic in me suspects that shaving is just a way to reduce tire life and pad the shaver’s wallet to the tune of $10 a tire. Why couldn’t tire manufacturers just build tires “shaved” from the beginning, if there was a real advantage?

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Martin Winterkorn, chief of Volkswagen, was asked by Automobilwoche [sub] who will be left standing when the big carmageddon—ooops—consolidation will finally be over.  Here are his odds:

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God I hate car awards—except for ours, of course. Nine times out of ten, the fix is in. The tenth time, the methodology is Claritin clear anti-matter. Well, at least ForbesAutos isn’t making those stupid “10 Best Cars in Which To Perform a Bris” lists anymore. Anyway, here’s KBB’s most recent contribution to the genre, which names Cadillac as the Best Comfort Food—I mean, brand. And Toyota scoops the award for Least Exciting Brand That Everyone Buys Anyway Probably Because It IS So Boring (i.e., Best Value Brand). Full list after you contemplate the ability of the English language to obfuscate while pretending to offer specificity.

The 2009 Brand Image Awards, presented to the top brands in 10 categories, are based on consumer automotive perception data from Kelley Blue Book Market Research’s Brand Watch study. Brand Watch is an online brand perception tracking study tapping into 12,000+ in-market new-vehicle shoppers annually on Kelley Blue Book’s kbb.com. The highly comprehensive Brand Watch report provides a detailed look at in-market new-vehicle shoppers’ perceptions of brands, and important factors driving their purchase decisions while they are in the midst of the shopping process. The results of an entire year of Brand Watch research and consumer opinions determine the 2009 Kelley Blue Book Brand Image Award winners.

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One of the signs that a new technology has matured is when whole industries are worried about getting wiped off the earth as a result of that new technology. If that happens, change has finally arrived.

Industries are getting worried about electric vehicles. The machine-tool sector is very troubled, writes the Nikkei [sub], and it is worried for two reasons: “Plummeting demand from recession-hit clients is threatening the industry’s very existence, as the increasing focus on electric vehicles by ailing carmakers could eventually eliminate the need to machine parts for engines.” And why would that be?
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TOKYO (MarketWatch) — Toyota Motor Corp. (7203.TO) plans to release a cheaper version of its Prius hybrid car later this year in a bid to compete with Honda Motor Co.’s (7267.TO) more reasonably priced Insight hybrid, the Asahi Shimbun reported Thursday. The paper said that the new Prius will be priced around Y2.05 million, whereas Toyota’s cheapest model of the fuel-efficient vehicle now sells for between Y2.3 million and Y3.4 million.

The boss men at Legacy Ford Lincoln Mercury Toyota of Scottsbluff, Nebraska, have arranged a personal economic stimulus program; by running off with 81 cars and trucks valued at over $2.5 million (before or after rebates?). Lacking a “Tales from the Dark Side” section, the AP put the story out as auto industry news. The missing Fords were trucked away on Saturday but the Toyotas had to wait their turn until Monday. By Wednesday, some of the missing vehicles already started popping up at auctions in Utah and Arizona. Floorplan banker Toyota Financial said: “If the dealer and the cars go missing there’s an issue.” Ya think? “Arrest warrants had been issued for owner Allen Patch, controller Rachel Fait and general manager Rick Covello, who are wanted on suspicion of theft.” Up until now, none of these clowns had an arrest record. Oddly enough, Legacy so far remains open for business. Personally I wouldn’t leave my ride there for service unless I wanted it to disappear. Meanwhile, rumors of a movie deal starring Robin Williams, Chevy Chase and Al Pacino run rampant.

Quick: name a Hyundai sports sedan. Can’t do it, can you? If there’s ever been one, I’m not aware of it. No, the late unlamented Hyundai Elantra GT doesn’t count. Even with a red “GT” on the rump, the suspension tuning decidedly prioritized ride quality over handling. Perhaps “GT” means “standard leather” in Korean? But let’s not count Hyundai out just yet; there’s no Sonata GT in the lineup at the moment. Meanwhile, for 2009, the Korean manufacturer has quietly dipped a toe into the sport sedan pool by adding a “sport suspension” to the Sonata SE. This site has deemed the Sonata—in GLS form—“a great car for people who don’t care all that much about cars.” Do firmer springs and dampers transform the midsize sedan into “a great car for people who do care about cars?”

