After a brief commercial, the video above shows you… a brief commercial.

Earlier today Bertel noted that the UAW’s goal of organizing “at least one” transplant automaker could be motivated by a desire to earn “brownie points” from the Detroit automakers. But the question that has remained unanswered ever since the union announced its transplant campaign is “which automaker will let the UAW into its plant?” Now that question may have its answer, as Automotive News [sub] reports:

and the UAW have intensified discussions about organizing workers at a new plant in Tennessee, German newspaper Handelsblatt reported in a preview of an article that will run Tuesday.

The newspaper, citing Volkswagen officials, said the union and automaker have held meetings and a workshop over the matter in the past few weeks.

VW insists that talks are still preliminary, and that no organizing campaign has yet begun. But, say the UAW, VW’s long tradition of worker unions “more willing to talk to unions about representation.” Ultimately VW says the decision to organize “belongs to our workers alone,” which implies a lot more openness to organization than Honda, for example, has indicated. But Southern workers seem to be largely ambivalent towards the UAW, so just because VW could let organizers into the plant doesn’t mean workers will necessarily vote for union representation. Meanwhile, there’s no word on how a possible UAW organizing campaign could affect a possible new VW/Audi assembly and engine plant that is being considered for the US according to AN [sub]. With Audi execs insisting on the need for more US production capacity, a UAW win in a Volkswagen vote could have serious implications for the firm’s future expansion.

After Greenpeace attacked Volkswagen for opposing proposed increases in the EU’s emissions regulation, Ford is joining the opposition to tough EU proposals. Ford Europe CEO Stephen Odell railed against the EU’s recent White Paper On The Future Of Transport [ PDF here], which calls for (among other things):

-“A higher share of travel by collective transport, combined with minimum service obligations”
-“The use of smaller, lighter and more specialised road passenger vehicles”
-“Road pricing and the removal of distortions in taxation [to] also assist in encouraging the use of public transport and the gradual introduction of alternative propulsion”
-All in the pursuit of the goal: “Halve the use of ‘conventionally-fuelled’ cars in urban transport by 2030; phase them out in cities by 2050; achieve essentially CO2-free city logistics in major urban centres by 203”

Now what about that plan might worry an auto executive?

[Editor’s note: My take on the IIHS study’s shortcomings can be found here]

The public relations arm of the insurance industry yesterday released a report claiming red light cameras are popular in big cities. About 24 hours after Insurance Institute for Highway Safety (IIHS) had begun spinning this study to media outlets, only a handful had run stories. Editors at one daily publication told TheNewspaper that they passed on writing about a claim they did not find credible.

Fortune [ via CNN]’s Alex Taylor III is clearly as disappointed as I was with Joe Nocera’s toothless, vaguely pro-Volt piece in last Sunday’s NY Times, and he’s riled up enough about it to lay down a savage call-out the Volt hype machine. In fact, it’s a less scientific, less comprehensive (and, by virtue of the passage of time, less speculative) version of a piece my father wrote in 2008, comparing the then-undelivered Volt with the also unlaunched 3rd gen Prius and Plug-In Prius. Taylor’s foil for the Volt is the plug-in Prius, which now arrives in less than a year, and in the eyes of the longtime industry writer, the contrast is stark:

Volt enthusiasts like to recite the fact that the Volt can go 35 miles on battery-power and then shift seamlessly into gasoline-engine mode, saving on gas and reducing emissions of greenhouse gases. It is an impressive technological improvement but one that is already obsolete.

Here’s why:

I love General Motors. I’m bringing this age-discrimination suit action because it’s the right thing to do — for me, my family, as well as my GM peers who have been severely affected by GM’s conduct.

A critical aspect of GM’s turnaround was breaking a culture that has been held up for decades as an example of insularity, stagnation and inefficiency [for more read Ron Kleinbaum’s classic four-part editorial on the subject here], a task that various recent CEOs have gone about differently. Fritz Henderson had a “change agent” vanguard approach, while Ed Whitacre took more of a “set tough goals and fire regularly” tack towards GM’s culture wars. But regardless of differences in tactics, everyone’s agreed that GM’s culture needed to be seriously retooled if the company’s huge advantages after a government-backed bankruptcy-bailout weren’t going to be pissed away, and as a result a lot of GM’s “lifers” found themselves on the outside looking in. And rather than slinking away, one of those jilted lifers is suing GM for age discrimination.

“I don’t see any problems here. I don’t see how they could help me out,” said [Rocky] Long, who’s worked at the Co. assembly plant in Montgomery, Ala., for five years. Of the union representatives who came to his home this year, he said, “I really didn’t give them the time of the day.”

Bloomberg reports on the challenges the UAW might face if they should care to pick Hyundai to be the “at least one” transplant automaker they’ve vowed to organize by the end of the year. But why would the UAW target Hyundai? According to Berkley Professor Harley Shaiken

Hyundai is a rising star. It’s a company that’s got something to lose if it is embroiled in a PR issue.

Shaiken’s previous idea for the UAW’s “Mission Accomplished” moment: convince Toyota to re-open a UAW-operated production line at NUMMI. Funny thing is, that idea occurred to him just three months after the union tried to “embroil” Toyota in a completely misleading “PR issue.” But that must have just been a holdover from the 20th Century UAW… wait, what year is it again?

