Birthing a car is always difficult, and Tesla has seen its share of problems. The biggest hurdle to getting its all-EV Roadsters in customers’ garages has been the transmission. Initially the company wanted to have a two-speed unit, but the unit from its first supplier, X-Trac, wasn’t durable enough. Tesla then contracted Magna to help build a tranny, before a final try at designing its own transmission also ended abortively. In the end, to get cars rolling out the door, changes were made to the motor so that a single-speed transmission could be fitted.

Magna doesn’t seem upset that it was just a stepping stone – that’s business. What the company would like, however, is to get paid for the work it performed. Magna is also telling Tesla “told you so” by claiming to have suggested a single-speed unit back in 2006. To recover its $5.6 million, Magna has filed suit in San Mateo to force the issue, which coincidentally comes not long after Tesla filed suit against Fisker, which it initially hired to designs its next product, the WhiteStar sedan. What goes around comes around, we guess. The legal wranglings haven’t yet made a dent in Tesla’s operations, but Magna’s lawsuit could bolster the case of frustrated buyers who have yet to receive their cars, should those customers decide to also take to the courts.

Popularity: 1% [?]

Porsche is embarking on a collision course with the government of Lower Saxony. The German state in which Wolfsburg, where VW is based, holds a 20.1% interest in the Volkswagen Group. But Porsche, which currently holds 31% of the company and is aiming to acquire majority interest, is on a campaign to reduce the influence of the state government on the auto giant’s governance.

While most decisions at most companies require a 50% plus one majority, or possible a two-thirds majority for major issues, Volkswagen’s regulations stipulate that “significant decisions” need to be approved by an overwhelming 80% +1 in order to pass, essentially giving the state government a veto over any major decisions to be undertaken by the company’s shareholders. While a ruling handed down by the European Court of Justice mandated that certain laws put in place to protect Volkswagen from a hostile take-over were illegal, the governor of Lower Saxony insists that its 20% +1 blocking power was perfectly legal and that his government would oppose Porsche’s proposal to amend the regulations.

(source: detroitnews)

Popularity: 1% [?]

For the environmental conscience of the style-conscious elite, we have good news and bad news. The good news is that there’s finally a more suitable alternative to the Toyota Prius. The bad news is that it’s arguably no better looking. But like moths to the limelight, the big names have flocked to the new BMW Hydrogen 7. After being adopted by such stars as Cameron Diaz, Will Ferrell, Jay Leno and Placido Domingo, the latest of the rich and famous to receive the keys to the luxo-enviromobile is none other than His Serene Highness Prince Albert II of Monaco.

The monarch of the tax-haven Mediterranean principality took delivery of the Hydrogen 7 at the Ever Monaco environmental exposition in Monte Carlo, where Prince Albert proclaimed, “I monitor very carefully, in the automobile sector in particular, the development of new technologies”. Hmm, guess that means the crown prince reads Autoblog – or our sister-site Autoblog Green, which reported this particular piece of news previously – on a fairly regular basis then. Welcome to the site, your highness.

Unfortunately this means that with only 100 examples of the car being offered to the public, that’s one less for the rest of us. Press release after the jump.

Popularity: 1% [?]

Michigan roads are a mess. The orange barrels keep popping up all over the place, but for every road that is fixed, two begin to crumble. The problem has been ongoing for decades, and it has gotten to the point where finding Chevette-sized craters can net you some serious prizes.

he Michigan Transportation Team staged a month-long competition to get pictures and stories of the best potholes in Michigan, and the nearly 70 contestants captured some real craters. Four, first prize winners received $318 “service center scholarships” for their troubles, and the MTT also named four honorable mention photos due to the abundance of quality entries. The four winning photos are pictured above, and the other pics are available by clicking on the link below.

If you neglected to send in a picture of a concrete Michigan man-hole, you’ll likely have a good chance to win next year, since the mitten state has a $2.7 billion road repair shortfall. Last month I bent my front passenger rim (pictured, right) on a Pontiac pothole, so I’ve already got my entry. Hit the jump to read the MTT press release.

(source: Autoblog)

Popularity: 1% [?]

Manhattan’s latest attempt at disguised taxation has ground to a halt in the most trivial fashion. Mayor Michael Bloomberg’s proposed congestion charge for cars and trucks headed into the city below 60th street was summarily ignored by lawmakers. Rather than a contentious fight in the state assembly, the clock was simply run out and the bill died without being put to a vote. The failure of Bloomberg’s plan means that New York City will also miss out on 350 million federally earmarked dollars for mass transit, and other ways to improve air quality and decrease gridlock must be sought. Even if it had passed, Manhattan’s fee of $8 for cars and $21 for trucks would have been lower than what Red Ken charges for entry to London proper. While the goal of decreasing gridlock and improving air quality is admirable, we can see how the congestion charge would further squeeze those who can least afford it. To be sure, an alternative to Manhattan’s current traffic would be welcome, and embracing change isn’t always easy, but lets see what they come up with next.

Popularity: 1% [?]

It isn’t uncommon for automotive enthusiast groups to organize gatherings in large commercial parking lots. Quite often the local businesses even support the groups due to increased sales generated by the crowds. Such is apparently not the case in Riverside, California. The city believes large automotive-focused get togethers promote street racing and that must also be the purpose of any vehicle equipped with performance modifications. To quell the situation, last Friday night around 11PM, police surprised 150 vehicles and their owners during a meet at Canyon Crossing shopping center. Fifty police cruisers from Riverside County, Irwindale, Ontario and a few other regions were paid overtime to block off parking lot exits and issue citations. Tickets were written for illegal modifications, paperwork violations, window tint and having no front license plate. Twenty vehicles were even impounded due to suspected stolen parts.

The funds for the crackdown, and others like it, get drained from the California state gas tax account. Typically the gas tax goes towards transportation maintenance and improvements, like better roads and public transport. Rather than put all the money into aiding traffic flow, California’s math calculations have determined that more revenue can be generated by handing out fix-it tickets with increased frequency. Of course, that is as long as the violation fares are more than law enforcement overtime expenses. Even still, most likely a few folks will fight their citations and thus drain more funds from the state government through the legislative process

Popularity: 1% [?]

As part of the 2008 Global Automotive Survey, the automotive division of law firm Dykema Gossett PLLC surveyed 46 leading automotive executives in America on their opinions regarding the upcoming presidential race and the forecast for the U.S. automotive industry. The picture that the respondents painted in their responses was anything but bright.

Regarding the three leading presidential candidates, 70% favored Republican Senator John McCain. However, the survey indicated that the favor was due less to McCain’s record regarding the automobile industry and more in juxtaposition to those of rival Democratic candidates Senators Hilary Clinton and Barack Obama, the latter garnering the most opposition with 57% of respondents viewing an Obama administration as having a potentially negative impact on the industry. The survey also addressed the executives’ attitudes towards the future of the carmaking industry in America, in which not a single respondent conveyed a positive outlook, while 87% projected a negative outlook with the remaining 13% responding neutrally.

Popularity: 1% [?]