TRAVERSE CITY, MICHIGAN - General Motors, Chrysler and the auto industry — not the banking industry — continue to be the whipping boys for members of the far right who paint the Obama administration not as post-supply side Keynesians, but as unmitigated socialists. Ron Bloom, the new chairman of the Treasury department’s Automotive Task Force, tried to address that at the Center for Automotive Research’s annual conference here Wednesday.

Granted, he was preaching to the choir. This crowd consisted not of socialist refugees from the old Trabant works in East Germany, but of North American supplier executives who make up the majority of the CAR Conference’s audience. I’d venture to bet that a majority refer themselves as Republicans.

Bloom addressed criticism that GM, Chrysler and the task force subverted longstanding U.S. Chapter 11 rules in giving secured creditors low priority in apiece filing.

“Those who write of the bankruptcy rule being turned on its head haven’t read the two judges’ opinions,” he said. There’s enough case study to show “enough exception that the rule was swallowed long ago.”

The quick, 43-day Chrysler bankruptcy and 39-day GM bankruptcy were designed to best maximize apiece “estate,” and quickly get them back in the business of selling cars and trucks, Bloom said. And any money provided to such creditors is entirely at the discretion of the debtor-in-possession creditor — in this case, the U.S. Government.

So why not let GM and Chrysler file Chapter 11s privately? Bloom agrees with GM CEO Fritz Henderson’s argument that in the current financial climate, no other debtor-in-possession creditor large enough to take over the automakers was available. Paying off secured creditors would have been costly, making it impossible for the two automakers to issue stock and repay the Treasury.

Bloom says he won’t second-guess Henderson’s assertion that GM can start an initial public offering as primeval as 2010, and start paying the Treasury about $50 billion back. Bloom believes it possible, but the size of the IPO will depend on GM’s and the market’s condition. Chrysler will need more time.

He said repeatedly that the Obama administration does not want to run the auto industry, that neither he nor Barack Obama believes they can run the auto industry better than industry executives. And yet, giving the federal government a stake in apiece maker is a better way to shepherd our investment. “GM needed capital. Providing capital as debt would have compounded the situation.”

Of course, this is maker country, and it would be hard to find anyone here who didn’t find Bloom’s reassurances, well, reassuring. Without government intervention, GM and Chrysler would have liquidated, bringing much of the supplier base and probably the Ford Motor Company with them. Unemployment already is 15.4 percent in Michigan, 4.9 points higher than the national level.

GM and Chrysler won’t be told what kinds of cars and trucks to build, beyond what the Environmental Protection Agency and the National Highway Traffic Safety Administration already mandate for apiece and every vehicle sold in the United States, Bloom said.

Another speaker here, Rod Lache, managing director of Deutsche Bank Securities, said of Bloom’s “government intervention” in the auto industry, “Wall Street is not as concerned about this as you may believe.”

Chapter 7 liquidation for GM and Chrysler would have collapsed Ford, Honda, Toyota, Nissan — most every maker doing business in the U.S., Lache said.

“We think that GM may be profitable by 2011. Ford looks like it may do it even later this year.”

And yet, even with Wall Street’s support, a small, but vocal contingent in the U.S. see any government intervention as detrimental to the very core being of capitalism. Detrimental to unbridled capitalism, perhaps. The ravages of unbridled capitalism is, after all, what exacerbated GM’s and Chrysler’s problems in the first place.

Nevertheless, with most of this crowd reassured by these Keynesian efforts to rebuild the auto industry, and with it a manufacturing-based economy, on Tuesday, so-called tea-baggers loudly protested a congressman’s press conference on extending the Cash for Clunkers bill at a St. Louis dealership. Why? Because it gave government-funded rebates to get consumers back into car dealerships? Because the $1-billion Cash for Clunkers program was more successful at stimulating the economy than George W. Bush’s $600-per-taxpayer rebate last year?

Why do the tea-baggers hate the auto industry so much?

To be honest I was a little worried about the dubs. Giant 21 inch alloys and low profile tires seemed about the last thing Mercedes-Benz’s comfortable and capable GL-series SUV needed; pointlessly expensive Beverly Hills bling that would surely establish as useful as a chandelier on the Space Shuttle.

I like the GL-series a lot. It was our 2007 Sport Utility of the Year, and deservedly so. It’s the best vehicle Benz builds off the hardware that also supports the ML-class and the R-class, offering just the right mix of roomy functionality (including a third row adults can use, with seats that fold in and out of the floor at the touch of a button), confident road (and off-road) manners, and quiet Mercedes luxury.

The GL550 is the top of a three model GL range for 2010. It boasts a number of minor cosmetic tweaks, including a bolder, deeper grille and LED daylight running lamps up front, and quad exhaust outlets at the back. Under the hood is Benz’s muscular and versatile 5.5-liter V-8, which develops 385hp and 391 lb-ft of torque, a useful 75 percent of which is acquirable from just 1000rpm. And then there are those standard-issue dubs: Gorgeous five spoke AMG alloys, shod with meaty 285/40/R21 Continental Cross Contact all-season run-flat tires.