Well, I just wrote about 1,500 words on this topic which our post editor just obligingly disappeared into the digital void, wiping out over an hour of work. This was, perhaps, an appropriate turn of events, however, as the majority of those 1,500 words were used to describe the frustrating political stalemate that played out over the last two days of hearings on “The Lasting Implications of the GM Bailout.” The dynamics of the government’s exit from GM seem to have changed little since I wrote “Government Motors: The Exit Strategy,” and the hearings focused on the political implications of the bailout. Having determined that the bailout will help the President’s reelection in midwestern states, the White House (as represented by auto task force member Ron Bloom) sought to retrench its “things would have been worse” position, and Republicans attacked on all fronts for the very same reason. The government’s favorable treatment of UAW-represented workers, especially in comparison to Delphi’s non-UAW retirees was a major point of attack, and the committee caused Bloom deny (under oath) having ever said that “I did this all for the unions,” despite the fact that both the Detroit News’s David Shepardson and Bloom’s task force colleague Steve Rattner have quoted him directly. Emails obtained by The Daily Caller were also presented as ( more) evidence that the government intervened in a number of day-to-day decisions at GM, including the Delphi retiree issue.

Ultimately, the Republicans landed some serious body blows on the policy, although nothing radically new was presented. Bloom, meanwhile, defended the bailout by arguing that the alternative would have been much worse. In short, the political stalemate over the auto bailout continues… much to GM’s dismay. And since insiders are indicating that any collusion to boost GM’s stock price in order to improve the taxpayers’ return would be worse than a larger loss, a $10b+ loss is as good as guaranteed. Which means the Republican attacks will continue and the political trench warfare over the issue will only continue.

[Watch the bailout hearings here]

Ford’s President of the Americas Mark “MKF” Fields (sorry, the joke is just too funny to let go of) is responding to recent allegations of slipping quality by Consumer Reports and JD Power, by telling Bloomberg that

We’re largely back on track on some of these early issues

He’s referring specifically to issues with the MyFordTouch system that has been the central issue in the recent quality flap, and the fix for that isn’t particularly complicated.

Ford has reworked software on MyFordTouch to prevent random rebooting that had afflicted the system, said Sue Cischke, vice president of environmental and safety engineering. The touch controls also have been recalibrated to respond more quickly to a driver’s touch, she said.

Ford is encouraging dealers to spend as much as 40 minutes training drivers to use the system.

“If you’re trying to figure it out as you’re driving, obviously that’s not a good thing to do,” Cischke said.

Ford’s problem, it turns out, isn’t so much a product quality problem as a customer quality problem… because why would consumers need 40 minutes of training on a system Ford insists they are “demanding” (despite, it must be pointed out, the government’s murmured objections)? Unfortunately for Ford, Michael Karesh argues convincingly that Ford’s quality problems go beyond the MyFordTouch issues… but because its quality was so weak before Mulally took over, at least Ford (and the “PR friendly” auto media) can continue to claim “improvement.”

Didn’t you always have this nagging suspicion that MPG might be influencing the purchasing decision? At least a little bit? A brand-new survey says you are right!

It’s one thing for a sportscar brand like Lotus to shrug off the self-destructive iconoclasm of its most hard-core “fans,” but it’s quite another thing for its chief executive to take a piss on the entire supercar market while describing the downpour as “authentic, cloud-filtered Alpen raindrops.” To wit, the following bit of nonsense found at Autocar:

The new Lotus Esprit will offer a more “authentic” driving experience than the Ferrari 458 Italia and McLaren MP4-12C, according to CEO Dany Bahar… Bahar claims the Lotus Esprit will “have the character and emotion” that he says the McLaren lacks. He also revealed that the rolling chassis was now complete and fully running prototypes would be ready by November… Formula 1 KERS-style technology is also expected to feature on the Esprit, but Bahar said such electronic systems would be used only where they add to the driving experience and not as driver aids.

If you can make any sense of this blithering nonsense, or how Bahar came to it based on his impressions of a rolling chassis, you must work in marketing. Not that there’s anything wrong with that…

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.

Are Audi’s Mad Men missing Bertel’s services? They must be, as the Detroit Free Press reports that Eminem’s licensing firm has filed a motion in German court seeking to ban this advertisement. Joel Martin, manager of Eight Mile Style, tells the Freep that Audi did not license the Eminem song “Lose Yourself,” adding

It’s stunning. What makes it extraordinary is the similarity to the way Chrysler is using (the song). We saw it and said, “This has got to be a joke.”

