Autoblog

Remember the good old days when a prominent chief executive would have disappeared into obscurity after having been exposed by the newspapers? Well those good old days are gone, and Max Mosley is happy for it.

It's been a long and hard road for Max Mosley, but the embattled FIA president seems well suited for the ordeal. Mosley was caught on film partaking in what was described as a Nazi-themed S&M orgy with several prostitutes. He then survived a vote of no confidence in his leadership in the motorsport governing body, and launched a lawsuit against the News of the World, the British tabloid that broke the story. The judge returned the verdict from that lawsuit today, awarding Mosley £60,000 in exemplary damages, plus an additional estimated £1 million in expenses.

Mosley's case hinged on the right to privacy, and upon receiving the judgment (so to speak), the prototypical auto-erotic figure noted that he hoped the ruling would serve as a deterrent for other publications from pursuing "this type of invasive and salacious journalism". The moneys awarded by the court won't go into Mosley's pocket, as they're earmarked towards the road safety and environmental work undertaken by the FIA Foundation.

[Source: Autosport, Photo by Peter Macdiarmid/Getty]

Now that Toyota has sold so many Priuses that the popular hybrid no longer qhalifies for federal tax credits, and they are essentially sold out until the new generation cars show up next year, people might be wondering where to go for a high mileage vehicle. Volkswagen's new 50-state legal Jetta TDI is going on sale around about Labor day and our good friends at the IRS have decreed that people who purchase one will be able to get a check back from the feds for $1,300. The clean diesel Jetta qualifies under the Advanced Lean Burn Technology Motor Vehicle income tax credit. That would bring the price premium for the diesel to only $700 over a comparable Jetta with a gas engine. The EPA has rated the Jetta at 29/40mpg city highway with a 6-speed DSG gearbox. Real world numbers are likely to be closer to the low 40s for most drivers, but we'll be finding out for ourselves soon. At the first drive of Mercedes new BlueTec diesels last month, company officials expressed hope that those vehicles would also qualify for the credit. Thanks for the tip, Conner!

[Source: VWvortex]

Porsche is one step closer to its goal of purchasing Volkswagen. Back in April of last year, the German automaker passed the 30-percent mark, forcing it to make an outright offer for The Volkswagen Group in its entirety, which it did. Not too many VW shareholders sold their stake to Porsche, as the bid was for the bare minimum amount allowed by law. Still, the legal requirement had been met, allowing Porsche to continue gobbling up the automaker according to its own timetable. Earlier this year, the VeeDub board approved a request by Porsche to obtain 51-percent of the company for some $15.73 billion, which would give it a majority stake. Before the house that Ferdinand built could complete its acquisition, the European Commission required it to make one last purchase, which took place in June of this year. Finally, the EU has granted its permission for the buyout.

This story is likely far from over, as the German State of Lower Saxony still claims a 20-percent stake in Volkswagen, which gives it certain rights to block decisions made by VW's new parents. Still, it seems that its only a matter of time before VW and Porsche are united under a different Ferdinand... Piech that is, grandson to Mr. Porsche himself.

[Source: Reuters]

After nearly eight years of getting little or no attention from the White House, it seems as though Detroit's automakers will be a major focus the 2008 Election. With the economy looking worse by the day, lawmakers in Washington have been kicking around the idea of a second economic stimulus package to get people shopping again, and Mowtown's lawmakers want in on the money. Michigan's two Democratic senators are attempting to use the prospect of such a bill to include federally-backed loans to help automakers and suppliers build new factories and engineer new models. The $4B would be used to offset the costs associated with the Treasury Department giving automakers $25B in loans at a discounted rate. Automakers have been against such a loan in the past, but with worsening conditions and tighter lending practices the idea is likely to sound much more exciting this time around.

Presumed Democratic Presidential candidate Barack Obama told the UAW in a letter that he supports the $4B in federal aid, stating that he would "provide real solutions necessary to help this industry compete and win in the global economy." Obama also promised tax breaks for consumers that purchase ultra fuel efficient vehicles and tax credits for automakers as well. Presumed Republican nominee John McCain opposes the idea of federally backed loans, but he does support tax breaks to those that purchase fuel efficient vehicles and a $300M in prize money for electric battery powered vehicles

[Source: Detroit Free Press, Image: Bill Pugliano/Getty]

Back in 2004 serial automotive entrepreneur Malcolm Bricklin announced plans to collaborate with "rogue" Chinese automaker Chery Motors to bring new cars to the US market. Chery is referred to as "rogue" because the company never actually got permission from the Chinese government to get into the car business. Needless to say, the deal eventually fell apart when Chery decided to hook up first with Israel Corp and Quantum LLC for a different joint venture which has also yet to come to fruition.

Bricklin's company, Visionary Vehicles, which is now know as V Cars LLC, has now filed a lawsuit against Chery, Israel Corp, and Quantum LLC, et al. The suit is being filed under RICO statutes, typically used to go after mobsters, and V Cars is hoping to pursue Chery for the potential profits the company feels it could have made over the course of the deal. How much? $14 billion.