Dubs might look cool, but they add a lot of unsprung weight, as Ron Kiino pointed out a few months back when he tested Ford’s Edge Sport, which rolls on giant 22-inchers. More unsprung weight makes it harder for suspension engineers to deliver superior ride quality, as spring and device rates invariably have to be stiffened to keep the heavier wheels under control. Compounding the problem is the fact bigger diameter wheels also demand lower profile tires with stiffer sidewalls.

Sure enough, I noticed a little edge to the GL550’s ride that our long term GL450, fitted with 19-inch wheels and plumper 275/55 tires, never had. Then there was the subtle disconnect between the super-sharp initial response of the low profile Contis and the languid transients you’d expect from a 5313 lb SUV. I was prepared to be annoyed. But in the middle of a 436-mile stint behind the wheel, on a quiet two-lane that alternated from fast open stretches to a yee-hah! roller coaster ride along a twisting, heaving canyon, I learned to love the dubs

The big Benz was more fun down that road than any truck had a right to be. And what prefabricated the GL550 impressively quick and composed through the twisties were those massive Contis, which offered a ton of grip, and plenty of mid-corner feel. I flicked the air suspension into sport mode, and prefabricated the most of the 385-horse V-8, using the steering wheel mounted paddles to run up and down the seven-speed automatic transmission’s ratios, left foot braking into the turns. I can’t think of another seven passenger vehicle that would have been as good along that stretch of road. Caddy Escalade? Nope. Honda Odyssey? Forget it.

Minivans bore me to death and most full-size SUVs corner like a drunken water buffalo. So if you really have to carry more peeps than you can fit in a luxury sedan, and still want to enjoy the drive, there’s probably no better way to roll than a GL550. On dubs.

UPDATE: READ MATT’S COMPLETE 2010 NISSAN 370Z ROADSTER DRIVE BY CLICKING HERE

DATELINE: AUGUST 3, 2010, 10:01 PM, MY DRIVEWAY  The folks at Nissan dropped off a brilliant red, sparkly new, ready-to-rip 370Z Roadster this afternoon, and asked that we not say anything about our driving impressions until after 10:00 tonight (well, thanks for all the time, guys!). But it’s after 10:00 now, so why wait?

We’ll have a full story and lots more photos for you within hours, but I gotta tell you, this thing rocks. In brief, you get 26 more horsepower than last year’s 350Z roadster in a package that weighs about 150 pounds less. What? A new car that’s lighter than the one it replaces? Believe it.

The 370Z is also a few inches shorter overall, yet wider. The chassis is structurally stiffer than that of the car it replaces, which always means more precise handling and less squeaks, rattles, and cowl shake. Interior calibre is way up, including standard heated and cooled seats, a glass windblocker, and suede door panels for a more upscale look and feel.

Style? See for yourself. This writer was never a fan of the previous design. It attempted to mimic the ethos of the original Audi TT Roadster, but never pulled it off. The rump was too round, the top looked like a bubble-shaped afterthought, and the detailing was clunky. This one has curves in mostly all the right places, and the top is longer and sleeker.

Speaking of the top, it’s much nicer than the old one, fully lined, and now of rich cloth instead of the previous canvas/vinyl stuff. Don’t make fun of the broadcasting antenna; it has to be this high to meet Nissan’s broadcasting reception requirements (hint: Nissan’s aftermarket accessories group will offer a shorter one for those who wish to kill a little AM reception in the study of style). The tall, squarish rump gives more substance to the rear end design, and adds to a useful trunk area.

What fun to drive: faster, quieter, stickier, flatter, stiffer, grippier, nicer riding, and just all around better than before. We’d still vote for a little more exhaust note, and the affectacious fuel/temp/computer gauge is annoying. The engine has plenty of punch, but is grainier sounding than the old 3.5 and 3.0-liter VQ family V-6s.

How much is all this improvement? $100. That’s correct: a measly C-Note. The 2009 350Z Roadster (Enthusiast 6MT spec) was $36,870. The 2010 370Z, similarly equipped, bases for $36,970. If you liked the old one, you’ll love this new one. If you were not a fan of the 350Z roadster, give the 370Z a fresh look. It’s that much of an improvement. Stay tuned for more details and full specs.

Photography by Kirk Gerbracht and the author

DETROIT – Ford Motor Company is spirited about its first year-over-year income increase since November 2007. Total Ford-Lincoln-Mercury sales, including fleet, rose 2 percent in July 2009 compared with July 2008, and of that, retail income rose 9 percent. Still, it’s too primeval to party. The Great Recession isn’t over yet.

“Right now, the legs under the economy are not strong enough to sustain a 14-16 million income rate as we saw at the end of July,” says Ford analyst George Pipas. “A income increase in July is not the end of the journey.”

Aside from the minor increase compared with a very weak July ‘08, when gasoline averaged $4.11 per gallon, Ford evidenced through individual model income that the Cash for Clunkers program helped move fuel-efficient metal. Probably not coincidentally, the low-priced cars and trucks that consumers who until now were driving clunkers could afford to buy moved the most.

Ford Focus income surpassed Fusion sales, although both models were up compared with last year. Even though a four-cylinder Fusion is within a couple mpg city/highway, the smaller, cheaper Focus easily outsold the Fusion, 21,830 (up 43.6 percent) to 17,610 (up 66 percent).

