GM spinoff Delphi has been struggling to exit bankruptcy for over three years. The Wall Street Journal reports the supplier is in danger of being liquidated completely. At the heart of Delphi's problems: $14.5b in pension liability, underfunded by $3.3b. Under the terms of its spinoff, General Motors retained responsibility to fund those pensions– an agreement that has cost GM $11b in cash and writedowns. A tsunami of red ink prompted the Pension Benefit Guaranty Corp to press GM to take over $1.5b of the liability next month. GM CFO Ray Young says basta! "[Delphi has] to understand there is only so much that we can do. They're going to have to do their own form of self help here." Self-help or self-destruction? If Delphi's pension fund fails, the PGBC has an $8b lien against Delphi's [profitable] foreign business, which wouldn't prevent cuts to retiree benefits. Meanwhile, the supplier's struggling U.S. plants would likely be "spun back" into GM. Delphi is, as always, committed to crafting a new reorganization plan. But if they can't pull it off, this could be the straw that breaks GM's back. To say nothing of Delphi's 159k employees. 

The Detroit Free Press reports that early August sales estimates show a 14.4 percent drop in new metal moved. But don't turn off your pacemaker yet; the biggest shocker is that Detroit is bearing the overwhelming brunt of the downturn. Estimates from Edmunds show that Chrysler sales dropped 34 percent, GM slid by 27.5 percent and Ford endured a 16.3 percent drop compared to August a year ago. Toyota continues to shed sales but grow market share, slipping by half the industry average at 7.2 percent. The winners in August were Honda, which posted a 0.9 percent increase, and Nissan which defied the market to bump sales by 2.3 percent. On the whole, the market appears to be picking up slightly, with a 13.1m seasonally adjusted annual sales rate (SAAR) up from 12.6m in July. With consumer confidence rising in August, the overall economy appears to be taking its Prozac, but don't expect an auto sales turnaround this year. GM's sharp losses show that even with once-popular "employee pricing" incentives, consumer demand for cars isn't what it once was.

The Detroit Free Press reports that GM has finally chosen a Volt battery supplier from its dueling development partners LG Chem and Conti. But in the interest of squeezing as many "Volt On The Way" headlines into future news cycles, it isn't saying which has been chosen. Both the battery partner and the final look of the production Volt will be previewed by the end of the year, probably whenever some bad news emerges that GM wants the public to ignore. In the meantime, this news means one thing, according to GM auto authoritarian Bob Lutz: "the Volt is real … and test work is progressing nicely." Perhaps not as nicely as Toyota's plug-in Prius though, which just had its delivery date bumped from 2010 to 2009. And with the 'yota PHEV set to arrive a year before the Volt's "late 2010" target, Lutz makes the case for waiting for the Volt to the AP. Toyota hasn't released an all-electric range for the Prius, but Lutz is assuming that because it's a parallel hybrid it won't match the Volt's 40 mile EV range. "After eight or 11 miles (Toyota's PHEV) reverts to being a completely normal gasoline-electric hybrid, which means you get about a 25-30 percent fuel savings, but the point is they do burn fuel." Lutz goes on: "A plug-in hybrid with a limited range is a very nice thing to have. It's wonderful that Toyota is working on this. If they have some test fleets out next year that's great. But it's not the same thing as a Chevy Volt, which is not a plug-in hybrid." Translation: it will cost more than the Prius, but you'll get more green cred. But don't take Bob's word for it. A full (theoretical) comparison test of the Volt and Plug-in Prius can be found here.

Well, here it is, courtesy of LeftLane News. Maybe. The Chevy electric – gas plug-in hybrid sure doesn't look like the show car that GM's been advertising (as if you could go down and buy one). On the other hand, the Volt shown here isn't a Malibu-a-like, which is a good thing. (Unless you ascribe to Ye Olde German "Different Length of Sausages" School of Model Design.) On the other other hand, the Volt pictured lacks the Toyota Prius' instantly identifiable "quirkiness" and attendant green cred. In fact, in this guise, the Volt's front end shares more than a little gestalt with the current Ford Fusion. So, over to you, our Best and Brightest. Did GM's designers get it right? 

