Toyota to build hybrid batteries in North America

Even with the $5,000 difference between the Prius and non-hybrid Toyotas, there was a time when Toyota lost money on the car. Even when the car entered the black, and even though they halved the cost of the hybrid system from one generation to the next, Toyota still didn't make the margins on it that they did with their go-to sedans. Yet with plans to start making batteries for the Hybrid Synergy Drive in the U.S., Toyota says it should be able to halve costs again, and bring the next-gen Prius profit to near parity with the Corolla.

Toyota doesn't know where or when it will start building batteries in the States. The company says "it's difficult to make the main parts of batteries outside of Japan," but didn't explain why that was the case. From 2010, the Prius will be manufactured in Toyota's Mississippi plant, however, that doesn't mean the battery plant will be nearby.

Toyota moved up the date to offer the plug-in Priuses to government and fleet operators to the end of 2009. Right now, Toyota says the Prius gets 13 miles on battery power alone. If the plug-in Prius does arrive in a year or so, and with a substantially higher range -- and that is a ginormous "if" -- then it has a chance of upstaging the Chevy Volt, which appears to be what Toyota is aiming for.

Audi A4, Q5 could be built Stateside

Click above for a high-res gallery of the 2009 Audi Q5.

Taking a lesson from BMW, who have been successfully manufacturing cars and SUVs in Spartanburg, South Carolina for more than a decade, Audi may seek manufacturing capabilities for their A4 sedan and Q5 SUV in the States. The new Volkswagen factory in Chattanooga, Tennessee, just announced last week, may be tasked with building upwards of 200,000 vehicles per year -- including the two Audis. Estimated to cost $973.5 million, the 1,359 acre plant is large enough to handle the domestic production for VW, Audi, and even shareholder Porsche... although the proud automaker from Stuttgart vehemently denies even considering it.

Mercedes cutting production in Alabama

As consumer demand for thirsty vehicles continues to wane, Mercedes-Benz is being forced to slow production at the Alabama plant which manufactures their GL- and ML-Class SUVs and the R-Class crossover. Sales of Mercedes domestic trucks fell to 5,090 vehicles in June, representing an 11.9 percent decline from the same period last year. The move marks the first time in more than a decade of U.S. production, that the German automaker has reduced output due to market and economic conditions. The cuts will affect more than 4,000 of the plant's employees, and unfortunately will trickle-down to hurt the countless other companies who provide just-in-time components to support Mercedes production.

Volkswagen considering offering Polo in U.S. market

The Rabbit is currently the most fuel-efficient gasoline-powered vehicle in Volkswagen's U.S. fleet, getting around 26 mpg on the EPA's combined city/highway cycle. But V-Dub wants something better for the U.S. market. Speaking with Bloomberg, VW CEO, Stefan Jacoby revealed that the automaker is considering bringing a subcompact vehicle, similar to the Polo, to the U.S.

With the Toyota Yaris rated at 32 mpg and the Honda Fit coming in at 31 mpg (combined city/highway), Volkswagen is hoping to meet or exceed the competition. While it's unlikely we'll see the current Polo on U.S. shores anytime soon, it's expected that the next generation will be available in the States in 2010 when the new Jetta is released, followed by a new midsize sedan that will replace the Passat.

The additions and revisions to VW's product line is an effort by the automaker to boost U.S. sales to 800,000 units by 2018, nearly tripling the 230,571 vehicles it sold in 2007. VW is also looking to build a new engine plant in Mexico, along with its recently announced Tennessee plant.

Eaton tapped to produce superchargers for Audi

Audi is using American supercharging muscle to give its new 3.0 liter TFSI V6 the desired wallop. Eaton Corporation has been enlisted by Ingolstadt to supply positive-displacement, Roots-type blowers that will work with direct injection to deliver 290 horsepower and fat, responsive torque down low on the tach. Roots blowers aren't anything new, but Eaton has refined the design with its latest Twin Vortices Series units. The TVS units add a fourth lobe to the rotors, and crank up the twist to 160 degrees for maximizing the amount of atmosphere the blower can pump out. Jettisonning turbochargers may help packaging when the V6 is crammed into the S4's engine bay, as well as reducing complexity by simplifying intake plumbing. 310 lb/ft of torque at 2,500 rpm will put a grin on anyone's face, and we'd expect to see this engine proliferate into many Audi engine bays. Press Release after the jump.

