Rare fungus munches cellulose, pees diesel, solves energy crisis?

I know what you're thinking. What the hell is a fungus-flocked petri dish doing being featured a car blog?

Gilocladium roseum is its name. Dr. Gary Strobel discovered it in the rainforests of Patagonia. What he's found could be the solution to our energy needs for the next century and beyond.

How? Because it removes a very energy-intensive and wasteful step in producing biofuels.

Let's use corn-based ethanol as an example. In order to turn corn into a usable fuel, the cellulose fibers and sugars have to be fermented to unlock the carbon molecules trapped within. Those carbon molecules then have to be synthesized into complex hydrocarbons. In order for this to happen on an industrial scale, both steps require a lot of heat and a lot of pressure.

And the microbes used in fermentation are very picky eaters. They'll happily gorge themselves on simple sugars like those in an ear of corn. But throw a corn stalk into the mix and they just turn up their little noses. At most ethanol distilleries, the stalks are simply tossed out.

So a lot of the plant gets wasted and what is used takes a lot of energy to process.

Gilocladium roseum can solve both of these problems. Strobel discovered that the fungus consumes wood and synthesizes it into the same kinds of hydrocarbons found in diesel fuel. Strobel has dubbed the secretions "myco-diesel."

"A step in the production process could be skipped," Strobel said in a press release.
That said, Strobel admits that industrial production is a long way off.

"This report presents no information on the cost-effectiveness or other details to make G. roseum an alternative fuel source," Strobel and his team wrote of their discovery. "Its ultimate value may reside in the genes/enzymes that control hydrocarbon production, and our paper is a necessary first step that may lead to development programs to make this a commercial venture."

The next step involves researching the fungus' genome. Work has already begun under the direction of Dr. Strobel's son Scott, who chairs the department of molecular biophysics and biochemistry at Yale University. Montana State University now holds a patent on G.roseum and the myco-diesel process.

With enough money and time, our future fill-ups might come not from the ground, but from the fungus among us.

Learn more:

Read Dr. Strobel's paper here. [PDF]

A podcast of Dr. Strobel talking about myco-diesel is available here.

[Photo Credit: Montana State University/ Gary Strobel]

Five Axis injects 60's racecar cool into.... a Yaris?

Since Troy Sumitomo founded Five Axis Design in 2002, his Toyota-centric carrozzerria has always been known for unconventional designs executed with great skill. Well, this year's SEMA project car was no exception.

Who else but Troy could look at the plain-jane, commuter car lines of a Yaris hatchback and think of building a 60's-inspired roofless racer?

With the idea of paying homage to the Toyota 7 — one of many legendary Japanese race cars — in mind, Sumitomo set out to build a stripped-down, no-nonsense driver's car.

Off came the roof, then most of the windscreen followed by all of the interior. In it's place, a custom hard tonneau cover, turning the Yaris into a single seater with a fairing that frames the drivers headrest. The US-spec bumpers, headlights and taillights were all removed, to be replaced by their JDM counterparts, taken from the Vitz RS.

Under the hood, Sumitomo and his crew knew that the stock 105-hp 1.5-liter four banger wasn't going to do the job if left unmolested. So on went a TRD-designed Roots supercharger and custom cold air intake. Paired with a prototype exhaust header designed by DC Sports and backed up by a GReddy titanium exhaust, the combo added another 60 horsepower and more importantly, about 70 pound-feet of torque.

Countering the added go with whoa is a set of GReddy disc brakes, using 282 mm rotors clamped by six-piston calipers up front and two-piston calipers out back. The custom built brakes are framed by a set of Sumitomo's own rims. 17-inch diameter and 7.5 inches wide, the FIVE: AD S6 rims are powder-coated in a satin gunmetal color and wrapped in 225/45 R17 Yokohama tires sporting a custom tread carved by the designers at Five Axis.