At this point Audi’s only statement on the matter comes from its US operations, which simply notes that the A6 Avant will not be marketed here. “This has got to be a joke,” sure seems to sum the situation up…

With new compact and subcompact models from Ford and GM enjoying respectable sales, the mainstream media has been indulging in some “feel-good” headlines, like the New York Times’s Detroit’s Rebound Is Built on Smaller Cars, or CBS’s more equivocal Can small cars rebound U.S. auto industry? It’s an understandable instinct, as the media has long battered Detroit’s inability to build competitive compact and subcompact cars, and in the post-bailout atmosphere of redemption, these headlines definitely help reassure Americans about the value of their “investment.” Unfortunately (if unsurprisingly), however, these pieces gloss over the full truth of the situation. Yes, Ford and GM are enjoying improved sales success with small cars. The “U.S. auto industry,” on the other hand, isn’t actually getting all that much out of the situation, beyond some fluffily positive press. Here’s why:

When Chrysler celebrated its payback of “every penny that had been loaned less than two years ago” last week, I noted that CEO Sergio Marchionne’s triumphant line was technically correct, but hardly represented the whole truth of the story. I pointed to $1.5b in supplier aid that helped keep Chrysler afloat, as well $1.9b worth of the Bush Administration’s “bridge loan” to “Old Chrysler,” prior to its government-guided bankruptcy and sale to Fiat. Apparently my more-inclusive accounting of the price of Chrysler’s rescue (which was picked up elsewhere in the online media) caused Mr Gualberto Ranieri, Chrysler VP of Communication, to spend some part of his Memorial Day Weekend writing a response of sorts, outlining Chrysler Group LLC’s perspective on the situation. Hit the jump for Ranieri’s statement, and my brief answer to the headline’s question.

Surf on over to hyundaiusa.com and ford.com, and the two momentum-blessed automakers will greet you in a remarkably similar fashion: with a lineup of 40 MPG Highway-rated vehicles. Of course, Hyundai would, in its inimitable “asterisk-wrangling” style, point out that Ford’s 40 MPG requires more footnotes than a David Foster Wallace book. But then Ford might shoot back that Hyundai leaves out any reference to City or Highway ratings in its lineup, leaving consumers to play “hunt the legal disclaimer” itself. And as Autoobserver recently noted, highway ratings make for good ad fodder, but combined EPA ratings are much more helpful to consumers.

Over the course of TTAC’s coverage of US ethanol subsidies, I’ve often wondered why nobody made a political issue out of slaying an ever-growing waste of tax dollars ($6b this year on the “blender’s credit” alone). And with the political rhetoric about America’s debt prices rising, I’ve been wondering with more and more regularity when someone will finally take the ethanol fight to the American people, who are already voting against ethanol with their pocketbooks. But just last December, Al Gore explained why not even he, an environmentalist standard-bearer, could oppose the corn juice he knew was bad policy, saying

It is not a good policy to have these massive subsidies for first generation ethanol. First generation ethanol I think was a mistake. The energy conversion ratios are at best very small… One of the reasons I made that mistake is that I paid particular attention to the farmers in my home state of Tennessee, and I had a certain fondness for the farmers in the state of Iowa because I was about to run for president.

The Iowa primary is a key early contest in the Presidential election, and because Iowans grow and refine a huge amount of corn ethanol, campaigning against ethanol subsidies in Iowa is a non-starter. At least that’s what the conventional wisdom was before today, when, with nearly nine months to go before the primary, the impossible just happened.

Chrysler’s bailout “thank you” event today was long on praise for the redemptive power of its government bailout and short on talk of remaining challenges, but at least one important fact was acknowledged: this highly-touted “payback” was only for 85% of the money loaned to Chrysler during the bailout period. Although, to be perfectly accurate, it wasn’t exactly Chrysler who acknowledged the outstanding obligation [the firm avoids any such nuance in its release], as CEO Sergio Marchionne simply stated that

We received confirmation this morning at 10.13 am from Citigroup that Chrysler Group repaid, with interest, by wire transfer to the United States Treasury and by bank transfer to the Canadian government, every penny that had been loaned less than two years ago. [Emphasis added]

That last bit was the important part… as in, the part that was most often repeated in Chrysler’s presentation and in subsequent media reports. But it’s not the whole story…

An executive from American Traffic Solutions, a purveyor of red light cameras, has been suspended after being exposed for posing as an area resident in 43 comments on red light camera-related stories at the Everett Herald. The Herald reported last Friday

Some readers have suggested “W Howard” has been posting comments as part of a marketing campaign run by American Traffic Solutions, Inc. The Scottsdale-based company contracts to provide enforcement camera services in Lynnwood and Seattle. It had inked a similar deal in Mukilteo last year, then [ anti-camera activist Tim] Eyman pushed for a public vote. Upshot: no cameras in Mukilteo, and a spreading movement around Washington that has growing numbers of people asking questions about enforcement camera technology.

Heraldnet.com requires that people who wish to post comments supply us with a live email address at the time they create their user account. “W Howard” gave an address at American Traffic Solutions. It is one used by Bill Kroske, vice president of business development at ATS. Somebody techie here ran down the internet protocol address that’s being used for “W Howard’s” posts. The electronic trail led straight back to Kroske’s company in Scottsdale.

Kroske pitched Mukilteo on the cameras. He recently was in Bellingham, suggesting a similar arrangement. He’s been the public face of American Traffic Solutions in arranging camera contracts in Washington.

ATS spokesman Charley Territo (whom TTAC readers may remember from his days as spokesman for the Alliance of Auto Manufacturers and TTAC guest editorialist) tells the Spokane Spokesman-Review (where, it turns out, Kroske had left nine pro-camera comments) that his co-worker had expressed his uncontrollable pro-camera passions “the wrong way” by not identifying himself and posing as a local resident. Ya think? [Hit the jump for a full statement from ATS President James Tuton].