V Cars claims they provided Chery with business plans and ideas (along with $26 million in up front investments) which they then used for their own business after abandoning the deal. During a conference call today, Bricklin explained that he wants to show Chery and other Chinese companies that if they are going to do business with western companies they need to deal ethically and follow the rules. V Cars is also seeking injunctions to prevent Chery from selling any vehicles based on these plans in North America. The complete text of the suit that has been filed in Federal District Court in Detroit can be read here (Warning: PDF download).

[Source: V Cars]

Presumptive Republican nominee for President, John McCain has wrapped up his tour and speaking engagement at General Motors, where the Arizona Senator discussed the U.S.'s current fuel situation and the proliferation of electric cars. Addressing the General's assembled workers, McCain said, "I would support tax credits for Americans who choose to buy the Volt and other automobiles that put us on track to energy independence." McCain later specified that the credit should be $5,000 as "an integral part of our ability to eliminate our dependence on foreign oil."

McCain has already issued his support for federal funding of research and development of battery-powered cars and made it clear that individual states should have the ability to set their own fuel economy standards.

[Source: Reuters Image: Bill Pugliano/Getty]

GM Daewoo has been forced to idle its plant in Bupyeong, South Korea due to strong-arm tactics by tire OEMs Hankook and Kumho. The Bupyeong plant produces the vehicle we know and ummm... tolerate as the Chevrolet Aveo, and possibly (unfortunately) soon as the Pontiac G3. Rather than pony up the 12% price increases that the tire suppliers want, GM wants a preliminary injunction to force them to end the supply cutoff. For their part, Hankook and Kumho cite higher raw materials costs for their increased monetary demands, even after ratcheting up prices by 5.5% in March. The work stoppage isn't expected to be protracted, so before long, we'll see these little carlets rolling off the line again. GM could always call the tiremakers' bluffs and switch suppliers. We're sure Goodyear or Bridgestone would be interested in talking.

[Source: The Car Blogger]

In the wake of GM's Tuesday press conference detailing its plans to have enough cash on hand through 2009, politicians have been eager to voice their thoughts regarding the possibility of a government bailout. President Bush gave the possibility a strong no, but the two guys in line for his job have taken a different route.

Senator Obama has said that he supports automaker's attempts to restructure without outside help, but says he's willing to work with the companies on fuel saving tech. Republican Senator John McCain took an even stronger pro-automaker stance, saying "if it looks like it is approaching that, everyone has to consider every option." The Arizona Senator and presumed Republican nominee has stated in the past that he wouldn't support a buyout, but would instead provide tax breaks and infrastructure support to create more fuel efficient vehicles. McCain's "every option" comment may not sit well with his party, but it could sound good to Detroit automakers. McCain is visiting the GM tech center today. Both presidential candidates are working hard to woo Michigan voters, which will be a key state to win in the November election. Even though GM has stated it isn't looking for a handout, Michigan residents would love to know that the automaker would get one if it really needed it.

[Source: CNN Money, Image: Getty/Bill Pugliano]

If you're in France, the phrase caveat emptor can probably be joined by caveat reporter after police raided the French magazine Auto Plus. The po-po were called last August to begin an investigation because the magazine published detailed photos of the coming Renault Megane, which Renault said wasn't supposed to hit showrooms for another three years. The raid was the next step in the Sherlock Holmes treatment.

Renault, of course, says that it is not after the press, it's simply trying to protect its intellectual property. The shots are so clear, and there are so many of them -- including the interior -- that it's obviously an inside job. The press, of course, feels that this is an attack on its freedom. The French press and the French government are engaged in a complicate dance, and this doesn't help things.

The police removed one reporter and a passel of computers. They don't want the reporter, though, they want the source. Auto Plus will have to wait to find out how much of that ever gets returned. But since the photos are out, we might as well take the time to say it's a nifty looking little car.

[Source: Reuters]

Their plate may be filled with churning out Tesla Roadsters and developing the Model S sedan, but Tesla Motors can't seem to get a break from the lawsuits. First there was the tiff with transmission supplier Magna, followed by potential development partner Fisker, and now Tesla is facing a class action (it's not a class action lawsuit until a judge deems it so) lawsuit from former Director of Public Relations, David Vespremi. Vespremi ended up on the cutting room floor during the tornado that swept through the company ranks at the end of 2007 was let go prior to the layoffs in January of this year. Vespremi is trying to connect his firing to the layoffs, but according to Tesla's Darryl Siry, that's not the case -- his termination was a separate matter. The details of the lawsuit allege that Tesla Motors did not practice good faith or fair dealing, violated labor codes with unpaid wages and waiting periods, and utilized unfair business practices. The document also listed libel and slander due to the harsh words spoken from the mouths of executives to the media when referencing the former employees. Thanks for the tip Jan!

UPDATE: Darryl Siry of Tesla wanted to clear a few things up with the story. To begin with, a judge must certify a lawsuit as class action before it can be deemed as such. That hasn't happened yet. Additionally, the part of the lawsuit filed by David Vespremi that asks for class action status has nothing to do with libel, slander, or defamation. The only part of Vespremi's lawsuit that could be classified as "class" has to do with Tesla's arbitration and non-conciliation clause in his employment agreement.

[Source: San Mateo Court]