Ensuring the Yaris Club lives up to its racing credo is a set of Tein Super Street coil-over dampers, with a TRD Yaris strut brace up front. To stiffen the Yaris' chassis and retain the structural strength lost by removing the roof, the interior is framed by a very stout perimeter cage, with a roll hoop integrated into the fairing behind the driver's seat.

As for the interior, there's not much left. A Sparco steering wheel, racing seat, shift knob and pedals replace the stock Yaris equipment. A TRD Vitz RS gauge cluster sits in a custom housing braced by a brushed aluminum frame. And smack dab in the middle of the dashboard is custom designed rear-view mirror that looks like it was plucked off the 7 itself.

The only bit of un-futzed-with Yaris interior I could find was the interior door lever on the driver's side. It's buried under the mass of the car's bright red roll cage; you really have to hunt for it.

Which brings us to the paint.

Some of you won't recognize the Toyota 7 in any context outside of Gran Turismo 4. But despite that, the 7 was a remarkable machine in its day. At a time when big block V-8s ran the table, the 7 took the opposite path, introducing the era of turbocharging, overhead cams and small-displacement, high-output motors that we all take for granted today.

So to see a Yaris wear the 7's searing crimson and white so perfectly is a little confusing, very satisfying and more than a bit frustrating.

Confusing, because a Yaris is best known as a commuter car.

Satisfying for memories it evokes -- a time when Toyota built sports cars for the common man.

Frustrating, because it takes a visionary like Troy Sumitomo to create a new one.

Toyota, are you listening? [Five Axis]

GM posts $4.2 billion Q3 loss; exits Chrysler merger talks

Over the last three months ending Sept 30, General Motors has lost $46 million each day.

Announcing its third quarter earnings today, General Motors posted a $4.2 billion dollar loss, its fifth straight losing quarter and in an amount far greater than analysts had expected. In response, GM shares fell 13 percent to close today at $4.16m amidst doubts about the company's cash reserves.

“The third quarter was especially challenging for the auto industry. Consumer spending, which represents close to 70 percent of the U.S. economy, fell dramatically, and the abrupt closure of credit markets created a downward spiral in vehicle sales,” said Rick Wagoner, GM Chairman and Chief Executive Officer in a statement.

Tight credit, rising unemployment, declining income, falling stock markets, and continuing deterioration in the housing market have all contributed to an abrupt halt in consumer spending. Many customers who still intended to buy or lease a car this summer were denied financing, or found the cost of financing prohibitive.

In response to today's earning report, the beleaguered automaker said it would cut white-collar jobs and slash next year's capital spending budget by $2.5 billion in attempt to cope with the troubled economy. Including job cuts made in July, more than 7,000 salaried and contract positions are being eliminated, trimming spending on salaries by $500 million.

This afternoon, Wagoner renewed his pleas for low-interest loans from the U.S. Treasury. “The U.S. government’s actions to help stabilize the credit markets and eventually ease the credit crunch are an essential first step to the economy’s and the auto industry’s recovery, but further strong action is required.”

The biggest problem confronting GM is a lack of cash to pay it's suppliers and operating costs. Most of the company's funds are tied up in factories or tooling; without an injection of capital, analysts predict that GM will run out of cash by the second quarter of 2009.

Finding new lenders will not be easy, either. In response to the $46 million per day cash burn, Standard & Poor's lowered GM's debt rating further into junk status, from B- down to CCC+. "We now believe GM will use much more cash this year than our previous estimate of as much as $16 billion in its global automotive operations," said Standard & Poor's credit analyst Robert Schulz in a statement.

The 'will-they, wont-they' romance is over: GM kills Chrysler merger talks
Without mentioning Chrysler verbatim, Wagoner confirmed the end of negotiations with Chrysler to Automotive News.

"We have recently explored the possibility of such an acquisition based on the analysis that it would strengthen our industry position in the long term," Wagoner said. "we are better off to put 100 percent of our efforts on the liquidity side. We've set aside such (acquisition) actions as a near term priority."