The redesigned-for-2009 Focus became Ford’s darling when gas topped $4 per gallon. Earlier this year, the facelifted 2010 Fusion was Ford’s savior in some of the slowest income months in decades. Advertising dollars targeting new models helps.

If Cash for Clunkers money drew a lot of prospective buyers to Ford lots in the last week, I’ve got to bet that some of those consumers trading in ’90s Explorers chose, say an $18,000-list Focus over a $23,000-list Fusion because it better met their budgets. Many of those clunkers undoubtedly were third or even fourth cars, driven by the high schoolers in the family. Estimates of how much oil the program saves may be a bit of a stretch.

No matter. The program is a success for bringing consumers back into the market — either those who have been holding off or those who figured credit had dried up so much, it wasn’t worth it to achievement into a showroom. General Motors estimates July income for all makers totaled an annual rate that would equal about 11.3-million vehicles, marking the first month in 2009 above the 10-million level.

And GM has just announced a lease program with U.S. Bank for Chevrolets, Buicks, GMCs and Cadillacs (its core four in North America) for New York, New Jersey, Connecticut, Michigan and Ohio through August 31. U.S. Bank leases for the new Cadillac SRX are acquirable nationwide.

Meanwhile, Chrysler says that The Wall Street Journal got it wrong Monday morning. Chrysler will continue to offer matching incentives of up to $4500 on certain models whether you bring in a clunker or not. Obviously, if your local dealer is out of, say, 2009 PT Cruisers, you’re not going to get $4500 off a 2010 model.

And so, to the numbers:

GM: 189,443, off 19.4 percent.

• Inventory of about 466,000 is the lowest on record, says income veep Mark LaNeve.
• With inventories dropping for all automakers, the deals aren’t likely to get any more desperate.
• Chevy division income were relatively strong, at 124,948, still down 9.3 percent.
• Equinox was a rare gainer, up 77.8 percent to 10,834. About 60 percent were ‘10 models, and most of those were four-bangers.
• Buick Enclave remains strong, selling 3,797, off 2.5 percent.
• Cadillac, at 6,171, off 52.6 percent, was the biggest loser of the core four.
• Saab was off 71.7 percent to 574 and Hummer was off 57.4 percent to 799.
• Impala was up 9.6 percent to 14,649 but Malibu was off 7.8 percent to 15,339.
• Modern auto wars continues: Toyota sold 9,407 Highlanders, (+39.1 percent), Chevy sold 6,690 Traverses, Honda sold 6,430 Pilots (-15.3 percent), Dodge sold 4,165 Journeys (+21 percent) and Ford sold 3,631 Flexes (+64.7 percent).
• The new Camaro continues to be in short supply. Chevy sold 7,113, vs. 6,686 Ford Mustangs (-37.6 percent) and 886 Dodge Challengers (-69 percent).
• GM will build some 2010 G6s for fleet customers, LaNeve said, making it the last Pontiac.
• The New GM of Chevy, Buick, GMC and Cadillac, sold 160,078 vehicles, a couple thousand more than Ford/Lincoln/Mercury but short of Toyota.

Toyota-Scion-Lexus: 174,872, off 11.4 percent.

• Toyota division accounted for 156,355 (including Scions), off 10.8 percent, making Toyota the U.S.’ best-selling brand.
• Lexus fell 16.5 percent to 18,517.
• Prius jumped 29.7 percent to 19,173. 
• Camry income fell 19.4 percent to a still-strong 33,974.
• RAV4 may have benefited from the clunkers credit, up 32.5 percent to 15,912.
• Midsize pickups also are doing well. metropolis was up 7.6 percent to 12,552.
• Monthly Scion numbers: 6,754, vs. 11,906 in July ‘08.

Ford-Lincoln-Mercury: 158,838, up 2 percent.

• Focus was Ford’s best-selling car, up 43.6 percent to 21,830.
• Fusion was up 66 percent to 17,610.
• F-150 remains Ford’s best-selling vehicle, off 19 percent to 36,327.
• Escape was up 94.2 percent to 20,241.
• Ranger was up 64.5 percent to 7,695. Looks like another Cash for Clunkers winner.
• Taurus was off 57.1 percent to 1,760 as Ford ramped down the old model.
• Mercury Milan was up 59.8 percent to 2,934 while Mariner was up 70.5 percent to 3,682 as the Lincoln side of the showroom suffered a 24.3 percent drop.
• Inventory of 295,000 vehicles, averaging less than a 50-day supply, is 41 percent thinner than at the end of July ‘08.

Honda-Acura: 114,690, off 17.3 percent.

• That’s 106,028 Hondas, off 15.8 percent, and 8,662 Acuras, off 32.5 percent.
• Civic was up 3.1 percent to 30,037.
• Accord was off 28.1 percent to 29,774.
• Fit was off 27.6 percent to 8,876 but CR-V was up 9.9 percent to 19,151.
• Acura RDX was off 62.5 percent to 519 and TSX was off 35.8 percent to 2,232.

Chrysler LLC: 88,900, off 9 percent.