Meanwhile, are there any TTAC commenters who have something they need to get off their chests?

Saab has received wire transfers of around €30m from both Gemini Investments and the Chinese dealer group PangDa, reports Aftonbladet, and it will be using that money to pay off its supplier debts which could use up most of that cash (Saab’s supplier debts are estimated by DI.se at between two hundred and four hundred million kroner, or as much as €44m). Leaving aside the issue of how that money was able to be transferred from China to Sweden in a matter of two days (more on that from Bertel here, the short version: the deal should need Chinese government approval), there are serious questions about Saab’s ability to restart production. After all, the €30m from Gemini is debt, while Saab owes PengDa for an undisclosed number of vehicles that it bought with its investment. Unless those cars are sitting somewhere waiting to be shipped, Saab will have to pay off its suppliers and then build the cars on what is essentially credit from PengDa. Meanwhile, that’s not the only demand on Saab’s finances and attention, as CEO Victor Muller is planning on taking a bonus of over half a million dollars, a decision that is creating fresh problems of its own.

Pop quiz: when does an eight-month-old story generate a huge amount of interest? When it’s got political overtones, of course. And what better way to milk the last dregs of bailout resentment than by telling a story that seems too bizarre to be true: Cadillac is a “proud” chief sponsor of a Chinese Communist Party-produced film entitled “The Birth of a Party” (or “The Great Achievement of Founding the Party” depending on the quality of your translator). The story started last September, at ChinaAutoWeb.com, and was recently revivified by the Washington Times, Commentary Magazine, and Big Hollywood. Our main interest in the story has to do with its lessons about the rise of China, that country’s tortured relationship with luxury goods, its foreign (from the American perspective) political economy and Cadillac’s continued need for better momentum in China… but clearly others are more interested in it for different reasons.

The political point seems to be that government money is being funneled to the Chinese Communist Party via General Motors, an accusation that, though shocking, doesn’t hold up well to scrutiny. After all, nearly anyone doing business of any kind in China ultimately supports the political and economic structure created by the Chinese Communist Party, legitimizing it and lining its pockets. And surely nobody is suggesting GM abandon China altogether, thus eliminating its greatest opportunity for growth. Meanwhile, as the Freep helpfully points out, Caddy needs all the help it can get in China: without a single vehicle in the luxury car top-ten, Cadillac needs to be aggressive in marketing to China. Still, from a PR perspective, Cadillac clearly has a line to walk here… perhaps it should look for less visible (and risible) ways of building up guanxi (connections) with the powers that be in the world’s largest market for cars.

Now, our strategy continues to be to exit these investments, and just today Chrysler announced that it intends to raise the money it needs to repay the government. Two years ago, no one would have expected us to be in this position today, and it shows the success of the strategy the President implemented and the skill and dedication of Chrysler’s employees. We are looking forward to the full repayment of our loan to the company.

Treasury Secretary Tim Geithner, speaking in Detroit, makes strategic use of the singular tense in order to use the phrase “full repayment” without actually revealing the losses taxpayers have already taken. After all, the $1.9b Debtor-in-Posession loan made to “Old Chrysler” in May 2009 isn’t the loan Geithner is referring to (that one was “extinguished” in liquidation). Nor is the $4b “bridge loan” from January 2009 the loan Geithner is referring to, as a mere $2.1b repayment was counted as “satisfaction in full of the remaining debt obligations associated with the original loan.” Geithner may be “looking forward to full repayment” of the one loan he considers “ours” (as are we), but that’s not the whole story. Once again, a slickly-phrased “payback” claim trumps any sense of responsibility at Treasury to be transparent with taxpayers. And a quick survey of the media indicates that Geithner’s use of the singular has worked quite effectively.

Does the UAW owe taxpayers a thank you? Chrysler’s attempts at thanking the taxpayers in the midst of bailout-mania seemed to draw more ire than respect, so it’s understandable why the UAW has not made any effort to thank taxpayers for the auto bailout, without which the union surely would not have survived long. But now that UAW local 1268 has made a somewhat belated, but nonetheless earnest gesture of thanks, the national UAW’s silence on the matter suddenly seems a bit deafening.

Advertising on the side of your corporate fleet is a great idea. Especially if you are an electric company and you have electric cars.

Japan’s TEPCO just changed its mind.

Members of the media and the legal profession who receive regular updates from the U.S. Department of Transportation were in for a shock this morning as they opened the last announcement from NHTSA. ZoneAlarm by Check Point Software, which claims market leadership in the firewall and security business, warns that a DOT press release is a “possible fraud attempt.”

Every few years, Beijing’s government lashes out against billboards that advertise an ostentatious lifestyle. These exhortations are largely ignored, which preserves an endless source of involuntary humor.

HYPE! Yes, according to a pimptastic Morgan Stanley report [via BusinessInsider], Tesla is about to become “the 4th American Automaker,” despite the fact that it hasn’t actually built a car in any kind of volume. The report enthuses

The confluence of structural industry change, disruptive technology, changing consumer tastes and heightened national security creates an opportunity for significant new entrants in the global auto industry. California dreaming? We don’t think so. In our view, the conditions are ripe for a shake-up of a complacent, century-old industry heavily invested in the status quo of internal combustion. The risks are high. So is the opportunity. Enter Tesla.