Opel and Vauxhall versions of Volt to be built in U.S.

Click above for more shots of the Opel Flextreme concept

When the Volt concept was first unveiled, GM was not sure how to badge European versions of the E-Flex cars. Apparently, the decision has been made and the first Euro-bound EV's from GM will be badged as Opels, with a Vauxhall version coming shortly thereafter. All three models of the E-Flex chassis will be built in Detroit atop the next-gen Delta compact car platform which was designed to carry a large lithium ion battery pack along with a range-extending engine. Though the Europeans would likely favor a diesel powerplant, it seems that the first-generation of all three E-Flex vehicles will use a gasoline-powered engine for on-the-fly battery recharging.

It goes without saying that the Volt and its Euro-clones will be the most expensive vehicles built on the Delta platform, with U.S. pricing estimated to be at least $40 grand. Across the pond, the Opel and Vauxhall E-Flex's will be saddled with at least a 10,000 euro premium. The price of gasoline, which is significantly higher in Europe than in the States, along with any government assistance for purchasers of the EVs, will determine how quickly customers will recoup that added investment.

Alas, Z/28, we hardly knew ye

The all-new Camaro we've been waiting on for two years is just a few days from showing its production face, and we've already got some bad news. The General has dumped plans for the Z28. The highly anticipated Camaro variant was rumored to feature the same supercharged 6.2L engine that powers the brawny Cadillac CTS-V with well over 500 ponies. Without the Z28 in the picture, the still powerful SS edition will be the range-topper for now, and we're expecting power to be just under that of the base Corvette's 436 hp.

While this is certainly bad news for Camaro enthusiasts, it does make sense in the face of $4.25 per gallon gas to cancel a supercharged monster that's likely to be eligible for a hefty gas guzzler tax. What doesn't make sense is canceling the Z28 moniker when it means much more to Camaro fans than SS ever will. There goes the aftermarket for louvers and mullet wigs. Thanks for the tip, Doug!

AM General to produce Standard Taxi cabs?

It sure ain't pretty, though beauty, in this case, is likely in the eye of the beholder. A few years back, a new take on the taxi was provided by Standard Taxi, a company based in Troy, Michigan. The design for the purpose-built people hauler uses GM running gear and is able to haul four passengers in relative comfort. We hadn't heard a peep from the company until today when we learned that Standard is now working on negotiations with AM General to build the vehicle in its plant in Mishawaka, Indiana, where AM General builds the Hummer H2 SUV and SUT. So far, no announcements have been made regarding whether or not the plant would continue working full-time in the face of lagging Hummer sales, though we imagine that plenty of excess capacity is available. According to AM General, the deal would in no way impact the assembly of military Hummer models.

We can't say whether a production version of the Standard Taxi would feature the pushrod 4.3-liter V6 that the concept had underhood, though there are plenty of options from the GM parts-bin from which to pilfer. A Standard Taxi equipped with GM's 2-Mode hybrid system could prove to be extremely well-suited for taxi duty in some of the world's toughest environments.

Nissan's diesel Maxima may be manual only

Sales of Nissan's first clean diesel in America could be severely hampered before the car even gets a chance at life. According to Nissan, the diesel engine slated to power the Maxima could come equipped with a manual transmission as its only option. We honestly can't imagine Nissan going through with this idea. Diesels already have a mildly bad reputation in the states due to some of the not-so-great oil-burning products our market has been cursed with in the past, and Americans have a profound penchant for choosing an automatic transmission over a manual. Therefore, endowing the Maxima diesel with a stick as the only option seems like a death knell in terms of sale, although it's probably the gearbox that we'd choose as enthusiasts. Considering how well Nissan has done with its CVT transmission, we wonder if the company could find a way to pair it with the Renault-derived diesel slated for the Maxima.

For what it's worth, the Japanese market has not been properly introduced to the diesel engine, either. Nissan's first product with a new clean diesel for its home turf will be the X-Trail SUV. The assorted powers-that-be at the company have already decided that a manual tranny shall be the only option on that model due to the M9R engine's inherent turbo-lag.