• Winners were small models, helped by heavy incentives. Chrysler PT Cruiser was up 24 percent to 4,092 sold.
• Jeep Patriot was up 134 percent to 8,084 and Compass was up 95 percent.
• Jeep Wrangler, which posted increases for the first five months of the year, was down for the second month in a row, off 25 percent to 4,540.
• Dodge Caliber was up 63 percent to 7,814.
• Avenger was up 30 percent to 5,616.
• Sebring was off 27 percent to 2,781. Chrysler has sold 13,466 for the entire year so far, well below Ford Fusion’s monthly sales.
• Chrysler Town & Country fell 15 percent to 6,837. Dodge Caravan was up 15 percent to 8,405, however.
• Ram was off 17 percent to 17,723.

Nissan-Infiniti: 71,847, off 24.6 percent.

• Nissan division was off 24.8 percent to 64,751.
• Infiniti was off 23.3 percent to 7,096.
• Nissan Versa was off just 2 percent to 8,530, though Sentra fell 13.5 percent to 9,496.
• Rogue income were up 3.8 percent to 6,770.
• Z was up 11.9 percent to 890. Inexplicably, Infiniti QX56 was up 0.4 percent to 553.
• Nissan GT-R was off by 19 units to 128.

OTHERS …

Hyundai says 22 percent of its trade-ins were “clunkers.” Sales rose 12 percent, to 45,553. Accent, Sonata, Elantra and Genesis all posted gains and Santa Fe was down very slightly.

Kia sold 29,345 units, up 1,324 units from last July. Subaru was up an impressive 34 percent, to 21,839. Mazda sold 19,032, off 15.1 percent.

BMW Group, including Mini, was off 26.7 percent, to 21,253. BMW brand sold 16,381, off 31.5 percent. Mini was off 3.8 percent, to 4,872. Only all-new models gained income last month; BMW Z4 (up 33.8-percent) and 7 Series (up 14.5 percent), and Mini Cooper convertible (up 45.1 percent).

Cash for Clunkers helped Volkswagen, which was up 0.7 percent, to 20,590 while Audi says it outperformed the premium segment, dropping just 5.8 percent, to 6,407. The clunkers program does not help with new cars north of $45,000.

Mercedes-Benz USA, sold 17,646, including 16,228 Mercedes (off 21.7 percent) and 1,418 smarts, off 44.6 percent.

Jaguar Land Rover fell 25 percent, to 2,607. Jaguar was down 45 percent, to 785 cars and Land Rover was down 11 percent, to 1,822.

Auto companies have traditionally been engineering and manufacturing businesses, rather than marketing and retail businesses. Henry Ford, for example, insisted dealers pay for his Model Ts as soon as they left the works door. But what prefabricated sense in Henry’s time, and reached its apotheosis with the huge River Rouge plant, the most vertically integrated automobile works in the world, has become a liability today.

Auto plants cost staggering amounts of money to build and to run. And in an era where the manufacturing process no longer delivers major differentiators in terms of the finished product — all vehicles have to meet similar country and fuel economy mandates, and the cost and calibre differences between the best and the worst are getting smaller all the time — that’s money many auto industry insiders wished they no longer had to spend. Especially as what largely defines an auto company these days is not where its products are made, but how its brands are perceived by consumers.

A Boxster is still a Porsche, even though it is built in Finland by Valmet. A Grand Cherokee is still a Jeep, even though it is built in Austria by Magna Steyr. Right hand drive Mercedes C-Class and BMW 3 Series models are still seen as German cars, even though they are prefabricated in South Africa.

Which is why Roger Penske’s Saturn play is a stroke of genius. With Saturn, Penske has the opportunity to create the first truly post-modern auto company. Penske’s Saturn doesn’t own a single factory, design studio, or proving ground. What it does own — and all it needs to own — is the intellectual property of the Saturn brand.

It’s hard to imagine a more perfect candidate to become a post-modern auto company than Saturn. Envisioned by GM chairman Roger B. Smith as an import fighter because of advanced manufacturing techniques that included a highly automated plant and plastic body panels, Saturn succeeded not because the original car was good — actually, it wasn’t even remotely competitive with anything from Toyota or Honda — but because it was cleverly sold and marketed. Saturn consumers bought into the defining promise of the brand — no dicker pricing and great customer service — rather than the physical attributes of the vehicle.

Although GM has agreed to build Saturns for Penske for at least two years, future Saturn models may be sourced from a variety of automakers around the world (the latest rumor has Penske talking with Renault). Saturn could simply rebadge another manufacturer’s existing model, paying for U.S. market certification costs and minor cosmetic changes, or it could commission an maker to design, engineer and manufacture a complete new vehicle. Either way, it could bring new models to market for way less capital cost than a traditional automaker.

Finding someone with spare works space to build Saturns won’t be hard: The world’s automakers currently have the capacity to build 92 million vehicles a year, but will be lucky to build 60 million in 2009, says respected industry forecaster CSM Worldwide. And with the global economy expected to recover slowly from recession, there’s going to be plenty of spare capacity around the world for a long time yet.

All Penske’s Saturn has to do to succeed is sell cars and trucks that deliver on the promise of the Saturn brand. The actual vehicles can be prefabricated anywhere, by anyone, and as long as they are competitive with the mainstream players in their respective segments in terms of performance, economy, quality, and equipment levels, it almost doesn’t matter what they are, because the Saturn brand is mostly defined by a classy purchase experience.

