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DO YOU APPRECIATE THE LAW OF PHYSICS? From an Automotive Engineering Newsletter A very big thanks to Michigan member M.P. who sent in this bit of humor, which was forwarded from a senior-level person at Chrysler. The date on this note was Sunday, July 19, 2009: Monday morning, I attended a breakfast meeting where the speaker/guest was D.C., Chairman of the Center for Automotive Research (CAR and Professor at U. of M.). you all have likely heard CAR quoted, or referred to in the auto industry news lately. Mr. C., who is an engineer by training, told many stories of...

Legislators and regulators need to observe a fundamental Golden Rule: Do not implement new laws if you have not considered or cannot control important unintended consequences. A perfect example is the Obama Administration’s plan to increase new car mileage standards, from the currently legislated requirement of 35.5 miles per gallon by 2016 to 54.5 mpg by 2025, as an average across each automaker’s complete line of cars and light trucks. Carmakers reluctantly agreed to the new requirements, to avoid even more onerous standards, or different standards in different states. But the deal does nothing to alter the harsh realities...

Q Do you think Romney abandoned the Detroit and the auto industry? -------------------------------------------------------------------------------- A Yes No Unsure

GM Boasts Strong June Sales — But Is That the Whole Story? General Motors announced this month its auto sales increased by 16 percent in June, its best monthly sales gain since 2008. Considering all the company has been through, and the fact that it still owes taxpayers approximately $25 billion in TARP repayments, a 16 percent boost in sales sounds like good news, right? Who knows? With consumers buying up all these cars, maybe GM can reestablish itself as an auto heavyweight, shareholders will finally get to see a return on their investments, and President Obama will have something...

President Obama told automakers Monday they should focus on making smaller, more fuel-efficient vehicles. Another breathtaking show of arrogance from a Harvard Law-trained social activist? Call it a breathtaking show of ignorance. “You can’t just make money on SUVs and trucks,” Obama said at a Minnesota town hall. “There is a place for SUVs and trucks, but as gas prices keep on going up, you have got to understand the market.” Automakers know their market just fine. It is Obama who needs a lesson. In claiming to have “turned around” the U.S. auto industry, Obama apparently has no idea that...

The Obama administration has reached a compromise with automakers on a new fuel economy target for cars and trucks, ending months of negotiations on this pivotal mandate for the auto industry. Automakers' fleets will now have to average 54.5 miles per gallon by 2025, according to people familiar with the plan. Chief executives at the major automakers could sign off on the plan as early as Wednesday night, one of the people said. President Barack Obama will officially announce new guidelines on Friday, the White House said.

The Obama administration is considering a fleetwide average of 56.2 miles per gallon for all new cars and trucks sold in the U.S. by 2025, two people briefed on the matter said. The proposal would roughly double current fuel-economy targets, and would likely raise the price of some cars by several thousand dollars. The proposal isn't final, and could be adjusted over the next several weeks as regulators prepare a formal draft to send to White House budget officials. The administration has said previously that it is looking at requiring cars average between 47 and 62 mpg by 2025. The...

Detroit is no longer stuck in first gear. At least that's the message from Vice President Joe Biden, who trumpeted what he calls an impressive comeback for the U.S. auto industry. Mr Biden credited the Obama administration's intervention for the American auto industry's recovery from 'the brink of extinction' and pointed to Chrysler's early repayment of the federal loan that saved it from disaster. Mr Biden said: 'This announcement came six years ahead of schedule - and just two years after Chrysler Corp. emerged from bankruptcy. 'It's a sign of what's happening throughout the American automobile industry'. The announcement Saturday...

So typical of the RATS. She criticizes the GOP and claims we would be driving foreign cars if it were up to them. Oops, she drives an Infiniti. ENJOY THE MOCKING SING ALONG - "Driving Miss Daisy"

Stockholm— Scrambling for a quick fix for its cash-strapped unit Saab, Spyker Cars NV on Monday signed a distribution deal with the Chinese company Pang Da, but postponed plans to start production in China to avoid regulatory issues. The Netherlands-based Spyker Cars said Pang Da will inject $92 million for a 24 percent stake in Spyker, and the two will form a 50/50 joint venture for the distribution of Saab cars in China.