The Detroit News reports that the UAW vote on Ford’s proposed modifications (full summary in PDF) to the union contract is “tight,” as locals wrap up balloting by Monday. Eight union locals have approved the modifications while four have rejected them, but margins of victory were in the “low 60-percent level to the mid-50-percent range.” Modifications must be approved by a simple majority of Ford’s UAW workers, meaning “no” votes in locals that passed the measure still count and vice versa. And though the Freep has uncovered a letter from Ford to the UAW detailing the carnage that has already been wrought upon Ford’s hapless contract employees (possibly the great unsung victims in this mess), and suggesting that perhaps contract modifications aren’t the end of the world, the video above proves that the old UAW zero-sum perspective is alive and well.

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Newbie TTAC registrant USLuxuryman entered this comment under the post Ford-UAW Deal Rejected By Two Locals. I’m republishing it here because I think it’s important for all of us to understand the fears, frustrations and general motivations of the workers at the sharp end. Now, if he could just walk away from that endless quiver of spears . . . . [NB: USLuxuryman is protected by TTAC’s no-flaming rule. Obviously.]

As an Auto Worker, instead of some hateful, biased, resentful outsider, let me help give you some perspective!

I work for Chrysler, but the ENTIRE AUTO INDUSTRY is in free-fall, and for a VARIETY of reasons! Those two Locals, or any others, have the RIGHT to say YES OR NO, just like you could vote for McCain or Obama! You have no say in that any more than I DO if you let your Police,Fire, and Teachers lose their jobs because you don’t wanna pay more in taxes!

if a Ballplayer turns down $45 Million, I can’t call him a fool, he is obviously in a different economic-bracket than you or me! These factors affecting our Economy were not caused by or controlled by the average Blue-Collar OR White-Collar worker in this or related industries!

The Big-Three didn’t MAKE you buy SUV’s and Pickups! AMERICA wanted these vehicles until the 4/Gal gas slaughter helped to KILL the economy! We DON’T make the decisions that put us in this shape, or put the Credit-markets, Housing-markets, or the economy overall in the shape that it is in today! We take direction from Management, just like most of you do on your jobs.

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The General’s Chevrolet Malibu LS won this competition versus the Chrysler Sebring LX and Ford Fusion S because it’s a complete car with no manifest weaknesses. For less than $18K, I could have driven away from the Chevy dealership in the only vehicle capable of going head to head with the very best entry level cars in its class. In a prior competition, I compared the Honda Accord LX, Toyota Camry (base model), Nissan Altima 2.5 and Mazda Mazda6i Sport. Neither the dismally shameful Sebring nor the uninspired Fusion compares well to even the weakest of these Japanese models. On the other hand, this Malibu fully deserves serious consideration by cost conscious consumers.

Despite General Motors’ epic slide into Chapter 11, or perhaps because of it, its defenders are busy re-writing history. It’s the Poseidon Adventure redux: a huge, well-run ship overwhelmed by a sudden, terrible force of nature. Except this ship will eventually right itself. In truth, GM really is the Titanic: a badly built vessel helmed by men blinded by short-term greed and long-term hubris headed for Davey Jones’ locker. Make no mistake: GM CEO Rick Wagoner had the chance to return GM to dry dock, repair the company’s flaws, and make it across turbulent seas. But then Wagoner is a GM lifer—his cowardice is both genetic and institutional. What’s the mainstream media’s excuse?

This is the day after GM’s auditors told the world that the automaker may not be a “going concern.” It’s also the day the MSM has finally come to grips with GM’s utter ruination at the hands of its tacitly incompetent management. Or not.

For example, Daniel Howes’ column in the Detroit News is the same as it ever was. Although Howes chastises “the skeptics, the deniers and the deluded” for not facing the truth about GM, and his tone has switched from enthusiastic cheerleader to horrified bystander, he still believes that GM has a future– under Uncle Sam’s taxpayer supported wing.

“[The auditors’ report] also should remind the White House just how perilous a GM failure could be for their friends in labor, voters in the industrial Midwest and a fragile national economy.”

As John McEnroe used to say (before CBS signed his paychecks), you CANNOT be serious. Mr. Howes has been carrying the can/pouring the Kool-Aid/providing aid and succor/kissing the ass of these GM C11 deniers for years. This morning’s minimum opus proves he still doesn’t get it: GM is toast.