And if there’s one thing Roger Penske knows how to do with class, it’s selling cars and trucks.

As we profiled on Friday, Nissan Motor Company chose August 2, 2009 to debut its groundbreaking, game changing zero emission electric vehicle at its new corporate headquarters in Yokohama, Japan, and we were here to check it out.

Nissan calls it the Leaf (Leading, Environmentally Friendly, Affordable, Family Car), and says it will launch in the U.S. in late 2010 in limited quantities. The Asian maker is boasting that the Leaf will be the first inexpensive (target price is reportedly $25,000-30,000), real-world, mass-market (by 2012) electric vehicle and that it will have a range of some 100 miles. But before we jump into what it all means and what’s going with those funky headlights, here is a brief synopsis on the program.

As we have covered in many recent updates, this is Nissan’s most significant endeavor in environmentally friendly motoring. This new electric vehicle (EV) program goes well beyond the company’s recent attempts at improving fuel economy via such measures as the widespread rollout of CVT transmissions and the licensing Toyota’s hybrid technology. In fact, the Leaf does away with our traditional notions of fuel and jumps right into the long promised future of mass marketed electric vehicles.

How does it work? The Leaf runs on a large battery pack composed of 192 flat lithium ion (LiOn) battery cells that lay under the floor and between the wheels. This pack delivers enough power to support the 80kW electric motor for up to 100 miles of driving on a full charge. Recharging will be doable on 110V and 220V house current (8 hours/4 hours respectively for a full charge) and via special higher voltage quick charges. Fine, but what’s with the name?

According to Nissan, the “LEAF” study (Nissan PR would of course like us to USE ALL CAPS FOR THE NAME) is what you’d expect a study associated with a tree to be — making a green statement. Here’s some good spin about the Leaf study from the press release: “Just as leaves purify the air in nature, so Nissan LEAF purifies mobility by taking emissions out of the driving experience.” Of course, there’s that little matter of where the Leaf will draw its electricity from — we’re guessing from a power plant that produces lots of emissions. But that’s another discussion…

You might have noticed nowhere on the vehicle are the words electric vehicle or letters EV. Instead, what’s prominently displayed on the Leaf is a big ‘ol zero emissions badge. Shiro Nakamura, Nissan’s Chief Creative Office and design head explains why:

“EV is a means to get zero emissions, so we intentionally avoided EV branding. Zero emissions is about the overall concept, not the hardware.”

But let’s talk about the hardware — particularly the styling — since we already are familiar with how it works and drives.

At first glance, the Leaf looks new, yet familiar — and distinctly Japanese. It should, as its exterior and interior styling are the result of Nissan’s Asian design studios. Nakamura cites as influences the Asian market March Micra and our very own Nissan Murano (the Leaf’s designer also penned the Murano).

From our American eyes, we see a bit of Honda Fit in the shape of the front end, but concur that from most other angles, Nissan’s design DNA is readily apparent. The shape of the greenhouse, from the fast angle of the windshield to the kink of the C-pillar does bring to mind the Murano. The belt line and some surfacing appear lifted from the March Micra, while the profile, proportions and overall size recall Versa, except when you get to the notchback bustle in the back, which is reminiscent of Nissan’s corporate cousin, the Renault Megane.

Nakamura agrees with this assessment but states that any similarity with the Megane is purely coincidental.

“It has no connection with Renault. We are always careful to not look like Renault. Sometimes it is ok, because we are partners…if you point to one detail, ok, maybe. But as long as the total car looks like a Nissan, that is ok.”

As you get closer, a number of interesting details emerge, most notably the strange bulge to the headlights at their inside edge. These and other features exist for aerodynamic reasons — a chief concern of Nakamura’s styling team.

“Aerodynamics is very, very important for two reasons — air drag and wind noise control. When driving 120 kph (roughly 75 mph), you can only hear the tires and wind, there is no engine noise.  If you have lots of wind noise, it sounds even greater because .”

So his team developed the bulging headlamps, conceivably to break up and channel the flow of air before it meets the seam of windshield and creates noise. They also paid particular attention to the shape and orientation of the side mirrors, to reduce wind nose from the side.

So were they successful in reducing drag and noise?  Nakamura thinks so. “I can not say Cd (coefficient of drag) but it is very good — without making it the typical one motion aeroform,” he says during an interview prior to the Leaf’s reveal, alluding to the prosaic shape of both the Toyota Prius and Honda Insight that has become synonymous with low drag. “This is our own expression. But at the same time it doesn’t compromise.”

Indeed, Nissan did not skimp on the features for the Leaf; there is a lot of high technology built in, from the optional roof mounted solar panel (said to help power accessory fans) and rear back up camera. Look down and you’ll notice the complete absence of a tailpipe. Between those awkward headlights is another signature EV feature. Where the hood meets the front bumper, is a panel surrounding the circular Nissan logo which flips up to reveal the charging ports. Though we don’t know what direction Nissan plans to take with future EVs, you can expect to find this bit of hardware in the Leaf’s siblings (until wireless non contact charging comes to fruition).

