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How did the Federal Government ensure that the public's money was well spent in the Chrysler Co. bailout of 1979? Explains Sarah A. Webster of Automotive News, an oversight board was created to watch Chrysler carefully as it moved through tough times with government assistance. That board consisted of the chairman of the Federal Reserve Board, the U.S. comptroller general, and the secretaries of Treasury, Labor, and Transportation.

The board appointed a Chrysler staff of approximately 20 individuals tasked as liaisons between the government officials and Chrysler. They monitored and worked with Chrysler as it pushed through its problems, and reported back to the board so that all parties were satisfied with the progress and methods used.

While Congress was working to bail out Chrysler, Webster points out, many felt that strict conditions had to be imposed on the deal, while others were in favor of letting the company fail altogether (sentiments that echo attitudes towards Detroit's Big Three today). Congress responded by working hard to enact tough conditions taking everyone's concerns into account. But were the K-Car and the minivan enough? And just how did Chrysler end up back in the same mess 30 years later?--Colin Mathews

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Speculation runs rampant as to why Detroit's Big Three find themselves in their current predicament. U.S. News and World Report's Rick Newman has his own view, and below we'll give you a quick run through his short list of the vehicles that caught Detroit with its pants down and its eyes focused on a quick buck. Wonder if Dave Letterman would cackle through this top-ten list out on his late-night comedy show...

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1. Ford Pinto. From the dark days of Detroit playing catch up to its lean, mean foreign competitors, Detroit's old school mentality of low-tech small cars built with big car engineering (small interiors, big exteriors, wasted space, inefficient packaging) just didn't impress savvy consumers. Sure, they sold initially in huge numbers, but when haphazard engineering resulted in a raft of exploding fuel tanks and horrendous reliability, class-action lawsuits sealed the Pinto's fate for good. Not a proud chapter in the history of the American automobile.

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2. Chevrolet Cavalier. Ahh, the GM J-Body. Another example of poor space efficiency, the Chevy Cavalier/Pontiac Sunbird/Buick Skyhawk/Olsmobile Firenza/Cadillac Cimarron (GASP I'm out of breath) featured uncomfortably high dashboards, asthmatic four cylinder pushrod engines, sloppy and unresponsive three-speed automatics, and oversprung/underdamped suspensions. The ultimate insult to the American consumer came in Cadillac form, points out U.S. News & World Report: "GM even added some lipstick and high heels and tried to peddle the upgrade as the Cadillac Cimarron." While this vehicle sold in the millions, brand-loyal consumers learned their lesson. It's no wonder they're loathe to buy American small cars now. And yet GM persists, bringing us the Pontiac G3 to name but one mediocre example.

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3. Chevrolet Astro. If you didn't love the Chevrolet Lumina APV/Pontiac TransSport/Oldsmobile Silhouette minivans with their Karl Malden proboscises, you could always opt for the sturdy old Chevy Astro/GMC Safari twins. With their gravelly 4.3-liter pushrod sixes huffing way beneath the huge center-mounted hump between passenger and driver, bus-style driving position, and very mediocre reliability, these vans kept an ancient design alive that other automakers had abandoned decades before. The Ford Aerostar was a marginally better vehicle, but Chrysler stole the show with its lightweight, car-based, forward-thinking minivans that saved it from obscurity. Says U.S. News: "The Astro drove like a bread truck, and consumers noticed. It also earned the worst safety ratings in its class."

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4. Ford Taurus. Much like the minivan was for Chrysler, the Taurus and Sable proved that Detroit wasn't comatose. The Taurus became a bestseller, points out U.S. News, and rightfully so. A forward-thinking styling ethos, fresh and ergonomic interior, good space efficiency, and sprightly driving dynamics gave Americans a vehicle they could be proud to own. So what did Ford do? "For the next 20 years, Ford let quality declien and neglected the family sedan, while pouring love and money into trucks and SUVs," claims U.S. News. The 500 sedan followed, and "went on record as one of the most short-lived models ever." A revival of the Taurus nameplate to a "bastardized 500" was too little, too late: "by then, the damage was done."