TOKYO (AP) — Toyota Motor Corp., which is likely to lose its spot as the world's No. 1 automaker to General Motors Co. later this year, reports its fiscal fourth quarter results Wednesday. WHAT TO WATCH FOR: Toyota's production capacity was sorely hurt by a devastating earthquake and tsunami in Japan on March 11. The twin disasters nearly washed away Japan's northeastern coast, home to a network of key auto-parts suppliers. The maker of the Camry sedan and Prius hybrid overtook GM as the world's biggest automaker in 2008, a distinction that the American car manufacturer had held since 1932....

Ford and Chinese partner, Changan Ford Mazda Automobile Ltd., plan to build a $500 million engine plant in China. They signed a memorandum of understanding with the city of Chongqing on Saturday. Construction is to begin next year with engine production starting in 2013. The plant can make 400,000 engines annually; more than double the partnership's existing engine capacity in China. The partnership operates two assembly plants in China, including one in Chongqing. It is building a third to produce the Ford Focus...

General Motors filed for an initial public offering of stock on Wednesday, clearing a key hurdle toward repaying taxpayers fora controversial bailout just over a year after its bankruptcy. GM's initial filing with U.S. securities regulators did not say how many shares would be sold or give an expected price range for what will likely be one of the biggest IPOs ever. GM filed for an IPO of up to $100 million. That does not represent the full amount that GM hopes to raise, people familiar with the situation have told Reuters. GM could raise up to $20 billion in...

As many as 100,000 Americans who lost their jobs, or will soon, because of GM and Chrysler dealership closings can thank Barack Obama and his "mandate for shared sacrifice," according to a top Obama official. In a scathing report on the federal auto industry bailout, Special Inspector General Neil M. Barofsky notes that the Obama administration rejected initial automaker plans which would have required relatively minimal dealership closings, insisting instead on far more drastic cuts -- as many as two thousand dealerships between the two corporations. (snip) And Barofsky's report even questions whether the closures would lead to any real...

NEW DELHI: While the global car market shrank, India’s auto industry displayed its resilience and strength, racing past several developed markets to emerge as the world’s second-fastest growing light vehicle market, second only to China and ahead of Germany, France, Japan and the US. The government’s economic revival package gelled well with the country’s low car penetration, stable economic growth, new model launches and lower interest rates to increase the footfalls at showrooms and keep the demand ticking.

The U.S. auto industry isn't dead, but it isn't back, either. Americans still disdain Detroit's cars. They'd rather have a Camry than a Malibu. The cover of April's Motor Trend magazine informs us that "Buick Is Back." That followed by a few weeks the front page of Barron's declaring that "GM Is Back." My investment advisor, AllianceBernstein ( AB - news - people ), brags at its annual meeting that it's buying Ford. Toyota ( TM - news - people )'s troubles, of course, will send traffic to Ford and General Motors showrooms. If only it were that easy for...

April 1 was certainly no fool's joke in Fremont, where the last car - a Corolla - rolled off the assembly line at the Nummi auto plant. It was the end of an era for a city that had built a local economy with the auto plant at the hub of the wheel. The automaker employed 4,700 workers, and related industries that provided services employed another 20,000 people. Nummi was the last auto plant operating in the state, and its shutdown closes another chapter in the life of the blue-collar worker, once a symbol of American middle-class life. Read more:...

A blizzard of safety concerns surrounding Toyota has put the Obama ­administration in a delicate position as it seeks to avoid the temptation of boosting the fortunes of Detroit's struggling US carmakers by bullying the Japanese manufacturer too aggressively. Toyota has swiftly become the butt of jokes in the US. The talkshow host Jon Stewart this week dubbed the firm's pedal problems "the Toyotathon of death". Speculating on the reaction of the bosses of General Motors and Chrysler, Stewart said: "Boys, we're back in the game! All we had to do was have the leading competition become a death trap."...

Sen. Debbie Stabenow (D-Mich.) joins the "Morning Joe" gang to discuss the impact that job creation is having on her home state, as well as health care reform.

"•For 2011, Mustang makes sports coupe news with a new, high-performance, all-aluminum Duratec 3.7-liter DOHC Ti-VCT V-6 that delivers 305 horsepower and an expected best-in-class 30 mpg highway with six-speed automatic transmission - no other vehicle in the industry can beat that combination •Six-speed transmissions - manual and automatic - combine with newly standard limited-slip differential and revised suspension for road-carving driving dynamics and handling •New technology and convenience features include standard integrated spotter mirrors, message center, MyKey(TM) programmable vehicle key and Universal Garage Door Opener