Did you just throw up in your mouth a little? Don’t worry, there are highly convincing charts to help you learn to stop worrying and love the auto industry’s answer to Apple. After all, when it comes to Tesla, charts always tell the whole story.

Tesla has sued Top Gear for depicting its Roadster running out of electricity in the 2008 segment shown above. According to the San Jose Mercury News, Tesla is suing because

Top Gear’s allegation that the car’s range is 55 miles is defamatory because it suggests Tesla “grossly misled potential purchasers of the Roadster,”

But Top Gear spokesfolks tell the BBC

We can confirm that we have received notification that Tesla have issued proceedings against the BBC. The BBC stands by the programme and will be vigorously defending this claim.

And, as long as the Tesla Roadster that Top Gear tested was a first-generation machine (and we think it is), Tesla’s going to have a little problem making the case that the BBC defamed their car…

Do you recall the UAW’s last-ditch bid for relevance, its campaign to organize the transplant auto factory workers of America? The union’s campaign against the Hondas, Toyotas, BMWs and Hyundais of the world was supposed to begin in earnest in January, but all they have to show for it thus far is a perfunctory slap-down from Honda. So what happened? Where’s the confrontation, the picketing, the accusations of human rights abuses? Remember, the UAW has all of its skin in this gambit, now that i ts President has confirmed that

If we don’t organize the transnationals, I don’t think there is a long-term future for the UAW.

But based on the dearth of media reports on either the campaign’s success or failure, it would seem that the UAW has given up on the effort and is hoping everyone just forgets about it…

It’s been a good day for drama, what with GM losing its CFO, Saab’s principals turning on each other, Carlos Ghosn showing the first signs of losing his grip on his global empire, and Rs and Ds battling over GHGs. But what today was missing in the drama department was a spat between two legitimate stars, a throwdown featuring the hot young celebs of the automotive world. Well, thanks to ASCA.it [via Carscoop], we have it. Speaking to the Italian press, Ford CEO and industry darling Alan Mulally took on Fiat-Chrysler’s up-and-coming global starlet, the Fiat 500, bashing its chances of success in the US.

Mulally also talks of competing with Chrysler and about the market prospects of the Fiat 500 in the United States, provides: ”I do not see big market space for one car in the U.S. more ‘smaller Fiesta.” He added: ”Who has tried has failed.”

Presumably Mulally was comparing the 500 to Daimler’s Smart brand effort, in which an established automaker attempted to bring a new brand and a premium A-segment city car to the US and failed badly. And Mulally isn’t just idly speculating either: if he thought a sub-sub-compact car would sell profitably in America he’d bring Ford’s Ka, which is built on the same platform as the Cinquecento, here and make a fight of it (hell, it’s already appeared in a Bond movie). And with Chrysler’s plan to sell 55k Fiat 500s in the US this year already “a little bit behind,” it seems Mulally’s skepticism may be well-placed.

That’s right, the Executive Chairman of America’s only automaker to have never taken a bailout just raised concerns about the problem of selling too many cars. It’s not as if he doesn’t have a point… it’s just little like listening to Charlie Sheen leading an AA meeting.

These three men have been charged with criminal damage of property after vandalizing seven 2011 model-year Toyotas at the Chicago Auto Show, reports the Southtown Star.

Police said they caused about $30,000 worth of damage to the vehicles, which had speakers cut open, dashboards ripped apart, seats sliced and windshields scratched.

Responding officers caught the three in a blue Toyota Camry, damaging the interior with razor knives and flathead screwdrivers, according to police.

They said other Toyotas were found in the immediate area with similar damage, and the three were taken into custody by McCormick Place security personnel, who contacted Chicago police. The men told police they were angry about American jobs going overseas. [emphasis added]

Bloomberg [via AN [sub]] reports that Chrysler’s fleet sales mix was at 25% in the month of January (according to Edmunds anyway, as Chrysler doesn’t release fleet numbers), the lowest level since a Cash For Clunkers-fueled August 2009. According to the same Edmunds data, however, the industry average fleet mix is just under 20%… and Chrysler’s 2010 average was 38%. But now that Chrysler’s been under 30% fleet for three months, sales boss Fred Diaz figures meeting the industry average is just a matter of time. Specifically:

By the end of the year, we will definitely be at industry average. That’s the goal; that’s our plan.

Considering Chrysler’s fleet sales fell from 56% to the 25%-range over the course of the last year, it sounds like the last few steps of this journey will be the most difficult. Especially when you remember that Chrysler’s also trying to increase volume some 45% this year. That means some 300,000-450,000 more Americans will have to decide to buy Chrysler Group products this year than did last year if the Pentastar wants to achieve both its volume and fleet goals. That’s going to take some serious selling…

Back in October, a firm called DBM Energy announced that an Audi A2 fitted with one of its “alpha-polymer” (lithium-metal-polymer) batteries would drive 600km without stopping to recharge or swap batteries, a claim that caused TTAC’s Martin Schwoerer (and others) to sit up and take notice. Schowerer noted

There is nothing new under the sun. You can expect battery capacity-per-weight-unit to expand by around 10% per decade, by incremental improvement. Maybe more. Don’t put your money or stake your rep on anything supposedly revolutionary. There is no way a small four-seater electric can do 600 KM non-stop with one set of batteries (with a $500k fuel cell system: yes, but that’s something else).