It’s bizarre. An MSM industry insider reckons the auditors’ report declaring GM kaput will help his hometown heroes confront the reality of GM’s bottom line—so they can avoid the reality of GM’s bottom line. Get out of denial to jump back in. At the taxpayer’s expense. Without anything remotely resembling a coherent and believable “return to viability” plan.

It may arrive as a piercing glimpse into the obvious, but even after GM’s “we’re NSFWed” SEC filing, the agenda-driven MSM continues to view GM’s death throes through the prism of their pre-existing prejudice.

NPR’s The Takeaway interviewed me this morning about the “automotive bubble.” Host John Hockenberry seemed more concerned with the Obama Administration’s electric car future than the fact that “big bad” GM (as opposed to naughty truck-building Toyota) is going away.

Sad but true: MSM’s failure to “move the needle” in its understanding and presentation of the scope, scale and immutability of GM’s perils has enabled the company’s outrageous call on the public purse. In fact, it’s increasingly clear that both GM and the MSM see down as the new up. The worse the news, the greater the justification for the feds to hang another multi-billion dollar bag on Motown’s IV pole.

Just this morning, GM admitted that its request for an additional $30B federal “loan”—on top of the $13.4B already pissed away—won’t be enough to dig it out of its hole. You heard right. Please sir, may I have some more? (As spoken by Frank L. “Bobo” Marrapese Jr.) There’s no way GM could have gone public with this admission without a mostly complacent MSM. In a world with a properly informed and skeptical media, GM’s begging bowl would have been smashed to pieces.

I repeat: where is the media reporting on this fresh, unsustainable assault on taxpayer largesse? In the Detroit Free Press’ case, they’re chewing the fat with GM’s CFO. The Freep reports that Ray Young claims to be “monitoring the situation closely.” Not to worry; Young had “planned for a weak first quarter.” Huh. Does that mean GM intentionally low-balled their initial suckle request?

CNNMoney isn’t bothered. The simply parrot GM’s PR spinmeister’s Fastlane Blog defense of the company’s long term future. The New York Times also isn’t interested in ripping GM a new one. “The [SEC] announcement does not mean bankruptcy is imminent. But it underscores how difficult it will be for GM to successfully complete the restructuring plan that it filed with the Treasury Department last month.”

Hang on . . . didn’t Young just say GM can’t complete their restructuring plan as written?

Meanwhile, the Wall Street Journal continues its descent into the journalistic abyss. Once again, they’re basing a story on “a person close the matter.” This time he’s saying GM’s open to a government-sponsored C11. Yeah right.

When GM finally files for C11, the MSM will continue the spin. They won’t even blink when GM asks for tens of billions for debtor-in-possession financing. The tough questions—which should have been asked five years ago—will once again go unasked.

Too big to fail? As far as the media’s concerned, the answer’s yes. Even when it’s no.

Last year in Geneva, I grumbled about how the annual car show was all green talk and no green action. This year, in contrast, I found few new cars worth writing about: the VW Polo is a bore, the Daewoo/GM Spark is a joke, exotics are an anachronism, and the A4 Allroad is a good sequel—but why waste any bandwidth on it? On the other hand, there are some pretty exciting alternative-fuel vehicles on display. (And, predictably, some big disappointments, too).

One of the good things about a show is that you can talk with the industry’s grands fromages on an off-the-record level, to get a feeling of what’s buzzing. Basically, there seems to be an understanding that government support will make electric propulsion feasible for small, lightweight cars in selected countries such as France and Israel. Second, hybrids are a good idea for heavyweight cars and trucks. Finally, electric sports cars are good testing beds for new technology—but not much more. (But where does that leave the Volt? Exactly. But I digress).

Starting with the lightweight-but-serious stuff, I really like the Michelin-Heuliez “Active Wheel” joint venture. The main thought is: an advanced electric car doesn’t have to have a conventional gasoline-engine configuration. You don’t need a large engine bay; why not save the space for luggage, crashroom and legroom? So the Heuliez (you pronounce it “Early-Ezz”) “Will” has its electric motors, brakes, and suspension elements encased in the wheels’ hubs. At 450 mm, the Will’s roll center of gravity is low. Each front wheel allocates the power it puts on the road according to available traction, and steering is 100% electronic: there is no mechanical connection between the steering wheel and the wheels, just as in an Airbus. But what about all the unsprung weight you get from putting everything in the wheel? This is where the Will is remarkable: unsprung weight in each front wheel is only 32kg. This means a mere 7kg more unsprung weight in comparison to a conventional layout. The Will (not the wheel) looks boring, but that’s because Heuliez concentrated on technology, not on the car’s appearance. Future generations will look more advanced, but in the meantime, the press will be allowed to drive the first Wills this July.

