Diesel's near-term prospects in America took a huge hit with the revelation that nine diesel-powered 2010 models are on hold. Ford, General Motors, Chrysler, Toyota, Honda, and Nissan have put the kibosh on rolling out more oil burners due to cost and perception issues.

Toyota's obviously on a hybrid run and doesn't want to expel the effort or expense of investing in diesel for the American market -- and having to overcome America's dirty diesel perceptions. The others, as mass market manufacturers, simply need more justification for the cost and complexity of oilburners in order to make the case for consumers to spend more.

Additionally, diesel's benefits are weighted differently according to EPA or CAFE standards. The EPA mileage numbers present diesels well, but CAFE's differing fuel mileage equation makes gas-hybrids look better than diesels, and CAFE is something all automakers are looking at. However, you'll notice that German brands aren't mentioned -- their price premium and European diesel volumes make a worthwhile case for diesels, so those diesel Jetta Sportwagons won't be going away any time soon.

[Source: Automotive News - Sub. Req.]

When Sergio Marchionne revamped Fiat, he installed new designers at each company division and charged them with creating products that would define each brand and move metal. Marchionne has apparently done the same with Chrysler, putting Brandon Faurote in charge of Chrysler, Joseph Dehner in at Dodge, and Mark Allen in at Jeep.

Faurote has been with the Pentastar since he was 22, and has worked on offerings like the 1999 Jeep Cherokee and the 2001 Chrysler and Dodge minivans. Since 2003, his title has been Chief Designer - Advanced Product Design, and he's given us concept cars like the 2005 Chrysler Firepower (pictured). He's also given us the Chrysler Imperial, so we pray his eye for the brand leads more toward artillery than royalty.

Joseph Dehner leads the Dodge charge and has the Crossfire and 2001 Chrysler Sebring in his quiver... but also the exterior design of the 2007 Sebring. Mark Allen has the the 2006 Jeep Wrangler and 2009 Dodge Ram 150 to take credit for, as well as super cool Jeep concepts like the Jeep JT and Jeep J8 Sarge. Here's to hoping Fiat encourages – and pays for – them to give us their best. Hat tip to 13enS!



[Source: The Motor Report]

While Pontiac gets ready to take a dirt nap next to Oldsmobile and the folks at Chrysler's Auburn Hills HQ brush up on their Italian, at least one American driver is showing us what might have been if the once-proposed Chrysler/GM merger (remember those days?) had come to be. Consider the perfect storm of hideous product decisions that could have ensued under such a tie-up.

What's that? Your mind's eye can't envision a scenario so horrifying? No worries. Autoblog reader Berto snagged some photos illustrating just how kooky things could have gotten. Imagine one automaker's muscle heritage fused with the base-level front-drive mediocrity of another. Imagine, friends, the Pontiac G6 V6 Super Bee. Thanks, Berto!



[Photos: Berto]

A group called the Ad Hoc Committee of Consumer Victims of GM and Chrysler put together a commercial to run on Comcast throughout the weekend. The group numbers 460 people, 300 of whom are plaintiffs against GM, the rest against Chrysler, all of whom claim catastrophic injuries or the deaths of relations due to defective vehicles from the two companies.

The ad attacks the issue of New GM not being responsible for such liabilities. The claims, said to add up to about $1.25 billion for just the GM parties, would be addressed by the Old GM and lumped in with every other unsecured creditor's claims. That means that if the plaintiffs received anything at all, it wouldn't be much. GM is just following the government's orders -- it was the Administration that decreed post-bankruptcy Chrysler and GM won't be responsible for vehicles sold previous to bankruptcy.

GM's attorneys called Comcast, and Comcast explained pulling the ad by saying "We have temporarily stopped airing the ad while we conduct a review of the claims it makes." The commercial only asserts a few facts which could be easily checked, and makes a generalization about claims that won't be reported if people know nothing will come of them. Comcast hasn't given any timeline for that review, though. You can watch the ad after the jump and see for yourself.

[Source: Washington Post via TTAC]

Alfa Romeo has been toying with the idea of returning to America for years, but now that Fiat CEO Sergio Marchionne is working from Auburn Hills, the time seems more ripe than ever as details emerge on Fiat/Chrysler's strategy vis-a-vis the North American market. While Marchionne implements management restructuring designed to reduce Chrysler's executive hierarchy and separate its divisions into more independent units, a product strategy is rapidly being put into place to make up for lost time during the bankruptcy procedure and get the company back on track.

With Maserati and Ferrari already present in North America and Lancia offering little to entice North American buyers, the Italian side of the partnership looks poised to enter the market with Fiat and Alfa Romeo models. However, while future Chryslers, Dodges and Jeeps will share underpinnings with their Fiat and Alfa Romeo counterparts – including an Alfa GTX to be based on the new Jeep Grand Cherokee – the Fiat brand itself will have a very limited presence in the North American market, offering only the 500 retro hatchback as a stand-alone model... not unlike BMW's Mini brand. Other Fiat models will carry Chrysler, Dodge and Jeep badges, while Alfa Romeo will take the higher profile on this side of the Atlantic, offering cars under the stoic marque to compete with other European luxury brands. As the Freep points out, Chrysler and Alfa had collaborated in the early '90s to bring Alfas Stateside with limited success, but Marchionne evidently thinks it'll have better luck this time around.