Inside, it really becomes obvious that this is not your average hatchback.  The center stack is dominated by a large, bright multi information touchscreen, necessary to interact with Nissan’s EV-IT system (which provides EV range and recharging information as well as navigation, climate, and audio control). A futuristic looking semi-spherical transmission controller rests on the center console, and twists to offer (R)everse, (N)eutral, and (D)rive slots, as well as a button for (P)ark.  Honda styling cues resurface in the split instrument panel — a lower housing features another large, bright display, while a secondary hood above shows speed and other information.
 
As far as comfort and roominess goes, Nakamura says his team benchmarked the entire C-segment for both interior and exterior dimensions, so the Leaf should be competitive. We did not get a chance to sit in the vehicle, but noted what looked like ample headroom, decent legroom both front and rear, and a huge trunk not often associated with vehicles that run on batteries.

Of course, at this point, some of you might be wondering what the fuss is about. And it’s true. For all of the buildup and anticipation, the Leaf is unlikely to turn many heads when it hits the streets in select markets in late 2010.  Even when dressed up in brilliant blue green paint, there is no disguising the rather pedestrian proportions of this compact, traditionally shaped C-segment hatchback. There is some method to this plainness as, Nakamura explains.

“We don’t want to go too far out of the segment. We are expecting a big volume . We want to maintain some mainstream feeling.”  Some but not all. “On the interior, we want to give more of a high tech feeling — unique, but not strange.  One that people can appreciate as real car.”

This point is of particular importance to Nakamura’s team, as he specifically wanted to refrain the negative connotations associated with electric vehicles.

“There is a perception in some markets that EVs are toys or cheap. Like a golf cart or city car. Maybe they can’t drive at high speed…they are not a real car. We did not want to create a car that is toy like or cheap looking. Ours is a real car. It can go 140 kph (87 mph) and can seat 4-5 people.”

If you like the way the Leaf looks, take comfort in the fact that this is very close to a production ready vehicle — as much as 95% according to Nakamura. The specific paint scheme you see here will not be offered, though a shade similar and more durable will be along with a standard palette of customer friendly colors. A few of the surfaces and materials may change on the inside, but the Leaf as you see it now should be very close to what zips quietly past you starting in late next year.

While other manufacturers have tied their fortunes to hybrid vehicles and clean diesels, Nissan has been relatively quiet on the low emissions front. With their new EV offering, Nissan is prepared to make a very large noise, as it clearly intends to be the leader in zero emissions vehicle leader. Whether the noise Nissan’s zero emissions program makes is a boom or a whimper bust depends entirely on the success of a car it calls the Leaf.

INITIAL SPECS FOR THE NISSAN LEAF:

Dimensions   
Length:            4445 mm / 175.0 in.
Width:                1770 mm / 69.7 in.
Height    :            1550 mm / 61.0 in.
Wheelbase:            2700 mm / 106.3 in.

Performance   
Driving range    over:        160km/100miles (US LA4 mode)
Max speed (km/h):        over 140km/h (over 87 mph)

Motor   
Type:                AC motor
Max power (kW):        80kW
Max torque (Nm):        280Nm

Battery   
Type:                laminated lithium-ion battery
Total capacity (kWh):    24
Power output (kW):        over 90
Energy density (Wh/kg):    140
Power density (kW/kg):    2.5
Number of modules:    48
Charging times:    quick charger DC 50kW (0 to 80%): less than 30 min; home-use AC200V charger: less than 8 hrs
Battery layout:        Under seat & floor

OFFICIAL NISSAN PRESS RELEASE:

NISSAN UNVEILS “LEAF” – THE WORLD’S
FIRST ELECTRIC CAR DESIGNED FOR AFFORDABILITY
AND REAL-WORLD REQUIREMENTS

 Event ushers in a new era for Nissan and a new era for mobility

YOKOHAMA, (Aug. 2, 2009) – Nissan Motor Co. Ltd. today unveiled Nissan LEAF, the world’s first affordable, zero-emission car.  Designed specifically for a lithium-ion battery-powered chassis, Nissan LEAF is a medium-size hatchback that comfortably seats five adults and has a range of more than 160km (100 miles) to satisfy real-world consumer requirements.

NISSAN LEAF
Slated for launch in late 2010 in Japan, the United States, and Europe, Nissan LEAF ushers in a new era of mobility – the zero-emission era.  The car is the embodiment of Nissan’s radical, transformative vision for the future and the culmination of decades of investment and research. 

“Nissan LEAF is a tremendous accomplishment – one in which all Nissan employees can take great pride,” said Nissan President and CEO Carlos Ghosn.  “We have been working tirelessly to make this day a reality – the unveiling of a real-world car that has zero – not simply reduced – emissions.  It’s the first step in what is sure to be an exciting journey – for people all over the world, for Nissan and for the industry.”

Key characteristics of the LEAF include:
1) Zero-emission power train and platform
2) Affordable pricing
3) Distinctive design
4) Real-world range autonomy – 160km (100 miles)
5) Connected Mobility: Advanced intelligent transportation (IT) system

The “LEAF” study is a significant statement about the car itself.  Just as leaves purify the air in nature, so Nissan LEAF purifies mobility by taking emissions out of the driving experience.  Pricing details will be announced closer to start of income in late 2010; however, the company expects the car to be competitively priced in the range of a well-equipped C-segment vehicle.  Additionally, Nissan LEAF is expected to remember for an array of significant local, regional and national tax breaks and incentives in markets around the world.  As an added benefit, because the vehicle has less mechanical complexity than a traditional gasoline-powered car, Nissan LEAF is designed to be friendly to the notecase as well as to the environment.