Chrysler issued its own statement separately, saying the company would continue to work on returning to profitability. "As an independent company we will continue to explore multiple strategic alliances or partnerships as we investigate growth opportunities around the world that would aid our return to profitability."

Majority shareholder, Cerberus Capital Management declined to comment.

So what's next for GM?
In short, a fire sale.

The automaker has already killed the next generation of its full-size sport-utes and is ramping up efforts to sell the ailing HUMMER brand. Today, GM said it would put its ACDelco aftermarket parts business up for sale, a move the company expects will raise another $2-$4 billion.

Wagoner reiterated today that bankruptcy is not an option and that the company "will take whatever actions we can to avoid it."

But Wagoner's pledge will be hard to uphold given the state of the economy. Ford Motor Co. posted a $3 billion after-tax operating loss for the third quarter today, and said it too would cut costs further to preserve cash.

Both automakers said that U.S. sales will worsen next year. GM forecast its 2009 U.S. sales at 11.7 million units; if true, next year will be the company's slowest since 1982. In 2010, GM predicts US sales will rise to 12.7 million unit -- over 4 million less than the automaker's 10-year average ending last year.

[GM,AN]

World's largest Lamborghini dealer shuts its doors

Last night — without explanation from either the dealer's owner or parent company Volkswagen — Lamborghini of Orange County, the world's largest Lamborghini dealer, abruptly closed its doors.

Across the nation, dealers have closed on account of slow sales or the inability to extend credit lines. But last year, the Southern California dealer sold ten percent of all Lamborghinis world wide. Furthermore, most of the Italian automaker's production is custom-ordered and paid for in advance.

All of which makes the sudden closing rather puzzling.

The dealer's website is still up at this hour, but phone calls go unanswered. There are no directions for those who have made appointments for service or have a car on order through the Orange County dealer.

The Orange County Business Journal reported tonight that Lamborghini SpA is attempting to help the dealership reopen.

While the automaker declined to comment on specifics, Pietro Friegerio, chief operating officer for Lamborghini SpA told the Journal that the sudden closure was their first priority.

Vik, Nora, Sossi and Astrid Keuylian own and run Lamborghini Orange County.

Friegerio said the management at Lamborghini Orange County made a few "unfortunate business decisions, independent of the automaker, which have caused the current issues that they are trying to resolve now.”

For now, owners will have to turn to Lamborghini Beverly Hills or Lamborghini San Diego for service or repairs.

[OCBJ]

Nissan intros new budget-leader Versa 1.6; zero percent leases for five models

With automakers everywhere struggling to turn a profit, many are returning to the formula of budget-conscious cars to lure used car buyers into dealer showrooms.

For 2009, Nissan will lay claim to selling the cheapest new car on sale in America with the Nissan Versa 1.6 hatchback.

Priced at $9,990, the new trim Versa offers a smaller 1.6-liter DOHC four-cylinder engine good for 107 horsepower.

Paired with a standard 5-speed manual transmission or an optional 4-speed automatic transmission, the Versa 1.6 won't win any races, but it will save money at the pump.

Fuel economy is rated at 26 mpg city/34 mpg highway with the 5-speed manual and 26 mpg city/33 mpg highway with the 4-speed automatic.

For a sub-$10K car, the Versa 1.6 is still well-equipped. Power locks & windows, a decent 4-speaker AM/FM CD stereo and ABS brakes are all standard, as are dual front airbags.

Combined with the new-car warranty that no private-party used car can offer, the Versa 1.6 makes a convincing case for itself as a basic commuter car.

The Versa 1.6 will be in dealer showrooms starting Nov. 18.

Special lease offers on Versa, Sentra, Altima, Rogue and Murano

In other news, Nissan has also announced zero-percent financing for 36 months for five models:

That the Murano crossover and Rogue compact SUV qualify should come as no surprise. Both are relatively thirsty SUVs with combined EPA gas mileage in the mid-20s.

