Filed under: Etc., Government/Legal, Hirings/Firings/Layoffs, Plants/Manufacturing, Chrysler, LLC., GM

Our heads are still reeling from one of the most tumultuous financial weeks on record, and the auto industry was far from immune. But despite our best efforts to drown our concerns in Racer5 IPA, the hits keep coming, and this time it’s courtesy of the New York Times.

The Gray Lady is reporting that General Motors and Chrysler have been in talks about a possible merger for the past month, that “negotiations are not certain to produce a deal,” “would most likely still take weeks to work out” and that two unnamed sources say that the chances of the merger going through are “50-50.” Obfuscate much?

With GM’s stock prices ending the week below $5 a share and Cerberus - the private equity firm that owns Chrysler - grasping at the flimsiest of straws, including continued talks with Nissan/Renault, a merger of unequals is two parts disturbing and one part intriguing.

Cerberus’ people haven’t been returning phone calls and the only comment offered to the NYT from the General’s spokesperson, Tony Cervone, was, “Without referencing that specific rumor, as we’ve often said at GM officials routinely discuss issues of mutual interest with other automakers.” Broad, unclear and exactly what we’d expect.

The merger of GM and Chrysler would put Cerberus in charge of an “unspecified equity stake” in the corporation, making the two-headed General-Chrysler (or Chrysler Motors?) the world’s largest automaker, controlling over 35 percent of the U.S. vehicle market, causing rifts among brand faithful and offering more potential (vehicle) cannibalization than the Donner Party. Not to mention both automakers’ labor contracts, supplier dealers and slipping market share. Shocked? Don’t be. We give it a snowball’s chance on the Sun.

Thanks to ALL who tipped in.

[Source: NYT]

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Filed under: Car Buying, Convertibles, Sports/GTs, Plants/Manufacturing, Supercars, Audi

Word has it there is an eight-month waiting list for the Audi R8 in the car’s home market of Germany. Here in the good ol’ U.S. of A., the 50 units we get per month are not nearly enough for all of the interested buyers. Well, with V10, convertible and possibly diesel versions in the works, we can’t imagine that demand will subside anytime soon. You might think that Audi would be smart to amp up production to handle the high demand, especially with those new versions coming soon, but that isn’t gonna happen according to Audi. Seems they can only make 27 R8s a month day and no more. That should keep the R8 variations very scarce and very dear.

For those lucky enough to have the coinage and a place in line, there is more news. Car and Driver talked to Michael Dick, Audi’s member of the board of management for technical development, who told them the company expects to sell around 80% with V10 flavor. That version goes on sale next year, with drop-tops following soon after in Europe. Yanks will have to wait another year with 2011 models showing up in ‘10.

Other tidbits gleaned from the interview: Pricing hasn’t been set, the diesel might be Euro-only if it even makes it to production, and a little brother R4 was never in the cards with the TT-RS and possible Audi R3 version of the VW roadster filling out the dance card well enough. We’ll keep our fingers crossed that there are enough V10s available so we can get one in our garage at least.

[Source: Car and Driver]

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Filed under: Hybrids/Alternative, Green, Japan, Lexus, Toyota, Rumormill

This could be Japanese-only news, or just a case of bad translation, but Toyota Managing Officer Toshio Furutani has apparently told Japan’s Nikkei Business News that Toyota wants every vehicle in the Lexus product line to offer a hybrid option, and that “in the medium to long term, Toyota was considering making the Lexus lineup hybrid-only.”

That sounds like he could mean Lexus, period, all over the world. But our questions come from the fact that the same report said that the Nikkei listed only the LS and GS models as currently available with a hybrid option, neglecting to mention the RX. And the fact that for Lexus to offer only hybrids in the U.S. would be an eyebrow-arching brand decision. Not that there isn’t anyone out there in the market for a hybrid IS-F, but would you really risk it? We’ll wait for a follow-up from someone at Toyota, or we’ll just assume Furutani’s comments were meant for other ears than ours.

[Source: Reuters]

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The US, and in fact the entire civilized world, is knee deep in a financial meltdown. However, crashing stock markets and crumbling banking institutions have led to one pleasant side effect. The price of gas is dropping faster than the NASDAQ. A quick trip through south-east Michigan shows that gas prices have dropped below the $3.00 threshold, and tumbling crude prices show that even cheaper petrol is on the way. A barrel of oil now costs $77.70, which is in stark contrast to the $147 per barrel crude in July that lead to $4.25 per gallon gasoline. That’s a drop of nearly $9.00 today alone, and OPEC has scheduled an emergency meeting to try to halt the precipitous drop of black gold. And since we’re paying under $3.00 per gallon for oil that was purchased last month, that means we won’t bear the fruit of the recent drop in crude until November.

While many of you were with us in praying for this drop, it’s coming at a huge price. Gas is becoming more affordable because a set of Texas-sized Brembos put the brakes on energy use, but at least it’s cheaper. At this rate, if the get depressed about the economy, we can afford to go for a quick ride without having to take out another loan on our crashing mortgages.

[Source: CNN Money]

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Filed under: Economy, Euro, Green, Hatchbacks, Toyota

IF you’re in Europe and hoping to get your name on a list for a Toyota iQ, now’s the time. Toyota has opened up the order banks for the cleverly packaged microcar prior to its January availability date, while also giving up the goods on available specs, options, and pricing. The iQ comes in only two trim levels, iQ and iQ2, and pricing starts at