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5. Ford Explorer. "The Explorer helped create an addiction that lasted 15 years," criticizes U.S. News' Rick Newman. He goes on to quote David Magee, author of How Toyota Became No. 1: "executives could not see beyond the green piling up at their feet."  Soon GM and and Chrysler were in on the SUV game, pumping out Trailblazers and Durangos en masse. In this interesting, myopic game, suddenly the Big Three were competing against each other and ignoring larger trends in the market. Which brings us right to the current crisis.

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6.  Jaguar X-Type. If ever there was a mediocre bastardization of a luxury marque, it was this cramped Ford Mondeo sedan, tarted up with the Jaguar "J-gate" shifter, wood trim, and all-wheel drive. It was like Jag's very own Cimarron. "Jag purists were horrified," claims U.S. News, and buyers of BMWs, Lexuses, and Acuras were not swayed. NVH, interior materials, and driving dynamics did not bespeak luxury. Ford missed the mark with its attempts to make Jaguars, and recently sold the once-prestigious marque to Tata of India.

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7. Hummer H2. The Hummer division had quite the quick rise and fall, existing for less than a decade. The big, brash H2 thumbed its nose at efficiency, at girly men in crossovers, at gas prices, and at anything and anybody who didn't like its rock crawling prowess and angry get-out-of-my-way demeanor. And now, everyone who the H2 pissed off is chuckling, as Americans who thought they needed the bruiser are quickly coming to their senses and realizing they like fuel efficiency, they don't need rock crawling capability for shopping mall parking structures, would rather not pay a grand for new tires, and are actually a bit embarrassed to be seen driving a huge plasticky dinosaur with chassis bits from GM heavy duty trucks and leftover fuel caps from the ill-fated Pontiac Aztek. All in all, probably the last time GM will send a linebacker to do the job of a quarterback.

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8. Toyota Prius. Rick Newman draws a painful comparison: "While GM was spending $1 billion to build up the Hummer franchise, Toyota was spending $1 billion to develop a high-mileage hybrid - even though gas prices were still low." Maybe the Prius was just a guess, a gamble...but regardless, it was an incredibly prescient one. What did GM say when the Prius debuted in 2000? "Ahh, the Prius, it's just for those GreenPeace treehuggers." Today, Toyota can hardly keep up with demand for the Prius. As for GM? Well, uh, it brought us the two-mode Escalade Hybrid and GMC Sierra Hybrid. Combined mileage just north of 20 mpg hardly astounds, though it's better than city mileage in the low teens. But make no mistake - not even hybrid powertrains can stop the sales nosedive of full-size pickups and SUVs.

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9. Chrysler Sebring. U.S. News muses: "Did Chrysler engineers set out to build the world's most boring car?" Well, According to Consumer Reports, they did manage to produce a vehicle with the lowest predicted reliability score - 283 percent lower than average - the Chrysler Sebring Convertible. Ouch. Not only does the Sebring lack character, driving verve, and interesting styling, but its also destined to be a reliability nightmare. "The only way to sell marginal cars," says U.S. News, "is with steep discounts, which money-losing automakers can no longer afford." They conclude: "this model seems destined for extinction."

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10. Jeep Compass. It seems even Jeep has gotten in on the badge-engineering game, having produced the weak-kneed Compass/Patriot/Dodge Caliber triplets. All three end up as less than the sum of their parts. A decent 2.4-liter four, co-developed with Hyundai, is castrated by an oddball CVT transmission. The once-proud Jeep nameplate is hopelessly watered down by the front-drive econocar underpinnings, hardly the stuff of Jeep's trail-rated reputation. Interior materials seem destined for mail-delivery duty, with harsh plastics and cheap seams in abundance. U.S. News claims that "Chrysler has oversaturated its strongest brand lineup in a desperate attempt to boost sales." They end with a "message to Detroit: consumers aren't that stupid."