Then, days later, the trip was made, and DBM’s battery was hailed as having powered the “Miracle of Berlin.” Of course, Schwoerer pointed out that there were a number of unresolved issues with the stunt, including

DBM Energy GmbH is a mailbox company.

DBM’s website states as contact a non-registered entity named DBM Headquarters, which is located in a smallish office building. In that office building, there are several small-sounding firms such as a long-term storage company, a fire-extinguisher company, and a “battery-service” company.

When companies with no reputation defy the expectations of everyone in the EV business, skepticism is going to take hold. Especially when the car in question burns to a crisp shortly after its record breaking trip.

A century ago, the forerunners of the American Automobile Association (AAA) provided a service that warned motorists about upcoming speed traps. AAA Carolinas turned away from this history and used its considerable influence on Monday to support a speed trap declared illegal by South Carolina’s attorney general and several of its lawmakers. Since August, the tiny town of Ridgeland has allowed a private company to operate a speed camera on Interstate 95 in direct defiance of a state law enacted in June specifically to stop the program ( view law).

“All branches of government are facing constricting budgets,” a AAA Carolinas statement explained. “Law enforcement agencies will not be able to simply add staff to handle the growing traffic volume and therefore must look to creative solutions to do more with less. This photo-radar enforcement program in the Town of Ridgeland is one such example and should be replicated as opposed to rejected.”

More than three years ago, on New Year’s Eve of 2007, our Beloved Leader, the dearly departed Robert Farago rattled the Best and Brightest with one of his thought (and sometimes aggression) provoking questions. This time, it was: “What’s the plural of Prius?”

Damned if I know, but a few days ago, the TTAC server reported repeated search terms for the very same “What’s the plural of Prius?” I decided to do my journalistic duty and investigate. The results were shocking.

When GM’s head of North American operations, Mark Reuss, was giving The Detroit Bureau some choice quotes about GM’s newfound commitment to excellence, it may not have occurred to him that Mercedes had recently laid claim to the very cliche-laden territory he found himself on. To wit:

Reuss insists the new GM philosophy is to “be the best, or we’re not going to do it,”

Yes, Daimler may have to answer to some higher power for the insipid video above, but at least its lack of imagination has pedigree: the line “The Best Or Nothing” killed for Gottlieb Daimler back in the “good old days” of the early 20th Century. Reuss’s lyrical inspiration, on the other hand, is a corporate process. To be fair, the “knothole” as it is known, is a Lutzian legend of a mythical corporate process, aimed at

The perpetuation of excellence and the destruction of mediocrity.

Which sound like mighty fine goals for our fine public investment. So let’s give Reuss a pass for stomping into Mercedes’ marketing-cliche territory, and ask: what is this amazing “knothole” and why doesn’t every automaker have one?

Hydrogen Fuel Cell vehicles (FCVs) are enjoying something of a comeback lately, as everyone from Hyundai and Honda to GM and Daimler are talking about forthcoming production versions of test-fleet FCVs. And with EVs poised to both dominate the short-term green-car game and inevitably disappoint consumers, it’s no surprise that the perennial “fuel of the future” is enjoying a fresh look from automakers. But if high cost and range anxiety are the flies in the EV ointment, the FCV-boosters are finding their hydrogen cars tend to suffer from the same problems. Daimler says

By 2015, we think a fuel cell car will not cost more than a four-cylinder diesel hybrid that meets the Euro 6 emissions standard.

but that by no means guarantees its Mercedes FCV will be truly “affordable” by any reasonable standard, as diesel-electrics are considered one of the most expensive applications of internal combustion power. And then there’s the whole range issue. Yes, FCVs refuel faster than EVs, but even the most ambitious of Hydrogen-boosters, Daimler, are only pushing vehicles with a 250-mile range. Which is why we puzzled a bit over The Globe And Mail‘s assesment that

Three Mercedes-Benz B-Class F-CELL models will make [a 125-day] global trek, which will seek to highlight the real-world benefits of fuel cells versus EVs – mainly their much further range

Flipping over to AutoMotorundSport, we find that the irony which completely escaped the G&M is threatening to overwhelm Daimler’s entire demonstration. And, as is only natural when things like this occur, there’s a bizarre TTAC connection…

Former GM CEO Fritz Henderson may well have been a convenient punching boy in the aftermath of the Obama Administration’s firing of his predecessor, but at least the guy had a sense of obligation. Henderson was a consummate GM insider, but unlike Rick Wagoner, he realized that this status was as much a liability as an asset in the politically-fraught aftermath of the bailout. Nowhere is this more clear than in Fritz’s major contribution to GM’s public relations: in hopes of proving GM’s appreciation of its extraordinary rescue, Henderson committed GM to “open communication” and “transparency,” telling the US Senatewith the very first words of his testimony that

It’s our obligation to be open and transparent in all we do to reinvent GM, particularly with the American taxpayer as our largest investor.