Honda presents first customers at FCX Clarity Job 1

Today is Job 1 for the world's first series production fuel cell car as Honda executives and the first customers for its FCX Clarity looked on. Honda CEO Takeo Fukui and American Honda EVP John Mendel were also there to watch as the first production FCX Clarity was completed and driven off the line. Joining the Honda bosses were Ron Yerxa, Jon Spallino and Lauren Harris. Those three along with Jamie Lee Curtis, her husband Spinal Tap lead guitarist Christopher Guest and business owner Jim Salomon will be the first customers to take possession of their Claritys when they arrive in Southern California next month.

Honda put in a dedicated assembly line at its Tochigi New Model Center to produce the 200 Clarity units that are planned for delivery over the next couple of years. Currently Honda is only leasing the cars (for three years at $600/month) in areas where there is a already a dedicated supply of hydrogen and enough places to buy it. That means the Los Angeles area first, along with Japan. Three Los Angeles area Honda dealers have been named to provide service and support for the hydrogen fueled four passenger Accord sized sedan in case a cup holder or the car's very high-tech hydrogen fuel cell needs fixing. All we know is that these new FCX Clarity owners better have some big pockets for those oversized keys.

Porsche Panamera to start production next April

We've known about the Porsche Panamera for more than two years, and it appears we've still got another year to go before the sedan hits dealer showrooms. AutoTelegraaf is reporting that the Panamera will begin production next April, with the goal of producing 20,000 four-doors per year. The 4,000-pound Porsche will be available with a choice of 300 hp 3.6L V6, a 4.8L V8 packing 405 ponies, or 520 hp with forced induction, and prices are rumored to be between €80,000 and €125,000. Word on the street is that the V6 won't be available until 2010 and a hybrid will follow for 2011.

The Panamera has been in the headlines for a long time, and hopefully the talented designers in Stuttgart have been taking their time making the beefy sedan look better than the preproduction model above. We find it hard to believe that Porsche will make an ugly vehicle, though. The Cayenne doesn't count.

Kia looking to assemble vehicles in Georgia

Since Hyundai/Kia has dropped the idea of a pickup truck, Kia's new assembly plant in West Point, Georgia will instead turn out small cars. The first vehicle that will roll off the assembly lines in 2009 is Kia's Sorento, with body on frame construction well suited to a pickup. What doesn't seem primed for a pickup, however, is a softening market, so Kia has decided to redouble its efforts on small cars.

No details about the upcoming car were discussed, only that we should expect a Spectra-sized C-segment vehicle that may be shared with Hyundai. Hyundai CEO Kim Dong-Jin confessed to the organization losing its way slightly by slacking off on small, high volume cars and going after larger vehicles to bolster the brand images and offerings. A return to its roots will please dealers, and the Genesis Coupe will kick off a turbocharging frenzy at Kia, which will focus on small displacement forced induction engines.

2010 Chevy Camaro caught in first stages of production

We don't know how how someone got access to take these pictures or whether someone is getting in a lot of trouble as we speak, but they have infiltrated the internets overnight. So now we too bring you photos of the 2010 Camaro in its first stages of production. There are apparently two preproduction units on the line in these photos as we see the body shells advance from stage to stage and get molested by a dozens of potentially suicidal robots. In fact, not a single human can be found anywhere in these pictures, which is just as well considering the trouble GM's had with striking workers lately. As for where these pictures were taken, our best guess is GM's plant in Oshawa, Ontario since that's where actual production of the Camaro is scheduled to take place. Peruse the gallery below and see if you can pick out any interesting details we might've missed about the car. Thanks for the tip, everyone!

Strike forces GM to suspend truck and SUV orders

General Motors has informed its dealers that production of some of its 2008 full-size trucks and SUVs has been halted due to the ongoing American Axle strike. The affected vehicles include the GMC Yukon, Denali, Sierra heavy-duty regular and extended cab, its commercial-duty pickup and variants of Chevrolet trucks and Tahoes. According to the General, a basic lack of parts is the reason for the stoppage and dealer orders for the week of May 8th and May 15th have been cancelled. While a lack of production is bad news for any automaker, we can't help but think that it couldn't have come at a better time for the General as SUV and truck sales are down overall.