GM, Ford, and Chrysler have got to think better, and longer-term, as they prepare to borrow huge sums from the American taxpayer. We know they can do it; witness the Cadillac CTS, Chevy Malibu, 2010 Chevy Camaro, Buick Enclave, Dodge Ram, Ford Flex, and Ford Fiesta. They've got great new advancements coming down the pike, but already delays have begun as money becomes ever more scarce. Will the buying public get a chance to see and drive great new products, or will they become stillborn victims of poor planning?--Colin Mathews
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Part Storm Trooper, part Vector W8--and all fuel-cell vehicle?

Honda's showstopper at the Los Angeles auto show is the FC Sport, a sportscar that borrows the fuel-cell powertrain from the FCX Clarity and wraps it in a dramatically wedgy body that looks like Jerry Weigert's been given a day pass to the Honda design studios in Pasadena.

The official press release follows, along with live shots from the L.A. show floor:

Honda today revealed the Honda FC Sport design study model, a hydrogen-powered, three-seat sports car concept, at the 2008 Los Angeles Auto Show.

The FC Sport emphasizes the design flexibility and potential of Honda's V Flow fuel cell technology - already deployed in the Honda FCX Clarity sedan - and reconfigures it into a lightweight sports car design with an ultra-low center of gravity, powerful electric motor performance and zero-emissions. The design study concept is inspired by supercar levels of performance through low weight and a high-performance, electrically driven fuel cell powertrain.

"The Honda FC Sport explores how to satisfy automotive performance enthusiasts in a world beyond petroleum," said Dan Bonawitz, vice president of American Honda Motor Co., Inc. "People who love sports cars will still have a reason to love in a hydrogen-powered future."

The high-output Honda fuel cell powertrain and a sleek, aerodynamic body contribute to the vehicle's performance potential. A modular approach to fuel cell component packaging and the electric drivetrain contribute to the FC Sport's low center of gravity with the majority of vehicle mass distributed between the axles, creating the balanced weight distribution sought after in sports cars.

The ideal placement of the Honda V-Flow fuel cell stack and related components demonstrates the benefits of a platform-specific, hydrogen-powered fuel cell powertrain. The FC Sport is configured to accommodate a custom-formed high-power fuel cell stack, located between the rear seats, and a battery pack placed low in the middle of the vehicle. The electric motor resides just forward of the rear axle. Two fuel storage tanks, visible from above, are located above the rear axle.

The optimal placement of fuel cell components for performance also allows for a relatively large passenger cabin by conventional supercar standards with enough space for three seating positions. The interior layout focuses primarily on the driver with a racecar-like center driving position. The enclosed canopy opens upward from the rear to allow for entry and exit. Two rear passenger seats flank the driver's left and right side.

The sleek, low-profile body is designed to convey a high-technology appearance with sculpting that combines angular shapes in the front of the vehicle that taper into geometric, hex forms in the rear. The rear hex forms house cooling radiators for the fuel cell. Formula 1-style barge boards behind the front wheels enhance high speed aerodynamics and convey the vehicle's racing pedigree. The hydrogen storage tanks, visible from the rear deck, showcase the FC Sports fuel cell technology in much the same way that a "naked bike" motorcycle showcases its engineering technology.

The glacier white body color conveys the FC Sport's clean environmental aspirations while the dark wheels and deeply tinted glass provide a symbolic contrast befitting of the vehicle's unique combination of clean power and high performance. Green construction techniques further contribute to a reduced carbon footprint. An organic, bio-structure theme is carried through to the body construction where exterior panels are intended to use plant-derived bio-plastics.

The Advanced Design Studio of Honda R&D Americas, in Pasadena, California, developed the FC Sport design study with the primary objective of using existing fuel cell technology as the basis for an ultimate Honda sports car. Designer Jason Wilbur led the design efforts.
Honda R&D Americas, Inc. began its operations in California in 1975 with local market research activities and has steadily grown its capabilities over the past 33 years to include all aspects of new vehicle design and development. Recent development efforts include trend-setting products such as the Honda Pilot, Ridgeline, Element, Civic Coupe and Civic Si.

In 2008, the company opened two new design centers in Southern California: the Acura Design Studio (Torrance), for the research and design of new Acura products; and the Advanced Design Studio (Pasadena), for the exploration and development of advanced design themes for both Honda and Acura.