Of course, The General didn’t always make good on that pledge, but at least Fritz made the effort to say he cared. Now, GM is taking the opposite approach, threatening to liberate the benighted public from the burden of its transparency. After all, the US taxpayer is no longer the majority shareholder in GM… even if, at 33%, we are still GM’s single-largest “investor.”

Hyundai’s sales were up 22 percent last month, driven by huge growth for Sonata (13,261 units) and Elantra (9,659 units). But, rather than spend the whole press release [ PDF here] trumpeting sales data alone, Hyundai upped the transparency bar on its competitors by announcing it would

begin reporting monthly sales-weighted Corporate Average Fuel Economy (CAFE) results to provide journalists, policy-makers and consumers with additional data to promote more meaningful dialogue on the feasibility of future fuel efficiency targets for the industry…

For January 2011, Hyundai’s sales-weighted CAFE level was 34.7 miles per gallon, with a model year mix for the month of 86 percent 2011 and 14 percent 2010 model year vehicles. This is a significant increase from Hyundai’s most recent official CAFE level for the 2009 model year of 31.7 mpg.

By publishing both its fleet mix (12%) and CAFE average, Hyundai is proving that marketing is a million times easier when the facts fit the message. At 34.7 CAFE, Hyundai is a single MPG away from complying with the 35.5 MPG 2016 proposed CAFE standard, and just a whisker away from meeting its corporate commitment to meet 35 MPG fleet by 2015. Which is all fine and dandy, but as a blog that’s forever digging for obscure information about the car industry, we’re even more excited about Hyundai’s decision to take the lead on transparency. TTAC encourages all automakers to release both sales-weighted CAFE numbers and full fleet-mix numbers (and any other relevant data) with their monthly sales reports. The truth, as we say around here, must out! [Hyundai and Kia sales breakouts after the jump]

Well, the global car business is not as trusted as the technology business, according to Edelman’s 2011 Trust Barometer study, but it’s now doing better than any other industry out there. Yes, really. Cars may have taken some lumps over the last several years, but thanks to improvements in auto industry trust in the US and China, it’s now beating everything from telecom to pharmaceuticals to food. Does the auto business deserve that trust? That’s a question for you to answer…

Toyota “Lessons” TV Spot from electrocinema on Vimeo.

Edmunds’ has looked over its in-house shopping patter data, and has some bad news for the number one automaker in the US:

In December, 17.9 percent of car shoppers considered Toyota vehicles — 2.3 percentage points below levels seen in December 2009, before the 2.3 million-vehicle recall for potentially sticky accelerator pedals. Overall, Edmunds finds that 2010 consideration for Toyota vehicles was down about 3.8 percentage points year over year…

Evolving cross-shopping patterns on Edmunds.com also demonstrate the diminished power of Toyota’s brand. Consumers interested in traditional competitors like Nissan and Honda considered Toyota vehicles less often in 2010. Meanwhile, Suzuki shoppers – who qualify for higher interest rates, accept longer loan terms and make lower down payments, suggesting a lower economic status — increased their Toyota shopping considerably in the last year.

In recent months, though, some specific Toyota models are elbowing back in on traditional competitors. The rate of Edmunds visitors cross-shopping the Nissan Altima with the Toyota Camry, for example, has approached levels seen before the reports of unintended acceleration captivated the media and its audience last year.

The car-shopping site’s takeaway: Toyota isn’t just struggling against negative perceptions brought on by last year’s unintended acceleration recall… it needs new products. Which means Toyota’s plan to unveil 11 new or refreshed models through 2012 is coming just in the nick of time. Still, if those products don’t actually wow consumers rather than simply skating by on Toyota’s faded reputation, Toyota’s greatest strength, the trust and loyalty it enjoys from consumers, could be slip away. And given how disappointing the refreshed Corolla seems (at first blush… testing is still needed) in comparison to its hot-and-fresh competitors from Ford, Hyundai and Chevy, there’s a real risk that this could happen. Scandals come and scandals go… but resting on laurels is what really kills in this business.

It probably won’t come as too huge of a surprise to many of TTAC’s regular readers that the first car blog I ever read was Pete DeLorenzo’s Autoextremist.com. This was years ago, years before I ever imagined that I would get pulled into the crazy world of the auto industry, and at the time I was deeply impressed. Here was a guy who, having seen the Detroit machine from the inside, was documenting the self-destruction of an industry with an unmistakable bravado and flair for storytelling. In retrospect, it’s strange to realize that my tastes for automotive coverage were well-defined before I ever considered entering the profession.

In any case, writers are forever challenged when the stories they grow to love take a turn for the unexpected, and DeLorenzo seemingly abandoned his caustic style by the time the auto bailout hit. But cheerleading never quite sounded right coming from the man peddling “bare-knuckled, unvarnished, high-octane truth,” and TTAC took the Autoextremist to task for some of his more brazen pom-pomery during the fevered bailout debates. Still, when the bailout-era wagon-circling was over, DeLorenzo could no longer contain the angry spark that once inspired TTAC’s founder to offer to post Autoextremist rants on this very site. And after warming back up over the past year by using Ed Whitacre as his rhetorical punching bag, I’m pleased to say the Autoextremist is back to his bombastic pre-bailout form. His inspiration: the leadership (or lack thereof) of GM’s latest CEO, “Lt. Dan” Akerson…

Hard on the heels of yesterday’s story on Hyundai’s preparation for CAFE standard ramp-ups comes this counterpoint, courtesy of the Detroit Free Press. Walter McManus, director of automotive analysis at the University of Michigan’s Transportation Research Institute, did his own study on a possible 43 MPG 2020 standard and his findings, as presented at a Citi Investment Research conference call, seem quite positive for American-based automakers. McManus’s research took several basic assumptions for granted in order to reach his conclusions, namely that

• Gas prices will average $4 a gallon between now and 2020.