For sedan buyers on a budget, the Versa and Sentra compact sedans and the Altima mid-size sedan all qualify and are worth checking out. The down payment varies depending on the model and trim, but each lease is built upon a $199 monthly payment for 36 months.

The lease program started yesterday and will continue through the end of November.

[Nissan]

BMW cancels production version of Concept CS sedan

In a statement today, BMW CEO Norbert Riethofer said the company will not produce a production version of the Concept CS sedan concept first seen at the 2007 Geneva Motor Show.

"Difficult business conditions and the volatile climate on the market mean that it is as good as impossible from today's perspective to make a reliable prediction of the earnings outcome for 2008," CEO Norbert Reithofer said in a statement.

The production version of the Concept CS would have competed in a small and high-priced market. It's primary competitors would have been the Mercedes-Benz CLS, Porsche Panamera and Maserati Quattroporte.

Production would have been limited, and with sales tanking industry wide, the Concept CS failed to make a case for itself.

"At the moment we do not need that kind of brand shaper", said Reithofer.

The decision was made after a very grim third quarter sales report. The German automaker's return on sales fell below 1.3 percent, forcing the company to focus intently on maintaining a profitable model range.

BMW abandons 2008 profit target
Following today's announcement, the automaker said it could not guarantee its earlier 2008 profit forecast in light of the troubled auto sales market.

Earnings before interest and taxes fell to 387M euros in the third quarter, well below industry analyst's earlier estimate of 574M euros.

The company said it would make additional production cuts to maintain profitability, reducing output by at least another 40,000 units on top of the 25,000 the company cut earlier this year.

To date, the automaker has made a five percent cut in production compared to 2007.

[BMW, AN]

GM, Chrysler lead horrific month as October sales plunge

Falling gas prices and rising inventories weren't enough to offset a tight credit market, leading to another awful month of sales for all automakers.

On average, October sales were down 32 percent from a year ago, with General Motors hit the hardest. Not only did GM's HUMMER brand lead the industry with sales off by 64 percent, but the rest of the GM portfolio followed closely behind.

Cadillac and Saturn sales fell about 55 percent, GMC trucks were down 52 percent, followed by Pontiac, Buick and Chevrolet, which were all down by at least 40 percent.

The decline is largely due to tighter lending policies adopted by GMAC Auto Finance. With GM's in-house lending unit refusing loans to buyers with credit scores below 700, a large percentage of prospective customers were unable to qualify for a loan.

Possibly the worst month since World War II
"If you adjust for population growth, this is probably the worst industry sales month in the post-WWII era," said Mark LaNeve, GM's vice president for sales and marketing, speaking with Automotive News. "Until the credit markets open up and consumer confidence improves, the entire U.S. economy, and any industry like autos that relies on financing, will suffer."

To spur sales, GM said today it will start its annual Red Tag Sale early this year. The event - which normally runs from Thanksgiving weekend to January 5, will instead start tomorrow, with some GM vehicles carrying up to $7,250 in cash incentives.

Chrysler sales fell 50 percent, trailed by Jeep and Dodge, down 32 and 27 percent respectively. Ford sales were off 28 percent from a year ago.

So far only two automakers have reported monthly sales increases this year: Toyota in April and GM in January. This month, Toyota's decline was lead by its Lexus unit, down 35 percent. The Toyota brand retained its position as the nation's best-selling brand, ahead of Ford and Chevrolet.

MINI posts gain, Audi bucks the downward spiral
Among the few to post gains were BMW's MINI brand, up 56 percent. Audi, whose sales were up by less than one percent were weighed by parent company Volkswagen AG, whose sales fell by nearly 8 percent.

"This is the toughest economy we've seen in a long time," Mark Barnes, COO of VW Group of America, said in a statement.
[AN]

[Photo: Flickr.com; Original by Broken Wing Productions. Post-processing by David Moll.]