OK, so this isn't specifically about cars, but it could have ramifications for anyone who uses gasoline. Cars.com reports small-engine mechanics around the country are reporting an increase in damage in boat, lawnmower, chainsaw and other small engines. The culprit? They're saying it's the ethanol blended into gasoline. Apparantly it creates a gummy substance that "clogs valves and causes small metal parts to rust, destroying carburetors and other crucial components". The bad thing is, even if you drain the tank, this residue remains behind and does its damage. The same thing happens in our cars, but they're designed to handle "a certain amount of the residue that causes so much trouble in smaller motors." No one's done any studies to substantiate these allegations, but "a growing chorus of mechanics" say it's so. [Thanks to ppellico for the link]

"As General Motors Corp. showed off its 2009 lineup Thursday," Scott Burgess writes in The Detroit News. "I found myself wondering, 'What's the next Malibu?' So I posed that question to a table full of GM employees during lunch at the automaker's annual event to roll out coming models for the media. The group looked at one another, stammered, and could not offer anything definitive." Wow, a cheerleader embarasses the football team? Well, not exactly. Despite Voltmania and Camarophilia, Burgess suddenly adopts the TTAC-standard position of evolution not revolution. (What else can he do?) "While no one at GM's lunch table could name the next Malibu, individually each of them talked about some of the changes being made to many of the vehicles. This year, the sum of the changes is bigger than any one improvement." Scott's talking six-speed Aura (remember that one?) and truck trannies, a hybrid pickup (good luck with that), the XFE Cobalt (don't they already sell that?) and… that's it. "It's refreshing to see GM take a good lineup and focus on how to make it better now," Burgess opines. "Instead of just talking about all of the vehicles in its product development pipeline. It may cut the lunch conversation short, but it will certainly satisfy consumers." Hang on; when did GM stop talking about future cars? And if GM customers are not satisfied now (never mind winning new customers), how will these changes change that?

According to the AP [via MLive.com], GM has said "no thanks" to a $56m tax credit and grant package designed to save its Moraine, Ohio SUV plant. Ohio Department of Development spokeswoman Kelly Schlissberg said the state is "disappointed and will continue to look for alternate uses for the plant, which employs about 2,400 workers." The General plans to close the plant by 2010, or sooner, because of "a customer shift to smaller vehicles." In other words, it wazzunt me.

Lincoln's version of the Flex, AKA MKT, has been green-lighted for production. The all-in-one utility-sports-comfort-performance-style (at least that's how the officials are selling it so far) vehicle has already been spotted in tests and is expected on sale as a 2010 model (of course). As far as we can see from the spyshots, the production MKT will have similar proportions to the concept car. In detail though, the changes are significant. Most of the cool showcar elements are gone: the huge wheels, the high-tech lights, the tiny mirrors, the small air intakes in the front spoiler (those couldn't possibly feed a full-size radiator). Gone is also the crease on the front door, but don't get upset, you now have real door handles, screen wipers, and decent-sized windows. But– is it just me or does this car seem a little late?

As Farago reported, the amount of federal money Motown would need to turn its business around– if money was, indeed, the determining factor– far exceeds the $25b first mooted. Or the $50b since suggested. And now, having floated not one but TWO trial balloons, Ford, GM and Chrysler are playing coy about the ballooning balloons. To its credit, The St. Louis Dispatch has tried to nail down the exact numbers and conditions, to see if their local minivan plant could be saved. "'We know the legislature authorized up to $25 billion, but the amount that could really make a difference likely is much higher,' GM spokesman Greg Martin told the Post-Dispatch. He declined to say how much additional money would be needed or confirm the $50 billion figure. Ford spokesman Mike Moran also did not confirm the increased loan amount. Chrysler spokeswoman Katie Hepler said the automaker is working to access the government loans. She declined to talk about specific dollar amounts or elaborate on where Chrysler would use any money it borrowed." And here's a surprise. "It also appears that some of the older plants owned by foreign automakers could apply for this loan, according to the original language of the legislation. Toyota Motor Corp.'s Georgetown, Ky., plant and Honda Motor Co.'s Torrance, Calif., location are two that fit the criteria." Only… The Department of Energy has until December to write the final rules that detail how to apply for the money.

Today marks my final day as Managing Editor of The Truth About Cars.  Never in my wildest dreams would I have imagined that when I forwarded a snarky letter I'd written to Car and Driver complaining about their lack of editorial direction to some guy at a web site I'd just discovered, it  would lead to this.  It's been a wild roller coaster of a ride, occasionally aggravating, usually entertaining and always educational –  but never boring.  I'm going to miss it.  A lot.