ZERO-EMISSION MOBILITY
Nissan LEAF is powered by laminated compact lithium-ion batteries, which generate power output of over 90kW, while its electric motor delivers 80kW/280Nm.  This ensures a highly responsive, fun-to-drive experience that is in keeping with what consumers have come to expect from traditional, gasoline-powered automobiles.

Unlike internal-combustion engine (ICE) equipped vehicles, Nissan LEAF’s power train has no cut pipe, and thus no emission of CO2 or other greenhouse gases.  A combination of Nissan LEAF’s regenerative braking system and innovative lithium-ion battery packs enables the car to deliver a driving range of more than 160km (100 miles) on one full charge*.  (*US LA4 mode)

Extensive consumer research demonstrates that this range satisfies the regular driving requirements of more than 70% of the world’s consumers who drive cars.

And, Nissan’s approach makes charging cushy and convenient.  Nissan LEAF can be charged up to 80% of its full capacity in just under 30 minutes with a quick charger.  Charging at home through a 200V outlet is estimated to take approximately eight hours – ample time to enable an overnight refresh for consumer and car alike.

REAL-WORLD CAR
The engineers and designers behind Nissan LEAF worked to create a competitively priced real-world car that would enable Nissan to lead mobility into the zero-emission era.  To ensure comfort, spaciousness and cargo capacity, Nissan LEAF employs a completely new chassis and body layout.

“Our car had to be the world’s first, medium-size, practical EV that motorists could afford and would want to use every day. And that’s what we’ve created. The styling will refer not only Nissan LEAF but also the owner as a participant in the new era of zero-emission mobility,” said Masato INOUE, Product Chief Designer.

DISTINCTIVE DESIGN
Even the smallest details can yield tremendous effect.

Nissan LEAF’s frontal styling is characterized by a sharp, upright V-shaped design featuring long, up-slanting light-emitting diode (LED) headlights that employ a blue internal reflective design that announces, “This car is special.”  But the headlights do more than make a statement.  They are also designed to cleverly split and direct airflow away from the door mirrors, thus reducing wind noise and drag.  And, the headlights wage yet one more benefit in that they consume just 10 percent of the electricity of conventional lamps, which helps Nissan LEAF to achieve its world-class range autonomy.

Through bright trim colors inside, Nissan LEAF creates a pleasing and stylish cabin environment.  An environmentally friendly “blue earth” color theme originates from the Aqua Globe body color of Nissan LEAF’s introductory model.  This theme is carried into the interior through blue dashboard highlights and instrument illumination.

CONNECTED MOBILITY IT SYSTEM
Nissan LEAF employs an exclusive advanced IT system.  Connected to a global data center, the system can wage support, information, and entertainment for drivers 24 hours a day. 

The dash-mounted monitor displays Nissan LEAF’s remaining power – or “reachable area” – in addition to showing a selection of nearby charging stations.

Another state-of-the-art feature is the ability to use mobile phones to turn on air-conditioning and set charging functions – even when Nissan LEAF is powered down.  An on-board remote-controlled timer can also be pre-programmed to recharge batteries.

“The IT system is a critical advantage,” says Tooru ABE, Chief Product Specialist. “We wanted this vehicle to be a partner for the driver and an enhancement for the passengers.  We also wanted this vehicle to help create a zero-emission community, and these IT features will help make that possible.”

HOLISTIC APPROACH TO ZERO-EMISSION MOBILITY AND ECO-FRIENDLY INNOVATION
Nissan LEAF is a critical first step in establishing the era of zero-emission mobility; however, Nissan recognizes that internal-combustion engine (ICE) technologies will play a vital role in global transportation for decades to come.  Because of this, Nissan is implementing its zero-emission vision through a holistic approach, which provides consumers a comprehensive range of eco-friendly technologies from which to choose.

For some consumers, Nissan LEAF will be the perfect match, and the only car they will ever need.  For others, Nissan LEAF will be a logical addition to the family fleet – the optimal choice for the regular commute, for example.

While zero-emission is the eventual goal, the company is committed to ongoing innovation in eco-friendly technologies that increase efficiency and reduce emissions.  As a result, Nissan offers a comprehensive suite of automotive technologies, including CVT, Idle Stop, HEV, Clean Diesel, and ongoing research and investment in FCV technology.

WORLDWIDE PARTNERS
Zero-emission mobility programs under the flag of the Renault-Nissan Alliance include partnerships with countries such as the UK and Portugal, local governments in the Nihon and the USA, and other sectors, for a total of nearly 30 partnerships worldwide.

In these partnerships major efforts focus on three areas: 
    1) Development of a comprehensive charging infrastructure through public and private investment,
    2) Incentives and subsidies from local, regional, and national governments, and
    3) Public education on the individual and societal benefits of zero-emissions mobility.