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Still trying to decide if it is GM's excitement division, economy department, or swoopy styling central, Pontiac brings us the Daewoo-designed Chevy Aveo G3, which it claims "emphasizes value without compromising a fun driving experience." Uh-huh. This is brand-engineering at its worst. Didn't they tell us the same thing when they debuted the miserable little LeMans econobox of the 80s? Surely the mighty GTO is turning over in its grave.

At 34 mpg highway, even GM's own Chevy Malibu hybrid matches its economy, and does it with far more power, panache, and comfort. Pontiac claims the G3 is "surprisinly well-equipped, with standard air conditioning," leading us to believe it might well be equipped with crank windows and a blaupunkt stereo with two paper cone speakers. And only four speeds in the optional automatic transmission don't help its case for either performance or max economy. At least it does feature the lowest starting price of any Pontiac. But should one have to skimp on equipment and refinement just to get an affordable vehicle?

Over at Honda, they've proven you can have style, fun, and great driving dynamics with their new Fit. Come on, Pontiac. You risk alienating your high-performance fans, while offering nothing special in the economy car realm. American drivers now know that economy cars needn't be miserable and thin. Why would anyone in their right mind spend more money to get into a G3, with a starting price of $14,995, when they could get into a 2009 Fit for $14,550? Not a compelling buy, nor a compelling drive. --Colin Mathews

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GMC claims its 2009 Sierra Hybrid pickup combines the fuel efficiency of a midsize sedan with uncompromised full-size truck capability. And while the first claim is a bit of a stretch at least on the highway side of things at 22 mpg, the 21 mpg city rating is indeed competitive with powerful sedans anyway, and both city and highway ratings blow many competitive full size trucks away. Making the impressive economy possible is GM's two-mode hybrid system, which uses electric motors housed within the transmission to aid city acceleration, removing most of the burden of pushing all that mass around in stop and go driving.

But why did GM insist on fitting a 6.0-liter V-8 cranking out 332 horsepower for the hybrid application? Performance is definitely important to truck guys and gals, but it seems a shame that GM avoided the opportunity to deliver a full-size truck that soars past 25 mpg on the highway. With its high torque electric motors ensuring healthy around-town performance, it seems superfluous to have all those cubic inches sucking gasoline underhood. In fact, in GM's upcoming baby Duramax Diesel, efficiency is rumored to meet or exceed 30 mpg, and its workhorse engine should easily meet the 6,100 tow rating of the Sierra Hybrid. At 4.5-liters and including a turbocharger that boosts performance only when truly needed, the Duramax approach seems a more intelligent one for finding the happy medium between performance and eficiency. Mercedes makes due with only 3.0-liters for its 5,000 lb.+ GL320 BlueTEC clean diesel SUV, and as such that vehicle edges close to 30mpg on the highway.

The Sierra Hybrid starts at a pretty steep $39,365 for the most basic 2WD setup, no small amount of change. But Federal tax incentives of up to $2,200 for many customers help ease the sticker shock and recoup the price of the tech-heavy hybrid system. And GM's new trucks have made leaps and bounds in refinement, comfort, and drivability, so rest assured this is no crude beast of burden. However, unless you frequently haul big loads or seriously need the capability of a pickup, you'd be better served by one of GM's own mild hybrid sedans (i.e. Chevy Malibu Hybrid) that easily surpass 30 mpg on the highway. Or perhaps a new clean diesel like the VW Jetta TDI, which handily earns 40+ mpg on the highway (or 58 mpg in the hands of mileage-busting couple John and Helen Taylor).

GM co-developed the two-mode system with BMW, Mercedes, and Chrysler, and it can be found also on the recently departed Chrysler Aspen/Dodge Durango SUV hybrids (does the world really want big heavy hybrids?), on GM's Escalade and Tahoe hybrids, as well as on BMW's sybaritic new 7-series active hybrid. None of these vehicles can be considered fuel misers, but we welcome their significant reduction in consumption, moving them from from the uber-thirsty teens to the semi-thirsty 20s. That's progress we can believe in, and change we're glad auto companies are investing in.--Colin Mathews

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