• Industry sales will be 16.3 million vehicles in 2020.

• Every manufacturer complies with 2016 CAFÉ standard.

• Plug-in hybrids and electric vehicles will be less profitable than gas-engine vehicles.

Now, right off the bat it’s possible to take exception to some of those assumptions. If gas doesn’t crack four dollars per gallon before 2020, for example, this blogger will be one confused student of history. Also, predicting over 16m units of new car sales is by no means a sure thing. Though a comfortable industry assumption based on the “old normal,” there aren’t many indications that 16m+ annual new car sales was a sustainable level for the US economy. Still, Mr McManus has been doing this for a while, so we’ll give him the benefit of the doubt. So, given his assumptions, what does he foresee for Detroit as it moves to meet a 43 MPG standard by 2020? In two words: great success.

Ruh Roh! A press release from the Made In USA Foundation [via theautochannel] picks the kind of fight that GM has been assiduously avoiding for years (but especially since the bailout):

General Motors, bailed out by U.S. taxpayers and still owned in part by the federal government, is stripping country of origin labels off of its cars at auto shows around the country, says the Made in the USA Foundation. The Made in the USA Foundation has charged GM with violating the American Automobile Labeling Act (AALA) which requires all new cars that are offered for sale to include country of origin information.

The AALA requires new cars to provide information on the window sticker, including where the car was assembled, the U.S. and other country content, where the engine was made and where the transmission was made.

Joel D. Joseph, Chairman of the Made in the USA Foundation, said, “General Motors wants to hide the fact that, even after the government bailout, it has moved production of vehicles offshore. The Cadillac SRX is now made in Mexico. The Buick Regal is made in Germany.”

GM claims that the AALA only applies to cars for sale at dealers not at auto shows. Joseph stated that he worked with Senator Barbara Mikulski, who wrote the law, and that the intent of the law was to inform consumers about the country of origin of new cars. Joseph said, “Millions of consumers get their first look at cars at auto shows. The law applies to cars that are ‘for sale’ and auto show cars, except concept cars. Identical GM cars are for sale at thousands of dealers across the nation, and display vehicles should include country of origin information. The U.S. government saved GM and still owns one-third of the company. General Motors should comply with the intent of the law.”

TTAC doesn’t typically “do” motorsport, but we absolutely make exceptions for those racing-related stories that are of real significance to the larger industry or are simply too awesome to ignore (i.e. LeMons). The launch of the EV Cup may not seem particularly germane to the larger industry, as it will feature race-prepped Think EVs and open-wheeled Westfield iRacers (above), but it is significant in the sense that it is the first-ever all-electric racing series. But if you think about it, the lack of major OEM participation in this world-wide series is significant in and of itself. After all, wouldn’t Tesla be interested in promoting its Roadster as the epitome of EV excitement? Apparently not, as Autoblog Green reported way back in December of 2007 that Tesla admits its Roadster would make a poor track car because

The power electronics module (PEM) monitors a variety of the sensors in and around the battery pack and the air-cooled AC motor. If anything starts to get too hot, the PEM will automatically start limiting the power flow from the battery until things cool down. The result is that after a only a couple of laps of all-out track running, the motor will start to heat up and performance will be limited. On the road in real world conditions this won’t be a problem, because conditions generally won’t allow that sort of sustained extreme driving.

Oh well. After all, Tesla doesn’t want to be the “Silicon Valley Ferrari” anyway… that’s just too easy. But what about Audi, which is gunning for Tesla’s niche with two EV sportscars bracketing Tesla’s Roadster? Or Mercedes with its retina-searing SLS E-Cell? Or Ruf’s Greenster electrified Porsche? Seriously guys, it’s up to Think and Westfield to take the lead on this one?

From Tesla’s stand at the NAIAS. Ironic counterpoint after the jump.

As the biggest week in the American auto industry, the annual North American International Auto Show in Detroit regularly attracts a sideshow of protesters bent on sending a message to the hordes of executives and analysts who cram Cobo Hall. In 2009, UAW members marched against the possibility that the auto bailout (then still a work-in-progress) would require union concessions. Last year, Tea Party groups rallied to protest the government’s ownership of GM and Chrysler, while UAW members counter-rallied in support of the bailout (apparently those concessions weren’t so bad). This year will be no exception to the trend, as dissident UAW members will be protesting the union’s two-tier wage system, a pre-bailout concession that has created considerable controversy of late. And they’ll be getting support (if only in word, not action) from across their friends from the North, as the Canadian Auto Worker boss has recently called for an end to the two-tier system, saying

That has to be a strategy of the UAW to gradually get out of the two-tiered system. I don’t know if it can happen overnight, but they’ve got to start sending signals to future employees that the low, tiered wages are not something that can sustain families long term