It would be great if the Mindset held the same promise, but I doubt it. Mindset is a company with a prototype designed by Murat Günak, the guy who penned epic cars such as the Mercedes SLK, Mercedes SLR and the Peugeot 206. It uses Heuliez’ e-technology. The Heuliez engineers I spoke with think it is a true dream car concept. I like it too as a complete re-think of what a modern car could be: fast but bench-seated, aerodynamic but unblobby, sporty yet replete with high ground clearance. The word in Geneva however was that Mindset is not getting crucial second-stage investors funding. We’ll see.

When I took the Mitsubishi iMiev for a test drive six months ago, I was impressed. And in Geneva, most e-engineers opined they have high hopes for the iMiev being a significant advancement because, uniquely, it is more than just an urban vehicle. PSA (France’s Peugeot Citroen group) in Geneva announced it will be adopting iMievs for their home market. It seems that once you have a usable electric drivetrain, it’s not too difficult to adapt it to different lines of cars. For a start, Mitsubishi in Geneva is showing a wacky coupe variant of the iMiev called the Sport Air. My girlfriend loved it, but I reserve judgment.

How to reserve judgment for Tesla when they hide themselves away in a sad, dark, minor area of the Geneva show, with Uzbeki LPG-adopters as neighbors? So these are the guys who want Europeans to send down payments for their pricey sports cars? It seems they’ve had a major management malfunction somewhere.

Talking about major malfunctions, it was endearing and bizarre to listen to the MSM journalists interview Opel’s operators about the Ampera, Europe’s Predator-faced adaptation of the Chevy Volt. Here are some questions I eavesdropped on: Will the rear-view mirrors look like that on the actual 2011 model? Regular or premium? How about the warranty? I was impressed with the Ampera’s claim of a 500km range, but I also like Orson Wells’ “F for Fake”.

For a taste of proper things to come, look at the official Swiss electric vehicle showcase stand, splendidly located in the middle of the most important hall of the motor show. There, the Honda Insight was displayed right next to the new Prius. Bad news: inside, in comparison to the Toyota, the Insight looks every penny saved. I was more than disappointed how cheap and unappealing the dashboard and some of the interior fittings appeared. Altogether nicer is the e’mo, a prototype developed by the University of Applied Science of Rapperswil (I’m not joking, and neither are they). The e’mo was designed to be superlight (350kg), fun to drive and sexy-looking. A sandwich-plate structure makes it stable and crashworthy, and non-golfcart-ish. I can hardly imagine a more appealing urban vehicle (but that may be because I yearn for a Citroen Méhari).

Another advanced electric car I could imagine driving is the Protoscar Lampo. Impressively, the Lampo has four-wheel drive and a GPS-based range estimator which they say is more accurate because it integrates data about hills and freeways. 268 hp and a range of 200 km sound nice for this LiIon sports car that sports a composite material body. The selection of beep tones (from freight train to wolf whistle) to alert pedestrians was an auto show hit, too.

Since it stores its energy in the form of compressed air, the MDI Airpod would probably be able to do wolf whistles, too. Honestly, how wacky can you get? It is hard to take such an odd job seriously, but MDI is actually already selling vehicles to various airports. The thing about compressed air, an MDI official told me, is that you don’t need expensive, heavy and complicated batteries. Sound logical? The AirPod, of course, is strictly urban, but the MiniFlowAir is a bit closer to, er, conventional concepts of what a passenger car might be. They showed it in Geneva and it was hard not to find it impressive.

In the mean time, some people will make do with the Smart ed, which is in the first year of four years of testing in England. A Smartish guy told me nobody had yet returned a FourTwo ed, and that the driving experience was generally seen to be superior to the regular Smart (with no jerky shifts). Surprisingly, only 60% of the 100 participants live in urban London. Mr. Smart said that in contrast to Germans, the English seem to take reducing their CO₂ footprint quite seriously. It’s strange times we live in.