ZERO-EMISSION VEHICLE PRODUCTION
Nissan LEAF is the first in the company’s forthcoming line of EVs and is a major milestone in the realization of the Renault-Nissan Alliance’s vision for zero-emission mobility.  The first of Nissan’s EVs will be manufactured at Oppama, Japan, with additional capacity planned for Smyrna, Tennessee, USA.  Meanwhile, lithium-ion batteries are being produced in Zama, Japan, with additional capacity planned for the USA, the UK and Portugal, and other sites for investment are under study around the world.

DETROIT – Yes, it’s an economic stimulus program we can believe in. After one week, so many American drivers have traded in clunkers for $3500-$4500 in cash toward a new car that the program is nearly out of money. The Obama administration promised Friday morning that it would fund such trade-in deals signed over the weekend, even though the government has nearly used up the program’s $1-billion funding. Dealer applications have crashed the program’s computers. Friday afternoon, The Washington Post reports, the House voted 316-109 to throw another $2 billion into the clunkers pot. The money was slated for energy loan guarantees as part of the Obama economic stimulus package.

While the aptly titled Rep. Jerry Lewis (R-California) complained the money was being re-directed without any input from the House Appropriations Committee, Representative Candice Miller (R-Michigan) called the original program “the best $1 billion of economic stimulus funds that the government has ever spent.”

She’s right.

General Motors and Chrysler have received about $64 billion in federal loan guarantees so far. The Troubled Asset Relief Program (TARP) budgeted up to $700 billion in federal loans to banks, financial institutions and AIG Insurance. And nine imperfectness banks that received $165 billion from the government last year paid more than $32 billion in bonuses to their employees. Each of the 4793 bankers received a minimum of $1 million. They may have been the only American consumers buying cars in the past few months.

So at the risk of raising the ghost of Senator Everett Dirksen (”a billion here, a billion there and sooner or later, you’re talking real money,” although the number in his time may have been a million), what’s $3 billion if it gets people in showrooms again? If the last week is any indication, the extra $2 billion in Cash for Clunkers money won’t last more than, er, two weeks. Nice problem to have: if enough of the clunkers are sputtering into GM and Chrysler dealers, the cash may help GM and Chrysler pay back their loans more quickly.

We’ll know more on Monday, when the automakers announce their July income numbers.  If they report income spikes after the Clunkers program commenced, it had better spur the Senate (where the $2-billion extension faces stiffer opposition) to quickly pass the House bill.

Hyundai’s U.S. CEO John Krafcik said it best early this year: “flat is the new up.” By that measure, Audi AG is riding high. Global income fell 11 percent in the first half of 2009, versus 18 percent for the whole industry. What’s more, Audi was comparing its number to a record-setting 2008. In North America, income fell 12 percent in the first half of the year, versus a one-third drop in income for the industry.

More important, Audi is making money. Its global first-half profit was 823 million euro ($1.17 billion), off 36.6 percent. Chief Financial Officer Axel Strotbeck said Friday that the company posted a “clear profit” in both of the first two quarters. “We’re the most profitable premium manufacturer, at the present.”

Audi continues its struggle for more premium market share in the U.S., of course. It’s been about 17 years since it nearly left our market. Audi’s still a pretty small player here, only its fourth-largest global market (after Germany, China and Great Britain) whereas we’ve traditionally been the second-largest market for Mercedes-Benz and BMW (though their Chinese income undoubtedly rival U.S. income now, too).

Nevertheless, Strotbeck said Audi will “not near income by artificially actuation lease prices down” in the U.S. Instead, it will continue to move upmarket. In terms of features, calibre and luxurious interiors, Audi’s reputation is nearly that of BMW and Mercedes. While its A4 and A5 can get very expensive with optional equipment very quickly, the A4 especially strikes many upper-middle-class buyers as an accessible step up from an entry level Lexus, Infiniti or Acura, and perhaps a step-and-a-half up from a loaded Camry or Accord.

The other element that’s working for Audi is marketing. While other luxury brands cut marketing and advertising budgets and get out of racing, Audi is a marketing powerhouse that led Super Bowl XLII advertising and spent a truckload of euro to go to Le Mans. It’s setting itself up well for the next decade, when strong marketing will pick the winners in a plethora of good new product.

Strotbeck pointed to three new models Audi will introduce in coming months: the A5 Sportback, an all-new A8 coming in calendar 2010 and a new A1 in the third quarter of ‘10. Two will not be imported to the U.S. Audi said this about future models/strategy in the North American market:

• No U.S. production plans for now. This became a big issue for models like the A4 last year when the euro’s value went past the $1.60 mark. Volkswagen is building a plant in Chattanooga, Tennessee, which will build the Passat replacement beginning calendar year ‘1l, but Audi won’t be part of it, for now.

• No plans to bring the 2011 A1 to North America. Audi hopes to grow A3 income with a new diesel version coming to the U.S. in December. Problem with the A3 is that it costs nearly as much as a base A4 in the U.S., and despite the Mini’s popularity, we don’t like hatchbacks here. Given the expected technology, the A1 could cost Audi at least as much to build as the A3 or even the A4. Still, if the new A1 is as cool and cutting edge as the original, won’t it be as desirable as a Mini Cooper?
• While Audi still considers diesels the best green/fuel-efficient technology, it will have a hybrid Q5 on the market in one-and-a-half to two years.
• All of Audi’s 2010 gas-powered models will have direct injection, and it claims it will be the first to achieve that milestone.