[Source: Detroit Free Press]

During bankruptcy, just about everyone involved with the affected company is going to feel the pain in some form. That is, of course, unless you're a lawyer. New York law firm Jonas Day has represented Chrysler during its time spent in Chapter 11 bankruptcy, and Automotive News is reporting that the firm billed $12.7 million for the month of May alone. That figure included 72 partners working on the case, in addition to another 193 lawyers chipping in. About $256,000 of that figure accounts for expenses, and the rest encompasses some hefty legal fees.

We're not all that surprised that it takes over 250 lawyers to execute a Chapter 11 bankruptcy of Chrysler's magnitude in only 40 days, but the figures for the firm's head lawyer, Corinne Ball, are staggering. Ball booked 15 hours a day, seven days per week for the entire month, at a bill rate of $900 per hour! That's $401,310 to you and I. On average, lawyers on the case billed $477 per hour, while paralegals came in at $224.

How much does it cost to feed 266 lawyers for a month? $5,878. That's about $20 per person for three meals, seven days a week. Taxi fees? $4,247. Document copying was a hefty $52,000 and hotel bills rang up at $62,000. Recession? What recession? Those numbers are pretty large, but in the end, results are worth big money. And getting a company the size of Chrysler out of bankruptcy in 40 days is no small task.

[Source: Automotive News, sub. req'd | Photo by Joe Raedle/Getty]

One week after Chrysler announced that it was re-opening seven of its plants, one truck plant is being put back on the shelf. Automotive News reports that the Fenton, MO Dodge Ram 1500 plant will close on July 10, yet the facility will still reopen on June 29.

After the July 10 re-shutdown, the plant will remain closed "contingent upon volumes." In other words, Chrysler already has 68,000 Rams sitting on dealer lots -- a 115 day supply. The Missouri plant is already scheduled for ultimate closure sometime in the third quarter, and since July 10 officially qualifies as being in the third quarter, we've got the feeling the Fenton plant isn't coming back. The 1,200 UAW workers in Fenton will receive buyout package offers and, in some cases, the opportunity to transfer to other plants.



[Source: Automotive News - Sub. Req.]

The dynamic duo of Chris and Sam carry off Episode #133 of the Autoblog Podcast without a hitch. Though down a man, the pair didn't cheap out on topics or duration, it's the same podcast goodness. It kicks off with Hyundai's impressive showing in the recently released Initial Quality Survey results. From there, they hit Chrysler's RWD/FWD dilemma with its Sebring/Avenger replacement, the rumor that Mustangs could have had IRS for $100 per car, and reports of an Ecotec engine for the Buick LaCrosse. Keeping it on the Buick tip, spyshots of a Tri-Shield variant of the new 2010 Astra get mentioned. The nullification of all pre-bankruptcy liability claims against GM and Chrysler is next before talk settles briefly on Hyundai's 2010-on lineup and then turns to your questions. It almost seems like the Chris and Sam show is a juggernaut without that other guy. Thanks for listening, and please, keep your questions and comments rolling in to Podcast at Autoblog dot com.

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Our friends at PickupTrucks.com are reporting that General Motors has filed documents in court in an attempt to get "New" Chrysler to honor its full pre-bankruptcy debt of $531,275 (of which Chrysler has so far only agreed to pay back about a third) for work on the sophisticated Two-Mode hybrid powertrain that was jointly developed by the two American automakers along with Daimler and BMW.

Chrysler and General Motors have both filed for Chapter 11 protection from creditors, which allows the automakers to renegotiate – or in many cases completely cancel – past contracts that are no longer desirable. It seems that Chrysler's contract with The General, which is supplying the hybrid transmissions to Chrysler, has yet to be picked up by New Chrysler.

This case is a bit more intriguing than most – such as Chrysler's canceled contract with Cummins for light-duty diesel engines for the Ram pickup – as it pits General Motors across the courtroom and on the other side of bankruptcy negotiations. We suspect that New Chrysler may be keen to pick up its old tab since the automaker is still planning to use the Two-Mode Hybrid technology for future vehicles, starting with the 2010 Dodge Ram, though possibly with more favorable terms.

[Source: PickupTrucks.com]

America's "Cash for Clunkers" bill is on the cusp of being signed by President Obama, but according to a new survey by Rasmussen Reports, a majority of U.S. citizens aren't in favor of the plan.

According to the telephone survey, fully 54% of those queried are against the measure, while 35% are in favor and 12% aren't sure how they feel about it. That's up from a similar survey done last month, in which just 34% were against consumer vouchers for trading in older, less efficient cars and trucks. In fairness, Rasmussen Reports indicates that the change could have been influenced by a change in the wording of the respective surveys (the initial survey did not indicate how much the program might cost the government).

While that news may not perk up the spirits of Capitol Hill, the survey's findings that 17% of those asked say they are "very likely" to purchase a new vehicle this year because of the program (and a further 18% admit they are somewhat likely) ought to cheer up a few members of Congress.

Perhaps most interesting of all is news that many Americans would appear to have little faith in the ability of the government to help General Motors improve its fortunes, with 41% expecting for GM's quality to deteriorate under federal ownership. (Presumably, this leaves 59% of those surveyed that feel otherwise or are undecided). Perhaps more damaging is that the study's findings say that fully 57% of those questioned believe that the government is likely to pass laws and regulations that give Chrysler and General Motors unfair advantages over other automakers that did not receive bailout funds.

Oddly, Rasmussen Reports' findings to not disclose the number of people it surveyed, or any +/- accuracy estimates. Perhaps one has to have a 'premium membership' to get access to that data. In any case, check out the link for more of the study's findings.

[Source: Rasmussen Reports via Instapundit | Image: Matt Cardy/Getty]